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StockCode:603883CompanyAbbreviation:LBX
2024AnnualReport
IntheeventofanydiscrepancybetweentheChineseandEnglishversions,theChineseversionshall
prevail.
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ImportantNotesI.TheCompany'sBoardofDirectors,BoardofSupervisors,anddirectors,supervisors,seniorexecutiveswarrantthetruthfulness,accuracy,andcompletenessofthecontentofthisannualreport,confirmthattherearenofalserecords,misleadingstatements,ormaterialomissions,andassumeindividualandjointlegalliability.II.AlldirectorsoftheCompanyattendedthemeetingoftheBoardofDirectors.III.Ernst&YoungHuaMingLLPissuedastandardunqualifiedauditor'sreportfortheCompany.IV.TheCompany'sprincipalXieZilong,personinchargeofaccountingworkChenLishan,andpersoninchargeofaccountingdepartment(chiefaccountant)ShiLeideclare:Wewarrantthetruthfulness,accuracy,andcompletenessofthefinancialreportinthisannualreport.V.ProfitdistributionplanorplanforcapitalizationofcapitalreservesforthereportingperiodapprovedbytheBoardofDirectors'resolution
Accordingtotheproposalreviewedandapprovedatthe8thmeetingofthe5thBoardofDirectorsonApril29,2025,basedonthetotalsharecapitalontherecorddatefortheimplementationoftheequitydistribution,itisproposedtodistributeacashdividendofRMB0.8(taxincluded)forevery10sharesheldbyallshareholders.TheCompanywillnotissuebonussharesorconvertcapitalreservesintosharecapital.AsofMarch31,2025,theCompany'stotalsharecapitalwas760,095,613shares.TheproposedcashdividenddistributionisRMB60,807,649.04(taxincluded).Thetotalproposedcashdividendfortheyear2024(taxincluded)isRMB312,216,098.28(includingtheinterimdividendofRMB251,408,449.24for2024),representing60.15%ofthenetprofitattributabletotheparentcompanyfor2024.VI.Riskstatementregardingforward-lookingstatements
√Applicable□NotApplicable
Theforward-lookingstatementsinvolvedinthisreport,suchasfutureplans,developmentstrategies,donotconstitutesubstantialcommitmentsbytheCompanytoinvestors.Pleasepayattentiontoinvestmentrisks.VII.Whetherthereisanynon-operationaloccupationoffundsbythecontrollingshareholderandotherrelatedpartiesNo
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VIII.Whetherthereisanysituationofprovidingexternalguaranteesinviolationofstipulateddecision-makingproceduresNoIX.Whethermorethanhalfofthedirectorscannotguaranteethetruthfulness,accuracy,andcompletenessoftheannualreportdisclosedbytheCompanyNoX.MajorriskwarningDuringthereportingperiod,therewerenomajorrisksthathadasubstantialimpactontheCompany'sproductionandoperation.TheCompanyhaselaboratedindetailinthisreportonthevariousrisksitmayfaceduringitsproductionandoperation,aswellasthecorrespondingcountermeasures.PleaserefertoSectionIII"DiscussionandAnalysisbytheManagement",PartVI"Company'sDiscussionandAnalysisofFutureDevelopment-(IV)PotentialRisks".XI.Other
□Applicable√NotApplicable
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Contents
SectionIDefinitions ...... 5
SectionIICompanyProfileandMainFinancialIndicators ...... 8
SectionIIIDiscussionandAnalysisbytheManagement ...... 13
SectionIVGovernance ...... 43
SectionVEnvironmentandSocialResponsibility ...... 69
SectionVISignificantMatters ...... 73
SectionVIIShareChangesandShareholderInformation ...... 95
SectionVIIIPreferenceshareRelatedSituation ...... 103
SectionIXBondRelatedSituation ...... 104
SectionXFinancialReport ...... 104
| DirectoryofDocumentsAvailableforInspection | Financialstatementsbearingthesignaturesandsealsofthelegalrepresentative,thepersoninchargeofaccountingwork,andthepersoninchargeofaccountingdepartment |
| Originalauditor'sreportbearingthesealoftheaccountingfirmandthesignaturesandsealsofthecertifiedpublicaccountants | |
| OriginalsofalltheCompany'sdocumentsandannouncementsandthathavebeenpubliclydisclosedonthenewspapersdesignatedbyChinaSecuritiesRegulatoryCommissionduringthereportingperiod |
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SectionIDefinitionsI.DefinitionsUnlessthecontextotherwiserequires,thefollowingwordsshallhavethefollowingmeaningsinthisReport:
| LBX/Company/Group | means | LBXPharmacyChainJointStockCompany |
| LBXPharmaceuticalGroup/PharmaceuticalGroup | means | LBXPharmaceuticalGroupCo.,Ltd.,LBX'scontrollingshareholder |
| JanstarInvestment | means | JanstarInvestmentLimited,LBX'smajorshareholder |
| LanzhouHuirentang | means | LanzhouHuirentangPharmaceuticalChainCo.,Ltd.,LBX'swholly-ownedsubsidiary |
| ShaanxiLBX/ShaanxiCompany | means | LBXPharmacyChain(Shaanxi)Co.,Ltd.,LBX'swholly-ownedsubsidiary |
| ZhejiangLBX | means | LBXPharmacyChain(Zhejiang)Co.,Ltd.,LBX'swholly-ownedsubsidiary |
| GuangxiLBX/GuangxiCompany | means | LBXPharmacyChain(Guangxi)Co.,Ltd.,LBX'swholly-ownedsubsidiary |
| ShandongLBX/ShandongCompany | means | LBXPharmacyChain(Shandong)Co.,Ltd.,LBX'swholly-ownedsubsidiary |
| GuangdongLBX/GuangdongCompany | means | LBXPharmacyChainGuangdongCo.,Ltd.,LBX'swholly-ownedsubsidiary |
| TianjinLBX/TianjinCompany | means | LBXPharmacyChain(Tianjin)Co.,Ltd.,LBX'swholly-ownedsubsidiary |
| JiangxiLBX | means | LBXPharmacy(Jiangxi)Co.,Ltd.,LBX'swholly-ownedsubsidiary |
| ShanghaiLBX | means | LBXPharmacy(Shanghai)Co.,Ltd.,LBX'swholly-ownedsubsidiary |
| HubeiLBX | means | LBXPharmacyChain(Hubei)Co.,Ltd.,LBX'swholly-ownedsubsidiary |
| ShanxiBaihui | means | ShanxiBaihuiPharmaceuticalChainCo.,Ltd.,LBX'snon-wholly-ownedsubsidiary |
| HunanHuairen/HuairenPharmacy | means | HunanLBXHuairenPharmacyChainCo.,Ltd.(formerly"HunanHuairenGreatHealthIndustryDevelopmentCo.,Ltd."),LBX'snon-wholly-ownedsubsidiary |
| HenanLBX | means | LBXPharmacyChainHenanCo.,Ltd.,LBX'swholly-ownedsubsidiary |
| ForworldCompany/HunanForworld | means | ForworldMedicineLogistics(Hunan)Co.,Ltd.,LBX'swholly-ownedsubsidiary |
| JiangsuForworld | means | ForworldMedicineLogistics(Jiangsu)Co.,Ltd.,LBX'swholly-ownedsubsidiary |
| TianjinForworld | means | ForworldMedicineLogistics(Tianjin)Co.,Ltd.,HunanForworld'swholly-ownedsubsidiary |
| JiangsuLBX | means | LBXPharmacy(Jiangsu)Co.,Ltd.,ChangzhouWanren'swholly-ownedsubsidiary |
| Yaoshengtang/YaoshengtangCompany | means | Yaoshengtang(Hunan)PharmaceuticalCo.,Ltd.,LBX'sformerwholly-ownedsubsidiary |
| YaoshengtangTechnology/ChineseMedicineTechnology | means | HunanYaoshengtangChineseMedicineTechnologyCo.,Ltd.,LBX'swholly-ownedsubsidiary |
| HengyangLBX | means | LBXPharmacyChain(Hengyang)Co.,Ltd.,LBX'snon-wholly-ownedsubsidiary |
| HangzhouForworld | means | ForworldMedicineLogistics(Hangzhou)Co.,Ltd.,ZhejiangLBX'swholly-ownedsubsidiary |
| BeijingE-commerce | means | BeijingLBXE-commerceCo.,Ltd.,LBX'swholly-ownedsubsidiary |
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| AnhuiBaixingyuan | means | AnhuiBaixingyuanPharmacyChainCo.,Ltd.,LBX'swholly-ownedsubsidiary |
| Xi'anLongsheng | means | Xi'anLongshengPharmaceuticalCo.,Ltd.,ShaanxiLBX'swholly-ownedsubsidiary |
| Xi'anChangjia | means | Xi'anChangjiaPharmaceuticalCo.,Ltd.,ShaanxiLBX'swholly-ownedsubsidiary |
| HenanPharmaceuticalSupermarket | means | HenanProvincialPharmaceuticalSupermarketCo.,Ltd.,HenanLBX'swholly-ownedsubsidiary |
| YangzhouBaixinyuan | means | YangzhouBaixinyuanChainCo.,Ltd.,LBX'snon-wholly-ownedsubsidiary |
| MingyuanBeeIndustry | means | HunanMingyuanBeeIndustryCo.,Ltd.,whosecontrollingshareholderisTianyiVentureCapitalCo.,Ltd.,andactualcontrollersareMr.XieZilongandMs.ChenXiulan. |
| TianjinBinhaiLBX | means | LBXPharmacyChain(TianjinBinhaiNewArea)Co.,Ltd.,TianjinLBX'snon-wholly-ownedsubsidiary |
| WugongLongsheng | means | WugongCountyLongshengPharmaceuticalCo.,Ltd.,Xi'anLongsheng'swholly-ownedsubsidiary |
| LBXHealthPharmacy | means | LBXHealthPharmacyGroupChainCo.,Ltd.,Forworld'snon-wholly-ownedsubsidiary |
| JijiTrading | means | JiaxingJijiTradingCo.,Ltd.,ZhejiangLBX'swholly-ownedsubsidiary |
| QiutaoLBX | means | HangzhouQiutaoLBXPharmacyCo.,Ltd.,ZhejiangLBX'swholly-ownedsubsidiary |
| Baixingtang | means | HunanBaixingtangFamousDoctors'ClinicTraditionalChineseMedicineManagementCo.,Ltd.,LBX'snon-wholly-ownedsubsidiary |
| HunanBaixingtang | means | HunanBaixingtangFamousDoctors'ClinicTraditionalChineseMedicineOutpatientDepartmentCo.,Ltd.,Baixingtang'swholly-ownedsubsidiary |
| ChengduBaixingtang | means | ChengduBaixingtangMedicalCenterManagementCo.,Ltd.,Baixingtang'swholly-ownedsubsidiary |
| MingyuLongxing | means | HunanMingyuLongxingPharmaceuticalSalesCo.,Ltd.,LBX'snon-wholly-ownedsubsidiary |
| Xi'anBaixingtang | means | Xi'anBaixingtangZhangShiwuTangTraditionalChineseMedicineClinicCo.,Ltd.,LBX(Shaanxi)'swholly-ownedsubsidiary |
| ChangzhouRenminBaixingtang | means | ChangzhouBaixingtangRenminTraditionalChineseMedicineOutpatientDepartmentCo.,Ltd.,Baixingtang'swholly-ownedsubsidiary |
| ChangzhouHepingBaixingtang | means | ChangzhouBaixingtangHepingMedicalOutpatientDepartmentCo.,Ltd.,Baixingtang'swholly-ownedsubsidiary |
| ZhejiangHealth | means | LBXHealthPharmacy(Zhejiang)Co.,Ltd.,LBXHealthPharmacy'snon-wholly-ownedsubsidiary |
| Zhongbeiqiao | means | HangzhouZhongbeiqiaoClinicCo.,Ltd.,ZhejiangLBX'swholly-ownedsubsidiary |
| NingboHaishu | means | NingboHaishuLBXInternalMedicineClinicCo.,Ltd.,ZhejiangLBX'swholly-ownedsubsidiary |
| KunshanDuhao | means | KunshanDuhaoConvenienceChainCo.,Ltd.,JiangsuBaijiahui'swholly-ownedsubsidiary |
| JiangsuBaijiahui | means | JiangsuBaijiahuiSuhePharmacyChainCo.,Ltd.,LBX'swholly-ownedsubsidiary |
| TongliaoZeqiang | means | TongliaoZeqiangPharmacyChainCo.,Ltd.,LBX'snon-wholly-ownedsubsidiary |
| InnerMongoliaZeqiang | means | InnerMongoliaZeqiangPharmaceuticalCo.,Ltd.,TongliaoZeqiang'swholly-ownedsubsidiary |
| ChifengLBX | means | ChifengLBXPharmacyChainCo.,Ltd.,LBX'swholly-ownedsubsidiary |
| Longtaiyuan | means | TaizhouLongtaiyuanPharmaceuticalChainCo.,Ltd.,LBX'swholly-ownedsubsidiary |
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| ZhenjiangHuakang | means | ZhenjiangHuakangPharmacyChainCo.,Ltd.,LBX'swholly-ownedsubsidiary |
| NantongPuze | means | NantongPuzePharmacyChainCo.,Ltd.,LBX'snon-wholly-ownedsubsidiary |
| AnhuiLinjiayi | means | AnhuiLinjiayiKangfuPharmacyChainCo.,Ltd.,LBX'snon-wholly-ownedsubsidiary |
| EasyDrug | means | HunanEasyDrugTechnologyCo.,Ltd.,LBX'snon-wholly-ownedsubsidiary |
| JintanXinqianqiu | means | ChangzhouJintanXinqianqiuPharmacyCo.,Ltd.,LBX'snon-wholly-ownedsubsidiary |
| Sanpintan | means | WuxiSanpintanPharmaceuticalChainCo.,Ltd.,LBX'snon-wholly-ownedsubsidiary |
| JiangsuHaipeng | means | JiangsuHaipengPharmaceuticalChainCo.,Ltd.,LBX'snon-wholly-ownedsubsidiary |
| TongshengxiangTongjitang | means | NingxiaTongshengxiangTongjitangPharmaceuticalCo.,Ltd.,LanzhouHuirentang'swholly-ownedsubsidiary |
| RendePharmacy | means | LinyiRendePharmacyChainCo.,Ltd.,LBX'snon-wholly-ownedsubsidiary |
| LongxingTianxia | means | HunanLongxingTianxiaPharmaceuticalConsultingServiceCo.,Ltd.,LBXHealthPharmacy'swholly-ownedsubsidiary |
| Faxiangdi | means | ChangshaFaxiangdiIndustrialCo.,Ltd.,LBX'swholly-ownedsubsidiary |
| A-share | means | Ordinarysharesapprovedforlistingondomesticstockexchanges,denominatedinRMB,subscribedforandtradedinRMB |
| CSRC | means | ChinaSecuritiesRegulatoryCommission |
| SSE(ShanghaiStockExchange) | means | ShanghaiStockExchange |
| ArticlesofAssociation | means | LBX'spastandcurrentlyeffectiveArticlesofAssociation |
| StateCouncil | means | TheStateCouncilofthePeople'sRepublicofChina,alsoknownastheCentralPeople'sGovernment,istheexecutivebodyofthehighestorganofstatepowerandthehigheststateadministrativeorgan |
| MinistryofCommerce | means | MinistryofCommerceofthePeople'sRepublicofChina |
| O2O | means | AbbreviationforOnline-to-Offline,referringtoane-commercemodelthatcombinesofflinebusinessopportunitieswiththeinternet,makingtheinternetafront-endforofflinetransactions |
| B2C | means | Business-to-Customer,ane-commercemodelwherebusinessessellproductsandservicesdirectlytoconsumers |
| DTP | means | DTPistheabbreviationforDirect-to-Patient.ADTPpharmacyisapharmacythatdirectlyprovidesmorevaluableprofessionalservicestopatients.Aninnovativesalesmodelwhere,afterapatientobtainsaprescriptionfromthehospital,thepharmacydeliversthemedicationtothepatient'sorfamily'sdesignatedtimeandplacebasedontheprescription,tracksthepatient'smedicationprogress,andprovidesprofessionalservicessuchasmedicationcounseling. |
| ThisReport | means | 2024AnnualReportofLBXPharmacyChainJointStockCompany |
| Reportingperiod | means | January1-December31,2024 |
| Endofthereportingperiod | means | December31,2024 |
| ChineseYuan | means | RMB |
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SectionIICompanyProfileandMainFinancialIndicatorsI.CompanyInformation
| ChineseNameoftheCompany | |
| ChineseAbbreviationoftheCompany | LBX |
| EnglishNameoftheCompany | LBXPharmacyChainJointStockCompany |
| EnglishAbbreviationoftheCompany | LBX |
| LegalRepresentativeoftheCompany | XieZilong |
II.ContactsandContactInformation
| Item | SecretaryoftheBoardofDirectors | SecuritiesAffairsRepresentative |
| Name | FengShini | LiuXia'er |
| ContactAddress | No.808QingzhuLakeRoad,KaifuDistrict,ChangshaCity,HunanProvince | No.808QingzhuLakeRoad,KaifuDistrict,ChangshaCity,HunanProvince |
| Tel | 0731-84035189 | 0731-84035189 |
| Fax | 0731-84035196 | 0731-84035196 |
| ir@lbxdrugs.com | ir@lbxdrugs.com |
III.BasicInformationSummary
| Company'sregisteredaddress | No.808QingzhuLakeRoad,KaifuDistrict,ChangshaCity,HunanProvince |
| ChangehistoryoftheCompany'sregisteredaddress | InApril2019,theregisteredaddresschangedfrom288XiangyaRoad,ChangshaCityto808QingzhuhuRoad,KaifuDistrict,ChangshaCity |
| OfficeaddressoftheCompany | No.808QingzhuLakeRoad,KaifuDistrict,ChangshaCity,HunanProvince |
| PostalcodeoftheCompany'sofficeaddress | 410152 |
| CompanyWebsite | www.lbxdrugs.com |
| ir@lbxdrugs.com |
IV.InformationDisclosureandDocumentLocation
| MedianameandwebsitefortheCompany'sannualreportdisclosure | ChinaSecuritiesJournal(https://www.cs.com.cn)/ShanghaiSecuritiesNews(https://www.cnstock.com)/SecuritiesTimes(http://www.stcn.com)/SecuritiesDaily(http://www.zqrb.cn) |
| WebsiteofthestockexchangefortheCompany'sannualreportdisclosure | www.sse.com.cn |
| LocationwheretheCompany'sannualreportiskept | Company'sSecuritiesAffairsDepartment |
V.CompanyStockProfile
| CompanyStockProfile | ||||
| StockType | StockListingExchange | StockAbbreviation | StockCode | PreviousStockAbbreviation |
| A-share | SSE(ShanghaiStockExchange) | LBX | 603883 | None |
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VI.OtherRelevantInformation
| AccountingfirmengagedbytheCompany(domestic) | Name | Ernst&YoungHuaMingLLP |
| OfficeAddress | Rooms01-12,17thFloor,Ernst&YoungTower,OrientalPlaza,1EastChang'anAvenue,DongchengDistrict,Beijing | |
| Namesofsignatorycertifiedpublicaccountants | WangShijie,LiangChang'e | |
| Sponsorinstitutionperformingcontinuoussupervisiondutiesduringthereportingperiod | Name | GoldmanSachs(China)SecuritiesCompanyLimited |
| OfficeAddress | Rooms1807-1819,18thFloor,BeijingYinglanInternationalFinancialCenter,7JinchengStreet,XichengDistrict,Beijing | |
| Namesofsigningsponsorrepresentatives | HuangYunqi,LiuYang | |
| Periodofcontinuoussupervision | August6,2020-December31,2023(Asraisedfundswerenotfullyutilized,continuoussupervisiondutiesfortheraisedfundscontinuedin2024) |
VII.MainAccountingDataandFinancialIndicatorsfortheLastThreeYears
(I)MainAccountingData
Unit:YuanCurrency:RMB
| MainAccountingData | 2024 | 2023 | Changefromthesameperiodlastyear(%) | 2022 |
| Operatingincome | 22,357,610,195 | 22,437,489,012 | -0.36 | 20,175,519,303 |
| Netprofitattributabletoshareholdersofthelistedcompany | 519,063,405 | 929,023,131 | -44.13 | 784,961,520 |
| Netprofitattributabletoshareholdersofthelistedcompanyafterdeductingnon-recurringgainsandlosses | 496,274,418 | 843,765,222 | -41.18 | 735,724,494 |
| Netcashflowsfromoperatingactivities | 2,026,458,797 | 2,729,838,947 | -25.77 | 2,314,315,009 |
| Endof2024 | Endof2023 | Changefromtheendofthesameperiodlastyear(%) | Endof2022 | |
| Netassetsattributabletoshareholdersofthelistedcompany | 6,580,857,270 | 6,701,235,576 | -1.80 | 6,529,953,538 |
| Totalasset | 21,044,853,679 | 21,230,999,976 | -0.88 | 21,397,332,918 |
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(II)MainFinancialIndicators
| MainFinancialIndicators | 2024 | 2023 | Changefromthesameperiodlastyear(%) | 2022 |
| BasicEPS(RMB/share) | 0.68 | 1.23 | -44.72 | 1.04 |
| DilutedEPS(RMB/share) | 0.68 | 1.23 | -44.72 | 1.04 |
| BasicEPSafterdeductingnon-recurringgainsandlosses(RMB/share) | 0.65 | 1.11 | -41.44 | 0.97 |
| WeightedaverageROE(%) | 7.84 | 13.91 | Decreaseby6.07percentagepoints | 12.72 |
| WeightedaverageROEafterdeductingnon-recurringgainsandlosses(%) | 7.60 | 12.64 | Decreaseby5.04percentagepoints | 11.88 |
ExplanationoftheCompany'smainaccountingdataandfinancialindicatorsforthepastthreeyearsattheendofthereportingperiod
√Applicable□NotApplicableDuringthisreportingperiod,operatingincomedecreasedby0.36%comparedtothepreviousyear,basicallyflat;netprofitattributabletoshareholdersofthelistedcompanyandnetprofitattributabletoshareholdersofthelistedcompanyafterdeductingnon-recurringgainsandlossesdecreasedby44.13%and41.18%respectivelycomparedtothepreviousyear,mainlyduetotheincreaseinthenumberofnewstores,whicharestillintheirperformancegrowthperiod,andtheCompany'srecognitionofgoodwillimpairmentlosses;netcashflowgeneratedfromoperatingactivitiesdecreasedby25.77%comparedtothepreviousyear,mainlyduetothedecreaseincashreceivedfromthesaleofgoodsandanincreaseinsalarypaymentsresultingfromtheopeningofnewstores;netassetsattributabletoshareholdersofthelistedcompanydecreasedby1.80%comparedtothepreviousyear,mainlyduetotheCompany'sdividenddistribution.Totalassetsdecreasedby0.88%comparedtothepreviousyear,basicallyflat.VIII.DifferencesinAccountingDataunderDomesticandForeignAccountingStandards(I)Differencesinnetprofitandnetassetsattributabletoshareholdersofthelistedcompany
betweenfinancialreportsdisclosedsimultaneouslyunderInternationalAccountingStandardsandChineseAccountingStandards
□Applicable√NotApplicable(II)Differencesinnetprofitandnetassetsattributabletoshareholdersofthelistedcompany
betweenfinancialreportsdisclosedsimultaneouslyunderForeignAccountingStandardsandChineseAccountingStandards
□Applicable√NotApplicable(III)Explanationofdifferencesbetweendomesticandforeignaccountingstandards:
□Applicable√NotApplicableIX.MainFinancialDatabyQuarterfor2024
Unit:YuanCurrency:RMB
| Q1(January-March) | Q2(April-June) | Q3(July-September) | Q4(October-December) | |
| Operatingincome | 5,539,130,441 | 5,400,532,345 | 5,292,485,303 | 6,125,462,106 |
| Netprofitattributabletoshareholdersofthelistedcompany | 321,257,612 | 181,446,821 | 127,443,390 | -111,084,418 |
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| Netprofitattributabletoshareholdersofthelistedcompanyafterdeductingnon-recurringgainsandlosses | 310,558,626 | 171,227,391 | 125,291,960 | -110,803,559 |
| Netcashflowsfromoperatingactivities | 417,071,839 | 194,413,371 | 644,236,284 | 770,737,303 |
Explanationofdifferencesbetweenquarterlydataanddisclosedperiodicreportdata
□Applicable√NotApplicableX.Non-recurringgainsandlossesitemsandamounts
√Applicable□NotApplicable
Unit:Yuan:RMB
| Non-recurringgainsandlossesitem | Amountin2024 | Notes(ifapplicable) | Amountin2023 | Amountin2022 |
| Gainsorlossesfromdisposalofnon-currentassets,includingthewrite-offportionofassetimpairmentprovisionsalreadyrecognized | -4,530,258 | 5,509,528 | 1,442,570 | |
| Governmentgrantsrecognizedincurrentprofitorloss,excludingthosecloselyrelatedtotheCompany'snormalbusinessoperations,complyingwithnationalpolicyregulations,enjoyedaccordingtoestablishedstandards,andhavingacontinuousimpactontheCompany'sprofitorloss | 31,143,302 | 36,990,610 | 39,327,221 | |
| Gainsorlossesfromchangesinfairvalueoffinancialassetsandliabilitiesheldbynon-financialenterprises,andgainsorlossesfromdisposaloffinancialassetsandliabilities,excludingeffectivehedgingactivitiesrelatedtotheCompany'snormalbusinessoperations | 1,206,496 | 4,629,589 | 20,578,149 | |
| Feeschargedfortheoccupationoffundstonon-financialenterprisesrecognizedincurrentprofitorloss | ||||
| Gainsorlossesfromentrustingotherstoinvestormanageassets | ||||
| Gainsorlossesfromexternalentrustedloans | ||||
| Assetlossesarisingfromforcemajeurefactors,suchasnaturaldisasters | ||||
| Reversalofimpairmentprovisionsforreceivablestestedindividuallyforimpairment | 253,000 | 790,786 | ||
| Gainsarisingfromtheinvestmentcostofacquiringsubsidiaries,associates,andjointventuresbeinglessthanthefairvalueoftheidentifiablenetassetsoftheinvesteeatthetimeofacquisition | ||||
| Currentnetprofitorlossofsubsidiariesfromthebeginningoftheperiodtothemergerdatearisingfrombusinesscombinationsinvolvingenterprisesundercommoncontrol | ||||
| Gainsorlossesfromnon-monetaryassetexchanges | ||||
| Gainsorlossesfromdebtrestructuring | ||||
| One-offexpensesincurredduetothe |
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| discontinuationofrelatedbusinessactivities,suchasemployeeplacementexpenses | ||||
| One-offimpactoncurrentprofitorlossduetoadjustmentsintax,accounting,andotherlawsandregulations | ||||
| Share-basedpaymentexpensesrecognizedone-offduetocancellationormodificationofequityincentiveplans | ||||
| Forcash-settledshare-basedpayments,gainsorlossesarisingfromchangesinthefairvalueofemployeebenefitspayableafterthevestingdate | ||||
| Gainsorlossesarisingfromchangesinfairvalueofinvestmentpropertiessubsequentlymeasuredusingthefairvaluemodel | ||||
| Gainsarisingfromtransactionswithobviouslyunfairtransactionprices | ||||
| GainsorlossesarisingfromcontingenteventsunrelatedtotheCompany'snormalbusinessoperations | ||||
| Custodyfeeincomefromentrustedoperations | ||||
| Othernon-operatingincomeandexpensesotherthantheitemslistedabove | 2,398,621 | 9,703,510 | 884,108 | |
| Otherprofitorlossitemsmeetingthedefinitionofnon-recurringgainsandlosses | -1,309,915 | 56,265,472 | 4,546,871 | |
| Less:Incometaximpact | 4,978,234 | 25,236,570 | 12,578,269 | |
| Impactonminorityinterests(aftertax) | 1,394,025 | 3,395,016 | 4,963,624 | |
| Total | 22,788,987 | 85,257,909 | 49,237,026 |
ReasonsshouldbeprovidediftheCompanyidentifiesitemsnotlistedintheExplanatoryAnnouncementNo.1onInformationDisclosurebyCompaniesOfferingSecuritiestothePublic-Non-recurringGainsandLossesasnon-recurringgainsandlossesitemswithsignificantamounts,ordefinesitemslistedintheannouncementasrecurringgainsandlossesitems.
√Applicable□NotApplicable
Unit:Currency:RMB
| Item | Amountinvolved | Reason |
| VATreduction/exemptionforsmall-scaletaxpayers | 46,542,302 | Closelyrelatedtonormalbusinessoperations |
XI.Itemsmeasuredatfairvalue
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| NameofProject | Beginningbalance | Endingbalance | Changeduringtheperiod | Impactoncurrentprofit |
| Tradingfinancialassets | 1,500,000 | -1,500,000 | 1,206,496 | |
| Receivablesfinancing | 8,332,713 | 15,269,288 | 6,936,575 | |
| Otherequityinstrumentinvestments | 37,177,723 | 35,877,723 | -1,300,000 | |
| Othernon-currentfinancialassets | 5,774,109 | 12,093,150 | 6,319,041 | |
| Otherpayables | -42,398,775 | -42,398,775 | ||
| Total | 10,385,770 | 20,841,386 | 10,455,616 | 1,206,496 |
XII.Other
□Applicable√NotApplicable
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SectionIIIDiscussionandAnalysisbytheManagement
I.DiscussionandAnalysisofBusinessConditions
LBXPharmacyiscommittedtobuildinga"technology-drivenhealthserviceplatform".In2024,theCompanyachievedoperatingincomeofRMB22,357.61million,ayear-on-yeardecreaseof0.36%;achievednetprofitattributabletoparentcompanyshareholdersofRMB519.06million,ayear-on-yeardecreaseof44.13%;achievednetcashflowgeneratedfromoperatingactivitiesofRMB2,026.46million,ayear-on-yeardecreaseof25.77%.
AsofDecember31,2024,theCompanyhadbuiltamarketingnetworkcovering18provinces,over150prefecture-levelcitiesandaboveacrossthecountry,totaling15,277stores,including9,981directly-operatedstoresand5,296franchisedstores.In2024,therewasanetincreaseof1,703stores,includinganetincreaseof801directly-operatedstoresandanetincreaseof902franchisedstores.
ForadetaileddiscussionandanalysisoftheCompany'sbusinessconditions,pleaserefertoSectionIII"DiscussionandAnalysisbytheManagement",PartIV"AnalysisofCoreCompetitivenessduringtheReportingPeriod"ofthisreport.II.IndustrySituationduringtheReportingPeriod(I)BasicIndustrySituation
1.Deepeningpopulationagingdrivesindustrygrowth
AccordingtodatareleasedbytheNationalBureauofStatistics,asoftheendof2024,China'spopulationaged60andabovewas310million,accountingfor22%ofthenationalpopulation,ofwhichthepopulationaged65andabovewas220million,accountingfor15.6%ofthenationalpopulation.Attheendof2024,theproportionofChina'spopulationaged60andabovecontinuedtoincreasecomparedto2023,andtheproportionofthepopulationaged65andabovealsoincreasedby0.2percentagepointscomparedto2023.China'sagingprocesscontinuestodeepen,andthedemandforhealthcareandchronicdiseasemanagementwillgraduallyincreaseinthefuture.
Datasource:NationalBureauofStatistics
ThesalesscaleofallcategoriesinChina'sretailpharmacieshasgrownsteadily.AccordingtoCMHdata,thesalesscaleofallcategoriesinnationalretailpharmaciesreachedRMB528.2billionin2024.Thegrowthratewashighin2022duetotherelaxationofepidemiccontrols,whilethegrowthratesloweddownin2024and2023duetothehighbase.Thecompoundannualgrowthratefrom2018to2024was3.05%.
AgingPopulationinChinaTotalPopulation(10,000persons)
| TotalPopulation(10,000persons) | ProportionofPopulationAged60andAbove(%) | ProportionofPopulationAged65andAbove(%) |
/
Datasource:CMH
2.Policiesaccelerateprescriptionoutflow,increasingthemarketshareofpharmaceuticalretailWiththeimplementationofthe"HealthyChina"strategyandthedeepeningofmedicalandhealthsystemreforms,aseriesofpoliciessuchastheSeparationofDispensingfromPrescription(SDP),medicalinsurancecostcontrol,volume-basedprocurement,zeromark-uppolicyfordrugs,dual-channel,medicalinsurancereform,andtheinclusionofdesignatedpharmaciesinoutpatientpoolingmanagementhavegraduallylanded,promotingthecontinuousoutflowofprescriptiondrugsfromhospitals.
(1)SeparationofDispensingfromPrescription(SDP)isaninevitabletrend
"SeparationofDispensingfromPrescription(SDP)"isanimportantgoalofChina'smedicalsystemreform,andprescriptionoutflowisalsoanimportantdirectionforthe"SeparationofDispensingfromPrescription(SDP)".China'smedicalresourcesarerelativelyconcentrated,andpatientstendtoseekdiagnosis,treatment,andpurchasemedicineinpublichospitals.Inrecentyears,thestatehasdeepenedthereformofthemedicalsystem.VariouspoliciessuchasDRG(DiagnosisRelatedGrouppayment),DIP(Diagnosis-InterventionPacketpayment),volume-basedprocurement,andopeningoutpatientpoolingmedicalinsurancetopharmacieshavegraduallylanded,continuouslypromotingthe"SeparationofDispensingfromPrescription(SDP)"andprescriptionoutflow.
Inrecentyears,prescriptiondrugsalesinChinahaveshiftedtowardsoutsidehospitals,withtheretailterminalshareincreasingbyabout5percentagepointsfrom2017to2024.Currently,theretailterminalsharehasincreasedfrom16%in2017to21%in2024.However,theshareofretailchannelsinprescriptiondrugsalesisstillrelativelylow.In2022,theproportionofprescriptiondrugsalesoutsidehospitalsinJapanandtheUnitedStatesreached79%and86%respectively.Comparedwithdevelopedcountries,thereisstillsignificantroomforimprovementintheproportionofprescriptiondrugsalesoutsidehospitalsinChina.
2018-2024NationalRetailPharmacySalesandYear-on-YearGrowthRatebyCategorySalesScale(RMB100million)
| SalesScale(RMB100million) | Year-on-YearGrowthRate | |
2017-2024ProportionofPrescriptionDrugsInandOutofHospitalsinChina
2017-2024ProportionofPrescriptionDrugsInandOutofHospitalsinChina
ProportionofRetailTerminal
| ProportionofRetailTerminal | ProportionofGradeAHospital |
/
Datasources:CMH,MinistryofHealth,LabourandWelfareofJapan,IQVIA
(2)MedicalinsuranceaccountreformstrengthensmutualaidandliquidityThereformofmedicalinsuranceaccountsshiftstowards"allocationbydisease",strengtheningmutualaid.Moremedicalinsurancefundsflowtopeoplewithhighdemandformedicaltreatmentandmedicationpurchase,improvingliquidity.Beforethemedicalinsuranceaccountreform,allpersonalcontributionsandpartoftheemployer'scontributionswereallocatedtotheindividualmedicalinsuranceaccount.Expensesforoutpatientvisitsordrugpurchasesatpharmaciescouldonlybepaidfromtheindividualaccount.Afterthereform,thepartoftheemployer'scontributionisallocatedtothepooledmedicalinsurancefund.Atthesametime,thereimbursementscopeofthepooledmedicalinsurancefundhasbeenexpandedtoincludeoutpatientreimbursement,hospitalizationreimbursement,andpharmacypurchasereimbursement.Themedicalinsuranceaccountreformisessentiallyachangeinthemedicalsecuritymodel.The"allocationbyperson"modelofmedicalinsurancefundshasshiftedtothe"allocationbydisease"model.Theincreaseinthepooledmedicalinsurancefundcompensatesforthereductioninindividualaccounts,andexpandingthereimbursementscopetopharmacieswillpromoteprescriptionoutflow.
(3)InclusionofdesignatedpharmaciesinoutpatientpoolingmanagementhasasignificanteffectonattractingpatientflowTheinclusionofdesignatedpharmaciesinoutpatientpoolingmanagement,implementingthesamemedicalinsurancebenefitsasdesignatedprimarymedicalinstitutions,hasasignificanteffectonattractingpatientflow.OnFebruary15,2023,theNationalHealthcareSecurityAdministrationissuedtheNoticeonFurtherImprovingtheManagementofIncludingDesignatedRetailPharmaciesinOutpatientPoolingManagement,activelysupportingdesignatedretailpharmaciestoopenoutpatientpoolingservices,improvingthepaymentpolicyforoutpatientpoolingindesignatedpharmacies,andclarifyingthesupportingpoliciesforincludingdesignatedretailpharmaciesinoutpatientpooling.ThissignifiesasignificantimprovementintheroleandstatusofretailpharmaciesinthenationalmedicalandhealthsecuritysystemandisalsoasubstantialpromotionofprescriptioncirculationandtheSeparationofDispensingfromPrescription(SDP).Forretailpharmacies,obtainingthequalificationofacoordinateddesignatedpharmacywilladdthepooledmedicalinsurancefundasapayerinadditiontotheindividualmedicalinsuranceaccount,andwillattractmorecustomerflowduetoprescriptionoutflowfromhospitals.AccordingtoMenetdata,thesalesshareofretailpharmacyterminalsincreasedfrom22.7%in2014to29.3%in2023,whilethesalesshareofpublichospitalterminalsgraduallydecreasedfrom69%in2014to61.3%in2023,indicatingthecontinuousprogressofprescriptionoutflow.
2022ProportionofPrescriptionDrugsInandOutofHospitalsin
China,Japan,andtheUS
China
| China | Japan | UnitedStates | ||||
| ?Out-of-Hospital?In-Hospital | ||||||
/
Datasource:Menet
3.IncreasedindustryconcentrationandstricterregulationaccelerateindustryconsolidationNationalpoliciespromotetheincreaseinmarketconcentrationandchainrateinthepharmaceuticalretailindustry,withsignificantroomforimprovement.InOctober2021,theMinistryofCommerceissuedtheGuidingOpinionsonPromotingtheHigh-QualityDevelopmentofthePharmaceuticalCirculationIndustryduringthe"14thFive-YearPlan"Period,pointingoutthatby2025,5-10specializedanddiversifiedpharmaceuticalretailchainenterpriseswithannualsalesexceedingRMB50billionwillbecultivated.Theannualsalesofthetop100pharmaceuticalretailenterpriseswillaccountformorethan65%ofthetotalpharmaceuticalretailmarket,andthepharmaceuticalretailchainratewillapproach70%.AccordingtoCMH,thepharmacychainrateintheUnitedStateshasexceeded71%,whileChina'schainratewasonlyabout58%in2023,andtherearesignificantdifferencesinpharmacychainratesacrossdifferentregions.Inaddition,theconcentrationofChina'spharmaceuticalretailindustrystilllagssignificantlybehinddevelopedmarkets.AccordingtoSoochowSecuritiesandChinaDrugStoredata,in2022,themarketshareofthetopthreepharmacychainsintheUnitedStateswas85%,andthemarketshareofthetoptendrugstoresinJapanwas73.7%.In2023,themarketshareofthetoptenpharmacychainsinChinawasonly34.11%,indicatingsignificantroomforimprovement.
Datasources:CMH,NationalMedicalProductsAdministration
ProportionofNationalDrugTerminalChannel
?PublicHospitals?RetailPharmacies?PublicPrimaryMedicalInstitutions
?PublicHospitals?RetailPharmacies?PublicPrimaryMedicalInstitutions
2017-2023NationalPharmacyChainRate
/
Datasource:ChinaDrugStoreUnderthetrendofstricterregulationandincreasedpricetransparency,largechainpharmacieswithcompliantoperations,refinedmanagement,strongproductselection,andservicecapabilitieswillfurtherhighlighttheiradvantages,andmarketconcentrationisexpectedtoaccelerate.Inrecentyears,regulationsatalllevelshavegraduallytightened,thecomplianceofthepharmaceuticalretailindustryhascontinuouslyimproved,medicalinsurancepricesupervisionhasbecomestricter,andmarketpricetransparencyhasincreased.Smallchainpharmaciesandindividualpharmaciesfacegreateroperatingpressure.However,leadingnationalpharmaceuticalchainpharmaciespossessstrongbargainingpower,richproductmatrices,digitallyempoweredcompliancemanagement,andotheroperationaladvantages,enablingthemtofurtherincreasetheirmarketshareduringthe"marketconsolidationperiod".Withtheadvancementoftheoutpatientpoolingmedicalinsurancepolicy,largechainpharmacieswithstrongercompliancehaveobtainedmoreoutpatientpoolingqualifications,andcustomerflowisfurtherconcentratingtowardslargechainpharmacies.
AccordingtoCMHdata,influencedbymultiplefactors,thegrowthinthenumberofnationalretailpharmaciesreachedaninflectionpointin2024.Inthefirsttofourthquartersof2024,thenumberofclosedretailpharmaciesnationwidewas6,778,8,791,9,545,and14,114,respectively.Thenetincreaseineachquarterwas9,257,6,322,2,847,and-3,395,respectively.Inthefourthquarterof2024,thenumberofretailpharmaciesshowednegativegrowth,andtheaveragenumberofpeopleservedperpharmacyisexpectedtorise.
Datasource:CMH
4.Digitalintelligence,specialization,diversificationdevelopment,andintegrationofonlineandofflineservices
| Top10Sales/RMB100million | Top100Sales/RMB100million | ProportionofTop10 | ProportionofTop100 |
2015-2023SalesandProportionofTop10andTop100
PharmaciesinChina
2015-2023SalesandProportionofTop10andTop100
PharmaciesinChina
2024ChangesinNationalRetailPharmacies
2024ChangesinNationalRetailPharmaciesNewOpenings
| NewOpenings | Closures | NetIncrease |
/
Nationalpoliciespromotethedigitalintelligence,specialization,diversification,andintegrationofonlineandofflinedevelopmentofretailpharmacies.AccordingtotheStatisticalAnalysisReportontheOperationofthePharmaceuticalCirculationIndustryin2022bytheMinistryofCommerce,theoperatingcapabilitiesofretailpharmaciescontinuetoimprove.Theimprovementofthe"dual-channel"managementmechanismfornationallynegotiatedmedicalinsurancedrugsandtheimplementationofpoliciessuchasincludingdesignatedretailpharmaciesinoutpatientpoolinghaveledretailpharmaciestocontinuouslyenhancetheirinformatizationconstructionlevel,suchasdockingwithmedicalinsuranceinformationplatformsandelectronicprescriptioncirculationplatforms,improvingdrugstorageanddistributionsystems,andequippingprofessionaltalentstoproviderationaldruguseguidancetopatients.Atthesametime,retailpharmaciescontinuetoexplorepathsforprofessionalanddigitalintelligencetransformation,activelyexpandingtheirservicescope,carryingoutchronicdiseaseself-testing,pharmaceuticalservices,andchronicdiseasemanagement,andprovidingconsultingservicesandfollow-upvisitsforpatientswithspecialdrugdiseases.Onlinedrugsalescontinuetobestandardized,thescaleoftheonlinedrugsalesmarketcontinuestogrow,pharmaciesarestrengtheningtheirexpansionofpharmaceuticale-commercebusiness,utilizinginternetplatformstoexpandthecontentandradiusofpharmacyservices,andonlineandofflineservicesarefurtherintegrated.
InNovember2024,theMinistryofCommerceandsevenotherdepartmentsissuedtheImplementationPlanfortheInnovationandImprovementProjectoftheRetailIndustry,allowingretailpharmaciestolegallycarryoutnon-drugcommoditysalesandrelatedhealthservices,encouragingthediversifieddevelopmentofpharmacies.Datashowsthattheproportionofnon-drugsalesintheJapanesedrugstoreindustryreached67.3%in2022;CVSPharmacyintheUnitedStatessawitsrevenuefromhealthcareservicesandmedicalinsurancereach69.5%in2024,whiletheproportionofnon-drugsalesinChinesepharmacieswasonly18.6%in2024.Incomparison,thereisstillsignificantroomfordevelopmentinthediversificationofgoodsandservicesinChinesepharmacies.
2022ProductCategoryStructureofJapan'sCosmeticsandDrugstoreIndustry?PrescriptionDispensing?OTCandHealthcare?BeautyCare?HouseholdCare?Food
/
Datasources:CVSfinancialreports,JapanAssociationofChainDrugStores,ChinaDrugStore,Menet(II)CyclicalCharacteristicsoftheIndustryThedemandforpharmaceuticalconsumptionismainlydeterminedbythesizeofthecoveredpopulationandtheincidenceofdiseases,belongingtoessentialconsumption.Comparedwithothergeneralretailindustries,thepharmaceuticalretailindustryisrelativelylessaffectedbythemacroeconomicenvironment,andeconomiccyclicalityisnotobvious.BasedonobjectiveconditionssuchasacceleratedagingandrisingresidentconsumptionlevelsinChina,residents'demandformedicinecontinuestogrow,andthedemandforhealthcareproductsandprofessionalpharmaceuticalservicescontinuestoincrease.
(III)Company'sPositionintheIndustry
LBXisaninfluentialpharmaceuticalretailchainenterpriseinChina,committedtobuildingatechnology-drivenhealthserviceplatform.In2024,theCompanywonthechampionshipofthe"Top100ComprehensiveCompetitivenessListofChinesePharmaceuticalRetailEnterprises"attheXipuConferenceforthetwelfthtime,andalsoretainedthetitleof"CompetitivenessofPharmaceuticalRetailEnterprises-BrandPowerChampion";rankedthirdinthe"Top10ListofTotalSalesofChinesePharmaceuticalRetailEnterprisesin2023"bytheChinaAssociationofPharmaceuticalCommerce;rankedfourthinthe"2023-2024Top100ComprehensiveStrengthListofChineseChainPharmacies"heldbytheMingsiConference;rankedfourthinthe"2024-2025Top100ValueListofChinesePharmacies"heldby"ChinaDrugStore";awardedtheChinaBestManagedCompanies(BMC)forthethirdconsecutiveyear,andistheonlypharmaceuticalretailenterpriselistedonthisyear'sBMClistofconsecutiveaward-winningenterprises.
USCVSPharmacy2024FinancialReportRevenueStructure
?MedicalServices?HealthCareBenefits?Pharmacy
?MedicalServices?HealthCareBenefits?Pharmacy
2024SalesCategoryStructureofPhysicalPharmaciesinChina
2024SalesCategoryStructureofPhysicalPharmaciesinChina
?Medicine?ChineseHerbalMedicineTablets?MedicalDevices?HealthSupplements?Other
/
III.BusinessActivitiesduringtheReportingPeriod(I)OverviewofMainBusinessLBXPharmacyisoneoftheleadingpharmaceuticalretailchainenterprisesinChinaintermsofscale.Itismainlyengagedinthesaleofdrugsandotherhealthandbeauty-relatedproductsthroughitsmarketingnetwork.ItsoperatingcategoriesincludeChineseandWesternpatentmedicines,Chineseherbalmedicines,health-preservingChinesemedicines,healthequipment,healthfoods,ordinaryfoods,personalcareproducts,anddailynecessities.Atthesametime,LBXPharmacyactivelyexploresthe"SparkCompany"cooperationmodelofcontrollingacquisitions,vigorouslydevelopsthe"SevenUnifications"high-standardpharmacyfranchisemodel,innovativelycreatesthealliancemodelofa"third-partycomprehensiveempowermentserviceplatform",andactivelyexploresO2Obusiness,committedtobecomingatechnology-drivenhealthserviceplatform,creatinganinnovationplatformledbyretail,coordinatedbyservices,andcontinuouslyexpandingintonewretail,prescriptiondrugs,andotherfields.
AsofDecember31,2024,theCompanyhadbuiltamarketingnetworkcovering18provinces,over150prefecture-levelcitiesandaboveacrossthecountry,totaling15,277stores,including9,981directly-operatedstoresand5,296franchisedstores.In2024,therewasanetincreaseof1,703stores,includinganetincreaseof801directly-operatedstoresandanetincreaseof902franchisedstores.
(II)BusinessModel
TheCompany'smainbusinessprocessisshowninthefigurebelow:
1.ProcurementModel
TheCompany'sprocurementprocessmainlyincludesseveralimportantsteps:budgetformulation,detailedplanrefinement,supplierselection,productreview,andsuppliermanagement.Throughthecoordinatedcooperationofbuyersforeachcategoryintheprocurementlinewiththeproductmanagementdepartmentandqualitymanagementdepartment,high-qualityproducts,efficientprocurement,andprocessintegrityareensured.
2.LogisticsandDistributionModel
TheCompany'slogisticsanddistributionsystemmainlyincludesthreeprocesses:warehousemanagement,ordermanagement,andtransportationmanagement.TheCompanyutilizesadvancedinformationsystemssuchasWMS(WarehouseManagementSystem),WCS(WarehouseControlSystem),AS/RS(AutomatedStorageandRetrievalSystem),DPS(DigitalPickingSystem),MCS(MaterialControlSystem),CRM(CustomerRelationshipManagementSystem),andERP(Enterprise
OrderLogisticsandWarehousing
LogisticsandWarehousingOrdering
OrderingSupplier
| Supplier | Stores | Consumers |
Shipment
| Shipment | Delivery | In-StoreSales | ||
O2OSales
O2OSalesB2CSales
B2CSalesCompanyBusinessProcesses
CompanyBusinessProcessesMerchandiseDepartment
MerchandiseDepartment
QualityManagementDepartment
QualityManagementDepartmentPurchasing
Center
| PurchasingCenter | PurchasingCenter | MerchandiseDepartment |
InventoryManagementDepartment
InventoryManagement
Department
Supplier
SupplierAnnualMerchandisePlanningandPurchasingBudget
| AnnualMerchandisePlanningandPurchasingBudget | DetailedCategoryAnnualPurchasingBudget | SupplierSelectionandNegotiation | SupplierAuditbyQCDepartment | SigningofCooperationAgreement | MerchandisePurchaseAudit | IssuingPurchaseOrdersorContracts | SupplierDeliversGoods |
MerchandiseManagementDepartment,QualityManagementDepartment,andSupervisionandAudit
Departmentareresponsibleforthewhole-processsupervisionandmanagementofsuppliers
/
ResourcePlanning)toachieveautomatedstorereplenishmentrequestsnationwide.IthasalsointroducedadvancedintelligentequipmentsuchasAS/RSautomatedwarehouses,AGV(AutomatedGuidedVehicle)goods-to-personpicking,electronictagpicking,RFpicking,andunmannedtransportvehicles,achievingfullintelligenceintheentryandexitofgoodsinlogisticsdistributioncenters.Throughinformatizationandvisualizationmanagement,TMS(TransportationManagementSystem)orderallocation,vehiclescheduling,freightsettlement,etc.,thetimelinessoflogisticsdistributioniseffectivelyimproved,andthedistributionerrorrateisreduced,makingitacorecompetitivenessoftheenterprise.
3.SalesModelTheCompany'ssalesmodelincludesself-operatedpurchaseandsale,franchising,andalliance.Thatis,thelogisticsdistributioncenteruniformlypurchasesgoodsanddistributesthemuniformly.Afterthepurchasedgoodsareacceptedandenterthestores,theybecometheinventoryoftheretailpharmacy,andtherisksandrewardsrelatedtotheownershipofthegoodsarebornebytheretailpharmacy.Undertheself-operatedpurchaseandsalemodel,thepurchase-salepricedifferenceisthemainsourceofprofit.Themainprofitsourcesforfranchisingaredistributionpurchase-salepricedifference,franchisefees,managementfees,andsoftwareusagefees.Themainprofitsourcesforthealliancearedistributionpurchase-salepricedifferenceandconsultingfees.TheCompanyreliesondirectly-operatedstores,franchisedstores,andalliancestorestoconductpharmaceuticalretailbusiness.Toprovideconsumerswithhigh-qualitygoodsandprofessionalservices,theCompanyhasformulatedaseriesofoperatingspecificationstomanagestoresales.Inaddition,theCompanydevelopsonlinebusinessthroughmultiplechannelssuchasmajore-commerceplatformsandprivatedomainWeChatmini-programs.
4.ProfitModelCurrently,theCompany'smainbusinessistheretailchainbusinessofdrugsandhealth-relatedproducts,andthemainprofitcomesfromthepurchase-salepricedifference.IV.AnalysisofCoreCompetitivenessduringtheReportingPeriod
√Applicable□NotApplicable(I)Market
1.BroadMarketCoverageSeizesStrategicAdvantage
(1)Widemarketcoverage,largedevelopmentspaceTheCompanyisoneofthepharmaceuticalretailenterpriseswiththewidestcoverageinChina.Targetingthecharacteristicsofdifferentmarketlevels,theCompanycontinuestobuildathree-dimensionaldeepcultivationmodelofdirectly-operatedstores,mergersandacquisitions,franchising,andalliancetoexpandthemarket.Asoftheendof2024,theCompany'schainnetwork(excludingalliances)covered18provincial-levelmarketsandover150prefecture-levelcitiesandabovenationwide,withatotalof15,277stores,including9,981directly-operatedstoresand5,296franchisedstores.In2024,therewasanetincreaseof1,703stores,includinganetincreaseof801directly-operatedstoresandanetincreaseof902franchisedstores.
BroadcoverageprovidestheCompanywithvastdevelopmentspaceandgreatpotentialformarketshareimprovement.AccordingtotheCompany'sestimates,the18provincesalreadycoveredaccountfor3/4ofthemarketshareofChina'spharmaceuticalretailmarket.IncreasingmarketshareincoveredmarketscanenhancetheCompany'slocalcompetitivenessandfurtherimprovegrossprofitmarginandnetprofitmargin.Atthesametime,localizedmanagementteamsfamiliarwithlocalmarketsandregulatorypoliciescaneffectivelyincreasethesuccessrateofstoreexpansion.
(2)Focusingonadvantageousmarkets,expandingintosmall-townandruralmarkets
Focusingonadvantageousprovincialmarketsandactivelyexpandingintosmall-townandruralmarkets.Basedonhavingachievedbroadnationalmarketcoverage,theCompanyfocusesonexpandingin11advantageousprovinces,prioritizingdeepeninganddensifyingthestorenetworkinadvantageousmarkets,andactivelyexploringsmall-townandruralmarkets.
TheCompanyaccuratelyexpandsthemarket,concentratesresourcesonadvantageousprovinces,andseizesopportunitiestoincreasemarketshareduringtheindustrydifferentiationandclearingprocess.TheCompanycurrentlyholdsatop-threemarketsharein11provinces,includingbeingnumberonein4provinces.In2024,2,295newstoreswereaddedinadvantageousprovincesandkeycities,accountingfor86%ofthetotalnewstores.Inaddition,theCompanyoptimizesitslayoutbyrelocatingandclosingloss-makingstoresbasedonmarketchanges,enhancingoverallprofitability.
Small-townandruralmarketsprovidenewgrowthpointsfortheCompany.Small-townandruralmarketshavealargepopulationbase,continuouslyincreasingconsumptioncapacity,gradually
/
increasinghealthcareconsumptionexpenditure,andrelativelylowoperatingcosts.Asoftheendof2024,theproportionoftheCompany'sstoresinprefecture-levelcitiesandbelowwas77%;amongthenewstoresaddedin2024,theproportionofstoresinprefecture-levelcitiesandbelowwas80%.
2.BuildingaWin-WinPatterninthePharmaceuticalRetailEcosystem
(1)Industry-leadingfranchising,maturemodel,rapidreplicationThefranchisebusiness"HealthPharmacy"adherestotherolepositioningof"headquartersmanagementexpert"and"pharmacyoperationsteward",focusingon9+7regionaldevelopment,prioritizingtheexpansionintoTier3-5small-townandruralmarkets.Byimplementinghigh-standardmanagementof"SevenUnifications"(unifiedbrandidentity,unifiedmanagementsystem,unifiedinformationsystem,unifiedpersonneltraining,unifiedprocurementanddistribution,unifiedfinancialmanagement,unifiedpharmaceuticalservicestandards),thequality,efficiency,andoutputoffranchisedstoresareensured.Atthesametime,theCompanyutilizesitsstrongbrandinfluence,professionaloperationalmanagementcapabilities,advanceddigitalization,andnewretailstrengthtofullyempowerfranchisedstores.
TheCompany'sfranchisebusinessachievedsteadydevelopmentin2024.First,franchiserecruitmentfocusedonbreakthroughsinconvertingexistingstorestofranchises,project-basedfranchising,andcounty-levelagencydevelopment,absorbingexistingpharmacies.In2024,theproportionofexistingstoresjoiningthefranchisewas39%,anincreaseof12percentagepointsyear-on-year.Second,franchiseesupportpolicieswereintroduced,optimizingproductresourcesthroughrewardmechanismstoimproveoperationalquality.Third,digitaltoolssuchas"salarycalculator"and"automaticordering"wereintroducedtofranchisees,refiningcommissionrules,optimizingmanufacturerresources,andreducingproductout-of-stockratestoenhanceoperationalefficiency.
Attheendof2024,thenumberoftheCompany'sfranchisedstoresreached5,296,anetincreaseof
902.ThefranchisebusinessachieveddistributionsalesofapproximatelyRMB2.276billionforthefullyear.
(2)Extensivealliancecooperation,reservingacquisitionandfranchisetargets
Thealliancebusiness"EasyDrug"ispositionedasa"third-partycomprehensiveempowermentserviceplatform".Withpharmaceuticalretailmarketoperationservicesandproductoutputasitsmainbusiness,itprovidesmanagementconsultingandsupplychainintegrationservicestosmallandmedium-sizedchainpharmacies.Leveragingplatformadvantages,sharinginternalandexternalresources,reducingprocurementandoperatingcosts,ithelpsallianceenterprisesimproveoperationalqualityandefficiency.
Attheendof2024,theCompany'salliancebusinesscovered26provincesandcities,withdeepcultivationin12keyprovincesandcities.ThetotalretailscaleofallianceenterpriseswasapproximatelyRMB29billion,with19,900alliancestores(notincludedintheCompany'stotalstorecount);amongthem,therewere100equity-participatingcooperativeenterprises,correspondingto5,826storesandaretailscaleofRMB6.648billion.In2024,theCompany'salliancebusinessachieveddistributionsalesofRMB423million,ayear-on-yearincreaseof78.8%.
3.OutpatientPoolingManagementAdvantagesandProfessional,CaringService
(1)OutpatientPoolingManagementAdvantages
In2024,theCompanyconcentratedonimprovingthemanagementcapabilitiesofitsoutpatientpoolingstores.First,theCompanystrengthenedcompliantoperationmanagement,establishingonlineandofflinemedicalinsurancecomplianceself-inspectionmechanisms,andimplementingstrongcontrolovercustomermedication,medicalinsurancefunds,etc.Second,theCompanyactivelyrespondedtopolicychanges,carryingoutinternaladaptationworkinareassuchaspricemanagement,pharmaciststaffing,andinternethospitals,acceleratingthetransitionfrom"passivecompliance"to"activeinnovation",andseizingdevelopmentopportunities.Inthesecondhalfof2024,therewasacleartrendofthepoolingschemetightening.
Asoftheendof2024,theCompanyhadatotalof5,487storesqualifiedfortheoutpatientpoolingscheme(comprising4,224directly-operatedstoresand1,263franchisedstores).Amongthedirectly-operatedstores,theproportionqualifiedfortheoutpatientpoolingschemewas42.32%.
(2)ProfessionalPharmacyConstruction
Buildingpharmaciestohighstandards,providingprofessionalpharmaceuticalservices.Attheendof2024,theCompanyhad1,728storesqualifiedasdesignatedpointsfor"OutpatientChronicandSpecialDiseases"(ayear-on-yearincreaseof144),accountingfor17.31%ofdirectly-operatedstores;329storeshaddual-channelqualifications(ayear-on-yearincreaseof49),and176DTPpharmacies.
/
AmongtheCompany'sdirectly-operatedstores,93.84%werecoveredbymedicalinsurance,enablingthemtopreferentiallyundertakeprescriptionoutflow.TheCompanystrengthenstheprofessionalservicecapabilitiesofpharmaciesthroughan"online+offline"trainingsystem,encouragingemployeestoobtainqualificationsaslicensedpharmacistsandpharmacists.Utilizingonlineinstantlearningtoolstosolidifytheoreticalfoundationsandenhancingpracticalskillsthroughofflinecountertraining.Inaddition,theCompany's"intelligentmedicationrecommendation"toolwasupgradedtoa"medicationrecommendationtool".TheCompanycontinuouslyempowersstorestaffthroughdigitaltoolstoprovidecustomerswithhigh-qualitypharmaceuticalservices.
(3)ChronicDiseaseCaringServiceStrongserviceinchronicdiseasemanagement.TheCompanybuildsadigitalintelligencechronicdiseasemanagementservicesystem,relyingondigitalintelligencetechnologytoachieveclosed-loopmanagementthroughoutthediseasecourse,enhancingmemberservicestickiness.Atthesametime,strengtheningemployees'professionaltrainingandhumanisticcarecapabilitiestomeetcustomerhealthneedswithpreciseandwarmservices.Asoftheendof2024,theCompany'schronicdiseasemanagementservicehadaccumulated18.12million+registeredfiles,provided99.23million+self-testingservices,conducted38.53million+follow-upvisits,andheld29,000+onlineandofflinepatienteducationsessions.
(II)Goods/Products
1.TorchProjectIncreasesGrossMarginIn2024,theCompanypromotedtheTorchProject,optimizingtheentirechainofoperations,procurement,products,andsales,effectivelyincreasingthegrossprofitmargin.In2024,theCompany'sgrossprofitmarginwas33.17%,asteadyincreaseof0.62percentagepoints.First,reshapingtheproductselectionstrategy;second,usingdigitaltoolstoacceleratetheintroductionofnewproducts,ensuringalignmentwithmarkettrends;third,achievingintelligentdistributionandreplenishmentmanagement,significantlyimprovingdistributionefficiencyandaccuracy;fourth,improvingthebusinessprocurementmanagementsystem,systematizingperformancemanagement;fifth,strengtheningtheconstructionandgovernanceofoperational,procurement,product,andsalesdatainfrastructure;sixth,increasingprocurementnegotiationeffortstoreducesupplychaincosts;seventh,adheringtotheprincipleof"altruism",continuouslyoptimizingincentiveplans,andadjustingsalesstructure.
2.SmartLogisticsIncreasesEfficiencyTheCompanypossessesanindustry-leadingpharmaceuticallogisticssystem,achievinganefficientlogisticsnetworkwiththeChangshalogisticscenterasthenationaldistributioncenter(NDC),andlogisticscentersinYangzhou,Xi'an,Tianjin,etc.,asregionaldistributioncenters(RDC),radiatingto18provincialdistributioncenters(DC)fordirectdeliverytostores.Currently,theCompany'swarehousingareaexceeds320,000squaremeters.In2024,theCompanysuccessivelyintegratedthesupplychainintheEastChinaregion,completedmodernlogisticscertificationforlogisticscentersinChangsha,Yangzhou,etc.,upgradedthewarehousemanagementsystem,improvedlogisticsefficiency,andbasicallyformedlogisticsdigitalization.In2025,theCompanywillfocusondeepeningtheintegrationofsupplychainsintheNorthwestandEastChinaregionsandoptimizingtheplanningsystem.
3.PrivateBrandsSeizeOpportunitiesIn2024,theCompany'sprivatebrandsdeeplyintegratedwithleadingdomesticmanufacturers,withdirectsupplyfrommanufacturersensuringquality.Fornon-pharmaceuticalcategories,"LBXPreferredSelection"wascreatedtoselectsafe,healthy,andcost-effectivehealthandlifestyleproductsforconsumers,implementingproductdevelopmentstandards≥nationalstandards,andestablishingafull-processqualityassurancesystem.In2024,thesalesofprivatebrandsinself-operatedstoresreachedRMB3.54billion,withprivatebrandsalesaccountingfor22%,anincreaseof2.4percentagepointsfrom2023.
4.ProcurementInnovationReducesCostsTheCompanyreducesprocurementcostsbydeepeningchannelintegration,optimizinginventorymanagement,andstrengtheningbrandcooperation.First,optimizingtheprocurementprocessthroughverticalmanagementtointegratechannels,increasingtheproportionofcentralizedprocurementtoleveragescaleadvantages.Second,usingbigdataplatformstomonitorinventoryanddemandinreal-time,achievingrapidproductturnover.Third,cooperatingdeeplywithbrandmanufacturerstoobtainrichproductresourcesandmeetcustomerneeds.Asoftheendof2024,theCompanyoperatedapproximately25,800SKUs(StockKeepingUnits).In2024,thesalesproportionofcentralized
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procurementwas72.4%,anincreaseofabout4percentagepointsyear-on-year;theCompany'sinventoryturnoverdayswere94days,adecreaseof4daysyear-on-year.Atthesametime,theCompanydeepenedthemanagementofnon-operationalprocurement,reducingprocurementcosts.In2024,theCompanycompletedthebiddingfor479non-operationalprocurementprojects,achievingtotalcostsavingsofRMB16million+fortheyear,asavingrateof7%+.
(III)People
1.OrganizationalCulturePromotesDevelopment
(1)EfficientOrganizationTheCompanycontinuouslybuildsanefficientorganizationadaptedtodigitalization.First,emphasizingcustomerorientation,simplicityandefficiency,altruismandequality.Second,promotingtheconceptofdata-drivendecision-making,buildingaflexibleandscalableapplicationofficeplatform.Third,developingdigitaltoolsandproductsthatmeetbusinessneeds,achievingthedigitalintelligencetransformationoforganizationalmanagement.TheCompanycontinuouslybuildsanHRdigitalintelligencesystemtosupportrapidcollaboration.First,developingacomprehensiveHRmanagementdatadashboard;second,continuouslybuildingdigitalintelligencemanagementfortheentireemployeelifecycle("plan-select-use-train-retain");third,launchingthe"searchpeoplebyposition"functiontoachieverapidandprecisepersonnelsearch.
(2)TalentTeamTheCompanyfocusesonechelontalentcultivation,enhancingtalentdensityandimprovingorganizationaleffectiveness.In2024,full-chaincultivationofoperational,procurement,andmerchandisingechelontalentwasachieved,covering100%ofcorebusinesspositionsinthewarzones.Anew"Group+WarZoneRotation"modelwasaddedtoimproveemployees'understandingofthevaluechainandtheirpositions.
Continuouslyoptimizingthetalentstrategytoensurethestableoperationofthetalentsupplychain.Improvingtalentqualityandteamcohesionthroughmeasuressuchasoptimizingrecruitmentprocesses,strengtheningtheinternaltrainingsystem,implementingperformanceincentivemechanisms,andenhancingculturalconstruction.
(3)AltruisticCulture
In2024,thefocuswasonpromotingthealtruisticmindsetprojectforfrontlineemployees.TheCompanycultivatesemployees'altruisticmindsetthrough"doingtenthingswell",understandingandtreatingcustomerskindly,andimprovingservicequality.
Benefitingemployees:First,renovatingstorediningareasandemployeedormitoriestoenhanceemployeesatisfaction;second,implementingemployeecareinitiativessuchastheten-millionhardshiprelieffundtoenhanceemployeebelonging;third,buildinganaltruistichonorsystemforfrontlineemployeesandtraininginaltruisticmindset.
Benefitingcustomers:First,implementingsixfreeself-testingservicessuchasbloodpressure,bloodoxygen,andbloodsugarmeasurement100%,providingwarmcareandprofessionalservices;second,openingstorerestroomstothepublicforcustomerconvenienceandstickinessenhancement;third,promotingaltruisticculture,encouragingallemployeestostrivetodoaltruisticdeeds.
2.RefinedMemberOperations
Improvingthememberoperationssystemandenhancingrefinedservicecapabilities.First,focusingonprecisemembermarketingcapabilities,providingfulllifecyclehealthservices.Second,strengtheningmemberloyaltyoperations,optimizingmemberexperiencethroughstrategiessuchasrights,points,andpaidmemberships.Third,promotingmemberdatagovernance,improvingmemberdataquality.Fourth,reviewingmembermarketingstrategiesandresults,continuouslyincreasingtheproportionofmembersalesandmemberconsumptionfrequency.Asoftheendof2024,theCompany'stotalnumberofmembers(includingthosefromfranchisedstores)reached99.65million,including30.34millionannualactivemembers.Over11.49millionnewregisteredmemberswereaddedin2024,andmembersalesaccountedforover75%.
3.SustainableShareholderReturns
TheCompanypracticesthedevelopmentphilosophyof"investor-oriented",committedtoestablishingascientific,continuous,andstabledividendreturnmechanism,andactivelyrewardingshareholders.In2024,theCompanyimplementeditsfirstinterimdividenddistributionofRMB251milliontorewardshareholders.Atthesametime,theCompanyreleasedtheShareholderReturnPlanfortheNextThreeYears(2024-2026)tobringlong-terminvestmentreturnstoinvestors,planningthat
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theminimumproportionofnetprofitdistributedascashdividendsannuallyfrom2024to2026shouldreach50%.Sinceitslisting,theCompanyhasimplementedcumulativecashdividendsofRMB2.008billion,approximatelytwicethenetproceedsraisedfromtheIPO.(IV)DigitalIntelligenceandInnovation
1.ContinuousDeepeningofDigitalIntelligenceTransformationDeeplyintegratingvariousdataresourcesandpromotingtheconstructionofadigitalintelligencesystem.First,focusingondualinnovationinalgorithmsandbusinessprocesses,strengtheningthepreciseidentificationofabnormalinventory;second,continuouslyimprovingthebusinessprocurementsystemtoprovidedatasupport;third,iteratingefficiencyimprovementtoolsfordifferentscenarios,refiningoperationalstrategies;fourth,closelyfocusingonbusinessprojects,coveringinfrastructuregovernanceandapplicationdelivery;fifth,combiningbusinessscenarios,increasingexplorationeffortsindigitalintelligenceandAIapplications.
2.ComprehensiveEmpowermentthroughInformationTechnologyR&DFocusingonconsolidatinginformationtechnologycapabilitiestoensurerefinedbusinessoperations.First,digitalupgradingofthesupplychain,optimizingmanagementandcollaborationfromafullsupplychainperspective,enhancingdecision-makingandprocurementefficiency.Second,precisetransformationofoperationalmanagement,utilizingcutting-edgedigitaltechnologiessuchasbigdataanalysisandAItoformulatepersonalizedmedicationplans,andimprovingmembermedicationadherencethroughpushnotifications.Third,optimizationofnewretailoperations,continuouslyupgradingfulfillmentcapabilities,launchingO2Oabnormalpricecontrol,anddeeplymininguserneedsthroughprivatedomainsales.
3.Full-DomainEffortsinNewRetailEcosystemFull-chainresonancebetweenonlineandoffline,continuousinnovationinchannelsandproducts.In2024,theCompanyenrichedtheproductlineofitsnewretailbusiness,enhancedtheapplicationofintelligentmanagementandbigdataanalysis,andrespondedquicklytoconsumerneeds.In2024,theCompany'stotalonlinechannelsales(includingfranchises)wereapproximatelyRMB2.47billion,ayear-on-yearincreaseofabout24%.Attheendofthereportingperiod,thenumberofstoresofferingO2Odeliveryservicesreached12,659,andthenumberof24-hourstoresreached694.
Inthepublicdomain,multi-channelandmulti-scenariolivestreamingachievedsignificantresults,withvariouscategoriessuchastonicsandhealthproductsperformingwell.In2024,theCompany'sO2OandB2Csalesrankedfifthandthirdinthemarket,respectively.Intheprivatedomain,the"LBXPharmacy"WeChatmini-programprovides24-houronlineservices,andthe"all-time,all-domain,all-product"servicesystemcontinuestoimprove.Inthefourthquarterof2024,privatedomainmini-programsalesincreasedrapidly,withayear-on-yeargrowthof84.7%.
4.DiversifiedExplorationfortheSecondGrowthCurve
TheCompanycontinuestoexplorediversifiedprojects,focusingonincreasingtheproportionofnon-pharmaceuticalsales.First,creatingnewcategories,utilizingomni-channelbigdatatofocusoninsightsintotheneedsofdrugpurchasingusers,identifyingleadingbrandsinsegmentedscenarios,selectingSKUsforpilotprojects,screeningpotentialproducts,andbuildinganewcategorymatrix.Second,shapinganewimage,comprehensivelyshapingthebrandimagebyiteratingthestoreVIsystem,creatingahumanizedshoppingenvironment,enhancingshelfdisplayguidancecapabilities,andimprovingemployeeserviceprofessionalism.Third,transmittinganewmindset,basedonofflinecommunityservices,exploringnewmodelsofonlinecommunityreachandinteractionusingmobileinternettechnology,andtransmittingthemindsetofa"healingcommunity"throughallchannels.Fourth,establishingadigitalintelligencetestingplatform,buildinganintelligentdecision-makingsystemsupportedbyinternalandexternalomni-channelbigdata,continuouslyassistingthegroup'sdiversifiedexploration.
5.BrandInnovationEnhancesInfluence
Brandinnovationdrivenbybothbrandco-creationandnewmediamatrix.TheCompanycontinuouslystrengthensthebrandculturecoreof"healing"and"altruism",deepeningtheemotionalconnectionwithconsumers.In2024,17brandco-creationactivitieswereheld,withacumulativeexposureof1.65billionviews,effectivelyenhancingbrandawarenessandreputation.
Atthesametime,theCompanystrengthensthe"professional,warm"brandimageandenhancesbrandinfluencebybuildinganewmediamatrix,incubatingprofessionalpharmacistaccounts,andformingacelebritypharmacistIPmatrix.Amongthem,thevideoviewsofthe"PharmacistXiaoying"IPaccounthaveexceeded130million.
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(V)RiskManagementSystem
1.StrengtheningQualityManagementandComplianceManagementEstablishingandimprovingthequalitymanagementandcompliancemanagementsystem.Intermsofqualitymanagement:Adheringtothequalitypolicyof"QualityFirst,CustomerForemost",theCompanyhasestablishedafour-levelqualitymanagementstructureof"Group-ProvincialSubsidiary-City-Store",setupprofessionalqualitymanagementdepartments,andimplementedclosed-loopmanagementoftheentirequalityprocess.Atthesametime,theCompanypromotesqualitycultureconstruction,creatingagoodatmospherewhere"everyonevaluesquality,everyonecreatesquality,everyoneenjoysquality".
Intermsofcompliancemanagement:First,front-loadinglegalriskcontrol,issuingcontractreviewstandards,improvingcontractreviewprocesses,andreducingcontractperformancerisks;second,optimizingarbitration/litigationhandlingmechanisms,analyzingcases,andprovidingcompliancesolutions.
2.ImprovingRiskandProcessManagementSystem
Strengtheningtheriskmanagementsystemandpromotingtheoptimizationoftheprocesssystem.Intermsofriskmanagement:First,improvingtheriskmanagementresponsibilitiesofvariouslines,enhancingthecollaborationofthethreelinesofdefenseinriskmanagement;second,operatingariskeventclassificationmanagementmechanism,improvingthereportingandhandlingofriskeventsbyclassification;third,establishingariskcompliancebottom-linechecklistforsixmajorsections,strengtheningemployees'riskawareness.
Intermsofprocessmanagement:First,usingtheprocessarchitecturetosupportcompliancegovernanceprojects;second,analyzingthecurrentstatusofkeyprocessesandoptimizingthem;third,graduallybuildingaprocessauditsystemtostrengthensupervisionandmanagement.
3.CorporateGovernanceEscortsLong-termDevelopment
GoodcorporategovernanceescortstheCompany'slong-termhealthydevelopment.TheCompanyhasfounderswithrichindustryexperienceandaprofessionalmanagementteam,possessingagoodcorporategovernancestructure.TheCompany'sBoardofDirectorsiscomposedofexpertsinthepharmaceuticalretailfield,empoweringtheCompany'sdevelopmentfromvariousprofessionalperspectivesandservingastheCompany'sstrategicdevelopment"thinktank".In2024,theCompany'sBoardofDirectorscompleteditstermrenewal,furtherenhancingthelevelofdiversityingender,age,nationality,andprofession.V.MainBusinessConditionsduringtheReportingPeriod
In2024,theCompanyachievedoperatingincomeofRMB22,357.61million,ayear-on-yeardecreaseof0.36%;achievednetprofitattributabletoparentcompanyshareholdersofRMB519.06million,ayear-on-yeardecreaseof44.13%;achievednetcashflowgeneratedfromoperatingactivitiesofRMB2,026.46million,ayear-on-yeardecreaseof25.77%.(I)AnalysisofMainBusiness
1.AnalysisTableofChangesinRelevantItemsofIncomeStatementandCashFlowStatement
Unit:YuanCurrency:RMB
| Item | Amountforthecurrentperiod | Amountinthesameperiodlastyear | Changeratio(%) |
| Operatingincome | 22,357,610,195 | 22,437,489,012 | -0.36 |
| Operatingcost | 14,942,332,455 | 15,134,226,781 | -1.27 |
| Sellingexpenses | 4,947,435,885 | 4,566,475,793 | 8.34 |
| Administrativeexpenses | 1,257,665,102 | 1,186,691,499 | 5.98 |
| Financialexpenses | 173,025,944 | 177,397,752 | -2.46 |
| R&Dexpenses | 2,013,597 | 2,510,591 | -19.80 |
| Netcashflowsfromoperatingactivities | 2,026,458,797 | 2,729,838,947 | -25.77 |
| Netcashflowsfrominvestingactivities | -627,875,871 | -761,264,347 | 17.52 |
| Netcashflowsfromfinancingactivities | -1,348,348,430 | -2,427,828,951 | 44.46 |
Explanationofchangeinoperatingincome:Basicallyflatcomparedtolastyear.Explanationofchangeinoperatingcost:Basicallyflatcomparedtolastyear.
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Explanationofchangeinsellingexpenses:Mainlyduetoincreasedlabor,rent,depreciationandamortizationexpensescausedbytheincreaseinthenumberofnewstores.Explanationofchangeinadministrativeexpenses:Mainlyduetoincreasedlaborcostscausedbytheincreaseinmanagementpersonnelandincreaseddepreciationandamortizationfromprojectstransferredtofixedassets.Explanationofchangeinfinancialexpenses:Basicallyflatcomparedtolastyear.ExplanationofchangeinR&Dexpenses:MainlyduetothedecreaseinR&DexpenditureoftheCompany'ssubsidiaryHunanBaixinInformationTechnologyCo.,Ltd.Explanationofchangeinnetcashflowfromoperatingactivities:Mainlyduetothedecreaseincashreceivedfromthesaleofgoodsandanincreaseinexpensesforopeningnewstores.Explanationofchangeinnetcashflowfrominvestingactivities:MainlyduetothedecreaseininvestmentinnewM&Aprojectsduringtheperiod.Explanationofchangeinnetcashflowfromfinancingactivities:Mainlyduetotheincreaseinborrowingsanddividendsduringtheperiod.DetailedexplanationofsignificantchangesintheCompany'sbusinesstype,profitstructure,orprofitsourcesduringtheperiod
□Applicable√NotApplicable
2.AnalysisofRevenueandCost
√Applicable□NotApplicableSeetablebelow
(1)MainBusinessbyIndustry,Product,Region,andSalesModel
Unit:YuanCurrency:RMBPercentagepoints（PP）
| MainBusinessbyIndustry | ||||||
| Byindustry | Operatingincome | Operatingcost | Grossprofitmargin(%) | YoYchangeinoperatingincome(%) | YoYchangeinoperatingcost(%) | YoYchangeingrossprofitmargin(%) |
| Retail | 19,106,710,524 | 12,148,669,938 | 36.42 | -1.25 | -2.38 | Increaseby0.73PP |
| Franchise,alliance,anddistribution | 3,104,570,127 | 2,699,022,682 | 13.06 | 5.92 | 4.22 | Increasedby1.42PP |
| Other | 146,329,544 | 94,639,835 | 35.32 | -6.80 | -5.51 | Decreaseby0.89PP |
| Total | 22,357,610,195 | 14,942,332,455 | 33.17 | -0.36 | -1.27 | Increasedby0.62PP |
| MainBusinessbyProduct | ||||||
| Byproduct | Operatingincome | Operatingcost | Grossprofitmargin(%) | YoYchangeinoperatingincome(%) | YoYchangeinoperatingcost(%) | YoYchangeingrossprofitmargin(%) |
| Chineseandwesternpatentmedicine | 17,684,831,078 | 12,102,123,176 | 31.57 | 1.72 | 0.50 | Increaseby0.83PP |
| Chinesemedicine | 1,703,796,178 | 967,677,073 | 43.20 | -10.40 | -10.46 | Decreasedby0.04PP |
| Non-pharmaceuticals | 2,968,982,939 | 1,872,532,206 | 36.93 | -5.76 | -6.94 | Increasedby0.80PP |
| Total | 22,357,610,195 | 14,942,332,455 | 33.17 | -0.36 | -1.27 | Increasedby0.62PP |
| MainBusinessbyRegion | ||||||
| Byregion | Operatingincome | Operatingcost | Grossprofit | YoYchangein | YoYchangein | YoYchangein |
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| margin(%) | operatingincome(%) | operatingcost(%) | grossprofitmargin(%) | |||
| CentralChina | 9,048,933,932 | 6,019,828,406 | 33.47 | -4.05 | -4.96 | Increaseby0.63PP |
| SouthChina | 1,120,094,230 | 718,031,431 | 35.90 | -2.60 | -3.19 | Increasedby0.40PP |
| NorthChina | 2,427,448,616 | 1,696,110,170 | 30.13 | 1.65 | 0.28 | Increaseby0.96PP |
| EastChina | 5,871,639,716 | 3,942,085,523 | 32.86 | 4.64 | 3.55 | Increaseby0.71PP |
| NorthwestChina | 3,889,493,701 | 2,566,276,925 | 34.02 | 0.83 | 0.23 | Increasedby0.40PP |
| Total | 22,357,610,195 | 14,942,332,455 | 33.17 | -0.36 | -1.27 | Increasedby0.62PP |
Note:TheCompanyincludescategorieslikeEjiao(donkey-hidegelatin)intotheChineseMedicinecategorybasedonindustryconditions,andhistoricaldatahasbeenadjustedaccordingly.ExplanationofMainBusinessbyIndustry,Product,Region,andSalesModelByindustry:TheCompany'soperatingincomemainlycomesfrompharmaceuticalretailbusiness,franchise,alliance,anddistributionbusiness.Amongthem,retailbusinessisdominant,accountingforover85%oftotalrevenueduringthereportingperiod;excludingtheDTPpharmacybusiness(DTPpharmaciesarepharmaciesthatdirectlyprovidemorevaluableprofessionalservicestopatients,mainlysellingnewspecialtydrugs,self-paydrugs,andprofessionaldrugs),theretailgrossprofitmarginis
39.08%.Franchise,alliance,anddistributionbusinessinvolvesdistributiontofranchiseesandsmallandmedium-sizedchains,grewrapidlyduringthereportingperiod,accountingforabout14%oftotalrevenue.TheCompany'sfranchisebusinessleadsamonglistedprivatepharmacies,witharelativelyhighrevenueshare,anditsgrossprofitmarginislowerthantheretailbusinessgrossprofitmargin.OtherbusinessincludescommoditysalesrevenueandstoresubleaseincomefromtheCompany'ssubsidiaryYaoshengtangTechnologytoexternalunits,accountingforabout1%oftotalrevenue.Bycategory:SalesofChineseandWesternpatentmedicinesaccountforabout79%,makingittheCompany'smostimportantproductcategory,withoperatingincomeincreasingby1.72%year-on-year.SalesofChinesemedicineaccountforabout8%,withoperatingincomedecreasingby10.40%year-on-year.Byregion:CentralChinaaccountsforover40%ofrevenue,makingitanimportantsourceofbusinessincomefortheCompany,wheretheCompanyhasaprominentleadingadvantage.Note:CentralChinaregionincludes:HunanProvince,HubeiProvince,JiangxiProvince,HenanProvince;SouthChinaregionincludes:GuangdongProvince,GuangxiProvince;NorthChinaregionincludes:TianjinMunicipality,InnerMongoliaAutonomousRegion,ShanxiProvince;EastChinaregionincludes:ZhejiangProvince,ShanghaiMunicipality,AnhuiProvince,JiangsuProvince,ShandongProvince;NorthwestChinaregionincludes:ShaanxiProvince,GansuProvince,NingxiaHuiAutonomousRegion,GuizhouProvince
(2)ProductionandSalesVolumeAnalysisTable
□Applicable√NotApplicable
(3)PerformanceofMajorPurchaseContractsandMajorSalesContracts
□Applicable√NotApplicable
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(4)CostAnalysisTable
Unit:Yuan
| Byindustry | |||||||
| Byindustry | Costcomponentitem | Amountofthecurrentperiod | Proportionoftotalcostincurrentperiod(%) | Amountinsameperiodlastyear | Proportionoftotalcostinsameperiodlastyear(%) | YoYchangeratioofcurrentperiodamount(%) | SituationExplanation |
| Retail | Goods | 12,148,669,938 | 81.30 | 12,444,229,549 | 82.23 | -2.38 | |
| Franchise,alliance,anddistribution | Goods | 2,699,022,682 | 18.06 | 2,589,843,608 | 17.11 | 4.22 | |
| Other | 94,639,835 | 0.63 | 100,153,624 | 0.66 | -5.51 | ||
| Total | 14,942,332,455 | 100.00 | 15,134,226,781 | 100.00 | -1.27 | ||
| Byproduct | |||||||
| Byproduct | Costcomponentitem | Amountofthecurrentperiod | Proportionoftotalcostincurrentperiod(%) | Amountinsameperiodlastyear | Proportionoftotalcostinsameperiodlastyear(%) | YoYchangeratioofcurrentperiodamount(%) | SituationExplanation |
| Chineseandwesternpatentmedicine | Goods | 12,102,123,176 | 80.99 | 12,041,380,067 | 79.56 | 0.50 | |
| Chinesemedicine | Goods | 967,677,073 | 6.48 | 1,080,750,881 | 7.14 | -10.46 | |
| Non-pharmaceuticals | Goods | 1,872,532,206 | 12.53 | 2,012,095,833 | 13.30 | -6.94 | |
| Total | 14,942,332,455 | 100.00 | 15,134,226,781 | 100.00 | -1.27 | ||
OtherExplanationsforCostAnalysisNone
(5)ChangesinConsolidationScopeduetoChangesinEquityofMajorSubsidiariesduringtheReportingPeriod
√Applicable□NotApplicableSeeNoteIX(1)inSectionXFinancialReport.
(6)InformationonSignificantChangesorAdjustmentsintheCompany'sBusiness,Products,orServicesduringtheReportingPeriod
□Applicable√NotApplicable
(7)InformationonMajorSalesCustomersandMajorSuppliersA.InformationontheCompany'sMajorSalesCustomers
√Applicable□NotApplicable
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ThesalesofthetopfivecustomerswereRMB269.75million,accountingfor1.21%ofthetotalannualsales.Amongthetopfivecustomers,thesalesofrelatedpartieswereRMB57.68million,accountingfor0.26%ofthetotalannualsales.Situationswherethesalesproportiontoasinglecustomerexceeds50%ofthetotal,newcustomersexistamongthetop5customers,orsevererelianceonafewcustomersexistsduringthereportingperiod
□Applicable√NotApplicableB.InformationontheCompany'sMajorSuppliers
√Applicable□NotApplicablePurchasesfromthetopfivesuppliersamountedtoRMB2,340.31million,accountingfor13.7%ofthetotalannualpurchases;amongthem,purchasesfromrelatedpartieswithinthetopfivesuppliersamountedtoRMB0,accountingfor0%ofthetotalannualpurchases.Situationswherethepurchaseproportionfromasinglesupplierexceeds50%ofthetotal,newsuppliersexistamongthetop5suppliers,orsevererelianceonafewsuppliersexistsduringthereportingperiod
□Applicable√NotApplicable
OtherExplanations:
None3.Expenses
√Applicable□NotApplicable
Unit:Yuan
| Item | Amountforthecurrentperiod | Amountinthesameperiodlastyear | Changeratio(%) |
| Sellingexpenses | 4,947,435,885 | 4,566,475,793 | 8.34 |
| Administrativeexpenses | 1,257,665,102 | 1,186,691,499 | 5.98 |
| Financialexpenses | 173,025,944 | 177,397,752 | -2.46 |
| R&Dexpenses | 2,013,597 | 2,510,591 | -19.80 |
OtherExplanations:Sellingexpensesincreasedby8.34%,mainlyduetoincreasedlabor,rent,depreciationandamortizationexpensescausedbytheincreaseinthenumberofnewstores.Administrativeexpensesincreasedby5.98%,mainlyduetoincreasedlaborcostscausedbytheincreaseinmanagementpersonnelandincreaseddepreciationandamortizationfromprojectstransferredtofixedassets.Financialexpenseswerebasicallyflatcomparedtolastyear.4.R&Dinvestments
(1).R&DInvestmentTable
√Applicable□NotApplicable
Unit:Yuan
| ExpensedR&Dinvestmentincurrentperiod | 2,013,597 |
| CapitalizedR&Dinvestmentincurrentperiod | 133,998,334 |
| TotalR&Dinvestment | 136,011,931 |
| RatiooftotalR&Dinvestmenttooperatingincome(%) | 0.61 |
| RatioofcapitalizedR&Dinvestment(%) | 98.52 |
(2).R&DPersonnelTable
√Applicable□NotApplicable
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| NumberoftheCompany'sR&Dpersonnel | 434 |
| RatioofR&Dpersonneltototalcompanyemployees(%) | 1.08 |
| EducationalstructureofR&Dpersonnel | |
| Educationalstructurecategory | Numberbyeducationalstructure |
| PhDcandidates | 0 |
| Postgraduates | 42 |
| Bachelor | 296 |
| AssociateDegree | 96 |
| Highschoolandbelow | 0 |
| AgestructureofR&Dpersonnel | |
| Agestructurecategory | Numberbyagestructure |
| Below30yearsold(excluding30) | 121 |
| 30-40yearsold(including30,excluding40) | 281 |
| 40-50yearsold(including40,excluding50) | 31 |
| 50-60yearsold(including50,excluding60) | 1 |
| 60andabove | 0 |
(3).ExplanationofSituation
□Applicable√NotApplicable
(4).ReasonsforsignificantchangesinR&Dpersonnelcompositionandtheirimpactonthe
Company'sfuturedevelopment
□Applicable√NotApplicable
5.CashFlow
√Applicable□NotApplicable
Unit:Yuan
| Item | Amountforthecurrentperiod | Amountinthesameperiodlastyear | Changeratio(%) |
| Netcashflowsfromoperatingactivities | 2,026,458,797 | 2,729,838,947 | -25.77 |
| Netcashflowsfrominvestingactivities | -627,875,871 | -761,264,347 | 17.52 |
| Netcashflowsfromfinancingactivities | -1,348,348,430 | -2,427,828,951 | 44.46 |
Explanation:
Thenetcashflowgeneratedfromoperatingactivitiesdecreasedcomparedtothepreviousperiod,mainlyduetoadecreaseincashreceivedfromthesaleofgoodsandanincreaseinsalariespaidresultingfromtheopeningofnewstores.Netcashflowgeneratedfrominvestingactivitiesincreasedcomparedtothepreviousperiod,mainlyduetothedecreaseininvestmentinnewM&Aprojectsduringtheperiod.Netcashflowgeneratedfromfinancingactivitiesincreasedcomparedtothepreviousperiod,mainlyduetotheincreaseinborrowingsanddividendsduringtheperiod.(II)ExplanationofSignificantChangesinProfitduetoNon-MainBusiness
√Applicable□NotApplicable
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Duringtheperiod,therecoverableamountofthecash-generatingunitwheresomegoodwillresideswaslessthanitsbookvalue,andtheCompanyrecognizedagoodwillimpairmentlossofRMB108million.(III)AnalysisofAssetsandLiabilities
√Applicable□NotApplicable
1.AssetsandLiabilities
| NameofProject | Amountatendofcurrentperiod | Proportionoftotalassetsatendofcurrentperiod(%) | Amountatendofpreviousperiod | Proportionoftotalassetsatendofpreviousperiod(%) | Changeratioofamountatendofcurrentperiodcomparedtoendofpreviousperiod(%) | ExplanationofSituation |
| Tradingfinancialassets | 1,500,000 | 0.01 | -100.00 | Mainlyduetothedecreaseinthefairvalueofconvertiblebondsheld. | ||
| Receivablesfinancing | 15,269,288 | 0.07 | 8,332,713 | 0.04 | 83.25 | Mainlyduetotheincreaseinsettlementviabankacceptancebills. |
| Othercurrentassets | 215,072,326 | 1.02 | 164,111,488 | 0.77 | 31.05 | MainlyduetotheincreaseininputVATtobedeductedinthecurrentperiod. |
| Othernon-currentfinancialassets | 12,093,150 | 0.06 | 5,774,109 | 0.03 | 109.44 | MainlyduetotheincreaseintheCompany'sassociatebusinessduringtheperiod. |
| Constructioninprogress | 107,795,924 | 0.51 | 75,754,943 | 0.36 | 42.30 | Mainlyduetocontinuousinvestmentinconstructioninprogressduringtheperiod. |
| Deferredtaxassets | 116,703,610 | 0.55 | 69,501,069 | 0.33 | 67.92 | Mainlyduetotheincreaseindeferredincometaxrecognizedfromdeductiblelossesinthecurrentperiod. |
| Othernon-currentassets | 17,051,558 | 0.08 | 51,289,452 | 0.24 | -66.75 | Mainlyduetothedecreaseinprepaymentsforengineeringprojects. |
| Short-term | 1,656,884,090 | 7.87 | 799,754,553 | 3.77 | 107.17 | Mainlyduetothe |
/
Unit:YuanOtherExplanations:
None
2.OverseasAssets
√Applicable□NotApplicable
(1)AssetScaleWherein:OverseasassetsatRMB1,541,008(Unit:Yuan;Currency:RMB),accountingfor0.01%oftotalassets.
(2)Explanationregardingthehighproportionofoverseasassets
□Applicable√NotApplicable
3.MajorAssetsRestrictedattheEndoftheReportingPeriod
√Applicable□NotApplicableSee"SectionXFinancialReport","VII.NotestoConsolidatedFinancialStatementItems","31.AssetswithRestrictedOwnershiporUseRights".
4.OtherExplanations
□Applicable√NotApplicable(IV)AnalysisofIndustryOperatingInformation
√Applicable□NotApplicableSeeSectionIII"DiscussionandAnalysisbytheManagement",SubsectionII"II.IndustrySituationduringtheReportingPeriod"ofthisreport.
| loans | increaseinborrowingsandbilldiscountingduringtheperiod. | |||||
| Otherpayables | 653,535,414 | 3.11 | 936,519,479 | 4.41 | -30.22 | Mainlyduetothedecreaseinpayablesforacquisitions. |
| Deferredtaxliabilities | 36,696,534 | 0.17 | 21,238,961 | 0.10 | 72.78 | Mainlyduetotheincreaseindeferredtaxliabilitiesrecognizedunderthenewleasestandard. |
| Less:Treasurystock | 16,935,356 | 0.08 | 43,256,912 | 0.20 | -60.85 | Mainlyduetothedecreaseintreasurystockresultingfromtheunlockingandrepurchaseofrestrictedshares. |
/
AnalysisofRetailIndustryOperatingInformation
1.DistributionofOpenedStoresattheEndoftheReportingPeriod
□Applicable□NotApplicable
| Region | OperatingFormat | Self-OwnedPropertyStores | LeasedPropertyStores | ||
| NumberofStores | BuildingArea(10,000m2) | NumberofStores | BuildingArea(10,000m2) | ||
| NorthChinaRegion | PharmaceuticalRetail | 0 | 0 | 1,513 | 21.77 |
| EastChinaRegion | PharmaceuticalRetail | 0 | 0 | 2,901 | 43.54 |
| SouthChinaRegion | PharmaceuticalRetail | 0 | 0 | 549 | 7.56 |
| CentralChinaRegion | PharmaceuticalRetail | 10 | 0.32 | 3,522 | 44.95 |
| NorthwestRegion | PharmaceuticalRetail | 0 | 0 | 1,486 | 20.16 |
| Total | 10 | 0.32 | 9,971 | 137.99 | |
2.OtherExplanations
□Applicable□NotApplicable
(1)OperatingEfficiencyofDirectly-OperatedStoresAsofDecember31,2024,theCompanyhadatotalof15,277stores,including9,981directly-operatedstores,withoperatingefficiencyasfollows:
| StoreType(bydailysalesamount) | NumberofStores(Stores) | StoreOperatingArea(m2) | AverageDailySalesperSquareMeter(Taxincluded,RMB/m2) |
| FlagshipStore | 114 | 45,017 | 206 |
| LargeStore | 248 | 45,587 | 110 |
| Small-MediumMatureStore | 9,619 | 964,332 | 36 |
| Total | 9,981 | 1,054,936 | 47 |
Note:Theyear-on-yeardecreasein2024flagshipstoresalespersquaremeterwasduetoanadjustmentindatascope,assalesfromsomeB2Cstoreswerenotincludedinthedirectly-operatedstorefigures.Afteradjustingforthisimpact,flagshipstoresalespersquaremeterremainedessentiallythesameasin2023.Thedecreaseinsalespersquaremeterforsmallandmedium-sizedstoreswasmainlyaffectedbythemarketenvironment,healthinsurancepolicies,andtheimpactthatmostnewstoresaddedin2024weresmallandmedium-sizedstores(communitystoreswithlowersalespersquaremeter).In2024,thevastmajorityofnewlyopenedstoreswerelocatedinprefecture-levelcitiesandlower-tiermarkets,wherecostssuchasrentandlaborarelower,resultinginbetterprofitabilityandgrowthpotential.
(2)StoreChanges
Attheendof2024,theCompanyowned15,277stores,anetincreaseof1,703.Thisincluded9,981directly-operatedstores(anetincreaseof801)and5,296franchisedstores(anetincreaseof902).
TheCompanyhas2,474storeswhoseleaseswillexpirein2025.Leaserenewalsforallexpiringstoresareproceedingorderlyandrenewabilityisstable.In2025,theGroupwillfurtherpromoteleasecostcontrolwork.Whileensuringthesteadyprogressofleaserenewalwork,basedontheactual
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businessconditionsofeachstore,aone-store-one-policyapproachwillbeadoptedtoreducecostsandimproveefficiency,optimizethestorecoststructure,andenhanceoverallstoreprofitability.Theoveralldistributionofdirectly-operatedstoresduringthereportingperiodisasfollows:
| Region | 2024 | |
| Netincrease(stores) | EndofPeriod(Stores) | |
| CentralChinaRegion | 242 | 3,532 |
| SouthChinaRegion | 28 | 549 |
| NorthChinaRegion | 129 | 1,513 |
| EastChinaRegion | 212 | 2,901 |
| NorthwestRegion | 190 | 1,486 |
| Total | 801 | 9,981 |
(3)SituationofDirectly-OperatedStoresObtainingMedicalInsuranceQualificationDuringthereportingperiod,9,366oftheCompany'sdirectly-operatedstoresobtainedvarious"DesignatedRetailPharmacyforMedicalInsurance"qualifications,accountingfor93.84%ofthetotalnumberofstores.Anincreaseof1,180storescomparedtotheendof2023.
| Region | TotalNumberofStores | NumberofStoreswithVariousMedicalInsuranceQualifications | ProportionofTotalStores |
| CentralChinaRegion | 3,532 | 3,426 | 97.00% |
| SouthChinaRegion | 549 | 539 | 98.18% |
| NorthChinaRegion | 1,513 | 1,452 | 95.97% |
| EastChinaRegion | 2,901 | 2,802 | 96.59% |
| NorthwestRegion | 1,486 | 1,147 | 77.19% |
| Total | 9,981 | 9,366 | 93.84% |
(4)CategoryStructureSituationatRetailTerminalsChineseandWesternpatentmedicinesarethemainproductsoperatedbytheCompany,accountingfor79.10%oftheCompany'sretailterminalrevenue.ThesalesproportionofvariouscategoriesoftheCompanyisstable,andtherehavebeennosignificantchangesintheproductstructure.In2022,theproportionofnon-pharmaceuticalssuchasmasksanddisinfectantswasrelativelyhigh.
| RetailCategory | 2022 | 2023 | 2024 |
| Chineseandwesternpatentmedicine | 77.60% | 78.56% | 79.10% |
| Chinesemedicine | 6.96% | 7.40% | 7.62% |
| Non-pharmaceuticals | 15.44% | 14.04% | 13.28% |
(5)SituationofStorePharmaceuticalOperationPermitsandGSPCertificationAccordingtotheDrugAdministrationLawofthePeople'sRepublicofChinaandotherrelevantregulations,thequalificationcertificatesinvolvedinthedailyoperationsoftheCompany,itssubsidiaries,andstoresmainlyincludePharmaceuticalOperationPermit,FoodOperationPermit,MedicalDeviceOperationPermit,etc.Asoftheendofthereportingperiod,allstoresopenedbytheCompanypossessedaPharmaceuticalOperationPermit.TheCompanyhasalwaysattachedimportancetobusinessqualificationmanagement.Accordingtotheprovisionsofapplicablelawsandregulations,majorbusinessqualificationshavebeenrenewedorextendedinatimelymanner.
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(V)InvestmentAnalysisOverallAnalysisofExternalEquityInvestment
√Applicable□NotApplicableDuringthereportingperiod,theCompanyanditssubsidiariesconductedatotalof4acquisitionprojects,includingassetacquisitions,withatotalamountofRMB5,490.6million,acquiring41pharmacies(numberofstoresforwhichacquisitionagreementsweresignedduringthereportingperiod).Detailsareasfollows:
1.InJanuary2024,theCompany'ssubsidiaryChangzhouJintanXinqianqiuPharmacyCo.,Ltd.signedtheBusinessandAssetAcquisitionAgreementwithChangzhouDayePharmacyCo.,Ltd.,ChangzhouDayeZijinPharmacyCo.,Ltd.,andChangzhouDayeJinzhongPharmacyCo.,Ltd.,acquiringtherelevantassetsandbusinessof6storescontrolledbythem,withanacquisitionpriceofRMB5.5million;
2.InJanuary2024,theCompany'ssubsidiaryAnhuiBaixingyuanPharmacyChainCo.,Ltd.signedtheBusinessandAssetAcquisitionAgreementwithHefeiJingtianPharmacyChainCo.,Ltd.,acquiringtherelevantassetsandbusinessof25storescontrolledbythem,withanacquisitionpriceofRMB25.07million.
3.InApril2024,theCompany'ssubsidiaryWuxiSanpintanPharmaceuticalChainCo.,Ltd.signedtheBusinessandAssetAcquisitionAgreementwithWuxiWanfengPharmacyCo.,Ltd.,WuxiWanjiaLaikangPharmacyCo.,Ltd.,WuxiRunzetangPharmacyCo.,Ltd.,WuxiXizhangYongpingPharmacyCo.,Ltd.,WuxiHerunGuodaPharmacyCo.,Ltd.,WuxiLixinPharmacyCo.,Ltd.,andWuxiWanzhongPharmacyCo.,Ltd.,acquiringtherelevantassetsandbusinessof10storescontrolledbythem,withanacquisitionpriceofRMB8.46million.Theclosingofthistransactionhasnotyetbeencompleted.
4.InOctober2024,theCompanysignedtheEquityTransferAgreementwiththeshareholdersofLBXPharmacyChain(Hengyang)Co.,Ltd.,acquiringa15.12%equitystakeinLBXPharmacyChain(Hengyang)Co.,Ltd.,withanacquisitionpriceofRMB15.876million.
1.SignificantEquityInvestments
□Applicable√NotApplicable
2.SignificantNon-EquityInvestments
□Applicable√NotApplicable
3.FinancialAssetsMeasuredatFairValue
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| AssetCategory | Beginningbalance | FairValueChangeGain/LossinCurrentPeriod | CumulativeFairValueChangeRecognizedinEquity | ImpairmentRecognizedinCurrentPeriod | PurchaseAmountinCurrentPeriod | Sale/RedemptionAmountinCurrentPeriod | OtherChanges | Endingbalance |
| Other | 35,308,123 | 35,308,123 |
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| Other | 5,774,109 | 5,774,109 | |||
| Other | 1,300,000 | 5,019,041 | 6,319,041 | ||
| Other | 460,000 | 460,000 | |||
| Other | 109,600 | 109,600 | |||
| Total | 42,951,832 | 5,019,041 | 47,970,873 |
InvestmentinSecurities
□Applicable√NotApplicable
ExplanationofInvestmentinSecurities
□Applicable√NotApplicable
InvestmentinPrivateEquityFunds
□Applicable√NotApplicable
InvestmentinDerivatives
□Applicable√NotApplicable
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4.SpecificProgressofMajorAssetRestructuringandIntegrationduringtheReportingPeriod
□Applicable√NotApplicable
(VI）MajorAssetandEquitySales
□Applicable√NotApplicable
（VII）AnalysisofMajorHoldingandParticipatingCompanies
√Applicable□NotApplicable
| SubsidiaryName | RegisteredCapital(Tenthousandyuan) | ShareholdingRatio% | BusinessScope | TotalAssets(Tenthousandyuan) | NetAssets(Tenthousandyuan) | NetProfitin2024(Tenthousandyuan) |
| GuangxiCompany | 500 | 100 | PharmaceuticalRetail | 71,984 | 15,018 | 1,348 |
| ShaanxiCompany | 600 | 100 | PharmaceuticalRetail | 102.905 | 33,151 | 9,958 |
| ForworldCompany | 8,700 | 100 | PharmaceuticalWholesale | 500,276 | 44,731 | 16,599 |
| TongliaoZeqiang | 5,000 | 51 | PharmaceuticalRetail | 57,546 | 25,165 | 8,213 |
| LanzhouHuirentang | 3,000 | 100 | PharmaceuticalRetail | 104,572 | 40,711 | 7,190 |
| HunanHuairen | 12,700 | 80 | PharmaceuticalRetail | 166,051 | 51,731 | 11,486 |
(VIII)InformationonStructuredEntitiesControlledbytheCompany
□Applicable√NotApplicable
VI.Company'sDiscussionandAnalysisofFutureDevelopment(I)IndustryLandscapeandTrends
√Applicable□NotApplicable
1.PopulationAgingandEconomicDevelopmentDriveGrowthinthePharmaceuticalRetailIndustry
AccordingtotheNationalStrategyResearchReportonCopingwithPopulationAgingreleasedbytheOfficeoftheNationalWorkingCommissiononAging,themedicalexpensesofpeopleaged65andaboveareabout3-5timesthoseofpeopleunder65,andthemedicalexpensesofpeopleaged80andaboveareabout13-15timesthoseofpeopleaged65-80.DrivenbythegradualdeepeningofChina'spopulationaging,theChinesepharmaceuticalmarketmaintainsrapidgrowth.Atthesametime,withChina'seconomicdevelopmentandtheupgradingofresidentconsumptionstructure,people'semphasisonhealthmanagementisincreasingdaily,whichalsoprovidesmomentumforthedevelopmentofthepharmaceuticalretailindustry.
2.SeparationofDispensingfromPrescription(SDP)DrivesPrescriptionOutflow
Inrecentyears,thestatehascontinuouslyintroducedpoliciestopromoteprescriptionoutflow.Variousregionshavealsoactivelypromotedelectronicprescriptionservicesandacceleratedtheconstructionofprescriptioncirculationplatforms.EspeciallyinFebruary2023,theNationalHealthcareSecurityAdministrationissuedtheNoticeonFurtherImprovingtheManagementofIncludingDesignatedRetailPharmaciesinOutpatientPoolingManagement,activelysupportingdesignatedretail
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pharmaciestoopenoutpatientpoolingservices,substantiallypromotingtheSeparationofDispensingfromPrescription(SDP)andprescriptioncirculation.Prescriptionoutflowfromhospitalsislikelytobecomealong-termtrendunderthestrongpushofpolicies.Asthemainterminalforundertakingprescriptionoutflow,retailpharmaciesareexpectedtoreceivecontinuousbenefits.
3.ContinuousIncreaseinIndustryConcentrationAsthesupervisionofChina'spharmaceuticalretailindustrygraduallybecomesstricter,abatchofsmallandmedium-sizedpharmacieswillgraduallyexitthemarketorjointhecampoflargechainpharmacies.Theinclusionofdesignatedpharmaciesinoutpatientpoolingmanagementputsforwardhigherrequirementsforretailpharmaciesintermsofdigitalsystems,licensedpharmacists,pharmaceuticalservices,andoperationalcompliance.Theadvantagesoflargechainpharmaciesinstandardizedoperationandmarketscaleareincreasinglyprominent,andindustryconcentrationwillfurtherincrease.
4.IntegratedDevelopmentofOnlineandOfflineOfflinechainpharmacieshaveadvantagessuchasimmediatedrugpurchaseandprofessionalpharmaceuticalservices,whichcanbesynergisticwithonlinebusiness.Chainpharmaciesutilizetheirstorenetworktocoversurroundingcommunitiesandhospitals,bettermeetingthetimelinessandprofessionalismneedsofmajorgroupssuchastheelderlyandchronicdiseasepatientsformedication.Atthesametime,chainpharmaciesrapidlydeveloponlinebusinessthroughself-construction,cooperation,etc.,usingintegratedonlineandofflineservicesolutionstofacilitatedrugpurchasewhileprovidingcustomerswithmorevalue-addedservicesandenhancingcustomerstickiness.TheintegrateddevelopmentofonlineandofflinewillbecomethefuturetrendforChinesepharmacies.
5.DigitalIntelligenceTransformationBasedontheupgradingneedsofconsumersforconvenientdrugpurchase,personalizedhealthservices,andmedicationsafety,thedigitalintelligenceofpharmaciesisnotonlyatechnologicalupgradebutalsoarestructuringofindustrycompetitivebarriers.Digitalintelligenceempowersthroughtechnology(AI,bigdata,InternetofThings,etc.),serviceinnovation,andecologicalintegration.WiththedeepeningapplicationofAItechnologyandpolicysupport,digitalintelligencewillbecomethecoreengineforthesustainabledevelopmentofthepharmacyindustry.
6.DiversificationTrendAsconsumerdemandshiftsfromsimpledrugpurchasetocomprehensiveservicessuchashealthmanagement,chronicdiseaseintervention,andpersonalizedservices,diversifieddevelopmentisnotonlyadevelopmentstrategybutalsoakeypathforindustryupgradinganddevelopment.Retailpharmaciescontinuetoexplorediversifieddevelopmenttransformationpaths,breakinghomogeneouscompetitionthroughdifferentiatedservicesbymeansofnon-pharmaceuticalproductlineexpansion,servicescenarioinnovation,cross-formatintegration,andtechnology-empoweredoperations.Inthefuture,theadvantagesofchainpharmacieswithdiversifieddevelopmentcapabilitieswillbecomeincreasinglyprominent,andindustryconcentrationwillgathertowardsleadingenterprises.(II)DevelopmentStrategyoftheCompany
√Applicable□NotApplicable
TheCompanyfocusesonsevenmajorstrategiestobuildatechnology-drivenhealthserviceplatform.First,technology-driven,empoweringenterpriseoperationswithdigitalintelligence.Second,seizingtheopportunityofprescriptionoutflow,capturingtheblueoceanmarketofprescriptiondrugs.Third,embracingnewretail,creatingaclosed-loopecosystemof"product+service+customergroup".Fourth,advancingintonewruralareas,buildingathree-dimensionalexpansionnetwork.Fifth,expandinghealthandsocialspacesfortheelderly.Sixth,cultivatingprivatebrands.Seventh,exploringpharmacydiversification.(III)BusinessPlan
√Applicable□NotApplicable
1.Technology-DrivenContinuouslypromotingtheprocessofdigitaltransformationandinnovation.TheCompanyactivelydeploysanddevelopsdigitalandintelligenttoolstoempowerstoresandstaff,enhancethepharmaceuticalknowledgeandprofessionalpharmaceuticalservicelevelofstorestaff,bringprofessionalandconsiderateserviceexperiencestocustomers,enrichtheLBXbrandconnotation,and
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strengthentheemotionalconnectionwithcustomers.Atthesametime,solvingworkpainpointsanddifficultiesthroughintelligenttoolsandinformationtechnology,achievingefficiencyimprovementinmanagementatalllevels,andenhancingorganizationaloperationalefficiency.
2.SeizingtheOpportunityofPrescriptionOutflowUnderthemajortrendofprescriptionoutflow,theCompanywillactivelyseizetheblueoceanmarketofprescriptiondrugs.In2025,theCompanywillcontinuetocloselymonitorpoliciesrelatedtoprescriptionoutflowandoutpatientpooling,andactivelyconnectwithlocalmedicalinsurancebureaus.Atthesametime,relyingontheCompany'sresourcessuchasnationallyunifiedhigh-standarddual-channelstores,DTPstores,outpatientchronicandspecialdiseasestores,andtheadvantageofarelativelyhighlicensedpharmaciststaffingrateintheindustry,theCompanywillactivelyconnectwithprescriptioncirculationplatformssuccessivelylaunchedinvariousregionstoundertakemoreoutflowprescriptions.
3.EmbracingNewRetailTheCompanyhasestablishedanomni-channelonlinesalesplatformcoveringpublicandprivatedomains,andcontinuouslyenhancesitsrefinedmemberservicecapabilities,creatingaclosed-loopecosystemof"product+service+customergroup".In2025,theCompanywillutilizedigitalizationtofurtherenhancedatacollationandintegrationcapabilities,seizethediversifieddemandsofonlinepharmaceuticalconsumption,createdifferentiatedadvantagescomparedtoofflinesalesmethods,andimprovecustomerconsumptionexperience.TheCompanycontinuouslyimprovesmemberservicelevels,analyzestheoutcomedataoftheentiremarketingchain,identifiesfactorsinfluencinguserbehavior,optimizesmarketingstrategies,andtherebyincreasingtheproportionofmembersalesandrepurchaserates.
4.AdvancingintoNewRuralAreasTheCompanycontinuestofocusonincreasingmarketshareinadvantageousprovinceswhilevigorouslydevelopingsmall-townandruralmarkets.Becausethenewruralmarkethasadvantagessuchasgoodgrowthpotential,lessimpactfrompolicies,andlowcosts.In2025,theCompanywillcontinuetoexpanditsnetworkdownwardthroughself-construction,franchising,andalliances,creatingalargepharmaceuticalretailecosystem,unitingbroaderlocalresources,leveragingstoremanagementadvantages,andimplementingthe"NewRural"strategy.
5.ExpandingHealthandSocialSpacesfortheElderlyThemainconsumersforofflinedrugpurchasesaremiddle-agedandelderlypeople.Duetochronicdiseaseneeds,theelderlyhavedemandsincludingmedicalinsurancereimbursement,professionalmedicationguidance,andfull-coursechronicdiseasemanagement.In2025,theCompanywillcontinuetoseizethecommunityhealthtrafficentrance,rationallylayoutcommunitystores,equipstoreswithchronicdiseasetestingequipment,provideprofessionalservicessuchasmedicationconsultationandhealthconsultation,strengthenthemedicalattribute,enhancethestickinessofelderlycustomers,andbecomeatrustedprofessionalhealthmanagementconsultantnearby.Atthesametime,communitystoreserviceswillbefurtherextended,expandingintohealthspaceswithsocialattributes.
6.CultivatingPrivateBrandsInrecentyears,withthecontinuousimprovementofChina'smanufacturingcapabilitiesandnationalculturalconfidence,alargenumberofnewdomesticbrandshaverisenrapidly.In2025,theCompanywillutilizeadvancedInternetofThingstechnologytocreateprivatebrandsandintelligentproductsintheconsumerhealthcarefield,focusingonscenariossuchas"healthmanagement,healthpreservation,healthexercise",openingupnewcategorymarketsforthechannel.ByleveragingtheCompany's"online+offline"omni-channeladvantages,discoveringcustomerneeds,cultivatinghigh-qualityprivatebrandproducts,theCompanyaimstobuildpopulardomestichealthbrandslovedbythepublic.
7.ExploringPharmacyDiversificationWiththecontinuousdevelopmentofthetimesandthecontinuousimprovementofqualityoflife,LBX'sdemandsforahealthylifearealsoincreasing.In2025,theCompanywillfocusonthehealthylivingneedsofLBXcustomers,activelybuildafull-processdigitalintelligencetestingplatform,activelyexplorediversificationaroundnewcategories,newservices,newimages,andnewmindsets,committobecomingatrustworthy"healthylivingsteward"inthesurroundingcommunity,andexplorediversifiedpharmacymodels.
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(IV)PotentialRisks
√Applicable□NotApplicable
1.IndustryPolicyRiskPotentialRisk:
Thepharmaceuticalretailindustryisanimportantindustryrelatedtonationalhealth.AsChina'smedicalreformcontinuestodeepen,industrypoliciesaresuccessivelyintroduced,andindustryregulationisbecomingincreasinglystrictandstandardized.IftheCompanycannotmakecorrespondingadjustmentstoitsoperationsandmanagementinatimelymanneraccordingtopolicychanges,itmayadverselyaffecttheCompany'sdevelopment.Company'sCountermeasures:
TheCompanywillcloselymonitorpoliciesissuedbyrelevantdepartments.Byintroducingpolicyandindustryexperts,strengtheningtheCompany'sinterpretationandunderstandingofpoliciesandtheindustry,andmakingforward-lookinglayouts,theCompanywillactivelyinnovatebasedonlegalcompliance,proactivelyseekchange,andgraspindustrychanges.
2.MarketCompetitionRisk
PotentialRisk:
China'spharmaceuticalretailindustryiscurrentlyinaperiodofgraduallyincreasingconcentrationandchainrate.Leadingpharmacyenterprisesareacceleratingexpansion,andindustrycompetitionisintensifying.
Company'sCountermeasures:
First,theCompanywillcontinuetopromotedigitaltransformationandrefinedoperationalmanagementtoenhancethequalityandefficiencyofitsoperations.TheCompanyleveragesAI,bigdata,andothertechnologiestoempoweroperations,procurement,merchandising,andsales,leadingtocomprehensivequalityandefficiencyimprovements.Second,theCompanyenhancestheprofessionalismofstoresandemployeestoprovidecustomerswithspecializedandpersonalizedchronicdiseasemanagementservices,therebyincreasingcompetitiveness.Third,theCompanywillutilizetheadvantagesofitsofflinestorelayoutandintegrateonlineandofflinedevelopmenttoenhanceitsomni-channelservicecapabilities.
3.RiskofAcquiredStoreOperationsNotMeetingExpectations
PotentialRisk:
TheCompanyacceleratesitsdevelopmentthroughbothorganicgrowthandexternalexpansion.Theoperatingperformanceofacquiredstoresisinfluencedbymultiplefactorssuchasthepolicyenvironment,marketdemand,andintegrationstatus,posingariskofprofitabilitynotmeetingexpectations.
Company'sCountermeasures:
Thekeytopreventingacquiredstoreoperationsfromfallingshortofexpectationsliesinimprovingthequalityofacquisitiontargets.Firstly,theCompanyadherestopeerM&Ainselectingacquisitiontargets.Secondly,theCompanyhasestablishedacomprehensivemanagementsystemcoveringbothpre-acquisitionandpost-acquisitionphasestoensurecontrollablerisks.
Beforetheacquisition,theCompany'sexperiencedinvestmentteam,combinedwiththird-partyintermediaryresources,conductsthoroughduediligenceonacquisitiontargetstocontrolvaluationrisks.Aftertheacquisition,leveragingtheCompany'sstrongintegrationcapabilities,theacquiredtargetsarerapidlyempoweredintermsofproductstructure,procurementcosts,capitalefficiency,operationalstandards,talentechelon,andworkprocesses;operatingdataiscloselymonitored,andtheperformanceachievementoftargetcompaniesistrackedinreal-time.
Additionally,theCompanycommissionsathirdpartytoconductstrictgoodwillimpairmenttestsannuallyaccordingtorelevantrequirements.Basedontheresultsofthegoodwillimpairmenttests,theoperatingdepartmentscontinuouslyfollowuponperformanceimprovementandachieveperformancetargets,ensuringthehealthoftheCompany'sgoodwill.
4.RiskofInsufficientTalentReservesduetoCompanyScaleExpansion
PotentialRisk:
AstheCompany'soperatingscalecontinuestoexpand,thedemandforhigh-levelprofessionaltalentsinpharmacy,marketing,logistics,andinformationtechnologywillcontinuouslyincrease,placinghigherdemandsonthebusinessqualityandserviceleveloffrontlineemployees.IftalentcultivationandintroductionfailtoadapttotheCompany'sdevelopmentneeds,itmayadverselyaffecttheCompany'sexpansion.
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Company'sCountermeasures:
Ontheonehand,byintegratinginternalandexternaltrainingresources,theCompanyimplementsacompletetrainingprocessfortalentsatallpositionsbothonlineandoffline,strengthenstheintegratedtrainingandpracticelearningsystem,andconsolidatestheinternaltalentechelon.Ontheotherhand,theCompanyachievesfullcoverageofemployeesatalllevelsthrough"short,medium,long-term"incentivetools,increasesemployeeincome,improvesthetimelinessofsalaryincentives,stimulatesemployeemotivationtoretainoutstandingtalents,andattractsexternaloutstandingtalentstojointhroughanexcellentcorporateculture.(V)Other
□Applicable√NotApplicableVII.ExplanationofsituationsandreasonswheretheCompanydidnotdiscloseinformation
accordingtostandardprovisionsduetoinapplicabilityofstandardprovisionsorspecial
reasonssuchasstatesecretsortradesecrets
□Applicable√NotApplicable
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SectionIVGovernanceI.ExplanationofCorporateGovernanceRelatedMatters
√Applicable□NotApplicableDuringthereportingperiod,theCompanystrictlyfollowedtherequirementsoftheCompanyLaw,SecuritiesLaw,CodeofCorporateGovernanceforListedCompanies,RulesGoverningtheListingofStocksonShanghaiStockExchange,andrelevantrequirementsoftheCSRCandSSE.CombinedwiththeCompany'sactualsituation,itestablishedandimprovedinternalcontrolsystems,promotedstandardizedoperations,andsafeguardedthelegitimaterightsandinterestsoftheCompanyandshareholders.
1.Shareholders'GeneralMeetings.Duringthereportingperiod,4shareholders'generalmeetingswereconvenedbytheCompany.Theconvening,holding,andvotingproceduresofshareholders'generalmeetingsoperatednormatively.Allmeetingswereheldusingacombinationofon-sitevotingandonlinevoting.Whenshareholders'generalmeetingsreviewedmajormattersaffectingtheinterestsofsmallandmedium-sizedinvestors,theCompanyseparatelycountedthevotesofsmallandmedium-sizedinvestorsanddisclosedthemintheannouncementonresolutionsoftheshareholders'generalmeeting.Lawyersattendedthemeetings,providedon-sitewitness,andissuedlegalopinions,furtherensuringthelegalityandvalidityofthemeetings.
2.DirectorsandBoardofDirectors.TheCompany'sBoardofDirectorsconsistsof9directors,including3independentdirectors.Alldirectorsperformedtheirdutiesfaithfully,diligently,andseriously.Duringthereportingperiod,theBoardofDirectorsheldatotalof7meetings.Theconveningandholdingofeachmeetingcompliedwithapplicablelawsandregulationsandwerelegalandvalid.ThethreespecializedcommitteesundertheBoardofDirectorsstrictlydividedtheirwork,convenedmeetingsaccordingtotheirrulesofprocedure,fullyplayedtheirprofessionalroles,andensuredthenormaloperationoftheBoardofDirectors.
3.SupervisorsandBoardofSupervisors.TheCompany'sBoardofSupervisorsconsistsof3supervisors,including1employeerepresentativesupervisor.Duringthereportingperiod,theBoardofSupervisorsheldatotalof6meetings.AllmembersoftheBoardofSupervisors,witharesponsibleattitudetowardsallshareholders,attendedmeetings,activelyperformedtheirduties,andeffectivelysafeguardedthelegitimaterightsandinterestsoftheCompanyandshareholders.
4.ControllingShareholderandtheCompany.Duringthereportingperiod,theCompanyanditscontrollingshareholderwereindependentofeachotherintermsofpersonnel,institutions,finance,business,andassets,withnosituationofhorizontalcompetition.RelatedpartytransactionsbetweentheCompanyandthecontrollingshareholderwerefairandreasonable.Thecontrollingshareholderexerciseditsinvestorrightsnormallythroughshareholders'generalmeetings,withoutdirectlyorindirectlyinterferingintheCompany'sdecision-makingandoperatingactivitiesbeyondthescopeoftheshareholders'generalmeetings.Duringthereportingperiod,therewasnonon-operationaloccupationofcompanyfundsbythecontrollingshareholderoritscontrolledrelatedenterprises.
5.InformationDisclosure.TheCompanypaidhighattentiontoandactivelysupportedinformationdisclosurework.Duringthereportingperiod,theCompanydisclosedatotalof89announcements,including4periodicreports.Alldisclosuresstrictlycompliedwithlawsandregulations,fulfillinginformationdisclosureobligationsconsciously.Theinformationdisclosedwastrue,accurate,timely,andcomplete,withoutfalserecords,misleadingstatements,ormaterialomissions.Atthesametime,theCompanystrictlyimplementedinsiderinformationmanagement,maintainingtheprincipleoffairinformationdisclosure.WhethertherearesignificantdifferencesbetweentheCompany'scorporategovernanceandthelaws,administrativeregulations,andCSRCprovisionsregardingthegovernanceoflistedcompanies;iftherearesignificantdifferences,thereasonsshouldbeexplained
□Applicable√NotApplicableII.SpecificmeasurestakenbytheCompany'scontrollingshareholderandactualcontrollerto
ensuretheindependenceoftheCompanyintermsofassets,personnel,finance,institutions,
business,etc.,aswellassolutionsadopted,workprogress,andsubsequentworkplansto
addressissuesaffectingtheCompany'sindependence
□Applicable√NotApplicable
/
Situationofthecontrollingshareholder,actualcontroller,andotherunitscontrolledbythemengaginginbusinessesidenticalorsimilartotheCompany's,aswellastheimpactofhorizontalcompetitionorsignificantchangesinhorizontalcompetitionontheCompany,adoptedsolutions,progress,andsubsequentsolutionplans
□Applicable√NotApplicableIII.BriefIntroductiontoShareholders'GeneralMeetings
| MeetingSession | DateHeld | QueryIndexofDesignatedWebsiteWhereResolutionWasPublished | DisclosureDateofResolutionPublication | MeetingResolution |
| 2025FirstExtraordinaryGeneralMeeting | February22,2024 | AnnouncementonResolutionsofLBX2024FirstExtraordinaryGeneralMeeting(2024-009)onthewebsite(www.sse.com.cn)oftheShanghaiStockExchange | February23,2024 | Thismeetingreviewedandapproved5proposalsintotal,withnoproposalsrejected.Fordetails,pleaserefertotheCompany'sannouncementspublishedinShanghaiSecuritiesNews,ChinaSecuritiesJournal,SecuritiesTimes,SecuritiesDaily,andonthewebsiteoftheShanghaiStockExchange. |
| 2024AnnualGeneralMeeting | June13,2024 | AnnouncementonResolutionsofLBX2024AnnualGeneralMeeting(2024-038)onthewebsite(www.sse.com.cn)oftheShanghaiStockExchange | June14,2024 | Thismeetingreviewedandapproved9proposalsintotal,withnoproposalsrejected.Fordetails,pleaserefertotheCompany'sannouncementspublishedinShanghaiSecuritiesNews,ChinaSecuritiesJournal,SecuritiesTimes,SecuritiesDaily,andonthewebsiteoftheShanghaiStockExchange. |
| 2024SecondExtraordinaryGeneralMeeting | September18,2024 | AnnouncementonResolutionsofLBX2024SecondExtraordinaryGeneralMeeting(2024-060)onthewebsite(www.sse.com.cn)oftheShanghaiStockExchange | September19,2024 | Thismeetingreviewedandapproved3proposalsintotal,withnoproposalsrejected.Fordetails,pleaserefertotheCompany'sannouncementspublishedinShanghaiSecuritiesNews,ChinaSecuritiesJournal,SecuritiesTimes,SecuritiesDaily,andonthewebsiteoftheShanghaiStockExchange. |
| 2024ThirdExtraordinaryGeneralMeeting | November15,2024 | AnnouncementonResolutionsofLBX2024ThirdExtraordinaryGeneralMeeting(2024-085)onthewebsite(www.sse.com.cn)oftheShanghaiStockExchange | November16,2024 | Thismeetingreviewedandapproved2proposalsintotal,withnoproposalsrejected.Fordetails,pleaserefertotheCompany'sannouncementspublishedinShanghaiSecuritiesNews,ChinaSecuritiesJournal,SecuritiesTimes,SecuritiesDaily,andonthewebsiteoftheShanghaiStockExchange. |
Requestbypreferredshareholderswithrestoredvotingrightstoconveneanextraordinarygeneralmeeting
□Applicable√NotApplicable
/
ExplanationofShareholders'GeneralMeeting
√Applicable□NotApplicable
TheCompanyheldthe2024firstextraordinarygeneralmeetingonFebruary22,2024.Thenumberofshareholdersandproxiesattendingthemeetingwas9.Thetotalnumberofvotingsharesheldbytheattendingshareholderswas326,330,230,accountingfor55.7893%ofthetotaleffectivevotingshares.ThemeetingreviewedandapprovedtheProposalonChangingtheCompany'sRegisteredCapitalandAmendingtheArticlesofAssociation,ProposalonPurchasingLiabilityInsuranceforDirectors,SupervisorsandSeniorExecutives,ProposalontheRe-electionoftheCompany'sBoardofDirectorsandNominationofCandidatesforNon-IndependentDirectorsoftheFifthBoardofDirectors,ProposalontheRe-electionoftheCompany'sBoardofDirectorsandNominationofCandidatesforIndependentDirectorsoftheFifthBoardofDirectors,andProposalontheRe-electionoftheCompany'sBoardofSupervisorsandNominationofCandidatesforNon-EmployeeRepresentativeSupervisors.Fordetails,seetheAnnouncementonResolutionsof2024FirstExtraordinaryGeneralMeeting(2024-009)disclosedbytheCompanyonFebruary23,2024.
TheCompanyheldthe2023annualgeneralmeetingonJune13,2024.Thenumberofshareholdersandproxiesattendingthemeetingwas15.Thetotalnumberofvotingsharesheldbytheattendingshareholderswas323,274,891,accountingfor55.2802%ofthetotaleffectivevotingshares.ThemeetingreviewedandapprovedtheProposalontheCompany's2023AnnualReportandAbstract,ProposalontheCompany's2023BoardofDirectorsWorkReport,ProposalontheCompany's2023BoardofSupervisorsWorkReport,ProposalontheCompany's2023ProfitDistributionPlan,ProposalontheCompany'sRe-appointmentofthe2024AccountingFirm,ProposalontheCompanyanditsSubsidiariesApplyingforBankComprehensiveCreditLinesandProvidingGuaranteesin2024,ProposalontheTotalRemunerationoftheCompany'sDirectors,Supervisors,andSeniorExecutivesin2023,ProposalontheCompany'sEstimatedRoutineRelatedPartyTransactionsforJanuary-June2024andthe2024-2025Period,andProposalontheAllowanceStandardsforSomeoftheCompany'sDirectors.Fordetails,seetheAnnouncementonResolutionsof2024AnnualGeneralMeeting(2024-038)disclosedbytheCompanyonJune14,2024.
TheCompanyheldthe2024secondextraordinarygeneralmeetingonSeptember18,2024.Thenumberofshareholdersandproxiesattendingthemeetingwas653.Thetotalnumberofvotingsharesheldbytheattendingshareholderswas402,106,837,accountingfor52.8927%ofthetotaleffectivevotingshares.ThemeetingreviewedandapprovedtheProposalontheCompany's2024Semi-AnnualProfitDistributionPlan,ProposalontheCompany'sShareholderReturnPlanfortheNextThreeYears(2024-2026),andProposalonChangingtheCompany'sRegisteredCapital,BusinessScope,andAmendingtheArticlesofAssociation.Fordetails,seetheAnnouncementonResolutionsof2024SecondExtraordinaryGeneralMeeting(2024-060)disclosedbytheCompanyonSeptember19,2024.
TheCompanyheldthe2024thirdextraordinarygeneralmeetingonNovember15,2024.Thenumberofshareholdersandproxiesattendingthemeetingwas1,369.Thetotalnumberofvotingsharesheldbytheattendingshareholderswas431,814,601,accountingfor56.8004%ofthetotaleffectivevotingshares.ThemeetingreviewedandapprovedtheProposalonChangingtheUseofPartoftheRaisedFundsandProposalonChangingtheCompany'sEnterpriseType.Fordetails,seetheAnnouncementonResolutionsof2024ThirdExtraordinaryGeneralMeeting(2024-085)disclosedbytheCompanyonNovember16,2024.
/
IV.SituationofDirectors,Supervisors,andSeniorExecutives(I)ShareholdingChangesandRemunerationofCurrentandResignedDirectors,Supervisors,andSeniorExecutivesduringtheReportingPeriod
√Applicable□NotApplicable
Unit:Share
| Name | PositionHeld | Gender | Age | TermStartDate | TermEndDate | SharesHeldatBeginningofYear | SharesHeldatEndofYear | ChangeinSharesHeldDuringtheYear | ReasonforChange | TotalPre-taxRemunerationReceivedfromtheCompanyduringtheReportingPeriod(Tenthousandyuan) | WhetherRemunerationisReceivedfromRelatedPartiesoftheCompany |
| XieZilong | Chairman | Male | 58 | February22,2024 | February21,2027 | 0 | 0 | 0 | None | 216 | No |
| XieJiaqi | Director | Female | 32 | February22,2024 | February21,2027 | 0 | 0 | 0 | None | 0 | No |
| ZhengJiaqi | Director | Male | 41 | February22,2024 | February21,2027 | 0 | 0 | 0 | None | 0 | No |
| LiZhen | Director | Male | 46 | February22,2024 | February21,2027 | 0 | 0 | 0 | None | 0 | No |
| WuBin | Director | Male | 64 | February22,2024 | February21,2027 | 1,456 | 1,893 | 437 | Dividenddistributionandtransfer | 10 | No |
| LiuXiaoen | Director | Male | 52 | February22,2024 | February21,2027 | 0 | 0 | 0 | None | 10 | No |
| WuLianfeng | Director | Male | 56 | February22,2024 | February21,2027 | 0 | 0 | 0 | None | 10 | No |
| XieZiqi | Director | Male | 47 | February22,2024 | February21,2027 | 0 | 0 | 0 | None | 10 | No |
| RenMingchuan | Director | Male | 64 | February22,2024 | February21,2027 | 0 | 0 | 0 | None | 10 | No |
| WangLi | President | Female | 42 | February22,2024 | February21,2027 | 75,984 | 98,779 | 22,795 | Dividenddistribution | 196 | No |
/
| andtransfer | |||||||||||
| SuShiyong | VicePresident | Male | 49 | February22,2024 | February21,2027 | 30,500 | 39,650 | 9,150 | Dividenddistributionandtransfer | 134 | No |
| JiangYufei | VicePresident | Male | 32 | February22,2024 | February21,2027 | 30,500 | 39,650 | 9,150 | Dividenddistributionandtransfer | 148 | No |
| WanXin | VicePresident | Male | 40 | February22,2024 | February21,2027 | 30,500 | 39,650 | 9,150 | Dividenddistributionandtransfer | 138 | No |
| DangXian | VicePresident | Female | 43 | October29,2024 | February21,2027 | 27,790 | 25,441 | -2,349 | Dividenddistribution,transfer,andpre-appointmenttransactions | 11 | No |
| LinHuan | VicePresident | Female | 42 | October29,2024 | February21,2027 | 32,400 | 24,934 | -7,466 | Dividenddistribution,transfer,andpre-appointmenttransactions | 12 | No |
| ZhangWenshuai | VicePresident | Male | 38 | February22,2024 | February21,2027 | 24,570 | 31,942 | 7,372 | Dividenddistributionandtransfer | 106 | No |
| Guo | Vice | Male | 42 | February | February | 0 | 0 | 0 | None | 108 | No |
/
| Xiaowei | President | 22,2024 | 21,2027 | ||||||||
| ChenLishan | ChiefFinancialOfficer&PersoninChargeofFinance | Male | 45 | February22,2024 | February21,2027 | 1,229 | 1,598 | 369 | Dividenddistributionandtransfer | 82 | No |
| FengShini | SecretaryoftheBoardofDirectors | Female | 39 | February22,2024 | February21,2027 | 57,405 | 74,626 | 17,221 | Dividenddistributionandtransfer | 89 | No |
| TanJian | ChairmanoftheBoardofSupervisors | Male | 47 | February22,2024 | February21,2027 | 0 | 0 | 0 | None | 58 | No |
| RaoHao | Supervisor | Male | 46 | February22,2024 | February21,2027 | 0 | 0 | 0 | None | 32 | No |
| LuoQun | EmployeeSupervisor | Female | 35 | February22,2024 | February21,2027 | 0 | 0 | 0 | None | 30 | No |
| HuangWeide | Director(Resigned) | Male | 53 | February25,2021 | February22,2024 | 0 | 0 | 0 | None | 0 | No |
| LiWei | Director(Resigned) | Male | 42 | February25,2021 | February22,2024 | 0 | 0 | 0 | None | 0 | No |
| HuangGan | Director(Resigned) | Male | 47 | February25,2021 | February22,2024 | 0 | 0 | 0 | None | 0 | No |
| Total | / | / | / | / | / | 312,334 | 378,163 | 65,829 | / | 1,410 | / |
Remark:DangXianandLinHuanwereappointedasvicepresidentsbythefifthmeetingofthefifthBoardofDirectorsheldonOctober29,2024.Theircorrespondingtotalpre-taxremunerationreceivedfromtheCompanyduringthereportingperiodisdatafromtheappointmentdatetotheendof2024.
| Name | Mainworkexperience |
/
| XieZilong | Mr.XieZilong,bornin1966,Chinesenationality,memberoftheChinaNationalDemocraticConstructionAssociation(CNDCA),founderoftheCompany,NationalModelWorker,nomineeforthe5thNationalMoralModelAward(HonestyandTrustworthiness),representativeofthe11th,12th,and14thNationalPeople'sCongress,memberoftheCNDCACentralCommittee,ViceChairmanoftheCNDCAHunanProvincialCommittee,HonoraryPresidentoftheChinaMedicalPharmaceuticalMaterialAssociation,VicePresidentoftheChinaAssociationofPharmaceuticalCommerce,PresidentoftheHunanProvincialPharmaceuticalCirculationIndustryAssociation.HecurrentlyservesasChairmanoftheCompany. |
| XieJiaqi | Ms.XieJiaqi,bornin1992,Chinesenationality,Bachelor'sdegreeinManagementfromtheUniversityofManchester,UK,currentlypursuingEMBAatChinaEuropeInternationalBusinessSchool(CEIBS).MemberoftheStandingCommitteeoftheHunanFederationofIndustryandCommerce(GeneralChamberofCommerce),ExecutiveVicePresidentoftheHunanFederationofIndustryandCommerceYoungEntrepreneursChamberofCommerce,StandingCommitteeMemberoftheHunanYouthFederation,People'sSupervisoroftheHunanProvincialPeople'sProcuratorate.ShecurrentlyservesasSpecialAssistanttotheChairmanofLBXPharmacyChainJointStockCompany,PresidentofLBXPharmaceuticalGroupCo.,Ltd.,ChairmanoftheHunanInfluenceFoundation,andDirectorofWomen&Children'sHospitalofHunan.ShecurrentlyservesasaDirectoroftheCompany'sFifthBoardofDirectors. |
| ZhengJiaqi | Mr.ZhengJiaqi,bornin1983,Chinesenationality,holdspermanentresidencyabroad,Bachelor'sdegreeinEconomicsfromtheUniversityofManchester,UK,Master'sdegreeinFinancefromLancasterUniversity,UK,previouslyworkedintheInvestmentBankingDepartmentofChinaInternationalCapitalCorporationLimited.AsafoundingmemberofPrimaveraCapitalGroup,hecurrentlyservesasPartneratPrimaveraCapitalGroup,DirectoroftheCompany'sFifthBoardofDirectors. |
| LiZhen | Mr.LiZhen,bornin1978,Chinesenationality,EMBAfromCEIBS,Master'sdegreeinEconomicsfromFudanUniversity,Bachelor'sdegreeinLawfromFudanUniversity,previouslyworkedatTemasekHoldings(Private)LimitedShanghaiRepresentativeOffice.HecurrentlyservesasExecutiveDirectorandGeneralManager,HeadofHealthcareInvestmentatFountainVestPartners(Sanya)Co.,Ltd.,DirectoroftheCompany'sFifthBoardofDirectors. |
| WuBin | Mr.WuBin,bornin1960,Chinesenationality,postgraduatedegree,RegisteredSeniorConsultant,LicensedPharmacist,recognizedasanacademicsuccessortonationalveterantraditionalChinesemedicineexperts(thirdbatch)bytheMinistryofPersonnel,MinistryofHealth,andStateAdministrationofTraditionalChineseMedicine,previouslyworkedatTaiyuanHeavyMachineryGroupCo.,Ltd.,ShanxiProvincialPharmaceuticalCompany,ShanxiProvincialPharmaceuticalAdministrationBureau,ShanxiProvincialMedicinalMaterialCompany,ShanxiProvincialPharmaceuticalGroupCo.,Ltd.,andotherenterprisesandadministrativeagencies.HeformerlyservedasExecutiveVicePresidentoftheChinaAssociationofPharmaceuticalCommerce.HecurrentlyservesasamemberoftheExpertCommitteeoftheChinaPharmaceuticalEnterpriseManagementAssociation,expertreviewerforpharmaceuticalcirculationindustryandtraditionalChinesemedicineprojectsfortheMinistryofScienceandTechnology,andMinistryofInformationTechnology,MinistryofCommerce,BeijingMunicipalCommissionofEconomyandInformationTechnology,expertreviewerforpharmaceuticalcirculationindustryandtraditionalChinesemedicineprojects,SeniorAdvisortotheChinaMedicalPharmaceuticalMaterialAssociation.HeconcurrentlyservesasVicePresidentandSecretary-GeneraloftheShanxiProvincialPharmaceuticalIndustryAssociation,Master'sSupervisoratShanxiUniversity,DirectorofZhejiangWecomePharmaceuticalCompanyLimited,YabaoPharmaceuticalGroupCo.,Ltd.,andShandongKeyuanPharmaceuticalCo.,Ltd.,andIndependentDirectorofHPGCRenmintongtaiPharmaceuticalCorporationandDezhanHealthcareCompanyLimited.ShecurrentlyservesasaDirectoroftheCompany'sFifthBoardof |
/
| Directors. | |
| LiuXiaoen | Mr.LiuXiaoen,Taiwannationality,bornin1972,Bachelor'sdegreeinBusinessManagementfromFuJenCatholicUniversity,Taiwan,previouslyservedasGeneralManagerofKangFuLangManMainStore,ImportandPrivateBrandProductManageratRT-MartInternationalLtd.,PurchasingDirectoratWellcomeTaiwan(DairyFarmGroupHongKong),ChiefMerchandisingandMarketingOfficeratWalmartChina,PartnerandChiefProductOfficerandHeadofSupplyChainatMeicai,VicePresidentandPresidentofIntelligentSupplyChainYBusinessUnitatJDGroup.HecurrentlyservesasDirectorofDFILuckyPrivateLimited,TheDairyFarmCompanyLimited,DirectoroftheCompany'sFifthBoardofDirectors. |
| WuLianfeng | Mr.WuLianfeng,bornin1968,Chinesenationality,nopermanentresidencyabroad,Master'sdegreeinEngineering,MBAdegree,previouslyservedasEngineeratChinaAcademyofLaunchVehicleTechnology,EngineeratHewlett-PackardChinaCo.,Ltd.,GeneralManageroftheTechnologyDepartmentatJardineOneSolution(JOS)InformationTechnologyCo.,Ltd.HecurrentlyservesasVicePresidentandChiefAnalystatIDCConsulting(Beijing)Co.,Ltd.,IndependentDirectoroftheCompany'sFifthBoardofDirectors. |
| XieZiqi | Mr.XieZiqi,bornin1977,USnationality,permanentresidentoftheHongKongSpecialAdministrativeRegion,obtainedaMasterofSciencedegreefromStanfordUniversityin2000,majoringinFinancialMathematics.HepreviouslyworkedasaFinancialEngineeratMoody's,VicePresidentatDeutscheBank,etc.,engagedinfinancialinvestmentworkforover20years.HecurrentlyservesasInvestmentPartneratAlphaJWCVenturesPTELTD,IndependentDirectorofBNPParibas(China),DirectorofShanghaiJianbeiAssetManagementCo.,Ltd.,IndependentDirectoroftheCompany'sFifthBoardofDirectors. |
| RenMingchuan | Mr.RenMingchuan,bornin1960,Chinesenationality,nopermanentresidencyabroad,AssociateProfessoratFudanUniversitySchoolofManagement,PhDinAccounting(UK),Master'sdegreefromXiamenUniversity,Bachelor'sdegreefromAnhuiUniversityofFinanceandEconomics,startedteachingatZhejiangUniversityofTechnologyin1982;visitedtheUniversityofHull(UK)asavisitingscholarfundedbytheZhejiangUniversityPaoYue-KongFoundationin1992,laterpursuedaPhDdegree.HereturnedtoChinain2000andhasbeenteachingatFudanUniversitySchoolofManagementsincethen.Duringthisperiod,visitedMIT(Sloan)twiceasavisitingscholarandparticipatedincasetrainingatHarvardBusinessSchool.HecurrentlyservesasIndependentDirectorofGuobangPharmaLtd.(605507).HeconcurrentlyservesasamemberoftheProfessionalEthicsStandardsCommitteeoftheChineseInstituteofCertifiedPublicAccountants(CICPA).HecurrentlyservesasIndependentDirectoroftheCompany'sFifthBoardofDirectors. |
| WangLi | Ms.WangLi,bornin1982,Chinesenationality,Bachelor'sdegreeinAppliedChemistryfromBeijingNormalUniversity,Master'sdegreeinAdvertisingandMarketingfromtheUniversityofLeeds,UK,EMBAfromCEIBS,NationalSecond-levelNutritionist.ShepreviouslyworkedatChinaYouthDailyZhongqingChuanzhiAdvertisingArtCo.,Ltd.,Dr.&HerbsCo.,Ltd(UK'slargestTCMchainatthetime),EupoGroupCo.,Ltd(UK);joinedLBXPharmacyin2008,hasbeenresponsibleformarketing,strategicinvestment,post-investmentmanagementofSparkcompanies,humanresources,organizationalchange,innovativebusiness,etc.,successivelyservedastheCompany'sBrandPromotionDirector,MarketingDirector,AssistanttotheChairman,DirectoroftheChairman'sOffice,GeneralManageroftheStrategicInvestmentCenter,DirectoroftheHumanCapitalCenter,Director,ExecutiveVicePresident,etc.ShecurrentlyservesasPresidentoftheCompany. |
| SuShiyong | Mr.SuShiyong,bornin1975,Chinesenationality,nopermanentresidencyabroad,Bachelor'sdegree,previouslyservedasHumanResourcesDevelopmentSupervisoratMideaGroupCo.,Ltd.,HumanResourcesDirectorandPresident'sOfficeDirectoratGuangdongJiufengGroupCo.,Ltd.,AssistantPresidentandHumanResourcesDirectoratDongjiangEnvironmentalCompanyLimited,VicePresidentatGuangdongDanziGroupCo.,Ltd.,SeniorManagementConsultantatLuleleHealthTechnology(Guangzhou)Co.,Ltd.HecurrentlyservesasVicePresidentofthe |
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| Company. | |
| JiangYufei | Mr.JiangYufei,bornin1992,Chinesenationality,nopermanentresidencyabroad,Bachelor'sdegreeinInternationalFinancefromShanghaiUniversityofFinanceandEconomics,Master'sdegreeinBusinessAdministrationfromMassachusettsInstituteofTechnology,previouslyservedasProjectManageratBain&Company(Shanghai),HeadofDigitalBusiness,CEOAdvisoratUnitedPipe&Steel,ExecutiveCOOatLiangxianE-commerce.HecurrentlyservesasVicePresidentandChiefGrowthOfficeroftheCompany. |
| WanXin | Mr.WanXin,bornin1984,Chinesenationality,Bachelor'sdegreeinInformationEngineeringfromBeijingUniversityofPostsandTelecommunications,Master'sdegreeinSignalandInformationProcessingfromBeijingUniversityofPostsandTelecommunications,has13yearsoftechnologydevelopmentexperience,richexperienceinmanagingmulti-roleteams.HepreviouslyservedasSeniorR&DEngineeratBaidu,TechnicalDirectorofBusinessPlatformatRenrenche,TechnicalDirectorofCloudServiceBusinessUnitatBeijingMegviiTechnologyCo.,Ltd.,TechnicalVPatHetaoProgramming,CTOatWeimiaoBusinessSchool,etc.HecurrentlyservesasVicePresidentoftheCompany. |
| ZhangWenshuai | Mr.ZhangWenshuai,bornin1986,Chinesenationality,nopermanentresidencyabroad,Bachelor'sdegreeinLawandMaster'sdegreeinConstitutionalandAdministrativeLawfromWuhanUniversity,qualifiedforjudicialpractice,previouslyservedasDeputyDirectoroftheDepartmentofRegulationsandInternationalEconomicandTradeRelationsoftheHunanProvincialDepartmentofCommerce,PublicLawyeroftheHunanProvincialDepartmentofCommerce,HunanDirectoroftheStrategicDevelopmentDepartmentofAlibabaGroup.HecurrentlyservesasVicePresidentoftheCompany. |
| GuoXiaowei | Mr.GuoXiaowei,bornin1982,Chinesenationality,nopermanentresidencyabroad,Bachelor'sdegree,has18yearsofworkandmanagementexperienceinlargeinternetretailenterprises,richexperienceinsupplychainmanagement,operationmanagement,platformanddigitaloperation.HepreviouslyservedasPurchasingDirector,AssistantGeneralManagerofBusinessUnit,DeputyGeneralManagerofBusinessUnitatSuningApplianceGroupCo.,Ltd.,PresidentofAirConditioningProductCompanyatSuningCommerceGroupCo.,Ltd.,PresidentofHomeApplianceCompanyandVicePresidentofCloudNetworkWandianGroupatSuning.comGroupCo.,Ltd.,etc.HecurrentlyservesasVicePresidentoftheCompany. |
| ChenLishan | Mr.ChenLishan,bornin1979,Chinesenationality,nopermanentresidencyabroad,Bachelor'sdegreeinInvestmentEconomicsfromCentralUniversityofFinanceandEconomics,Master'sdegreeinNationalEconomicsfromCentralUniversityofFinanceandEconomics,Master'sdegreeinAccounting(Mpacc)fromPekingUniversity,EMBAfromCEIBS,SeniorAccountant,CertifiedInternalAuditor,CertifiedManagementAccountant(USA).HepreviouslyservedasFinanceManageratLiNingCo.,Ltd.,DeputyFinanceDirectoratYiliCleanEnergyCo.,Ltd.,MarketingFinanceDirectoratFujianTianyingNetworkInformationTechnologyCo.,Ltd.,FinanceDirectoratQinghaiHuzhuTianyoudeHighlandBarleyWineCo.,Ltd.,CFOatBeijingSmartCoreTechnologyCo.,Ltd.HecurrentlyservesasChiefFinancialOfficerandPersoninChargeofFinanceoftheCompany. |
| FengShini | Ms.FengShini,bornin1985,Chinesenationality,Master'sdegree,previouslyservedasComprehensiveServiceManageroftheHeavyIndustryPresident'sOffice,MediaSupervisorofthePropagandaandCultureDepartment,InvestorRelationsManageroftheSecuritiesDepartmentatSanyHeavyIndustryCo.,Ltd.,DeputyDirectoroftheBoardSecretaryOfficeatAierEyeHospitalGroupCo.,Ltd.,etc.ShecurrentlyservesasSecretaryoftheBoardofDirectorsoftheCompany. |
| TanJian | Mr.TanJian,bornin1977,Chinesenationality,Bachelor'sdegreeinTraditionalChineseMedicineClinicalMedicinefromHunanUniversityofChineseMedicine,Master'sdegreeinBusinessAdministrationfromHunanUniversity,previouslyworkedatAierEyeHospital,engagedinprocurementmanagementofmedicalsupplies.Mr.TanJianjoinedLBXPharmacyChainJointStockCompanyin2008.Hecurrentlyservesas |
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| ChairmanoftheCompany'sFifthBoardofSupervisors. | |
| RaoHao | Mr.RaoHao,bornin1978,Chinesenationality,Bachelor'sdegree,joinedLBXPharmacyChainJointStockCompanyin2008.HepreviouslyservedasFinanceDirectoroftheCompany'ssubsidiaryHenanCompany,FinanceDirectorofGuangdongCompany,HeadoftheCompany'sPlanningandAnalysisDepartment,HeadoftheInternalControlDepartment,andFinanceDirectoroftheCompany'sHunanWarZone.CurrentlyservesasFinanceDirectoroftheCompany'sXiangbeiWarZone,SupervisoroftheCompany'sFifthBoardofSupervisors. |
| LuoQun | Ms.LuoQun,bornin1989,Chinesenationality,Bachelor'sdegree,joinedLBXPharmacyChainJointStockCompanyin2012.ShepreviouslyservedasDataAnalysisSpecialist,ProductAnalysisManager.CurrentlyservesasDataExpertintheCompany'sBigDataDepartment,EmployeeSupervisoroftheCompany'sFifthBoardofSupervisors. |
| HuangWeide | Mr.HuangWeide,bornin1971,Chinesenationality,permanentresidentoftheHongKongSpecialAdministrativeRegion,obtainedaBachelor'sdegreeinEconomicsfromtheUniversityofCalifornia,USAin1992.HeisaHongKongCertifiedPublicAccountant,memberoftheHongKongInstituteofCertifiedPublicAccountants.HepreviouslyservedasPartneratPricewaterhouseCoopers,PartneratKPMG,engagedinprofessionalaccounting,auditing,andM&Aconsultingworkforabout30years.HecurrentlyservesasIndependentDirectorofQingdaoHaierBiomedicalCo.,Ltd.,IndependentNon-executiveDirectorofCOSCOSHIPPINGEnergyTransportationCo.,Ltd.HepreviouslyservedasIndependentDirectoroftheCompany'sFourthBoardofDirectors. |
| LiWei | Mr.LiWei,bornin1982,Chinesenationality,nopermanentresidencyabroad,Bachelor'sdegreeinJournalismandCommunicationfromHunanUniversity,previouslyservedasDeputySecretaryoftheYouthLeagueCommitteeandProduceratHunanEconomicTelevision;DeputyDirectoroftheGeneralOfficeofHunanBroadcastingSystem;AdministrativeDirectorofMangoMediaCo.,Ltd.HecurrentlyservesasChairmanofXingyiCentury(Hainan)NetworkTechnologyCo.,Ltd.PreviouslyservedasDirectoroftheCompany'sFourthBoardofDirectors. |
| HuangGan | Mr.HuangGan,bornin1977,Chinesenationality,Bachelor'sdegreeinLawfromJilinUniversity,Master'sdegreeinBusinessAdministrationfromPekingUniversityGuanghuaSchoolofManagement,EMBAinFinancefromTsinghuaUniversityPBCSchoolofFinance,servedatHNAGroupCo.,Ltd.from2000to2017.HepreviouslyservedasDirectorandPresidentofBeijingiHeimaTechnologyGroupCo.,Ltd.,DirectoroftheCompany'sFourthBoardofDirectors. |
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OtherExplanations
□Applicable√NotApplicable(II)PositionsHeldbyCurrentandResignedDirectors,Supervisors,andSeniorExecutivesduringtheReportingPeriod
1.PositionsHeldinShareholderEntities
√Applicable□NotApplicable
| NameofPersonHoldingPosition | NameofShareholderEntity | PositionHeldinShareholderEntity | TermStartDate | TermEndDate |
| XieZilong | LBXPharmaceuticalGroupCo.,Ltd. | ExecutiveDirector | - | - |
| XieJiaqi | LBXPharmaceuticalGroupCo.,Ltd. | President | - | - |
| ExplanationofPositionsHeldinShareholderEntities | None | |||
2.PositionsHeldinOtherEntities
| √Applicable□NotApplicableNameofPersonHoldingPosition | NameofOtherEntity | PositionHeldinOtherEntity | TermStartDate | TermEndDate |
| XieZilong | Women&Children'sHospitalofHunanCo.,Ltd. | Director | ||
| XieZilong | HunanTianyiVentureCapitalCo.,Ltd. | ExecutiveDirector&GeneralManager | ||
| XieZilong | ChangshaRongyingInvestmentPartnership(LimitedPartnership) | ExecutivePartner | ||
| XieZilong | HunanXieZilongPhotographyMuseumCo.,Ltd. | ExecutiveDirector&GeneralManager | ||
| XieZilong | HunanMingyuanBeeIndustryCo.,Ltd. | Director | ||
| XieZilong | HunanMingyuanBeeTechnologyCo.,Ltd. | Director | ||
| XieZilong | HunanHongjiangAncientCommercialTownCulturalTourismIndustryInvestmentCo.,Ltd. | Director | ||
| XieZilong | HunanLongpingTeaIndustryHigh-TechCo.,Ltd. | Supervisor | ||
| XieJiaqi | LBXPharmaceuticalGroupCo.,Ltd. | President | ||
| XieJiaqi | HunanXieZilongPhotographyMuseumCo.,Ltd. | ExecutiveDirector,Chairman | ||
| XieJiaqi | Women&Children'sHospitalofHunanCo.,Ltd. | Director | ||
| XieJiaqi | ChangshaXieGalleryCulturalCommunicationCo.,Ltd. | ExecutiveDirector&GeneralManager |
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| XieJiaqi | HunanJiusenRitongTradingCo.,Ltd. | Supervisor |
| XieJiaqi | HunanInfluenceFoundation | ViceChairman |
| ZhengJiaqi | 2178PrimaveraCapitalGroup | Partner |
| ZhengJiaqi | FlameSPVLimited | Director |
| ZhengJiaqi | FlameVentureLimited | Director |
| ZhengJiaqi | Flash(HongKong)Limited | Director |
| ZhengJiaqi | FlashCapitalLimited | Director |
| ZhengJiaqi | FlashVentureLimited | Director |
| ZhengJiaqi | HalideLimited | Director |
| ZhengJiaqi | HalideSPVLimited | Director |
| ZhengJiaqi | HongKongAsiaMedicalHoldingLimited | Director |
| ZhengJiaqi | IovateHealthSciencesInternationalInc. | Director |
| ZhengJiaqi | IovateHealthSciencesU.K.Inc, | Director |
| ZhengJiaqi | IovateHealthSciencesU.S.A.Inc, | Director |
| ZhengJiaqi | JanecoxInvestmentIVHKLimited | Director |
| ZhengJiaqi | NorthernInnovationsHoldingCorp. | Director |
| ZhengJiaqi | XiwangIovateHoldingsCompanyLimited | Director |
| ZhengJiaqi | BeijingIovateSportsNutritionHealthManagementCo.,Ltd. | Director |
| ZhengJiaqi | BeijingIovateSportsNutritionTechCo.,Ltd. | Director |
| ZhengJiaqi | KingofWestFood(Qingdao)Co.,Ltd. | Director |
| ZhengJiaqi | JenscareScientificCo.,Ltd. | Director |
| ZhengJiaqi | BeijingAvistonePharmaceuticalsBiotechnologyCo.,Ltd. | Director |
| LiZhen | FountainVestPartners(Shanghai)Co.,Ltd. | Chairman,GeneralManager |
| LiZhen | FountainVestPartners(Sanya)Co.,Ltd. | ExecutiveDirector&GeneralManager |
| LiZhen | FountainVestPartners(Shenzhen)Co.,Ltd. | ExecutiveDirector |
| LiZhen | 2249ShanghaiFanglangEnterpriseManagementLimitedLiabilityCompany | ExecutiveDirector&GeneralManager |
| LiZhen | ChaojuEyeCareHoldingsLimited | Non-executiveDirector |
| LiZhen | XiamenChaojuMedicalTechnologyGroupCo.,Ltd. | Director |
| LiZhen | XiamenChaojuHospitalManagementDevelopmentCo.,Ltd. | Director |
| LiZhen | ChaojuMedicalTechnologyCo.,Ltd. | Director |
| LiZhen | XiamenChaojuEyeOptometryTechnologyDevelopmentCo.,Ltd. | Director |
| LiZhen | ShanghaiKezhenBusinessConsultingCo.,Ltd. | Supervisor |
| WuBin | ShanxiPharmaceuticalGroupNongtaiTraditionalChineseMedicineTechnologyDevelopmentCo.,Ltd. | Director |
| WuBin | HPGCRenmintongtaiPharmaceuticalCorporation | Independentdirector |
| WuBin | DezhanGreatHealthCo.,Ltd. | Independentdirector |
| WuBin | ZhejiangWecomePharmaceuticalCompanyLimited | Independentdirector |
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| WuBin | ShanxiZhendongPharmaceuticalCo.,Ltd. | Independentdirector |
| WuBin | YabaoPharmaceuticalGroupCo.,Ltd. | Director |
| WuBin | ShandongKeyuanPharmaceuticalCo.,Ltd. | Director |
| LiuXiaoen | HayseltonEnterprisesLimited | Director |
| LiuXiaoen | TheDairyFarmCompany,Limited | Director |
| LiuXiaoen | SanMiuSupermarketLimited | Director |
| LiuXiaoen | SanSonCheongCommercialandIndustrialCompanyLimited | Director |
| LiuXiaoen | RobinsonsRetailHoldings,Inc. | Director |
| LiuXiaoen | ColdStorageSingapore(1983)PteLtd | Director |
| LiuXiaoen | DFILuckyPrivateLimited | Director |
| WuLianfeng | IDCConsulting(Beijing)Ltd. | VicePresident,ChiefAnalyst |
| XieZiqi | AlphaJWCVenturesPTELTD | InvestmentPartner |
| XieZiqi | BNPParibas(China) | Independentdirector |
| XieZiqi | FundingSocietiesPTELTD | Director |
| XieZiqi | ShanghaiJianbeiAssetManagementCo.,Ltd. | ExecutiveDirector |
| RenMingchuan | GuobangPharmaLtd. | Independentdirector |
| RenMingchuan | ShanghaiCailianPressTechnologyCo.,Ltd. | Independentdirector |
| RenMingchuan | WanxiangTechnologyGroupCo.,Ltd. | Independentdirector |
| RenMingchuan | ShengTerry(Shanghai)EngineeringConsultingCo.,Ltd. | Independentdirector |
| HuangWeide | DeminZhongchengEnterpriseManagement(Shenzhen)Co.,Ltd. | ExecutiveDirector,GeneralManager |
| HuangWeide | DeminzhongEnterpriseManagement(Shenzhen)Co.,Ltd. | ExecutiveDirector,GeneralManager |
| HuangWeide | ManpowerGroupGreaterChinaLimited | Independentdirector |
| HuangWeide | ThinkingdomEducationGroup | Independentdirector |
| HuangWeide | TopsportsInternationalHoldingsLimited | Independentdirector |
| HuangWeide | QingdaoHaierBiomedicalCo.,Ltd. | Independentdirector |
| HuangWeide | COSCOSHIPPINGEnergyTransportationCo.,Ltd. | Independentdirector |
| HuangWeide | ShandongHi-SpeedNewEnergyGroupLimited | Independentdirector |
| HuangWeide | NewTimesCorporationLimited | Independentdirector |
| LiWei | XingyiCentury(Hainan)NetworkTechnologyCo.,Ltd. | Chairman&GeneralManager |
| LiWei | YinheZhongxing(Hainan)E-commerceCo.,Ltd. | Director |
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| TanJian | Women&Children'sHospitalofHunanCo.,Ltd. | Supervisor | |
| TanJian | BeijingTongRenTangHunanPharmaceuticalCo.,Ltd. | Supervisor | |
| WangLi | GuangzhouXinchengInformationTechnologyCo.,Ltd. | Director | |
| WangLi | HunanInfluenceFoundation | Director | |
| ChenLishan | BeijingTongRenTangHunanPharmaceuticalCo.,Ltd. | Director | |
| FengShini | HunanPharmaceuticalGroupCo.,Ltd. | Director | |
| ExplanationofPositionsHeldinOtherEntities | None | ||
(III)RemunerationofDirectors,Supervisors,andSeniorExecutives
√Applicable□NotApplicable
| Decision-makingProcedureforRemunerationofDirectors,Supervisors,andSeniorExecutives | FordirectorsoftheFifthBoardofDirectorsnotemployedbytheCompany,PharmaceuticalGroup,JanstarInvestment,oritsactualcontroller,remunerationispaidannuallybasedonthedeterminedremunerationbasisandagreedamount,consideringthedirector'sappointmenttime.Theremunerationofdirectors,supervisors,andseniorexecutivesemployedbytheCompanyiscalculatedbytheCompany'sHRdepartmentbasedonthedeterminedbasisandsubmittedtotheNomination,Remuneration,andAppraisalCommitteeoftheBoardofDirectorsforreviewaccordingtotheManagementMeasuresforRemunerationoftheCompany'sSeniorExecutives.Theremunerationplanfordirectors,supervisors,andseniorexecutivesisapprovedbytheshareholders'generalmeetingafterbeingpassedbytheBoardofDirectors. |
| WhetherdirectorsrecusedthemselveswhentheBoardofDirectorsdiscussedtheirownremunerationmatters | Yes |
| SpecificrecommendationsmadebytheRemunerationandAppraisalCommitteeortheIndependentDirectors'SpecialMeetingregardingtheremunerationmattersofdirectors,supervisors,andseniorexecutives | OnApril29,2025,thefourthmeetingoftheFifthBoardofDirectors'Nomination,Remuneration,andAppraisalCommitteereviewedandapprovedtheProposalontheTotalRemunerationoftheCompany'sDirectors,Supervisors,andSeniorExecutivesfor2024,agreeingtosubmitthisproposaltotheBoardofDirectorsfordeliberation. |
| BasisforDeterminingRemunerationofDirectors,Supervisors,andSeniorExecutives | TheremunerationfordirectorsoftheFifthBoardofDirectorsnotemployedbytheCompany,PharmaceuticalGroup,JanstarInvestment,oritsactualcontrollercompanyisbasedontheallowancestandardsforsomedirectorsreviewedandapprovedbythefirstmeetingoftheFifthBoardofDirectorsandthe2023AnnualGeneralMeeting.Theremunerationfordirectors,supervisors,andseniorexecutivesemployedinternallybytheCompanyisdeterminedbytheManagementMeasuresforRemunerationoftheCompany'sSeniorExecutives. |
| ActualPaymentofRemunerationforDirectors,Supervisors,andSeniorExecutives | Fordetails,pleaserefertotherelevantcontentin"ShareholdingChangesandRemunerationofCurrentandResignedDirectors,Supervisors,andSeniorExecutivesduringtheReportingPeriod"inthissection. |
| TotalActualRemuneration | RMB14.10million |
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(IV)ChangesinCompanyDirectors,Supervisors,andSeniorExecutives
√Applicable□NotApplicable
ReceivedbyAllDirectors,Supervisors,andSeniorExecutivesattheEndoftheReportingPeriodName
| Name | PositionHeld | Change | ReasonforChange |
| XieJiaqi | Director | Election | Re-electionoftheBoardofDirectors |
| LiuXiaoen | Director | Election | Re-electionoftheBoardofDirectors |
| RenMingchuan | Independentdirector | Election | Re-electionoftheBoardofDirectors |
| DangXian | VicePresident | Appointment | AppointmentoftheBoardofDirectors |
| LinHuan | VicePresident | Appointment | AppointmentoftheBoardofDirectors |
| HuangWeide | Independentdirector | Resignation | Re-electionoftheBoardofDirectors |
| LiWei | Director | Resignation | Re-electionoftheBoardofDirectors |
| HuangGan | Director | Resignation | Re-electionoftheBoardofDirectors |
(V)ExplanationofPenaltiesReceivedfromSecuritiesRegulatoryAuthoritiesintheLastThree
Years
□Applicable√NotApplicable(VI)Other
□Applicable√NotApplicableV.InformationonBoardMeetingsHeldDuringtheReportingPeriod
| MeetingSession | DateHeld | MeetingResolution |
| 34thMeetingoftheFourthBoardofDirectors | January30,2024 | ReviewedandApproved:1.ProposalontheRe-electionoftheCompany'sBoardofDirectorsandNominationofCandidatesforNon-IndependentDirectorsoftheFifthBoardofDirectors2.ProposalontheRe-electionoftheCompany'sBoardofDirectorsandNominationofCandidatesforIndependentDirectorsoftheFifthBoardofDirectors3.ProposalonChangingtheCompany'sRegisteredCapitalandAmendingtheArticlesofAssociation4.ProposalonRevisingtheCompany'sIndependentDirectorWorkSystem5.ProposalonAdjustingtheCompany'sStrategyandDevelopmentCommitteeoftheBoardofDirectorstotheStrategyandESGCommitteeoftheBoardofDirectorsandFormulatingRelevantSystems6.ProposalonRevisingtheCompany'sRulesofProcedurefortheNomination,Remuneration,andAppraisalCommitteesoftheBoardofDirectorsandRulesofProcedurefortheAuditCommitteeoftheBoardof |
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| Directors7.ProposalonPurchasingLiabilityInsuranceforDirectors,Supervisors,andSeniorExecutives8.ProposalonConveningtheCompany's2024FirstExtraordinaryGeneralMeeting | ||
| FirstMeetingoftheFifthBoardofDirectors | February22,2024 | ReviewedandApproved:1.ProposalonWaivingtheNoticePeriodfortheBoardMeeting2.ProposalonElectingtheChairmanoftheCompany3.ProposalonElectingMembersoftheSpecializedCommitteesoftheFifthBoardofDirectors4.ProposalonAppointingtheCompany'sPresidentandotherSeniorExecutives5.ProposalonAppointingtheCompany'sSecretaryoftheBoardofDirectorsandSecuritiesAffairsRepresentative6.ProposalontheAllowanceStandardsforSomeoftheCompany'sDirectors7.ProposalonProvidingGuaranteesforSubsidiaries |
| SecondMeetingoftheFifthBoardofDirectors | April12,2024 | ReviewedandApproved:1.ProposalonEstimatedRoutineRelatedPartyTransactionsforJanuary-June2024andthe2024-2025Period2.ProposalonRepurchasingandCancellingPartoftheRestrictedShares |
| ThirdMeetingoftheFifthBoardofDirectors | April29,2024 | ReviewedandApproved:1.ProposalontheCompany's2023AnnualReportandAbstract2.ProposalontheCompany's2023Environmental,Social,andCorporateGovernance(ESG)Report3.ProposalontheCompany's2023InternalControlEvaluationReport4.ProposalontheSpecialReportontheIndependenceoftheCompany'sIndependentDirectors5.Proposalonthe2023PerformanceEvaluationReportoftheAccountingFirm6.ProposalontheReportoftheCompany'sAuditCommitteeoftheBoardofDirectorsonthePerformanceofSupervisoryDutiesoverthe2023AnnualAuditAccountingFirm7.ProposalontheCompany's2024FirstQuarterReport8.ProposalontheCompany's2023BoardofDirectorsWorkReport9.ProposalontheCompany's2023IndependentDirectorPerformanceReport10.Proposalonthe2023ProfitDistributionPlan11.ProposalontheCompany's2023SituationofRaisedFundsDepositandUse12.ProposalonUsingPartofIdleRaisedFundstoTemporarilySupplementWorkingCapital13.ProposalontheCompany'sRe-appointmentofthe2024AccountingFirm14.ProposalontheCompanyanditsSubsidiariesApplyingforBankComprehensiveCreditLinesandProvidingGuaranteesin202415.ProposalontheTotalRemunerationoftheCompany'sDirectors,Supervisors,andSeniorExecutivesin2023;16.ProposalontheCompany's2024"QualityImprovement,EfficiencyEnhancement,andReturnFocus"ActionPlan17.ProposalonConveningthe2023AnnualGeneralMeeting |
| FourthMeetingoftheFifthBoardofDirectors | August29,2024 | ReviewedandApproved:1.ProposalontheCompany's2024Semi-AnnualReportandItsAbstract2.ProposalontheCompany's2024Semi-AnnualProfitDistributionPlan3.SpecialReportontheCompany's2024Semi-AnnualDepositandActualUseofRaisedFunds |
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| ReportProposal4.ProposalontheCompany'sShareholderReturnPlanfortheNextThreeYears(2024-2026)5.ProposalonChangingtheCompany'sRegisteredCapital,BusinessScope,andAmendingtheArticlesofAssociation6.ProposalonConveningtheCompany's2024SecondExtraordinaryGeneralMeeting | ||
| FifthMeetingoftheFifthBoardofDirectors | October29,2024 | ReviewedandApproved:1.ProposalontheCompany's2024ThirdQuarterReport2.ProposalonChangingtheUseofPartoftheRaisedFunds3.ProposalontheFulfillmentofVestingConditionsbutTemporaryNon-listingofSharesfortheSecondVestingPeriodoftheFirstGrantandtheFirstVestingPeriodoftheReservedGrantunderthe2022RestrictedShareIncentivePlan4.ProposalonAdjustingtheRepurchasePriceandQuantityofthe2022RestrictedShareIncentivePlan5.ProposalonRepurchasingandCancellingPartoftheRestrictedShares6.ProposalonAddingEstimatedRoutineRelatedPartyTransactionsfor2024-20257.ProposalonIncreasingBankComprehensiveCreditLines8.ProposalonUsingPartofIdleRaisedFundstoTemporarilySupplementWorkingCapital9.ProposalontheCompany'sAppointmentofSeniorExecutives10.ProposalonConveningtheCompany's2024ThirdExtraordinaryGeneralMeeting |
| SixthMeetingoftheFifthBoardofDirectors | November05,2024 | ReviewedandApproved1.ProposalonWaivingtheNoticePeriodfortheBoardMeeting2.ProposalonChangingtheCompany'sEnterpriseType |
VI.Directors'PerformanceofDuties(I)Directors'AttendanceatBoardandShareholders'GeneralMeetings
| DirectorName | WhetherIndependentDirector | AttendanceatBoardMeetings | AttendanceatShareholders'GeneralMeetings | |||||
| NumberofBoardMeetingsRequiredtoAttendThisYear | NumberofTimesAttendedinPerson | NumberofTimesAttendedbyCommunication | NumberofTimesAttendedbyProxy | AbsentNumberofTimes | WhetherAbsentfromTwoConsecutiveMeetingsinPerson | NumberofTimesAttendedShareholders'GeneralMeetings | ||
| XieZilong | No | 7 | 7 | 4 | 0 | 0 | No | 3 |
| XieJiaqi | No | 6 | 6 | 4 | 0 | 0 | No | 3 |
| ZhengJiaqi | No | 7 | 7 | 4 | 0 | 0 | No | 4 |
| LiZhen | No | 7 | 7 | 4 | 0 | 0 | No | 4 |
| WuBin | No | 7 | 7 | 2 | 0 | 0 | No | 4 |
| LiuXiaoen | No | 6 | 6 | 6 | 0 | 0 | No | 2 |
| Wu | Yes | 7 | 7 | 2 | 0 | 0 | No | 4 |
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| Lianfeng | ||||||||
| XieZiqi | Yes | 7 | 7 | 2 | 0 | 0 | No | 4 |
| RenMingchuan | Yes | 6 | 6 | 3 | 0 | 0 | No | 3 |
| LiWei | No | 1 | 1 | 0 | 0 | 0 | No | 1 |
| HuangGan | No | 1 | 1 | 1 | 0 | 0 | No | 0 |
| HuangWeide | Yes | 1 | 1 | 0 | 0 | 0 | No | 2 |
ExplanationforNotAttendingTwoConsecutiveBoardMeetingsinPerson
□Applicable√NotApplicable
| NumberofBoardMeetingsHeldDuringtheYear | 7 |
| Ofwhich:NumberofOn-siteMeetings | 0 |
| NumberofMeetingsHeldbyCommunication | 2 |
| NumberofMeetingsHeldbyOn-siteCombinedwithCommunication | 5 |
(II)SituationofDirectorsRaisingObjectionstoCompanyMatters
□Applicable√NotApplicable(III)Other
□Applicable√NotApplicableVII.SpecializedCommitteesundertheBoardofDirectors
√Applicable□NotApplicable(I)MembersofSpecializedCommitteesundertheBoardofDirectors
| CategoryofSpecializedCommittees | MemberName |
| StrategyandESGCommittee | XieZilong,ZhengJiaqi,WuLianfeng |
| AuditCommittee | RenMingchuan,LiZhen,XieZiqi |
| Nomination,RemunerationandEvaluationCommittee | WuLianfeng,XieJiaqi,RenMingchuan |
(II)TheStrategyandESGCommitteeheld2meetingsduringthereportingperiod
| DateHeld | MeetingContent | ImportantOpinionsandSuggestions | OtherPerformanceofDuties |
| April29,2024 | 1.ProposalontheCompany's2023Environmental,Social,andCorporateGovernance(ESG)Report | Reviewedandapproved,agreedtosubmittotheCompany'sBoardofDirectorsfordeliberation | None |
| October29,2024 | 1.ProposalonChangingtheUseofPartoftheRaisedFunds | Reviewedandapproved,agreedtosubmittotheCompany'sBoardofDirectorsfordeliberation | None |
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(III)TheAuditCommitteeheld4meetingsduringthereportingperiod
| DateHeld | MeetingContent | ImportantOpinionsandSuggestions | OtherPerformanceofDuties |
| February22,2024 | ReviewedProposal1.ProposalonAppointingtheCompany'sPresidentandotherSeniorExecutives | Reviewedandapproved,agreedtosubmittotheCompany'sBoardofDirectorsfordeliberation | None |
| April24,2024 | ReviewedProposals:1.ProposalontheCompany's2023AnnualReportandAbstract;2.ProposalontheCompany's2023InternalControlEvaluationReport;3.ProposalontheCompany's2024FirstQuarterReport;4.ProposalontheCompany's2023AuditCommitteePerformanceReport;5.Proposalonthe2023ProfitDistributionPlan;6.ProposalontheCompany's2023SituationofRaisedFundsDepositandUse;7.ProposalonUsingPartofIdleRaisedFundstoTemporarilySupplementWorkingCapital;8.ProposalontheReportoftheCompany'sAuditCommitteeoftheBoardofDirectorsonthePerformanceofSupervisoryDutiesoverthe2023AnnualAuditAccountingFirm;9.ProposalontheCompany'sRe-appointmentofthe2024AccountingFirm;10.ProposalontheCompanyanditsSubsidiariesApplyingforBankComprehensiveCreditLinesandProvidingGuaranteesin2024;11.2023InternalAuditReport. | Reviewedandapproved,agreedtosubmittotheCompany'sBoardofDirectorsfordeliberation | None |
| August29,2024 | ReviewedProposals:1.ProposalontheCompany's2024Semi-AnnualReportandItsAbstract2.ProposalonSpecialReportontheCompany's2024Semi-AnnualDepositandActualUseofRaisedFunds | Reviewedandapproved,agreedtosubmittotheCompany'sBoardofDirectorsfordeliberation | None |
| October29,2024 |
ReviewedProposal
1.ProposalontheCompany's2024ThirdQuarterReport
2.ProposalonUsingPartofIdleRaisedFundstoTemporarilySupplementWorkingCapital
| Reviewedandapproved,agreedtosubmittotheCompany'sBoardofDirectorsfordeliberation | None |
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(IV)TheNomination,Remuneration,andAppraisalCommitteeheld4meetingsduringthereportingperiod
| DateHeld | MeetingContent | ImportantOpinionsandSuggestions | OtherPerformanceofDuties |
| January30,2024 | ReviewedProposal1.ProposalontheRe-electionoftheCompany'sBoardofDirectorsandNominationofCandidatesforNon-IndependentDirectorsoftheFifthBoardofDirectors;2.ProposalontheRe-electionoftheCompany'sBoardofDirectorsandNominationofCandidatesforIndependentDirectorsoftheFifthBoardofDirectors | Reviewedandapproved,agreedtosubmittotheCompany'sBoardofDirectorsfordeliberation | None |
| February22,2024 | ReviewedProposals:1.ProposalonAppointingtheCompany'sPresidentandotherSeniorExecutives2.ProposalonAppointingtheCompany'sSecretaryoftheBoardofDirectorsandSecuritiesAffairsRepresentative3.ProposalontheAllowanceStandardsforSomeoftheCompany'sDirectors | Reviewedandapproved,agreedtosubmittotheCompany'sBoardofDirectorsfordeliberation | None |
| April29,2024 | ReviewedProposals:1.ProposalontheTotalRemunerationoftheCompany'sDirectors,Supervisors,andSeniorExecutivesfor2023 | Reviewedandapproved,agreedtosubmittotheCompany'sBoardofDirectorsfordeliberation | None |
| October29,2024 | ReviewedProposal1.ProposalontheFulfillmentofVestingConditionsbutTemporaryNon-listingofSharesfortheSecondVestingPeriodoftheFirstGrantandtheFirstVestingPeriodoftheReservedGrantunderthe2022RestrictedShareIncentivePlan2.ProposalonAdjustingtheRepurchasePriceandQuantityofthe2022RestrictedShareIncentivePlan3.ProposalonRepurchasingandCancellingPartoftheRestrictedShares4.ProposalontheCompany'sAppointmentofSeniorExecutives | Reviewedandapproved,agreedtosubmittotheCompany'sBoardofDirectorsfordeliberation | None |
(V)SpecificDisagreements
□Applicable√NotApplicableVIII.ExplanationofRisksIdentifiedbytheBoardofSupervisorsintheCompany
□Applicable√NotApplicableTheBoardofSupervisorshasnoobjectiontothesupervisionmattersduringthereportingperiod.
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IX.EmployeesoftheParentCompanyandMajorSubsidiariesattheEndoftheReportingPeriod(I)Employees
| NumberofEmployeesintheParentCompany | 8,798 |
| NumberofEmployeesinMajorSubsidiaries | 31,334 |
| TotalNumberofEmployees | 40,132 |
| NumberofRetiredEmployeesWhoseExpensesareBornebytheParentCompanyandMajorSubsidiaries | 0 |
| ProfessionalComposition | |
| ProfessionalCompositionCategory | NumberbyProfessionalComposition |
| Productionstaff | 173 |
| Salesstaff | 33,409 |
| Technicalstaff | 604 |
| Financialstaff | 438 |
| Administrativestaff | 4,464 |
| ManagementPersonnel | - |
| Other | 1,044 |
| Total | 40,132 |
| EducationalLevel | |
| EducationalLevelCategory | Number(People) |
| Master'sDegreeorAbove | 230 |
| Bachelor | 6,369 |
| AssociateDegree | 16,217 |
| Collegeandbelow | 17,316 |
| Total | 40,132 |
(II)Remunerationpolicies
√Applicable□NotApplicable
TheCompany'stotalremunerationismainlydeterminedbytheBoardofDirectorsbasedontheCompany'sremunerationsituationandthebudgetandcompletionofkeyoperatingindicators.Withinthetotalremuneration,theCompanyimplementsabroadbandsalarysystembasedonjobqualificationcertificationandjobgradesystem,aswellasamarket-orientedincentivemechanism.Mid-to-seniorlevelpersonnelimplementanannualsalarysystem,determinedbasedonindividualcapabilitiesandperformancecontributionvalues,combinedwithmarketsalarylevels.Otherpersonnelimplementamodelcombiningpositionandperformancesalary.Fixedsalaryisbenchmarkedagainsttheindustry,determinedbasedonindividualjobqualificationcertificationlevelsandjobgrades,andperiodicallyadjustedbasedonindividualqualificationlevelsandmarketpeerlevelstomaintaintheCompany'sattractivenesstotalent.EmployeeperformancesalaryisdirectlylinkedtoindividualperformanceoutputandisalsorelatedtotheoverallperformanceachievementoftheCompanyandunitwheretheybelong,ensuringthatwhileenhancingemployeemotivation,theCompanymaintainsanindustry-leadinglevelofpercapitaefficiencyoutput.
Intermsofemployeebenefits,theCompanystrictlyimplementsnationalandlocallawsandregulations,providingemployeeswithbasicstatutorybenefitssuchaspensioninsurance,medicalinsurance,unemploymentinsurance,work-relatedinjuryinsurance,maternityinsurance,housingprovidentfund,paidleave,etc.;atthesametime,theCompanyalsoprovidescorrespondingemployeeswithsupplementaryinsuranceitemssuchasaccidentalinjuryinsurance,criticalillnessinsurance,commercialpensioninsurance,tax-preferredinsurance,etc.,strivingtohelpemployeessolvetheirworries.(III)TrainingPlan
√Applicable□NotApplicable
Duringthereportingperiod,theCompany'strainingworkadheredtothehumanresourcesmanagementphilosophyof"upholdingintegrityandaltruism,businessorientation,data-driven",
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continuouslyimprovingthetalentcultivationsystem,activelyrespondingtobusinessneeds,supportingtheimplementationofcompanystrategy,assistingemployeelifecycledevelopment,andenhancingorganizationalinsightandagilitytoadapttotheconstantlychangingmarketenvironment.In2024,digitalsupportfortrainingcontinuedtoupgrade.Throughthedockingofmultipleplatforms,visualmanagementofemployeegrowthwasachievedattheemployeeend,andmacro-controloftalentcultivationdatawasachievedatthemanagerend,promotingthehorizontalpenetrationandverticalpermeationoftalentcultivationandlearningprojectswithintheCompany,continuouslyconsolidatingthefoundationforbuildingalearningorganization.In2024,theCompany'sbigdatalearningreachedanewhigh,withallemployeesaccumulating11.77millionhoursoflearning(anaverageof245hoursperpersonannually).Thelearningplatformofferedover1,900courses,withatotalofover7.69millionlearningsessions.Continuouslydevelopingandcultivatingvariousinternaltrainers,including2,812mentors,878lecturers,401managementtutors,1,208counterlecturers,and15learningmapshavebeenestablished,coveringfrontlineemployees,corebusinesslineemployees,andmanagementemployees.
Focusingonechelontalentcultivation,enhancingtalentdensity,andimprovingorganizationalcapabilities.In2024,full-chaincultivationofoperational,procurement,andmerchandisingechelontalentwasachieved,covering100%ofcorebusinesspositionsinthewarzones.Anew"Group+WarZoneRotation"modelwasaddedtoimprovetrainees'overallunderstandingoftheCompany'svaluechainanddeepunderstandingoftargetpositions.24qualifiedpersonnelwerecultivatedthisyear.TheB-positioncultivationprojectisthethirdyearoftheCompany'scontinuous"one-on-one"customizedcultivationofsuccessorsformid-to-seniorlevelpositions(A-positions).Throughthemethodof"taskpractice+monthlycoaching",162qualifiedpersonnelwerecultivated,achievingaB-positionstaffingrateof95.6%formid-to-seniorlevels.Tobroadentheglobalperspectiveandsystematicthinkingabilityofmanagementpersonnel,theCompanysystematicallycultivatedthemanagementandleadershipcapabilitiesofmid-to-seniormanagersthrough"ExecutiveIntensiveTrainingCamps"and"MiddleManagementIntensiveTrainingCamps",strengtheningtheCompany'smiddlemanagementteamstrength.99qualifiedpersonnelwerecultivatedin2024.TheRanPlan,amid-to-seniorlevelteam-buildingactivitycontinuingfor5+years,sawover400colleaguescontinuouslysharingdailyreadingwisdomandexercisestyles,bringingsupervitalitytotheorganization.ManagementtraineesareastrongreserveforcefortheCompany'scontinuousdevelopmentandinnovation.In2024,LBXPharmacycultivated141managementtraineesforbusinesslinessuchasoperations,merchandise,procurement,newretail,digitalization,HR,andexpansionthroughformssuchascentralizedtraining,businesschainlearning,frontlinepractice,targetbusinesslinepractice,andexecutivesymposiums.
Standardizedimplementationofthe"FrontlineTalentTrainingandPracticeMechanism"achievesself-circulatingsupplyguaranteeforfrontlinetalent.LBXPharmacyfrontlinetalentiscultivatedinlevelsfordifferentpositionsthroughan"online+offline,trainingcombinedwithpractice"approach.In2024,321centralizedtrainingcampswereconducted,cultivating16,313people.Amongthem,234sessionswereheldforreservetalentcultivation,cultivating9,747people;87sessionswereheldforincumbenttalentcultivation,cultivating6,566people.TheCompanycontinuouslyrecruitsretiredmilitarypersonnelintothe"LittlePoplarProject",designingspecializedtrainingplansandprovidingexclusivepromotionchannels.Asoftheendof2024,80+retiredmilitarypersonnelhavebeencultivated.Forlicensedpharmacistcultivation,theCompanyestablished"EmployeeLearningGrowthAward","TalentCultivationAward",and"SpecialImplementationAward",providingpaidleaveandfulltuitionreimbursementsubsidies,encouragingemployeestoactivelyparticipateintheNationalLicensedPharmacistQualificationExamination.In2024,thelicensedpharmacistexaminationassistancemechanismwasactivelypromoted,assisting958peopleinpassingthelicensedpharmacistexamination,withapassrateof35.4%,14.3percentagepointshigherthanthenationallicensedpharmacistpassrate.
In2025,theCompany'strainingworkwillcontinuetostrengthenthesupportandempowermentoftrainingforbusinessandcompanydevelopmentthroughthethreepillarsof"assistingfrontlinepersonnelinprofessionalknowledgeimprovement","strengtheningfrontlinetalentjobcompetency",and"focusingonkeyfunctionalpositiontalentcultivation",providingdiversifiedlearninganddevelopmentsolutionsforemployeesatdifferentlevelsandstagesofdevelopment.Ontheonehand,forfrontlineemployeecultivation,focuswillbeplacedonbothprofessionalknowledgeandon-the-jobcapabilities.Byidentifyingknowledgeandskillsneedingimprovementforemployees,theGroupwillempowerwarzonesdownwardtoimprovethecomprehensivecapabilitiesoffrontlineemployees;ontheotherhand,forfunctionallineemployeecultivation,thefocuswillbeonpotentialtalentsinkeypositions.Through
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iteratingtrainingforms,restructuringcontent,andupgradingmentors,compositetalentswillbecultivated,improvingthesuitabilityofpotentialtalentsfortargetpositions.In2025,characteristicprojectssuchas"StoreManagerSpeaks","DailyPractice",and"ElectiveCourseKnowledgeContest"willalsobeusedtocreateacontinuouslearningatmosphereforallemployees,improvingthequalityandefficiencyoforganizationaltalentcultivation,andassistingtheCompany'sinnovationandstabledevelopment.(IV)LaborOutsourcing
| √Applicable□NotApplicableTotalHoursofLaborOutsourcing | 1,352,196 |
| TotalRemunerationPaidforLaborOutsourcing(Tenthousandyuan) | 40,033,299 |
Note:TheCompanyuseslaboroutsourcingasasupplementtoitsemploymentforms.AsofDecember31,2024,thenumberofoutsourcedlaborerswas753,accountingfor1.87%ofthetotalemployees,tomeetthelabordemandforauxiliarypositionssuchasloadingandunloading,warehousemanagement,etc.,inlogisticsanddistribution.X.ProfitDistributionorCapitalReserveCapitalizationPlan(I)Formulation,Execution,orAdjustmentofCashDividendPolicy
√Applicable□NotApplicable
Duringthereportingperiod,topracticethedevelopmentphilosophyof"investor-oriented",establishascientific,continuous,andstabledividendmechanism,activelyrewardinvestors,andpromotetheCompany'shigh-qualitydevelopment,accordingtotherequirementsoflawsandregulationssuchastheChinaSecuritiesRegulatoryCommission'sNoticeonFurtherImplementingMattersRelatedtoCashDividendsofListedCompaniesandrelevantprovisionsoftheArticlesofAssociation,combinedwiththeCompany'sactualsituation,the"LBXPharmacyChainJointStockCompanyShareholderReturnPlanfortheNextThreeYears(2024-2026)"wasformulated.Theplanstipulates:UndertheconditionofmeetingthecashdividendrequirementsandensuringthefundingneedsfortheCompany'snormaloperationanddevelopment,theCompany'sannualcashdividenddistributioninthenextthreeyearsshouldreachatleast50%ofthenetprofitattributabletoshareholdersofthelistedcompanyintheconsolidatedfinancialstatementsfortheyear.ThespecificcashdividendratioforeachyearwillbedeterminedbytheCompany'sBoardofDirectorsbasedontheCompany'sprofitscale,cashflowstatus,developmentstage,andcurrentfundingneeds,formulatingannualorinterimdividendplans.
Duringthereportingperiod,theCompanystrictlyimplementedthe2023annualprofitdistributionplanandthe2024interimdividenddistributioninaccordancewiththeprofitdistributionpolicystipulatedintheArticlesofAssociationandtheshareholderreturnplan,aswellastheresolutionsoftheshareholders'generalmeetings.TheCompany's2023profitdistributionplan(alreadycompleted)wastodistributeacashdividendofRMB6.6per10shares(taxincluded),nobonusshares,andconvert0.3sharespersharefromcapitalreserves,distributingcashdividendsofRMB385,963,519.26;the2024interimdividendplan(alreadycompleted)wastodistributeacashdividendofRMB0.3307pershare(taxincluded),distributingcashdividendsofRMB251,408,449.24.
TheCompanyproposestodistributeacashdividendofRMB0.8per10shares(taxincluded)toallshareholdersbasedonthetotalsharecapitalontherecorddatefortheimplementationofthe2024annualequitydistribution.TheCompanywillnotissuebonussharesorconvertcapitalreservesintosharecapital.AsofMarch31,2025,theCompany'stotalsharecapitalwas760,095,613shares.TheproposedcashdividenddistributionisRMB60,807,649.04(taxincluded).Thetotalproposedcashdividendfortheyear2024(taxincluded)isRMB312,216,098.28(includingtheinterimdividendofRMB251,408,449.24for2024),representing60.15%ofthenetprofitattributabletotheparentcompanyfor2024.(II)SpecificExplanationofCashDividendPolicy
√Applicable□NotApplicable
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| WhetheritcomplieswiththeprovisionsoftheArticlesofAssociationortherequirementsofshareholders'generalmeetingresolutions | √Yes□No |
| Whetherthedividendstandardandratioareclearandexplicit | √Yes□No |
| Whethertherelateddecision-makingproceduresandmechanismsarecomplete | √Yes□No |
| Whetherindependentdirectorsfulfilledtheirdutiesandplayedtheirduerole | √Yes□No |
| Whethersmallandmedium-sizedshareholdershavesufficientopportunitiestoexpresstheiropinionsanddemands,andwhethertheirlegitimaterightsandinterestshavebeenfullyprotected | √Yes□No |
(III)IftheCompanyisprofitableduringthereportingperiodandtheparentcompany's
distributableprofittoshareholdersispositive,butnocashprofitdistributionplanproposalisputforward,theCompanyshoulddisclosethereasonsindetail,aswellastheuseandplanfortheundistributedprofit
□Applicable√NotApplicable(IV)ProfitDistributionandCapitalReserveCapitalizationPlanforThisReportingPeriod
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| BonusSharesper10Shares(Shares) | 0 |
| Dividendper10Shares(RMB)(TaxIncluded) | 4.107 |
| SharesTransferredper10Shares(Shares) | 0 |
| CashDividendAmount(TaxIncluded) | 312,216,098 |
| Netprofitattributabletoordinaryshareholdersofthelistedcompanyintheconsolidatedstatements | 519,063,405 |
| RatioofCashDividendAmounttoNetProfitAttributabletoOrdinaryShareholdersoftheListedCompanyinConsolidatedStatements(%) | 60.15 |
| AmountofShareRepurchasesAccountedforasCashDividends | 0 |
| TotalDividendAmount(TaxIncluded) | 312,216,098 |
| RatioofTotalDividendAmounttoNetProfitAttributabletoOrdinaryShareholdersoftheListedCompanyinConsolidatedStatements(%) | 60.15 |
(V)CashDividendSituationintheLastThreeFiscalYears
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| CumulativeCashDividendAmountintheLastThreeFiscalYears(TaxIncluded)(1) | 990,583,068 |
| CumulativeAmountofRepurchasesandCancellationsintheLastThreeFiscalYears(2) | 0 |
| CumulativeAmountofCashDividendsandRepurchasesandCancellationsintheLastThreeFiscalYears(3)=(1)+(2) | 990,583,068 |
| AverageAnnualNetProfitAmountintheLastThreeFiscalYears(4) | 744,349,352 |
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| CashDividendRatiointheLastThreeFiscalYears(%)(5)=(3)/(4) | 133.08 |
| Netprofitattributabletoordinaryshareholdersofthelistedcompanyintheconsolidatedstatementsofthelastfiscalyear | 519,063,405 |
| Undistributedprofitattheendoftheyearintheparentcompany'sstatementsofthelastfiscalyear | 1,004,470,487 |
XI.SituationandImpactofCompanyEquityIncentivePlans,EmployeeStockOwnershipPlans,
orOtherEmployeeIncentiveMeasures(I)Relatedincentivemattersalreadydisclosedintemporaryannouncementswithno
subsequentprogressorchanges
√Applicable□NotApplicable
| MatterOverview | QueryIndex |
| OnApril12,2024,theCompanyheldthesecondmeetingoftheFifthBoardofDirectorsandthesecondmeetingoftheFifthBoardofSupervisors,reviewingandapprovingtheProposalonRepurchasingandCancellingPartoftheRestrictedShares.TheCompanyrepurchasedandcancelledatotalof139,925restrictedsharesheldby22incentiveobjectsunderthe2022restrictedshareincentiveplanwhohadresignedorexperiencedpositionchanges.OnJune5,2024,theCompanydisclosedtheAnnouncementontheImplementationofRepurchaseandCancellationofEquityIncentiveRestrictedShares. | TheCompanymadeannouncementsonthewebsite(www.sse.com.cn)oftheShanghaiStockExchangeonApril13,2024;AnnouncementNos.:2024-018,2024-019;TheCompanymadeanannouncementonthewebsite(www.sse.com.cn)oftheShanghaiStockExchangeonJune5,2024;AnnouncementNo.:2024-036 |
| OnOctober29,2024,theCompanyheldthefifthmeetingoftheFifthBoardofDirectorsandthefifthmeetingoftheFifthBoardofSupervisors,reviewingandapprovingtheProposalontheFulfillmentofVestingConditionsbutTemporaryNon-listingofSharesfortheSecondVestingPeriodoftheFirstGrantandtheFirstVestingPeriodoftheReservedGrantunderthe2022RestrictedShareIncentivePlan,ProposalonAdjustingtheRepurchasePriceandQuantityofthe2022RestrictedShareIncentivePlan,andProposalonRepurchasingandCancellingPartoftheRestrictedShares.OnJanuary8,2025,theCompanydisclosedtheAnnouncementontheImplementationofRepurchaseandCancellationofEquityIncentiveRestrictedShares.OnJanuary16,2025,theCompanydisclosedtheAnnouncementontheVestingandListingCirculationoftheFirstVestingPeriodoftheReservedGrantunderthe2022RestrictedShareIncentivePlan.ThisbatchofrestrictedshareswaslistedandcirculatedonJanuary21,2025.OnMarch26,2025,theCompanydisclosedtheAnnouncementontheVestingandListingCirculationoftheFirstVestingPeriodoftheReservedGrantunderthe2022RestrictedShareIncentivePlan.ThisbatchofrestrictedshareswaslistedandcirculatedonMarch31,2025. | TheCompanymadeannouncementsonthewebsite(www.sse.com.cn)oftheShanghaiStockExchangeonOctober30,2024;AnnouncementNos.:2024-070,2024-071,2024-072,2024-073;TheCompanymadeanannouncementonthewebsite(www.sse.com.cn)oftheShanghaiStockExchangeonJanuary8,2025;AnnouncementNo.:2025-001;TheCompanymadeanannouncementonthewebsite(www.sse.com.cn)oftheShanghaiStockExchangeonJanuary16,2025;AnnouncementNo.:2025-002;TheCompanymadeanannouncementonthewebsite(www.sse.com.cn)oftheShanghaiStockExchangeonMarch26,2025;AnnouncementNo.:2025-005. |
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(II)IncentivesituationsnotdisclosedintemporaryannouncementsorwithsubsequentprogressEquityIncentive
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicableEmployeeStockOwnershipPlan
□Applicable√NotApplicableOtherIncentiveMeasures
□Applicable√NotApplicable(III)EquityIncentivesGrantedtoDirectorsandSeniorExecutivesduringtheReportingPeriod
□Applicable√NotApplicable(IV)EvaluationMechanismforSeniorExecutivesduringtheReportingPeriod,and
EstablishmentandImplementationofIncentiveMechanisms
√Applicable□NotApplicable
TheCompanyhasestablishedanassessmentsystemfortheoperationandmanagementobjectivesandresponsibilitiesofmid-to-seniorexecutivesbasedonperformancecompetition,signingoperationobjectiveresponsibilitycontractsandannualperformanceobjectiveassessmentswithoperationmanagers,andconductingperformancerankingPKquarterly.Theassessmentmethodstipulates:Theremunerationofmid-to-seniorexecutivesislinkednotonlytotheperformanceachievementoftheirrespectiveunitsbutalsototheimpactoftheirworkonfuturelong-termdevelopment,incentivizingmanagersatalllevelstoactivelyfocusonthelong-termdevelopmentoftheirunitswhileensuringtheachievementofperformancegoals.
Implementationsituation:Atthebeginningofeachyear,aftertheCompany'soverallannualoperatingobjectivesarereviewedanddeterminedbytheBoardofDirectors,theCompanysignsoperationandmanagementobjectiveresponsibilitycontractswiththeprimaryresponsiblepersonsofitssubordinatesubsidiaries.Followingtheprincipleof"quarterlytrackingassessment,communicationfeedback,andyear-endassessmentrealization",theimplementationisstrict.Theassessmentresultsaredirectlylinkedtotheremunerationandrewards/penaltiesoftheoperatorstoensuretheeffectiveachievementoftheCompany'soperatingobjectives.Atyear-end,theCompany'sHRdepartmentcalculatestheremunerationbasedontheoperationandmanagementobjectiveresponsibilitycontractsandannualperformanceachievement,andsubmitsittotheRemunerationandAppraisalCommitteeforreviewanddeterminationofthecorrespondingannualbonusesforseniorexecutives.XII.ConstructionandImplementationofInternalControlSystemduringtheReportingPeriod
√Applicable□NotApplicable
TheCompanyhasestablishedacomprehensivesystemofrulesandregulationstostandardizevariousbusinesses.ThroughsystemslikeOA,SAP,ERP,etc.,itstandardizesandcontrolstheapprovallinksofvariousbusinessprocesses,strictlyimplementinginternalcontrolmeasuressuchassegregationofincompatibledutiescontrol,authorizationandapprovalcontrol,accountingsystemcontrol,propertyprotectioncontrol,budgetcontrol,etc.ExplanationofSignificantDeficienciesinInternalControlduringtheReportingPeriod
□Applicable√NotApplicableXIII.ManagementControloverSubsidiariesduringtheReportingPeriod
√Applicable□NotApplicable
Thegroupheadquarterscontrolssubsidiariesthroughpublishedmanagementsystemsandregulations,coveringmultipleaspectssuchasfinance,operations,sales,merchandise,engineering,etc.
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Allsubsidiariesconductbusinessaccordingtotherequirementsoftheunifiedinstitutionaldocumentsissuedbythegroup.Importantbusinessmattersarereportedandapprovedaccordingtoprocedures.Formattersinvolvingdisclosure,subsidiariesreporttothegroupheadquarters,andthegroupsecuritiesaffairsdepartmentpromptlyfulfillsdisclosureprocedures.Thegroupheadquartersuniformlyappointsanddismissesseniorexecutivesofwholly-ownedandholdingsubsidiaries,designatesdirectorsandsupervisors,anddispatchesfinancialdirectors,directors,andsupervisorstoholdingsubsidiariestostrengthensubsidiarymanagement.Variousdepartmentsofthegroupinspectandsupervisethebusinessconditionsofsubsidiariesaccordingtotheprincipleofverticaldepartmentalmanagement,assistingintheimprovementofsubsidiarymanagementlevelsandtherefinementofriskcontrolmechanisms.XIV.ExplanationRegardingtheInternalControlAuditor'sReport
√Applicable□NotApplicableInaccordancewiththerequirementsoftheGuidelinesforAuditingEnterpriseInternalControlandrelevantstandardsofChineseCertifiedPublicAccountants,theaccountingfirmissuedastandardunqualifiedopinioninternalcontrolauditor'sreport.WhethertoDisclosetheInternalControlAuditor'sReport:YesOpinionTypeofInternalControlAuditor'sReport:StandardUnqualifiedOpinionXV.RectificationofIssuesFoundintheSpecialActionSelf-InspectionofListedCompany
GovernanceNoneXVI.Other
□Applicable√NotApplicable
SectionVEnvironmentandSocialResponsibility
I.EnvironmentalInformationSituation
| WhetherEnvironmentalProtectionRelatedMechanismsHaveBeenEstablished | Yes |
| EnvironmentalProtectionInvestmentduringtheReportingPeriod(Unit:Tenthousandyuan) | 123.14 |
(I)EnvironmentalProtectionExplanationforCompaniesandTheirMajorSubsidiariesListedas
KeyPollutingUnitsbyEnvironmentalProtectionDepartments
□Applicable√NotApplicable(II)EnvironmentalProtectionExplanationforCompaniesoutsidetheKeyPollutingUnits
√Applicable□NotApplicable
1、SituationofReceivingAdministrativePenaltiesduetoEnvironmentalProblems
□Applicable√NotApplicable
2、DisclosureofOtherEnvironmentalInformationwithReferencetoKeyPollutingUnits
□Applicable√NotApplicable
3、ReasonsforNotDisclosingOtherEnvironmentalInformation
□Applicable√NotApplicable
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(III)RelevantInformationBeneficialtoProtectingtheEcology,PreventingPollution,andFulfillingEnvironmentalResponsibilities
√Applicable□NotApplicable
(1)WastewaterPollutantsandTheirTreatmentMeasuresTheCompany'ssewagetreatmentfacilityadoptsundergroundburialmethod,withasewagetreatmentcapacityof300m?/dayand1totaldischargeoutlet.Thecurrentsewagetreatmentfacilityoperatesnormally.TheCompanyhasasewagetreatmentpositionwith1sewagetreatmentoperator.
InSeptember2023,thesewagestationwasupgradedandrenovatedtoenhanceitstreatmentcapacity.
OnMarch8,2024,HunanHuahuanTestingTechnologyCo.,Ltd.sampledandtestedtheCompany'ssewagedischargeoutlet.ThetestresultsforindicatorssuchasPHvalue/chemicaloxygendemand/suspendedsolids/ammonianitrogenallmetqualitycontrolrequirements.
(2)ExhaustGasPollutantsandTheirTreatmentMeasures
OnMarch23,2020,theboilerlow-carbontransformationpassedthejointacceptancebyenvironmentalprotection,qualityinspection,streetauthorities,andexperts.Theboilernitrogenoxideemissionconcentrationisbelow30mg/m?,meetingemissionstandards.Workshopexhaustgasistreatedbydustremovalanddischargedthroughdedicatedflues,withanemissionheight≥24m,meetingemissionrequirements.Canteenexhaustgasistreatedbydustremovalanddischargedthroughdedicatedflues,withanemissionheight≥24m,meetingemissionrequirements.
OnDecember29,2021,HunanPinbiaoHuaceTestingTechnologyCo.,Ltd.testedtheboileremissions,andtheresultsmetemissionrequirements.
OnJanuary6,2022,HunanSpecialEquipmentInspectionandTestingInstitutetestedtheboiler'soperatingthermalefficiency,andtheresultwas93.03%,whichisgreaterthanthespecifiedlimitof92%,meetingtherequirementsofthespecificationforoperationaltesting.
InSeptember2022,HuaceTestingTechnologyCo.,Ltd.testedtheboileremissions,andtheresultsmetemissionrequirements.
InNovember2022,HunanSpecialEquipmentInspectionandTestingInstituteconductedtheannualinspectionoftheboiler,andtheresultsbasicallymettherequirements.
InNovember2023,380piecesofactivatedcarbonwerereplacedtoensureexhaustemissionsmeetrequirements.
InNovember2023,HunanSpecialEquipmentInspectionandTestingInstituteconductedtheannualinspectionoftheboiler,andtheresultsmettherequirements.
InFebruary2024,entrustedbytheChangshaMunicipalHealthandEnvironmentBureauFurongBranch,athirdpartytestedtheboilerexhaustgas,andtheresultsmettherequirements.
(3)SolidWastePollutantsandTheirTreatmentMeasures
TheCompanyhassignedasolidwastetreatmentagreementwiththeEnvironmentalSanitationAdministrationBureauofFurongDistrict,ChangshaCity.Solidwasteiscollecteduniformlybythesanitationdepartmentforcentralizedtreatment.
Startingfrom2023,theCompanyhasadoptedmeasuresforrecyclingusedcardboardboxes.Outerpackagingcardboardboxesfromrawmaterials,packagingmaterials,andfinishedproductsunpackedforshipmentarerecycledandreusedinproductionstorageandtransportationlinks.In2024,about4,000wastecardboardboxeswererecycled,reducingsolidpaperwastebyabout4tons;meanwhile,theCompanyusesrecycledenvironmentallyfriendlypaperwhenpurchasingrawpaperforouterpackagingboxestomaintainagoodecologicalenvironment.
(4)HazardousWasteTreatmentMeasures
In2024,theCompanysignedalaboratoryhazardouswasteentrustedtreatmentcontractwithHunanShoujiaEnvironmentalProtectionTechnologyCo.,Ltd.LaboratoryhazardouswasteiscollecteduniformlyandtreatedaccordingtostandardsbyHunanShoujiaEnvironmentalProtectionTechnologyCo.,Ltd.In2024,atotalof0.635tonsofhazardouswasteweretreated.
(5)Noise
ThenoiseleveloftheequipmentpurchasedbytheCompanycomplieswithnationalstandards.
(6)PhotovoltaicPowerGeneration
Toactivelyrespondtothenationalrequirementsforenergyconservation,emissionreduction,andcleanenvironmentalprotection,theCompanysignedthe"DistributedPhotovoltaicEnergyManagementProject",involvingtheinstallationofover5,000squaremetersofphotovoltaicpanels.ItbeganoperationinNovember,andthetotalpowergenerationin2024was137,432kWh.Injectinggreenmomentuminto
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thehigh-qualitydevelopmentoftheenterprise.(IV)MeasuresTakentoReduceCarbonEmissionsandTheirEffectsduringtheReportingPeriod
| WhetherCarbonReductionMeasuresWereTaken | Yes |
| EquivalentCarbonDioxideEmissionsReduced(Unit:tons) | 1,821.26 |
| TypeofCarbonReductionMeasures(e.g.,usingcleanenergyforpowergeneration,usingcarbonreductiontechnologyinproductionprocesses,developingnewproductscontributingtocarbonreduction) | Usingcleanenergyforpowergeneration |
SpecificExplanation
√Applicable□NotApplicableSeethe2024Environmental,Social,andCorporateGovernance(ESG)ReportofLBXPharmacyChainJointStockCompanydisclosedontheSSEwebsite(www.sse.com.cn)onthesamedate.
II.SocialResponsibilityWork(I)WhethertoSeparatelyDiscloseSocialResponsibilityReport,SustainabilityReport,orESGReport
√Applicable□NotApplicableSeethe2024Environmental,Social,andCorporateGovernance(ESG)ReportofLBXPharmacyChainJointStockCompanydisclosedontheSSEwebsite(www.sse.com.cn)onthesamedate.(II)SpecificSituationofSocialResponsibilityWork
| √Applicable□NotApplicableExternalDonations,PublicWelfareProjects | Quantity/Content | ExplanationofSituation |
| TotalInvestment(Tenthousandyuan) | 244.05 | - |
| Ofwhich:Funds(Tenthousandyuan) | 183.58 | - |
| ValueofMaterials(Tenthousandyuan) | 60.46 | - |
| NumberofPeopleBenefited | - | - |
SpecificExplanation
√Applicable□NotApplicableTheCompanyalwaysremembersitssocialresponsibilityasacorporatecitizen,activelyadvocatesandpromotesthe"altruistic"culture,givesbacktosocietywhilecreatingvalue,participatesinvarioussocialpublicwelfareandcharityundertakings,deeplycultivatessmall-townandruralmarkets,assistsruralrevitalization;advocatesahealthylifestyle,actsasa"guardian"ofsafemedicationuse;diligentlyspreadsthe"healing"culture,jointlybuildingacommunitywithasharedfutureformankind.
In2024,theCompany'stotalinvestmentinexternaldonationsandpublicwelfareprojectswasRMB2.4405million,includingRMB1.8358millioninfundsandRMB604,600inmaterialvalue.Fordetails,seethe2024Environmental,Social,andCorporateGovernance(ESG)ReportofLBXPharmacyChainJointStockCompanydisclosedontheSSEwebsite(www.sse.com.cn)onthesamedate.
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III.SpecificSituationofConsolidatingandExpandingAchievementsinPovertyAlleviation,
RuralRevitalization,etc.
√Applicable□NotApplicable
| PovertyAlleviationandRuralRevitalizationProjects | Quantity/Content | ExplanationofSituation |
| TotalInvestment(Tenthousandyuan) | 9.9 | - |
| Ofwhich:Funds(Tenthousandyuan) | 9.9 | - |
| ValueofMaterials(Tenthousandyuan) | - | - |
| NumberofPeopleBenefited | - | - |
| FormofAssistance(e.g.,industrialpovertyalleviation,employmentpovertyalleviation,educationalpovertyalleviation,etc.) | - | - |
SpecificExplanation
√Applicable□NotApplicableAsapharmaceuticalretailenterpriseservingthehealthofthepeople,theCompanyactivelytakesresponsibilityandactsproactivelyinruralrevitalization.LBXPharmacyhasidentified"AdvancingintoNewRuralAreas"asoneoftheCompany'ssevencorestrategies.Bypromotingstorefranchiseprogramstosupportentrepreneurialventuresinruralareas,leveraginge-commercetoenhanceagriculturalprocurement,andimplementingtargetedassistancetoimproveruralhealthcarefacilities,wehavedevelopedamulti-channel,multi-dimensionalsupportstrategytodrivecomprehensiveruralrevitalization.
In2024,theCompany'stotalinvestmentinpovertyalleviationandruralrevitalizationprojectswasRMB99,000,allinfunds.Fordetails,seethe2024Environmental,Social,andCorporateGovernance(ESG)ReportofLBXPharmacyChainJointStockCompanydisclosedontheSSEwebsite(www.sse.com.cn)onthesamedate.
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SectionVISignificantMatters
I.PerformanceofCommitments(I)CommitmentsmadebytheCompany'sactualcontroller,shareholders,relatedparties,acquirers,andtheCompanyitselfduringthereporting
periodorcontinuingintothereportingperiod
√Applicable□NotApplicable
| BackgroundofCommitment | CommitmentType | Promisor | CommitmentContent | CommitmentTime | WhetherThereisaPerformancePeriod | CommitmentPeriod | WhetherTimelyandStrictlyFulfilled | IfNotTimelyFulfilled,ExplainSpecificReasonsforNon-completion | IfNotTimelyFulfilled,ExplainNextSteps |
| CommitmentsMadeinAcquisitionReportsorEquityChangeReports | ResolvingHorizontalCompetition | JanstarInvestment | Remark1 | November17,2019 | Yes | Duringtheperiodofholdingmorethan5%ofLBXshares | Yes | NotApplicable | NotApplicable |
| Other | JanstarInvestment | Remark2 | November17,2019 | Yes | Duringtheperiodofholdingmorethan5%ofLBXshares | Yes | NotApplicable | NotApplicable | |
| CommitmentsRelatedtoMajorAssetRestructuring | Other | PharmaceuticalGroup | Remark3 | July16,2021 | Yes | Untilthecommitmentisfulfilled | Yes | NotApplicable | NotApplicable |
| Other | XieZilong,ChenXiulan | Remark4 | July16,2021 | Yes | Untilthecommitmentisfulfilled | Yes | NotApplicable | NotApplicable | |
| Other | Alldirectors,seniorexecutives | Remark5 | July16,2021 | Yes | Untilthecommitmentisfulfilled | Yes | NotApplicable | NotApplicable | |
| CommitmentsRelatedtoInitialPublicOffering | Other | PharmaceuticalGroup,JanstarInvestment | Remark6 | April10,2015 | Yes | Duringtheperiodofholdingmorethan5%ofLBXshares | Yes | NotApplicable | NotApplicable |
| Share | Pharmaceutical | Remark7 | April10, | Yes | Duringtheperiodof | Yes | NotApplicable | Not |
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| Lock-up | Group | 2015 | holdingmorethan5%ofLBXshares | Applicable | |||||
| CommitmentsRelatedtoRefinancing | Other | PharmaceuticalGroup,XieZilong,ChenXiulan | Remark8 | March03,2021 | Yes | Untilthecommitmentisfulfilled | Yes | NotApplicable | NotApplicable |
| Other | Alldirectors,seniorexecutives | Remark9 | March03,2021 | Yes | Untilthecommitmentisfulfilled | Yes | NotApplicable | NotApplicable | |
| Other | LBX | Remark10 | May18,2021 | Yes | Untilthecommitmentisfulfilled | Yes | NotApplicable | NotApplicable | |
| CommitmentsRelatedtoEquityIncentives | Other | LBX | Remark11 | July31,2022 | Yes | September29,2022toSeptember28,2025 | Yes | NotApplicable | NotApplicable |
| OtherCommitmentsMadetotheCompany'sSmallandMedium-sizedShareholders | ResolvingHorizontalCompetition | PharmaceuticalGroup,JanstarInvestment | Remark12 | April10,2015 | Yes | Duringtheperiodofholdingmorethan5%ofLBXshares | Yes | NotApplicable | NotApplicable |
| ResolvingHorizontalCompetition | XieZilong,ChenXiulan | Remark13 | April10,2015 | Yes | Duringtheperiodofholdingmorethan5%ofLBXshares | Yes | NotApplicable | NotApplicable | |
| ResolvingHorizontalCompetition | PharmaceuticalGroup,ChenXiulan | Remark14 | June20,2022 | Yes | DuringtheperiodasLBX'sactualcontroller/controllingshareholder | Yes | NotApplicable | NotApplicable | |
| ResolvingRelatedPartyTransactions | PharmaceuticalGroup,JanstarInvestment,XieZilong,ChenXiulan | Remark15 | April10,2015 | Yes | Duringtheperiodofholdingmorethan5%ofLBXshares | Yes | NotApplicable | NotApplicable | |
| ResolvingRelatedPartyTransactions | PharmaceuticalGroup,ChenXiulan | Remark16 | June20,2022 | Yes | Untilthecommitmentisfulfilled | Yes | NotApplicable | NotApplicable |
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Remarks1:
(I)JanstarInvestmentandotherenterprisescontrolledbyitwillnotengageinanybusinessthatconstitutessubstantialcompetitionwithLBX'sbusinessscopeinanyform,directlyorindirectly,inthefuture.(II)WillstrictlyabidebytherelevantregulationsoftheChinaSecuritiesRegulatoryCommission,ShanghaiStockExchange,andLBX'sArticlesofAssociation,exerciseshareholderrightsandfulfillshareholderobligationsequallylikeothershareholders,andnotharmthelegitimaterightsandinterestsofLBXandothershareholders.(III)UnlessJanstarInvestment'sindirectlyheldLBXA-sharesfallbelow5%ofLBX'stotalsharecapitalatthattime,thiscommitmentwillremainvalid.IfJanstarInvestmentviolatestheabovecommitmentsandcauseslossestoLBXandothershareholders,JanstarInvestmentwillbearthelosses.Remarks2:
(I)Maintainingpersonnelindependencewiththelistedcompany:1.Thelistedcompany'sgeneralmanager,deputygeneralmanagers,chieffinancialofficer,secretaryoftheboardofdirectors,andotherseniorexecutivesworkfull-timeatthelistedcompanyanddonotholdadministrativepositionsotherthandirectororsupervisoratJanstarInvestment,maintainingthepersonnelindependenceofthelistedcompany.2.Thelistedcompanyhasacompleteandindependentlabor,personnel,andsalarymanagementsystem,whichiscompletelyindependentfromJanstarInvestment.(II)Maintainingassetindependencewiththelistedcompany:
1.Thelistedcompanyhasindependentandcompleteassets,allofwhichareunderthecontrolofthelistedcompanyandareindependentlyownedandoperatedbythelistedcompany.2.JanstarInvestmentcurrentlydoesnot,andwillnotinthefuture,illegallyoccupythefundsorassetsofthelistedcompanyinanyway.3.JanstarInvestmentwillnotprovideguaranteesforitsowndebtsusingtheassetsofthelistedcompany.(III)Maintainingfinancialindependencewiththelistedcompany:1.Thelistedcompanycontinuestomaintainanindependentfinancedepartmentandanindependentfinancialaccountingsystem.2.Thelistedcompanyhasstandardizedandindependentfinancialandaccountingsystemsandfinancialmanagementsystemsforbranchesandsubsidiaries.3.ThelistedcompanyindependentlyopensbankaccountsanddoesnotsharebankaccountswithJanstarInvestment.4.Thelistedcompanycanmakeindependentfinancialdecisions,andJanstarInvestmentwillnotinterferewiththelistedcompany'sfunduseandallocationthroughillegalmeans.5.Thelistedcompany'sfinancialpersonnelareindependentanddonotholdconcurrentpositionsorreceiveremunerationatJanstarInvestment.6.Thelistedcompanypaystaxesindependentlyaccordingtolaw.(IV)Maintaininginstitutionalindependencewiththelistedcompany:1.Thelistedcompanycontinuestomaintainasoundcorporategovernancestructureandhasindependentandcompleteorganizationalinstitutions.2.Thelistedcompany'sshareholders'generalmeeting,boardofdirectors,independentdirectors,boardofsupervisors,generalmanager,etc.,independentlyexercisetheirpowersaccordingtolaws,regulations,andthearticlesofassociation.(V)Maintainingbusinessindependencewiththelistedcompany:1.Thelistedcompanyhastheindependentassets,personnel,qualifications,andcapabilitiestocarryoutoperatingactivities,maintainsindependenceinprocurement,production,sales,intellectualproperty,etc.,andpossessestheabilitytooperateindependentlyandcontinuouslyfacingthemarket.2.JanstarInvestmentwillnotinterfereinthebusinessactivitiesofthelistedcompanyexceptthroughexercisingshareholderrights.Remark3:
(I)Commitmentletterregardingensuringtheindependenceofthelistedcompany:LBXPharmaceuticalGroupCo.,Ltd.willstrictlyfollowtherequirementsoftheCompanyLaw,SecuritiesLaw,andotherapplicablelawsandregulationsforlistedcompanies,legallyexerciseshareholderrightsandfulfillcorrespondingobligations,takepracticalandeffectivemeasurestoensurethatafterthecompletionofthistransaction,LBXiscompletelyseparatefromotherenterprisescontrolledbytheCompanyintermsofpersonnel,assets,finance,institutions,andbusiness,maintainingtheindependenceofthelistedcompanyinbusiness,assets,personnel,finance,andinstitutions.(II)Principledopinionsonthisrestructuring:ThistransactionreflectsLBX'soptimizationofitsbusinessstructureandpursuitoffurtherdevelopment.ThistransactionisconducivetoenhancingLBX'scontinuousoperatingcapabilities,improvingLBX'sprofitability,andprotectingtheinterestsofLBXshareholders,especiallysmallandmedium-sizedshareholders.Ourcompany/Iagree(s)inprincipletothistransactionandwillactivelypromotethesmoothprogressofthistransactionbytakingmeasuresincludingbutnotlimitedtoattendingLBXshareholders'generalmeetingsandvotinginfavoroftherelevant
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proposalsforthistransaction,underthepremiseofmaximizingtheinterestsofLBXandinvestors.(III)Commitmentletterregardingtakingremedialmeasuresforthedilutionofimmediatereturnsfromthismajorassetpurchase:1.Exercisecontrollingshareholderrightsinaccordancewithapplicablelaws,regulations,andtheprovisionsoftheArticlesofAssociationofLBXPharmacyChainJointStockCompany,notoverstepLBX'sbusinessmanagementactivities,andnotencroachonLBX'sinterests.2.Asoneoftheresponsiblepartiesforremedialmeasures,iftheabovecommitmentisviolatedorrefusedtobefulfilled,agreethattheCSRC,ShanghaiStockExchange,andothersecuritiesregulatoryagenciesmayimposerelevantpenaltiesortakerelevantmanagementmeasuresinaccordancewiththeirformulatedorissuedrelevantregulationsandrules;ifsuchcommitmentisviolatedandcauseslossestotheCompanyorinvestors,willingtobearcompensationliabilitytotheCompanyorinvestorsaccordingtolaw.(IV)Commitmentletterregardingtheabsenceofinsidertrading:1.TheCompanydoesnothavesituationsofleakingrelevantinsiderinformationofthistransactionorusingsuchinsiderinformationforinsidertrading;2.TheCompanydoesnothavesituationsofbeinginvestigatedbytheCSRC(orinvestigatedbyjudicialorgans)forinsidertradingrelatedtothistransaction;3.Iftheabovecommitmentisviolatedandcauseslossestothelistedcompanyorinvestors,theCompanywillbearlegalresponsibility.(V)Explanationofsharereductionplanfromthedateofsigningthecommitmentlettertothecompletionofimplementation:Fromthedateofsigningthecommitmentlettertothecompletionofimplementation,theCompanyhasnosharereductionplan(theaforementionedsharesincludesharesheldbeforethistransactionandsharesnewlyaddedduetorightsissuessuchasbonusshares,capitalizationofcapitalreserves,etc.,implementedbythelistedcompanyduringtheaforementionedperiod).Ifsubsequentreductionsaremadebasedonactualneedsormarketchanges,relevantinformationwillbedisclosedinatimelymannerinaccordancewithapplicablelawsandregulations.Remark4:
(I)Commitmentletterregardingensuringtheindependenceofthelistedcompany:IwillstrictlyfollowtherequirementsoftheCompanyLaw,SecuritiesLaw,andotherapplicablelawsandregulationsforlistedcompanies,legallyexerciseshareholderrightsandfulfillcorrespondingobligations,takepracticalandeffectivemeasurestoensurethatafterthecompletionofthistransaction,LBXiscompletelyseparatefromotherenterprisescontrolledbymeintermsofpersonnel,assets,finance,institutions,andbusiness,maintainingtheindependenceofthelistedcompanyinbusiness,assets,personnel,finance,andinstitutions.(II)Principledopinionsonthisrestructuring:ThistransactionreflectsLBX'soptimizationofitsbusinessstructureandpursuitoffurtherdevelopment.ThistransactionisconducivetoenhancingLBX'scontinuousoperatingcapabilities,improvingLBX'sprofitability,andprotectingtheinterestsofLBXshareholders,especiallysmallandmedium-sizedshareholders.IagreeinprincipletothistransactionandwillactivelypromotethesmoothprogressofthistransactionbytakingmeasuresincludingbutnotlimitedtoattendingLBXshareholders'generalmeetingsandvotinginfavoroftherelevantproposalsforthistransaction,underthepremiseofmaximizingtheinterestsofLBXandinvestors.(III)Commitmentletterregardingtakingremedialmeasuresforthedilutionofimmediatereturnsfromthismajorassetpurchase:
1.Exerciseactualcontrollerrightsinaccordancewithapplicablelaws,regulations,andtheprovisionsoftheArticlesofAssociationofLBXPharmacyChainJointStockCompany,notoverstepLBX'sbusinessmanagementactivities,andnotencroachonLBX'sinterests.2.Asoneoftheresponsiblepartiesforremedialmeasures,iftheabovecommitmentisviolatedorrefusedtobefulfilled,agreethattheCSRC,ShanghaiStockExchange,andothersecuritiesregulatoryagenciesmayimposerelevantpenaltiesortakerelevantmanagementmeasuresinaccordancewiththeirformulatedorissuedrelevantregulationsandrules;ifsuchcommitmentisviolatedandcauseslossestotheCompanyorinvestors,willingtobearcompensationliabilitytotheCompanyorinvestorsaccordingtolaw.(IV)Commitmentletterregardingtheabsenceofinsidertrading:1.Idonothavesituationsofleakingrelevantinsiderinformationofthistransactionorusingsuchinsiderinformationforinsidertrading;2.IdonothavesituationsofbeinginvestigatedbytheCSRC(orinvestigatedbyjudicialorgans)forinsidertradingrelatedtothistransaction;3.Iftheabovecommitmentisviolatedandcauseslossestothelistedcompanyorinvestors,Iwillbearindividualandjointlegalresponsibility.(V)Explanationofsharereductionplanfromthedateofsigningthecommitmentlettertothecompletionofimplementation:Fromthedateofsigningthecommitmentlettertothecompletionofimplementation,Ihavenosharereductionplan(theaforementionedsharesincludesharesheldbeforethistransactionandsharesnewlyaddedduetorightsissuessuchasbonusshares,capitalizationofcapitalreserves,etc.,implementedbythelistedcompanyduringtheaforementionedperiod).Ifsubsequent
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reductionsaremadebasedonactualneedsormarketchanges,relevantinformationwillbedisclosedinatimelymannerinaccordancewithapplicablelawsandregulations.Remark5:
(I)Commitmentletterregardingtakingremedialmeasuresforthedilutionofimmediatereturnsfromthismajorassetpurchase:1.Ipromisenottotransferbenefitstootherentitiesorindividualsgratuitouslyorunderunfairconditions,norharmtheCompany'sinterestsinotherways;2.Ipromisetorestrainmyownbusinessconsumptionbehavior;3.Ipromisenottousecompanyassetsforinvestmentorconsumptionactivitiesunrelatedtofulfillingmyduties;4.IpromisethattheremunerationsystemformulatedbytheBoardofDirectorsortheRemunerationCommitteewillbelinkedtotheimplementationoftheCompany'sremedialmeasures;5.IpromisethatiftheCompanyimplementsanequityincentiveplaninthefuture,theexerciseconditionswillbelinkedtotheimplementationoftheCompany'sremedialmeasures;6.AftertheissuancedateofthiscommitmentandbeforethecompletionoftheCompany'smajorassetpurchase,iftheCSRCissuesothernewregulatoryprovisionsregardingremedialmeasuresandtheircommitments,andtheabovecommitmentscannotmeetsuchprovisions,IpromisetoissuesupplementarycommitmentsinaccordancewiththelatestprovisionsoftheCSRCatthattime;7.IpromisetoearnestlyfulfilltherelevantremedialmeasuresformulatedbytheCompanyandanycommitmentsmadebymeregardingremedialmeasures.IfIviolatesuchcommitmentsandcauselossestotheCompanyorinvestors,IamwillingtobearcompensationliabilitytotheCompanyorinvestorsaccordingtolaw.Asoneoftheresponsiblepartiesforremedialmeasures,ifIviolatetheabovecommitmentorrefusetofulfilltheabovecommitment,IagreethattheCSRC,ShanghaiStockExchange,andothersecuritiesregulatoryagenciesmayimposerelevantpenaltiesortakerelevantmanagementmeasuresagainstmeinaccordancewiththeirformulatedorissuedrelevantregulationsandrules.Remark6:
IftheprospectusforLBX'sinitialpublicofferingcontainsfalserecords,misleadingstatements,ormaterialomissionsthatconstituteamajorandsubstantialimpactonjudgingwhetherLBXmeetsthelegallystipulatedissuanceconditions,theCompanywillurgeLBXtorepurchaseallnewlyissuedsharesintheinitialpublicofferingaccordingtolegalprocedures;and,theCompanywillrepurchasetheoriginallyrestrictedsharestransferredbytheCompanyaccordingtolaw.WithinonemonthaftertheCSRCidentifiesorthepeople'scourtdeterminestheexistenceoftheabovesituation,theCompanywillinitiatesharerepurchasemeasures,issuearepurchaseoffer.ThepriceatwhichtheCompanyrepurchasesthetransferredoriginallyrestrictedsharesaccordingtolawshallnotbelowerthanthetransferpriceoftheoriginallyrestrictedshares,andinterestfortheperiodfromthecompletionofthetransferregistrationoftheoriginallyrestrictedsharestothedateoftherepurchaseannouncementshallbepaidattheprevailingbankdemanddepositrate(calculatedaccordingtothebenchmarkinterestrateannouncedbythePeople'sBankofChina)ascompensation.IftheprospectusforLBX'sinitialpublicofferingcontainsfalserecords,misleadingstatements,ormaterialomissions,causinginvestorstosufferlossesinsecuritiestrading,theCompanywillcompensateinvestorsfortheirlossesaccordingtolaw.Thescopeofcompensationincludeslossesfromstockinvestment,commissions,stampduty,etc.,unlesstheCompanycanprovethatitisnotatfault.WithinonemonthaftertheCSRCidentifiesorthepeople'scourtdeterminestheexistenceoftheabovesituation,theCompanywillpaycashcompensationtotheinvestorswhosufferedlosses.Theamountofcompensationshallbelimitedtotheactualdirectlossesconfirmedbyinvestorevidenceanddoesnotincludeindirectlosses.IftheCompanyviolatesthecommitmentregardingrepurchasingsharesandcompensatinginvestorsforlosses,andfailstotakeeffectiveremedialmeasuresorfulfillcompensationliability,LBXhastherighttofreezetheLBXsharesheldbytheCompany,andmaywithholdcashdividendspayabletotheCompanytofulfillrelevantcompensationorindemnityliabilityuntiltheCompanyfullyfulfillstherelevantliability.Remark7:
Within36monthsfromthedateLBXsharesarelistedandtradedonasecuritiesexchangewithinthePeople'sRepublicofChina,theCompanywillnottransferorentrustotherstomanagethesharesissuedbeforeLBX'sinitialpublicofferingthataredirectlyorindirectlyheldbytheCompany,norwillLBXrepurchasethesharesissuedbeforeLBX'sinitialpublicofferingthataredirectlyorindirectlyheldbytheCompany.However,thisexcludesthesituationwheretheCompanysells
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theLBXsharesitholdstoinvestorsthroughpublicofferingalongwithLBX'sinitialpublicofferingofnewsharesaccordingtolaw.IftheSecuritiesLawofthePeople'sRepublicofChina,CompanyLawofthePeople'sRepublicofChina,CSRC,andthesecuritiesexchangewhereLBXsharesarelistedhaveotherrequirementsregardingthetransferofLBXsharesheldbytheCompany,theCompanywillcomplywiththerelevantrequirements.Ifwithin6monthsafterLBX'slisting,theclosingpriceofthestockfor20consecutivetradingdays(ifLBXhasdividenddistribution,bonusshares,capitalizationofcapitalreserves,etc.,thepricewillbeadjustedaccordingly,thesamebelow)islowerthantheissuepriceofLBX'sinitialpublicoffering,oriftheclosingpriceofthestockattheendof6monthsafterLBX'slisting(ifthatdayisnotatradingday,thenthefirsttradingdaythereafter)islowerthantheissueprice,thelock-upperiodforthesharesissuedbeforeLBX'sinitialpublicofferingheldbytheCompanywillautomaticallybeextendedby6months.TheCompanyintendstoholdtheCompany'sstocklong-termandhasnointentiontoreduceitsholdingsofLBXshareswithintwoyearsafterthelock-upperiodexpires;ifitintendstoreduceitsholdingsofLBXsharesafterthetwo-yearperiodfollowingthelock-upexpiration,itwillnotifyLBX3tradingdaysinadvanceandmakeanannouncement,andhandleitinaccordancewiththeCompanyLawofthePeople'sRepublicofChina,SecuritiesLawofthePeople'sRepublicofChina,CSRC,andrelevantregulationsoftheSSE.Remark8:
Commitmentletterregardingtheeffectiveimplementationofremedialmeasuresforthedilutionofimmediatereturnsfromthisnon-publicofferingofshares:1.I/ourcompanywillcontinuetoensuretheindependenceofthelistedcompany,notoversteptheCompany'sbusinessmanagementactivities,andnotencroachontheCompany'sinterests;2.I/ourcompanywillearnestlyfulfilltherelevantremedialmeasuresformulatedbytheCompanyandthiscommitment.IfthiscommitmentisviolatedorrefusedtobefulfilledandcauseslossestotheCompanyorshareholders,agreetobearcorrespondinglegalliabilityaccordingtolaws,regulations,andrelevantprovisionsofsecuritiesregulatoryagencies;3.FromthedateofsigningthiscommitmentuntilthecompletionoftheCompany'snon-publicofferingofshares,iftheCSRC,ShanghaiStockExchange,andothersecuritiesregulatoryagenciesissueothernewregulatoryprovisionsregardingremedialmeasuresandtheircommitments,andtheabovecommitmentscannotmeetsuchprovisions,I/ourcompanypromise(s)toissuesupplementarycommitmentsinaccordancewiththelatestprovisionsoftheCSRC,ShanghaiStockExchange,andothersecuritiesregulatoryagenciesatthattime.Remark9:
Commitmentletterregardingtheeffectiveimplementationofremedialmeasuresforthedilutionofimmediatereturnsfromthisnon-publicofferingofshares:1.Ipromisenottotransferbenefitstootherentitiesorindividualsgratuitouslyorunderunfairconditions,norharmtheCompany'sinterestsinotherways;2.Ipromisetorestrainmyownbusinessconsumptionbehavior;3.Ipromisenottousecompanyassetsforinvestmentorconsumptionactivitiesunrelatedtofulfillingmyduties;
4.IpromisethattheremunerationsystemformulatedbytheBoardofDirectorsortheRemunerationCommitteewillbelinkedtotheimplementationoftheCompany'sremedialmeasures;5.IftheCompanyimplementsanequityincentiveplaninthefuture,itsexerciseconditionswillbelinkedtotheimplementationoftheCompany'sremedialmeasures;6.Asoneoftheresponsiblepartiesforremedialmeasures,IpromisetoearnestlyfulfilltherelevantremedialmeasuresformulatedbytheCompanyandanycommitmentsmadebymeregardingremedialmeasures.IfIviolatesuchcommitmentsandcauselossestotheCompanyorinvestors,IamwillingtobearcompensationliabilitytotheCompanyorinvestorsaccordingtolaw.IfIviolatetheabovecommitmentorrefusetofulfilltheabovecommitment,IagreethattheCSRC,ShanghaiStockExchange,andothersecuritiesregulatoryagenciesmayimposerelevantpenaltiesortakerelevantregulatorymeasuresagainstmeinaccordancewiththeirformulatedorissuedrelevantregulationsandrules.7.FromthedateofsigningthiscommitmentuntilthecompletionoftheCompany'snon-publicofferingofshares,iftheCSRC,ShanghaiStockExchange,andothersecuritiesregulatoryagenciesissueothernewregulatoryprovisionsregardingremedialmeasuresandtheircommitments,andtheabovecommitmentscannotmeetsuchprovisions,IpromisetoissuesupplementarycommitmentsinaccordancewiththelatestprovisionsoftheCSRC,ShanghaiStockExchange,andothersecuritiesregulatoryagenciesatthattime.
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Remark10:
Commitmentletterregardingtheabsenceofrealestatedevelopmentbusiness:1.Asofthedateofissuanceofthiscommitmentletter,theacquisitionoftheaforementionedFaxiangdilandplotisbasedontheneedsoftheCompanytocarryoutitsmainbusiness.Currently,onlypreliminarypreparationworksuchasexplorationanddesignbeforehousingconstructionisbeingcarriedoutonthislandplot.TheCompanyanditssubsidiarieswithinthescopeofconsolidatedfinancialstatements(hereinafterreferredtoas"HoldingSubsidiaries")promisenottocarryoutrealestatedevelopmentbusinessinvolvingtheexternalsaleofhousesonthislandplot.2.Thelandandconstructionoffactories,officebuildings,andothersupportingfacilitiesinvolvedintheCompany'sfund-raisinginvestmentprojectthistimewillallbeusedfortheCompany'sanditssubsidiaries'ownproduction,office,andoperatingactivities,withnoplansforexternalleasingorselling,anddonotinvolverealestatedevelopment,operation,sales,etc.TheCompanywillstrictlyusetheraisedfundsinaccordancewiththeprovisionsofregulatorydocumentssuchastheAdministrativeMeasuresforSecuritiesIssuancebyListedCompaniesandSupervisoryGuidelinesNo.2forListedCompanies-RegulatoryRequirementsfortheManagementandUseofRaisedFundsbyListedCompanies.Thefundsraisedfromthisnon-publicofferingofshares,afterdeductingissuanceexpenses,areintendedtobefullyusedforthenewchainpharmacyproject,EastChinapharmaceuticalproductsortingandprocessingproject,enterprisedigitalplatformandnewretailconstructionproject,andsupplementingworkingcapital;thefundsraisedfromthisnon-publicofferingdonotinvolvetheconstructionontheaforementionedFaxiangdilandplot,norwilltheCompanyusetheraisedfundsfortheaforementionedFaxiangdiconstructionbychangingtheuseofraisedfunds.Atthesametime,theportionofthefundsraisedfromthisnon-publicofferingusedtosupplementworkingcapitalwillnotbeusedinanywayfororindirectlyflowintorealestatedevelopment,operation,sales,etc.,norwillitdirectlyorindirectlyflowintotherealestatedevelopmentfieldthroughothermeans.3.Asofthedateofissuanceofthiscommitmentletter,neithertheCompanynoritsHoldingSubsidiariespossessqualificationsrelatedtorealestatedevelopment,operation,orsales;duringthereportingperiod,neithertheCompanynoritsHoldingSubsidiariesengagedinrealestatedevelopment,operation,orsalesbusiness,nordidtheyobtainorhaveobtainedrealestatedevelopmententerprisequalificationcertificatesorotherqualificationsrelatedtorealestatedevelopmentandoperation.TheCompanyguaranteesthatneithertheCompanynoritsHoldingSubsidiarieswillengageinrealestatedevelopment,operation,sales,etc.inthefuture,norwilltheyapplyfororobtainoperatingqualificationsrelatedtorealestatedevelopment.Remark11:
TheCompanypromisesnottoprovideloansoranyotherformoffinancialassistancefortherestrictedsharesobtainedbyincentiveobjectsunderthisincentiveplan,includingprovidingguaranteesfortheirloans.Remark12:
(1)Asofthedateofissuanceofthiscommitmentletter,thisenterprise/companyhasnotdirectlyorindirectlyengagedinbusinessconstitutinghorizontalcompetitionwithLBX'smainbusinesswithinoroutsidethePeople'sRepublicofChina(exceptthroughLBX).(2)Fromtheeffectivedateofthiscommitmentletter,duringtheperiodwhenthisenterprise/companyholdsmorethan5%ofLBXshares(hereinafterreferredtoasthe"CommitmentPeriod"),unlessotherwisestatedinthiscommitmentletter,withinoroutsideChina,willnotinanyway(includingbutnotlimitedtoinvestment,M&A,jointventure,cooperative,partnership,contracting,orleasingoperation)directlyorindirectly(exceptthroughLBX)engageinorinterveneinbusinessoractivitiesthatconstituteormayconstitutecompetitionwithLBX'sexistingorfutureactualmainbusiness.(3)DuringtheCommitmentPeriod,thisenterprise/companywillnotsupportothersinanywaytoengageinbusinessoractivitiesthatconstituteormayconstitutecompetitionwithLBX'sexistingorfuturemainbusiness.(4)DuringtheCommitmentPeriod,ifthebusinessofthisenterpriseduetoLBX'sbusinessexpansionconstituteshorizontalcompetitionwithLBX'smainbusiness,thisenterprise/companyshallavoidhorizontalcompetitionthroughstoppingthecompetitivebusiness,injectingthecompetitivebusinessintoLBX,transferringthecompetitivebusinesstoanunrelatedthirdparty,orotherlegalmeans;ifthisenterprise/companytransfersthecompetitivebusiness,LBXshallhavetherightoffirstrefusal.(5)Iftheabovecommitmentisprovenuntrueornotcompliedwith,thisenterprise/companywillcompensateLBXforalldirectandindirectlosses.(6)Ifthisenterprise/companyviolatesthe
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abovecommitmentandfailstotakeeffectiveremedialmeasuresorfulfillcompensationliability,theincomefromthecompetitivebusinessengagedinbythisenterprise/companyinviolationofthecommitmentshallbelongtoLBX;ifthisenterprise/companyfailstohandovertheaforementionedincometoLBX,LBXhastherighttofreezetheLBXsharesheldbythisenterprise/company,andmaywithholdcashdividendspayabletothisenterprise/companytooffsettheincomefromengagingincompetitivebusinessthatthisenterprise/companyshouldhandovertoLBX,untilthisenterprise/companyfullyfulfillstherelevantliability.(7)Thiscommitmentlettershalltakeeffectfromthedateofsignatureandsealbythisenterprise/company,remainvalidduringtheCommitmentPeriod,andcannotbechangedorrevokedwithoutLBX'sconsent.Remark13:
(1)Asofthedateofissuanceofthiscommitmentletter,I/thisenterprisehavenotdirectlyorindirectlyengagedinbusinessconstitutinghorizontalcompetitionwithLBX'smainbusinesswithinoroutsidethePeople'sRepublicofChina(exceptthroughLBX);(2)Fromtheeffectivedateofthiscommitmentletter,duringtheperiodwhenI/thisenterpriseactastheactualcontrollerofLBX(hereinafterreferredtoasthe"CommitmentPeriod"),unlessotherwisestatedinthiscommitmentletter,withinoroutsideChina,willnotinanyway(includingbutnotlimitedtoinvestment,M&A,jointventure,cooperative,partnership,contracting,orleasingoperation)directlyorindirectly(exceptthroughLBX)engageinorinterveneinbusinessoractivitiesthatconstituteormayconstitutecompetitionwithLBX'sexistingorfutureactualmainbusiness;(3)DuringtheCommitmentPeriod,I/thisenterprisewillnotsupportothersinanywaytoengageinbusinessoractivitiesthatconstituteormayconstitutecompetitionwithLBX'sexistingorfuturemainbusiness;(4)DuringtheCommitmentPeriod,ifthebusinessofmine/thisenterpriseduetoLBX'sbusinessexpansionconstituteshorizontalcompetitionwithLBX'smainbusiness,I/thisenterpriseshallavoidhorizontalcompetitionthroughstoppingthecompetitivebusiness,injectingthecompetitivebusinessintoLBX,transferringthecompetitivebusinesstoanunrelatedthirdparty,orotherlegalmeans;ifI/thisenterprisetransferthecompetitivebusiness,LBXshallhavetherightoffirstrefusal;(5)Iftheabovecommitmentisprovenuntrueornotcompliedwith,I/thisenterprisewillcompensateLBXforalldirectandindirectlosses;(6)IfI/thisenterpriseviolatetheabovecommitmentandfailtotakeeffectiveremedialmeasuresorfulfillcompensationliability,theincomefromthecompetitivebusinessengagedinbyme/thisenterpriseinviolationofthecommitmentshallbelongtoLBX;ifI/thisenterprisefailtohandovertheaforementionedincometoLBX,LBXhastherighttofreezetheLBXsharesheldbyme/thisenterprise,andmaywithholdcashdividendspayabletome/thisenterprisetooffsettheincomefromengagingincompetitivebusinessthatI/thisenterpriseshouldhandovertoLBX,untilI/thisenterprisefullyfulfilltherelevantliability.(7)Thiscommitmentlettershalltakeeffectfromthedateofsignaturebyme/thisenterprise,remainvalidduringtheCommitmentPeriod,andcannotbechangedorrevokedwithoutLBX'sconsent.Remark14:
Asofthecompletiondateofthisacquisition,theacquirer:Duringtheperiodastheactualcontroller/controllingshareholderofLBX,I/thisenterprisehavenotdirectlyorindirectlyengagedinbusinessconstitutinghorizontalcompetitionwithLBX'smainbusinesswithinoroutsidethePeople'sRepublicofChina(exceptthroughLBX);willnotinanyway(includingbutnotlimitedtoinvestment,M&A,jointventure,cooperative,partnership,contracting,orleasingoperation)directlyorindirectly(exceptthroughLBX)engageinorinterveneinbusinessoractivitiesthatconstituteormayconstitutecompetitionwithLBX'sexistingorfutureactualmainbusiness;I/thisenterprisewillnotsupportothersinanywaytoengageinbusinessoractivitiesthatconstituteormayconstitutecompetitionwithLBX'sexistingorfuturemainbusiness;ifthebusinessofmine/thisenterpriseduetoLBX'sbusinessexpansionconstituteshorizontalcompetitionwithLBX'smainbusiness,I/thisenterpriseshallavoidhorizontalcompetitionthroughstoppingthecompetitivebusiness,injectingthecompetitivebusinessintoLBX,transferringthecompetitivebusinesstoanunrelatedthirdparty,orotherlegalmeans;ifI/thisenterprisetransferthecompetitivebusiness,LBXshallhavetherightoffirstrefusal.
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Remark15:
(1)Ourcompany/Iandotherenterprisescontrolledbyourcompany/IdonothavesituationsofoccupyingLBXfundsthroughborrowing,repayingdebtsonbehalf,advancingfunds,orothermeans.(2)AfterLBX'slisting,ourcompany/Iwillstrictlyexerciseshareholderanddirectorrightsandfulfillshareholderanddirectorobligationsinaccordancewiththe"CompanyLawofthePeople'sRepublicofChina"andotherlaws,regulations,administrativerules,normativedocuments,relevantprovisionsofthestockexchange,andLBX'sarticlesofassociation.Whenvotingonrelatedpartytransactionsbetweenourcompany/Iandrelatedenterprisescontrolledbyourcompany/IandLBXatshareholders'generalmeetingsandboardmeetings,fulfilltheobligationofrecusal.(3)AfterLBX'slisting,ourcompany/Iwillminimizerelatedpartytransactionsbetweenourcompany/Iandrelatedenterprisescontrolledbyourcompany/IandLBX,andtakeappropriatemeasurestoeliminaterelatedpartytransactionswithLBXassoonasconditionspermitinthefuture.Ifnecessaryandunavoidablerelatedpartytransactionsoccuratthattime,ourcompany/Iguaranteethatourcompany/Iandrelatedenterprisescontrolledbyourcompany/Ipromisetofollowmarketprinciplesandfairpricesforfairtransactions,strictlyperformthedecision-makingproceduresforrelatedpartytransactionssetbylawandLBX'sarticlesofassociation,andfulfillinformationdisclosureobligationstimelyaccordingtolaw,absolutelynotharmingthelegitimaterightsandinterestsofLBXanditsnon-relatedshareholdersthroughrelatedpartytransactions.(4)Ifourcompany/Iviolate(s)theabovecommitmentandoccupyLBXfunds,ourcompany/Iviolatingthecommitmentwillreturntheoccupiedfundsandinterest(calculatedaccordingtothebenchmarklendingrateofthePeople'sBankofChinaforthesameperiod)toLBX;ifourcompany/Iandenterprisescontrolledbyourcompany/IengageinrelatedpartytransactionswithLBXwithoutLBXperformingthedecision-makingproceduresforrelatedpartytransactions,oriftherelatedpartytransactionsareunfairandcauselossestoLBX,ourcompany/IwillattributeallincomegeneratedfromthecorrespondingrelatedpartytransactionstoLBX.Ifourcompany/Ifail(s)toreturntheaforementionedfundsandinterestorincomefromrelatedpartytransactionstoLBX,LBXhastherighttofreezetheLBXsharesheldorcontrolledbyourcompany/I,andmaywithholdcashdividendspayabletoourcompany/Iorcontrolledenterprisestooffsetthefundsandinterestandincomefromrelatedpartytransactionsthatourcompany/IshouldreturntoLBX,untilourcompany/Ifullyfulfilltherelevantliability.Remark16:
Asofthecompletiondateofthisacquisition,theacquirerwillminimizerelatedpartytransactionsbetweenourcompany/Iandrelatedenterprisescontrolledbyourcompany/IandLBX,andtakeappropriatemeasurestoeliminaterelatedpartytransactionswithLBXassoonasconditionspermitinthefuture.Ifnecessaryandunavoidablerelatedpartytransactionsoccuratthattime,ourcompany/Iguaranteethatourcompany/Iandrelatedenterprisescontrolledbyourcompany/Ipromisetofollowmarketprinciplesandfairpricesforfairtransactions,strictlyperformthedecision-makingproceduresforrelatedpartytransactionssetbylawandLBX'sarticlesofassociation,andfulfillinformationdisclosureobligationstimelyaccordingtolaw,absolutelynotharmingthelegitimaterightsandinterestsofLBXanditsnon-relatedshareholdersthroughrelatedpartytransactions.
/
(II)WhethertheCompany'sassetsorprojectshaveprofitforecasts,andifthereportingperiod
isstillwithintheprofitforecastperiod,theCompanyshouldexplainwhethertheassetsorprojectsmettheoriginalprofitforecastandthereasons
□Met√Notmet□NotApplicable
| SN | NameofAssetorProjectwithProfitForecast | ForecastStartTime | ForecastEndTime | ForecastPerformanceforCurrentPeriod | ActualPerformanceforCurrentPeriod | Explanation |
| 1 | HunanHuairen | January01,2022 | December31,2024 | 2024Non-GAAPNetProfitForecast:RMB152million | 2024Non-GAAPNetProfitActual:RMB115.19million | Failedtomeetthecumulativeperformancecommitmentfor2022-2024 |
| 2 | NantongPuze | January01,2022 | December31,2024 | 2024Non-GAAPNetProfitForecast:RMB40million | 2024Non-GAAPNetProfitActual:RMB39.52million | Achievedthecumulativeperformancecommitmentfor2022-2024 |
(III)CompletionofPerformanceCommitmentsandTheirImpactonGoodwillImpairmentTest
√Applicable□NotApplicable
1.HunanHuairen'sauditednon-GAAPnetprofitfor2024wasRMB115.19million,RMB36.81millionlowerthanthecommittedamount,failingtomeettheperformancecommitmentforthecurrentyear.AccordingtotheEquityAcquisitionAgreement,theperformancecommitmentperiodforHunanHuairenisbasedonthecumulativenetprofitattributabletotheparentcompany,excludingnon-recurringgainsandlosses,achievedfrom2022to2024.HunanHuairen'sperformancetargetforthecumulativenetprofitattributabletotheparentcompany,excludingnon-recurringgainsandlosses,from2022to2024wasRMB393million.Theactualcumulativethree-yearnetprofitachievedwasRMB
362.8million,RMB30.2millionlowerthanthecommittedamount,withathree-yearcumulativecompletionrateof92.31%.BasedontheEquityAcquisitionAgreement,thecompensationclausewasnottriggered.AccordingtotheassessmentresultoftheAssetAppraisalReportonthePresentValueofEstimatedFutureCashFlowsoftheCash-GeneratingUnitContainingGoodwillofHunanLBXHuairenPharmacyChainCo.,Ltd.InvolvedintheGoodwillImpairmentTestofLBXPharmacyChainJointStockCompanyissuedbyZhongruiShilianAssetAppraisalGroupCo.,Ltd.onApril25,2025,asofDecember31,2024,thetotalbookvalueofHunanHuairen'sgoodwillandrelatedcash-generatingunitwasRMB2,397.61million,therecoverableamountofthegoodwillcash-generatingunitwasRMB2,332million,withanassessedimpairmentofRMB65.61million,andagoodwillimpairmentamountofRMB49.94million.
2.NantongPuze'sauditednetprofitexcludingnon-recurringitemsfor2024wasRMB39.52million,RMB0.48millionlowerthanthecommittedamount,failingtomeettheperformancecommitmentfortheyear.AccordingtotheEquityAcquisitionAgreement,theperformancecommitmentperiodforNantongPuzeisbasedonthecumulativenetprofitexcludingnon-recurringitemsachievedfrom2022to2024.Thecumulativenetprofitexcludingnon-recurringitemsfor2022-2024wasRMB101.25million,RMB1.31millionhigherthanthecommittedamount,exceedingthecumulativeperformancecommitmentfor2022-2024.AccordingtotheassessmentresultoftheAssetAppraisalReportonthePresentValueofEstimatedFutureCashFlowsoftheCash-GeneratingUnitContainingGoodwillofNantongPuzePharmacyChainCo.,Ltd.InvolvedintheGoodwillImpairmentTestofLBXPharmacyChainJointStockCompanyissuedbyZhongruiShilianAssetAppraisalGroupCo.,Ltd.onApril25,2025,asofDecember31,2024,thetotalbookvalueofNantongPuze'sgoodwillandrelatedcash-generatingunitwasRMB450.39million,therecoverableamountofthegoodwillcash-generatingunitwasRMB505million,indicatingnoimpairmentrisk.
/
II.Non-operationalOccupationofFundsbyControllingShareholderandOtherRelatedParties
duringtheReportingPeriod
□Applicable√NotApplicableIII.IrregularGuarantees
□Applicable√NotApplicableIV.Company'sBoardofDirectors'ExplanationoftheAccountingFirm's"Non-standardOpinion
Auditor'sReport"
□Applicable√NotApplicableV.Company'sAnalysisandExplanationofReasonsandImpactsofChangesinAccountingPolicies,AccountingEstimates,orCorrectionofMaterialAccountingErrors（I）Company'sAnalysisandExplanationofReasonsandImpactsofChangesinAccounting
PoliciesandAccountingEstimates
□Applicable√NotApplicable（II）Company'sAnalysisandExplanationofReasonsandImpactsofCorrectionofMaterialAccountingErrors
□Applicable√NotApplicable（III）CommunicationwiththeFormerAccountingFirm
□Applicable√NotApplicable（IV）ApprovalProceduresandOtherExplanations
□Applicable√NotApplicableVI.AppointmentandDismissalofAccountingFirm
Unit:YuanCurrency:RMB
| CurrentlyAppointed | |
| NameofDomesticAccountingFirm | Ernst&YoungHuaMingLLP |
| RemunerationofDomesticAccountingFirm | 2,100,000 |
| AuditTenureofDomesticAccountingFirm | 4 |
| NamesofRegisteredAccountantsofDomesticAccountingFirm | WangShijie,LiangChang'e |
| CumulativeAuditServiceYearsofRegisteredAccountantsofDomesticAccountingFirm | 4 |
| NameofOverseasAccountingFirm | NotApplicable |
| RemunerationofOverseasAccountingFirm | NotApplicable |
| AuditTenureofOverseasAccountingFirm | NotApplicable |
Name
| Name | Remuneration | |
| InternalControlAuditAccountingFirm | Ernst&YoungHuaMingLLP | 600,000 |
ExplanationofAppointmentandDismissalofAccountingFirm
□Applicable√NotApplicable
/
ExplanationofChangingAccountingFirmduringtheAuditPeriod
□Applicable√NotApplicableExplanationofAuditFeeDecreasebyMoreThan20%(Including20%)ComparedtothePreviousYear
□Applicable√NotApplicableVII.SituationFacingDelistingRisk(I)ReasonsLeadingtoDelistingRiskWarning
□Applicable√NotApplicable(II)CountermeasuresProposedbytheCompany
□Applicable√NotApplicable(III)SituationandReasonsFacingTerminationofListing
□Applicable√NotApplicableVIII.BankruptcyReorganizationRelatedMatters
□Applicable√NotApplicableIX.MajorLitigationandArbitrationMatters
□TheCompanyhadsignificantlitigationorarbitrationmattersduringtheyearX.SituationofListedCompanyandItsDirectors,Supervisors,SeniorExecutives,Controlling
Shareholder,ActualControllerSuspectedofViolatingLawsandRegulations,ReceivingPenalties,andRectification
□Applicable√NotApplicableXI.ExplanationoftheIntegrityStatusoftheCompanyandItsControllingShareholder,ActualControllerduringtheReportingPeriod
□Applicable√NotApplicableXII.MajorRelatedPartyTransactions(I)RelatedPartyTransactionsRelatedtoDailyOperations
1.MattersAlreadyDisclosedinTemporaryAnnouncementswithNoSubsequentProgressorChanges
□Applicable√NotApplicable
/
2.MattersAlreadyDisclosedinTemporaryAnnouncementsbutwithSubsequentProgressorChanges
□Applicable√NotApplicable
3.MattersNotDisclosedinTemporaryAnnouncements
□Applicable√NotApplicable(II)RelatedPartyTransactionsInvolvingAssetorEquityAcquisitionorDisposal
1.MattersAlreadyDisclosedinTemporaryAnnouncementswithNoSubsequentProgressorChanges
□Applicable√NotApplicable
2.MattersAlreadyDisclosedinTemporaryAnnouncementsbutwithSubsequentProgressor
Changes
□Applicable√NotApplicable
3.MattersNotDisclosedinTemporaryAnnouncements
□Applicable√NotApplicable
4.Ifperformanceagreementsareinvolved,theperformancerealizationsituationduringthe
reportingperiodshouldbedisclosed
□Applicable√NotApplicable(III)MajorRelatedPartyTransactionsInvolvingJointExternalInvestment
1.MattersAlreadyDisclosedinTemporaryAnnouncementswithNoSubsequentProgressorChanges
□Applicable√NotApplicable
2.MattersAlreadyDisclosedinTemporaryAnnouncementsbutwithSubsequentProgressor
Changes
□Applicable√NotApplicable
3.MattersNotDisclosedinTemporaryAnnouncements
□Applicable√NotApplicable(IV)RelatedPartyClaimsandDebts
1.MattersAlreadyDisclosedinTemporaryAnnouncementswithNoSubsequentProgressorChanges
□Applicable√NotApplicable
/
2.MattersAlreadyDisclosedinTemporaryAnnouncementsbutwithSubsequentProgressor
Changes
□Applicable√NotApplicable
3.MattersNotDisclosedinTemporaryAnnouncements
□Applicable√NotApplicable(V)FinancialBusinessbetweentheCompanyandRelatedFinancialCompanies,Company'sHoldingFinancialCompanyandRelatedParties
□Applicable√NotApplicable(VI)Other
□Applicable√NotApplicableXIII.MajorContractsandTheirPerformance(I)Custody,Contracting,LeasingMatters
1.Custody
□Applicable√NotApplicable
2.Contracting
□Applicable√NotApplicable
3.Leasing
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| LessorName | LesseeName | LeasedAssets | AmountInvolvedinLeasedAssets | LeaseStartDate | LeaseEndDate | LeaseIncome | BasisforDeterminingLeaseIncome | ImpactofLeaseIncomeontheCompany | WhetherRelatedPartyTransaction | Relationship |
| SeeSectionXFinancialReport,VII.82Leasing. |
LeasingNone
/
(II)Guarantees
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Company'sExternalGuarantees(ExcludingGuaranteesforSubsidiaries) | ||||||||||||||
| Guarantor | RelationshipbetweenGuarantorandListedCompany | GuaranteedParty | GuaranteeAmount | GuaranteeDate(AgreementSigningDate) | GuaranteeStartDate | GuaranteeEndDate | GuaranteeType | Collateral(Ifany) | WhetherGuaranteeHasBeenFulfilled | WhetherGuaranteeisOverdue | OverdueGuaranteeAmount | Counter-Guarantee | WhetherGuaranteeforRelatedParty | RelatedRelationship |
| None | ||||||||||||||
| TotalGuaranteeAmountOccurredduringtheReportingPeriod(ExcludingGuaranteesforSubsidiaries) | ||||||||||||||
| TotalGuaranteeBalanceatEndofReportingPeriod(A)(ExcludingGuaranteesforSubsidiaries) | ||||||||||||||
| GuaranteesProvidedbytheCompanyandItsSubsidiariesforSubsidiaries | ||||||||||||||
| TotalGuaranteeAmountOccurredforSubsidiariesduringtheReportingPeriod | 340,000,000 | |||||||||||||
| TotalGuaranteeBalanceforSubsidiariesatEndofReportingPeriod(B) | 340,000,000 | |||||||||||||
| Company'sTotalGuaranteeAmount(IncludingGuaranteesforSubsidiaries) | ||||||||||||||
| TotalGuaranteeAmount(A+B) | 340,000,000 | |||||||||||||
| RatioofTotalGuaranteeAmounttoCompany'sNetAssets(%) | 4.75 | |||||||||||||
| Where: | ||||||||||||||
| AmountofGuaranteesProvidedforShareholders,ActualController,andTheirRelatedParties(C) | 0 | |||||||||||||
| AmountofDebtGuaranteesProvidedDirectlyorIndirectlyforGuaranteedPartieswithAsset-LiabilityRatioExceeding70%(D) | 180,000,000 | |||||||||||||
| AmountofTotalGuaranteeExceeding50%ofNetAssets(E) | 0 | |||||||||||||
| TotalAmountoftheAboveThreeGuarantees(C+D+E) | 180,000,000 | |||||||||||||
| ExplanationofPotentialJointandSeveralLiabilityforOutstandingGuarantees | ||||||||||||||
| GuaranteeSituationExplanation | ||||||||||||||
/
(III)SituationofEntrustingOthersforCashAssetManagement
1.EntrustedWealthManagement
(1)OverallSituationofEntrustedWealthManagement
□Applicable√NotApplicableOtherSituations
□Applicable√NotApplicable
(2)IndividualEntrustedWealthManagement
□Applicable√NotApplicableOtherSituations
□Applicable√NotApplicable
(3)ImpairmentProvisionforEntrustedWealthManagement
√Applicable□NotApplicable
2.EntrustedLoan
(1)OverallSituationofEntrustedLoans
√Applicable□NotApplicableOtherSituations
√Applicable□NotApplicable
(2)IndividualEntrustedLoan
□Applicable√NotApplicableOtherSituations
/
□Applicable√NotApplicable
(3)ImpairmentProvisionforEntrustedLoans
□Applicable√NotApplicable
3.OtherSituations
□Applicable√NotApplicable(IV)OtherMajorContracts
□Applicable√NotApplicableXIV.ProgressExplanationofRaisedFundsUsage
√Applicable□NotApplicable(I)OverallUsageSituationofRaisedFunds
√Applicable□NotApplicable
Unit:Yuan
| SourceofRaisedFunds | RaisedFundsArrivalTime | RaisedFundsTotalAmount | RaisedFundsNetAmount(1) | TotalPromisedInvestmentAmountofRaisedFundsinProspectusorOfferingMemorandum(2) | TotalAmountofOver-RaisedFunds(3)=(1)-(2) | TotalCumulativeInvestmentAmountofRaisedFundsasoftheEndoftheReportingPeriod(4) | Ofwhich:TotalCumulativeInvestmentAmountofOver-RaisedFundsasoftheEndoftheReportingPeriod(5) | CumulativeInvestmentProgressofRaisedFundsasoftheEndoftheReportingPeriod(%)(6)=(4)/(1) | CumulativeInvestmentProgressofOver-RaisedFundsasoftheEndoftheReportingPeriod(%)(7)=(5)/(3) | AmountInvestedThisYear(8) | ProportionofAmountInvestedThisYear(%)(9)=(8)/(1) | TotalAmountofRaisedFundswithChangedUse |
| IssuingSharestoSpecificObjects | January27,2022 | 1,740,453,674 | 1,725,273,909 | 1,725,273,909 | 0 | 1,522,483,187 | 0 | 88.2 | 0 | 349,377,483 | 20.2 | 66,000,000 |
OtherExplanations
/
√Applicable□NotApplicableBasedoncompanyneeds,toimprovetheefficiencyofraisedfundsusage,reviewedandapprovedbythefifthmeetingoftheFifthBoardofDirectorsandthe2024ThirdExtraordinaryGeneralMeeting,inOctober2024,theCompanyallocatedRMB66millionfromtheoriginalraisedfundsinvestmentproject"EnterpriseDigitalPlatformandNewRetailConstructionProject"toimplementthenewproject"LBXPharmacyChangshaNDCExpansionProject(PhaseI)".TheCompany'scontinuoussupervisioninstitutionissuedano-objectionopinion.(II)DetailsofFund-RaisingInvestmentProjects
√Applicable□NotApplicable
1、DetailedUsageSituationofRaisedFunds
√Applicable□NotApplicable
Unit:Tenthousandyuan
| SourceofRaisedFunds | NameofProject | ProjectNature | Whetheritisapromisedinvestmentprojectintheprospectusorofferingmemorandum | Whetheritinvolveschangeofinvestmentdirection | TotalPlannedInvestmentAmountofRaisedFunds(1) | AmountInvestedThisYear | TotalCumulativeInvestmentAmountofRaisedFundsasoftheEndoftheReportingPeriod(2) | CumulativeInvestmentProgressasoftheEndoftheReportingPeriod(%)(3)=(2)/(1) | DateProjectReachesPre-determinedUsableState | WhetherProjectisCompleted | WhetherInvestmentProgressMeetsPlannedSchedule | SpecificReasonsforInvestmentProgressNotMeetingPlan | BenefitsRealizedThisYear | BenefitsRealizedorR&DAchievementsofThisProject | WhetherProjectFeasibilityHasUndergoneMajorChanges;IfYes,PleaseExplainSpecificSituation | SurplusAmount |
| IssuingSharestoSpecificObjects | NewChainPharmacyProject | ProductionConstruction | Yes | No | 57,328 | 18,536 | 46,141 | 80.49 | December2025 | No | Yes | NotApplicable | -7,035 | -14,519 | No | NotApplicable |
| IssuingSharestoSpec | EastChinaPharmaceuticalProduct | ProductionConstruction | Yes | No | 27,880 | 5,829 | 25,603 | 91.83 | August2024 | No | Yes | NotApplicable | NotApplicable | NotApplicable | No | NotApplicable |
/
| ificObjects | SortingandProcessingProject | |||||||||||||||
| IssuingSharestoSpecificObjects | EnterpriseDigitalPlatformandNewRetailConstructionProject | R&D | Yes | Yes,thisprojectisnotcancelled,adjustthetotalinvestmentamountofraisedfunds | 30,023 | 9,358 | 28,591 | 95.23 | March2025 | No | Yes | NotApplicable | NotApplicable | NotApplicable | No | NotApplicable |
| IssuingSharestoSpecificObjects | LBXPharmacyChangshaNDCExpansionProject(PhaseI) | ProductionConstruction | No | Yes,thisprojectisanewproject | 6,600 | 1,215 | 1,215 | 18.41 | March2026 | No | Yes | NotApplicable | NotApplicable | NotApplicable | No | NotApplicable |
| IssuingSharestoSpecificObjects | SupplementingWorkingCapital | Other | Yes | No | 50,696 | 0 | 50,699 | 100 | NotApplicable | NotApplicable | NotApplicable | NotApplicable | NotApplicable | NotApplicable | NotApplicable | NotApplicable |
| Total | / | / | / | / | 172,527 | 34,938 | 152,249 | / | / | / | / | / | NotApplicable | / | / |
2、DetailedUsageSituationofOver-RaisedFunds
□Applicable√NotApplicable
/
(III)SituationofFund-RaisingInvestmentProjectChangeorTerminationduringtheReportingPeriod
√Applicable□NotApplicable
Unit:Yuan
| ProjectNamebeforeChange | ChangeTime(FirstAnnouncementDisclosureTime) | ChangeType | TotalInvestmentAmountofRaisedFundsbeforeChange/Termination | TotalRaisedFundsInvestedBeforeChange/Termination | ProjectNameafterChange | ReasonforChange/Termination | AmountofRaisedFundsUsedforSupplementingWorkingCapitalafterChange/Termination | ExplanationofDecision-MakingProceduresandInformationDisclosure |
| EnterpriseDigitalPlatformandNewRetailConstructionProject | October30,2024 | Reducinginvestmentamountofraisedfunds | 36,623 | 26,379 | LBXPharmacyChangshaNDCExpansionProject(PhaseI) | Basedoncompanyneeds,improveefficiencyofraisedfundsusage | 6,600 | ReviewedandapprovedbythefifthmeetingoftheFifthBoardofDirectorsandthe2024ThirdExtraordinaryGeneralMeeting.Thecontinuoussupervisioninstitutionissuedano-objectionopinion.Fordetails,seetheAnnouncementonChangingtheUseofPartoftheRaisedFunds(AnnouncementNo.:2024-069)disclosedbytheCompanyonthewebsite(www.sse.com.cn)oftheShanghaiStockExchangeonOctober30,2024. |
/
(IV)OtherSituationsRegardingtheUseofRaisedFundsduringtheReportingPeriod
1.SituationofPreliminaryInvestmentandReplacementofFund-RaisingInvestmentProjects
□Applicable√NotApplicable
2.SituationofUsingIdleRaisedFundstoTemporarilySupplementWorkingCapital
√Applicable□NotApplicableOnOctober30,2023,theCompanyheldthe31stmeetingoftheFourthBoardofDirectorsandthe26thmeetingoftheFourthBoardofSupervisors,reviewingandapprovingtheProposalonUsingPartofIdleRaisedFundstoTemporarilySupplementWorkingCapital,agreeingfortheCompanytouseRMB400millionofidleraisedfundstotemporarilysupplementworkingcapitalforaperiodof6months.Independentdirectorsexpressedclearagreementopinionsonthismatter.Thesponsorinstitutionissuedanagreedverificationopiniononthematteroftemporarilysupplementingworkingcapitalwithraisedfunds.OnApril3,2024,theCompanyreturnedRMB50milliontothespecialaccountforraisedfundsandnotifiedtheCompany'scontinuoussupervisioninstitutionforraisedfunds,GoldmanSachs(China)SecuritiesCompanyLimited,andthesponsorrepresentativesofthereturnoftheaboveraisedfunds,fulfillinginformationdisclosureobligationsinatimelymanner.OnApril24,2024,theCompanyreturnedRMB350milliontothespecialaccountforraisedfundsandnotifiedtheCompany'scontinuoussupervisioninstitutionforraisedfunds,GoldmanSachs(China)SecuritiesCompanyLimited,andthesponsorrepresentativesofthereturnoftheaboveraisedfunds,fulfillinginformationdisclosureobligationsinatimelymanner.3611OnApril29,2024,theCompanyheldthethirdmeetingoftheFifthBoardofDirectorsandthethirdmeetingoftheFifthBoardofSupervisors,reviewingandapprovingtheProposalonUsingPartofIdleRaisedFundstoTemporarilySupplementWorkingCapital,agreeingfortheCompanytouseRMB300millionofidleraisedfundstotemporarilysupplementworkingcapitalforaperiodof6months.Thesponsorinstitutionissuedanagreedverificationopiniononthematteroftemporarilysupplementingworkingcapitalwithraisedfunds.OnSeptember5,2024,theCompanyreturnedRMB60milliontothespecialaccountforraisedfundsandnotifiedtheCompany'scontinuoussupervisioninstitutionforraisedfunds,GoldmanSachs(China)SecuritiesCompanyLimited,andthesponsorrepresentativesofthereturnoftheaboveraisedfunds,fulfillinginformationdisclosureobligationsinatimelymanner.OnOctober28,2024,theCompanyreturnedRMB240milliontothespecialaccountforraisedfundsandnotifiedtheCompany'scontinuoussupervisioninstitutionforraisedfunds,GoldmanSachs(China)SecuritiesCompanyLimited,andthesponsorrepresentativesofthereturnoftheaboveraisedfunds,fulfillinginformationdisclosureobligationsinatimelymanner.OnOctober29,2024,theCompanyheldthefifthmeetingoftheFifthBoardofDirectorsandthefifthmeetingoftheFifthBoardofSupervisors,reviewingandapprovingtheProposalonUsingPartofIdleRaisedFundstoTemporarilySupplementWorkingCapital,agreeingfortheCompanytouseRMB150millionofidleraisedfundstotemporarilysupplementworkingcapitalforaperiodof6months.Thesponsorinstitutionissuedaverificationopiniononthematteroftemporarilysupplementingworkingcapitalwithraisedfunds.OnFebruary17,2025,theCompanyreturnedRMB55milliontothespecialaccountforraisedfundsandnotifiedtheCompany'scontinuoussupervisioninstitutionforraisedfunds,GoldmanSachs(China)SecuritiesCompanyLimited,andthesponsorrepresentativesofthereturnoftheaboveraisedfunds,fulfillinginformationdisclosureobligationsinatimelymanner.OnApril25,2025,theCompanyreturnedanotherRMB95milliontothespecialaccountforraisedfundsandnotifiedtheCompany'scontinuoussupervisionagencyandsponsorrepresentativesforraisedfundsofthereturn,fulfillingitsinformationdisclosureobligationsinatimelymanner.
3.Situationofconductingcashmanagementwithidleraisedfundsandinvestinginrelatedproducts
□Applicable√NotApplicable
4.Other
√Applicable□NotApplicableAccordingtotheShanghaiStockExchangeListedCompaniesSelf-RegulatoryGuidelinesNo.1-StandardizedOperations,"Afterthecompletionofasinglefundraisingproject,ifalistedcompany
/
intendstousethesurplusraisedfunds(includinginterestincome)fromthatprojectforotherfundraisingprojects,itshallbeapprovedbytheBoardofDirectorsandusedonlyafterobtainingexplicitconsentfromthesponsorandtheboardofsupervisors.TheCompanyshallmakeatimelyannouncementaftertheBoardofDirectors'review.Ifthesurplusraisedfunds(includinginterestincome)arelessthanRMB1millionorlessthan5%ofthecommittedinvestmentamountfortheproject,theproceduresintheprecedingparagraphmaybeexempted,andtheusageshallbedisclosedintheannualreport."InAugust2024,theCompany's"HuadongMedicineProductSortingandProcessingProject"reacheditsintendedusablestate.InMarch2025,theCompany's"EnterpriseDigitalPlatformandNewRetailConstructionProject"reacheditsintendedusablestate.Thesurplusfundsfromtheaforementionedprojectswerebothlessthan5%ofthecommittedinvestmentamount.Accordingtotheaboveregulations,in2025,theCompanyplanstotransfertheremainingRMB8.1405millionofraisedfundsfromthe"HuadongMedicineProductSortingandProcessingProject"tothespecialaccountforraisedfundsforthe"NewChainPharmacyProject,"andRMB12.5713millionwillremainintheoriginalspecialaccountforraisedfundsforsubsequentpaymentofprojectfinalpaymentsandqualityassurancedeposits.TheCompanyplanstoclosethespecialaccountforraisedfundsforthe"EnterpriseDigitalPlatformandNewRetailConstructionProject"andtransfertheremainingRMB0.9533milliontothespecialaccountforraisedfundsforthe"NewChainPharmacyProject".XV.Explanationofothersignificantmattersthathaveamajorimpactoninvestors'value
judgmentandinvestmentdecisions
□Applicable√NotApplicable
/
SectionVIIShareChangesandShareholderInformationI.ChangesinShareCapital(I)StatementofChangesinShares
1、StatementofChangesinShares
Unit:Share
| BeforethisChange | Increase/DecreaseinthisChange(+,-) | AfterthisChange | |||||||
| Quantity | Proportion(%) | IssuanceofNewShares | BonusShares | ConversionfromCapitalReserves | Other | Subtotal | Quantity | Proportion(%) | |
| I.Sharessubjecttosalesrestrictions | 2,588,634 | 0.44 | 534,102 | -808,295 | -274,193 | 2,314,441 | 0.30 | ||
| 1.State-heldshares | |||||||||
| 2.Sharesheldbythestate-ownedlegalperson | |||||||||
| 3.Sharesheldbyotherdomesticcapital | 2,588,634 | 0.44 | 534,102 | -808,295 | -274,193 | 2,314,441 | 0.30 | ||
| Ofwhich:Domesticnon-state-ownedlegalpersonshares | |||||||||
| Sharesheldbythedomesticnaturalperson | 2,588,634 | 0.44 | 534,102 | -808,295 | -274,193 | 2,314,441 | 0.30 | ||
| 4.Sharesheldbytheforeigncapital | |||||||||
| Ofwhich:Sharesheldbythedomesticlegalperson | |||||||||
| Sharesheldbytheforeignnaturalperson | |||||||||
| II.Sharesnotsubjecttosalesrestrictions(tradableshares) | 582,344,502 | 99.56 | 174,903,861 | 668,370 | 175,572,231 | 757,916,733 | 99.70 | ||
| 1.RMBordinaryshares | 582,344,502 | 99.56 | 174,903,861 | 668,370 | 175,572,231 | 757,916,733 | 99.70 | ||
| 2.Domesticallylistedforeignshares | |||||||||
| 3.Overseaslistedforeignshares | |||||||||
| 4.Other | |||||||||
| III.Totalshares | 584,933,136 | 100.00 | 175,437,963 | -139,925 | 175,298,038 | 760,231,174 | 100.00 | ||
/
1.ExplanationofShareChanges
√Applicable□NotApplicable
1.OnOctober12,2023,theCompanyheldthe30thmeetingoftheFourthBoardofDirectors,reviewingandapprovingtheProposalontheFulfillmentofVestingConditionsbutTemporaryNon-listingofSharesfortheFirstVestingPeriodoftheFirstGrantunderthe2022RestrictedShareIncentivePlan.OnMarch26,2024,theCompanydisclosedtheAnnouncementontheVestingandListingCirculationoftheFirstVestingPeriodoftheFirstGrantunderthe2022RestrictedShareIncentivePlan.668,370restrictedshareswerelistedandcirculatedonMarch29,2024.TheCompany'stotalsharecapitalremainedunchangedat584,933,136shares.Sharessubjecttosalesrestrictionschangedfrom2,588,634sharesto1,920,264shares.
2.OnApril12,2024,theCompanyheldthesecondmeetingoftheFifthBoardofDirectors,reviewingandapprovingtheProposalonRepurchasingandCancellingPartoftheRestrictedShares.TheCompanyrepurchasedandcancelledatotalof139,925restrictedsharesheldby22incentiveobjectsunderthe2022restrictedshareincentiveplanwhohadresignedorexperiencedpositionchanges.OnJune5,2024,theCompanydisclosedtheAnnouncementontheImplementationofRepurchaseandCancellationofEquityIncentiveRestrictedShares.TheaforementionedrestrictedshareswererepurchasedandcancelledonJune7,2024.TheCompany'stotalsharecapitalchangedfrom584,933,136sharesto584,793,211shares.Sharessubjecttosalesrestrictionschangedfrom1,920,264sharesto1,780,339shares.
3.OnApril29,2024,andJune13,2024,theCompanyheldthethirdmeetingoftheFifthBoardofDirectorsandthe2023AnnualGeneralMeeting,respectively,reviewingandapprovingtheProposalonthe2023ProfitDistributionPlan.TheCompanyconverted0.3sharesfromcapitalreservespershareforallshareholdersanddistributedRMB0.66pershare.TheaforementionedprofitdistributionwascompletedonJune27,2024.TheCompany'stotalsharecapitalchangedfrom584,793,211sharesto760,231,174shares.Sharessubjecttosalesrestrictionschangedfrom1,780,339sharesto2,314,441shares.
2.ImpactofsharechangesonfinancialindicatorssuchasEPSandnetassetspershareforthelatestyearandlatestperiod(ifany)
√Applicable□NotApplicableDuringthereportingperiod,thetotalnumberofsharesincreasedby175,298,038duetoreasonssuchasconversionofcapitalreservesintosharecapitalandrepurchaseandcancellationofrestrictedshares.Attheendofthereportingperiod,theCompany'stotalsharecapitalwas760,231,174shares,EPSwasRMB0.68,andnetassetspersharewasRMB9.41.
3.OthercontentdeemednecessarybytheCompanyorrequiredbysecuritiesregulatoryauthoritiesfordisclosure
□Applicable√NotApplicable(II)ChangesinRestrictedShares
√Applicable□NotApplicable
/
Unit:Share
| NameofShareholder | NumberofRestrictedSharesatBeginningofYear | NumberofRestrictedSharesReleasedThisYear | NumberofRestrictedSharesIncreasedThisYear | NumberofRestrictedSharesatEndofYear | ReasonforRestriction | DateofRestrictionRelease |
| 2022RestrictedShareIncentivePlan | 2,588,634 | 808,295 | 534,102 | 2,314,441 | 2022RestrictedShareIncentivePlan | ListedcirculationonMarch29,2024,repurchaseandcancellationonJune7,2024,conversionfromcapitalreservesonJune27,2024 |
| Total | 2,588,634 | 808,295 | 534,102 | 2,314,441 | / | / |
II.SecuritiesIssuanceandListing(I)SecuritiesIssuanceuptotheReportingPeriod
□Applicable√NotApplicableExplanationofSecuritiesIssuanceuptotheReportingPeriod(Forbondswithdifferentinterestratesduringtheirduration,pleaseexplainseparately):
□Applicable√NotApplicable(II)ChangesintheCompany'sTotalShareCountandShareholderStructure,andChangesintheCompany'sAssetandLiabilityStructure
√Applicable□NotApplicable
1.OnOctober12,2023,theCompanyheldthe30thmeetingoftheFourthBoardofDirectors,reviewingandapprovingtheProposalontheFulfillmentofVestingConditionsbutTemporaryNon-listingofSharesfortheFirstVestingPeriodoftheFirstGrantunderthe2022RestrictedShareIncentivePlan.OnMarch26,2024,theCompanydisclosedtheAnnouncementontheVestingandListingCirculationoftheFirstVestingPeriodoftheFirstGrantunderthe2022RestrictedShareIncentivePlan.668,370restrictedshareswerelistedandcirculatedonMarch29,2024.TheCompany'stotalsharecapitalremainedunchangedat584,933,136shares.Sharessubjecttosalesrestrictionschangedfrom2,588,634sharesto1,920,264shares.
2.OnApril12,2024,theCompanyheldthesecondmeetingoftheFifthBoardofDirectors,reviewingandapprovingtheProposalonRepurchasingandCancellingPartoftheRestrictedShares.TheCompanyrepurchasedandcancelledatotalof139,925restrictedsharesheldby22incentiveobjectsunderthe2022restrictedshareincentiveplanwhohadresignedorexperiencedpositionchanges.OnJune5,2024,theCompanydisclosedtheAnnouncementontheImplementationofRepurchaseandCancellationofEquityIncentiveRestrictedShares.TheaforementionedrestrictedshareswererepurchasedandcancelledonJune7,2024.TheCompany'stotalsharecapitalchangedfrom584,933,136sharesto584,793,211shares.Sharessubjecttosalesrestrictionschangedfrom1,920,264sharesto1,780,339shares.
3.OnApril29,2024,andJune13,2024,theCompanyheldthethirdmeetingoftheFifthBoardofDirectorsandthe2023AnnualGeneralMeeting,respectively,reviewingandapprovingtheProposalonthe2023ProfitDistributionPlan.TheCompanyconverted0.3sharesfromcapitalreservespersharefor
/
allshareholdersanddistributedRMB0.66pershare.TheaforementionedprofitdistributionwascompletedonJune27,2024.TheCompany'stotalsharecapitalchangedfrom584,793,211sharesto760,231,174shares.Sharessubjecttosalesrestrictionschangedfrom1,780,339sharesto2,314,441shares.(III)SituationofExistingInternalEmployeeShares
□Applicable√NotApplicableIII.ShareholdersandActualController(I)TotalNumberofShareholders
| Totalnumberofordinaryshareholdersattheendofthereportingperiod(households) | 77,451 |
| Totalnumberofordinaryshareholdersattheendofthemonthprecedingtheannualreportdisclosuredate(households) | 48,022 |
| Totalnumberofpreferenceshareholderswithrestoredvotingrightsattheendofthereportingperiod(households) | 0 |
| Totalnumberofpreferenceshareholderswithrestoredvotingrightsattheendofthemonthprecedingtheannualreportdisclosuredate(households) | 0 |
(II)ShareholdingofTopTenShareholdersandTopTenTradableShareholders(orShareholders
withoutSalesRestrictions)attheEndoftheReportingPeriod
Unit:Share
| TopTenShareholders'Shareholding(ExcludingSharesLentThroughSecuritiesLending) | |||||||
| NameofShareholder(FullName) | Increase/DecreaseduringReportingPeriod | NumberofSharesHeldatEndofPeriod | Proportion(%) | NumberofSharesHeldSubjecttoSalesRestrictions | Pledge,Mark,orFreeze | ShareholderNature | |
| ShareStatus | Quantity | ||||||
| LBXPharmaceuticalGroupCo.,Ltd. | 45,822,502 | 198,564,175 | 26.12 | 0 | Pledged | 123,204,000 | DomesticNon-State-OwnedLegalPerson |
| JanstarInvestmentLimited | 38,772,239 | 168,013,035 | 22.10 | 0 | Pledged | 134,410,428 | Foreignlegalperson |
| HongKongSecuritiesClearingCompanyLimited | -38,658,475 | 20,873,995 | 2.75 | 0 | None | 0 | Unknown |
| ChenXiulan | 3,130,546 | 13,565,698 | 1.78 | 0 | None | 0 | Domesticnaturalperson |
| ShiZhan | 2,261,895 | 10,099,711 | 1.33 | 0 | None | 0 | Domesticnaturalperson |
| LinzhiTencentTechnologyCo.,Ltd. | 1,705,626 | 7,391,046 | 0.97 | 0 | None | 0 | DomesticNon-State-OwnedLegal |
/
| Person | ||||||||
| AgriculturalBankofChinaLimited-CSI500ETF | 3,742,929 | 5,351,003 | 0.70 | 0 | None | 0 | Unknown | |
| ChinaLifeInsuranceCompanyLimited-Traditional-GeneralInsuranceProduct-005L-CT001Shanghai | 3,252,954 | 4,706,510 | 0.62 | 0 | None | 0 | Unknown | |
| ChinaLifeInsuranceCompanyLimited-Universal-GuoshouRui'an | 2,029,780 | 2,112,380 | 0.28 | 0 | None | 0 | Unknown | |
| HeShijin | 2,064,060 | 2,064,060 | 0.27 | 0 | None | 0 | Domesticnaturalperson | |
| TopTenShareholderswithoutSalesRestrictionsShareholdingSituation(ExcludingSharesLentThroughSecuritiesLending) | ||||||||
| NameofShareholder | NumberofTradableShareswithoutSalesRestrictionsHeld | ShareTypeandQuantity | ||||||
| Type | Quantity | |||||||
| LBXPharmaceuticalGroupCo.,Ltd. | 198,564,175 | RMBordinaryshares | 198,564,175 | |||||
| JanstarInvestmentLimited | 168,013,035 | RMBordinaryshares | 168,013,035 | |||||
| HongKongSecuritiesClearingCompanyLimited | 20,873,995 | RMBordinaryshares | 20,873,995 | |||||
| ChenXiulan | 13,565,698 | RMBordinaryshares | 13,565,698 | |||||
| ShiZhan | 10,099,711 | RMBordinaryshares | 10,099,711 | |||||
| LinzhiTencentTechnologyCo.,Ltd. | 7,391,046 | RMBordinaryshares | 7,391,046 | |||||
| AgriculturalBankofChinaLimited-CSI500ETF | 5,351,003 | RMBordinaryshares | 5,351,003 | |||||
| ChinaLifeInsuranceCompanyLimited-Traditional-GeneralInsuranceProduct-005L-CT001Shanghai | 4,706,510 | RMBordinaryshares | 4,706,510 | |||||
| ChinaLifeInsuranceCompanyLimited-Universal-GuoshouRui'an | 2,112,380 | RMBordinaryshares | 2,112,380 | |||||
| HeShijin | 2,064,060 | RMBordinaryshares | 2,064,060 | |||||
| ExplanationofRepurchaseSpecialAccountSituationamongTopTenShareholders | None | |||||||
| ExplanationofEntrustedVotingRights,Entrusted | None | |||||||
/
| VotingRights,andWaiverofVotingRightsbytheAboveShareholders | |
| ExplanationofRelatedRelationshipsorConcertedActionsamongtheAboveShareholders | TheCompany'sactualcontrollersareMr.XieZilongandMs.ChenXiulan(couple).Apartfromthis,theCompanyisunawarewhetherotherrelationshipsorconcertedactionsasdefinedintheAdministrativeMeasuresfortheAcquisitionofListedCompaniesexistamongtheothershareholdersmentionedabove. |
| ExplanationofPreferenceshareholderswithRestoredVotingRightsandTheirShareholdingQuantity | None |
SituationofShareholdersHolding5%orMore,TopTenShareholders,andTopTenShareholderswithoutSalesRestrictionsParticipatinginSecuritiesLendingBusiness
√Applicable□NotApplicable
Unit:Share
| SituationofShareholdersHolding5%orMore,TopTenShareholders,andTopTenShareholderswithoutSalesRestrictionsParticipatinginSecuritiesLendingBusiness | ||||||||
| ShareholderName(FullName) | BeginningBalanceHeldinOrdinaryandCreditAccounts | BeginningBalanceofSharesLentthroughSecuritiesLendingandNotYetReturned | EndingBalanceHeldinOrdinaryandCreditAccounts | EndingBalanceofSharesLentthroughSecuritiesLendingandNotYetReturned | ||||
| TotalQuantity | Proportion(%) | TotalQuantity | Proportion(%) | TotalQuantity | Proportion(%) | TotalQuantity | Proportion(%) | |
| AgriculturalBankofChinaLimited-CSI500ETF | 1,608,074 | 0.27 | 473,500 | 0.08 | 5,351,003 | 0.70 | 0 | 0 |
ChangesComparedtothePreviousPeriodDuetoLending/ReturningSharesthroughSecuritiesLendingbyTopTenShareholdersandTopTenShareholderswithoutSalesRestrictions
□Applicable√NotApplicableShareholdingQuantityandRestrictionConditionsofTopTenShareholdersSubjecttoSalesRestrictions
□Applicable√NotApplicable(III)StrategicInvestorsorGeneralLegalPersonsBecomingTop10ShareholdersduetoNewShare
Placements
□Applicable√NotApplicableIV.ControllingShareholderandActualController(I)ControllingShareholder
1.LegalPerson
√Applicable□NotApplicable
/
| Name | LBXPharmaceuticalGroupCo.,Ltd. |
| PrincipalorLegalRepresentative | XieZilong |
| EstablishmentDate | October25,2001 |
| MainBusinessOperations | Investmentmanagementofpharmaceuticalretailandwholesaleprojectswithownassets(excludingsales) |
| EquitySituationofOtherDomesticandForeignListedCompaniesControlledorParticipatedinduringtheReportingPeriod | Hold2.4millionsharesofShanghaiXiaofangPharmaceuticalCo.,Ltd.(603207),representinga1.50%stake;andholds1.15millionsharesofAIMVaccineCo.,Ltd.(06660.HK),representinga0.0958%stake. |
| OtherExplanations | None |
2.NaturalPerson
□Applicable√NotApplicable
3.SpecialExplanationoftheCompanyNotHavingaControllingShareholder
□Applicable√NotApplicable
4.ExplanationofChangesinControllingShareholderduringtheReportingPeriod
□Applicable√NotApplicable
5.BlockDiagramofOwnershipandControlRelationshipbetweentheCompanyandthe
ControllingShareholder
√Applicable□NotApplicable
(II)ActualControllers
1.LegalPerson
□Applicable√NotApplicable
2.NaturalPerson
√Applicable□NotApplicable
| Name | Mr.XieZilong,Ms.ChenXiulan(Couple) |
| Nationality | Chinese |
| WhetherObtainedResidencyRightsinOtherCountriesorRegions | No |
| MainOccupationandPosition | XieZilongisChairmanofLBX,ExecutiveDirectorofPharmaceuticalGroup |
| SituationofDomesticandForeignListedCompaniesControlledinthePast10Years | None |
LBXPharmaceuticalGroupCo.,Ltd.
LBXPharmaceuticalGroupCo.,Ltd.LBXPharmacyChainJointStockCompany
/
3.SpecialExplanationoftheCompanyNotHavinganActualController
□Applicable√NotApplicable
4.ExplanationofChangesinCompanyControlduringtheReportingPeriod
□Applicable√NotApplicable
5.BlockDiagramofOwnershipandControlRelationshipbetweentheCompanyandtheActual
Controller
√Applicable□NotApplicable
6.ActualControllerControllingtheCompanythroughTrustorOtherAssetManagementMethods
□Applicable√NotApplicable(III)OtherInformationIntroductionofControllingShareholderandActualController
□Applicable√NotApplicableV.CumulativePledgedShareQuantityoftheCompany'sControllingShareholderorLargestShareholderandTheirConcertedActorsReaching80%orMoreofTheirHeldCompanyShareQuantity
□Applicable√NotApplicableVI.OtherInstitutionalShareholdersHoldingMoreThanTenPercent
√Applicable□NotApplicable
Unit:HKDCurrency:HKD
| NameofInstitutionalShareholder | PrincipalorLegalRepresentative | EstablishmentDate | OrganizationCode | RegisteredCapital | MainBusinessOperationsorManagementActivities,etc. |
| JanstarInvestmentLimited | LiangWeiyan,LiYinghua | September19,2007 | None | HKD10,000 | InvestmentHolding |
| ExplanationofSituation | HongKongcompanieshavenoregisteredlegalrepresentative.TheabovedirectorsrepresenttheCompanyasprincipalsperformingdirectorduties. | ||||
/
VII.ExplanationofShareRestrictionandReduction
□Applicable√NotApplicableVIII.SpecificImplementationSituationofShareRepurchaseduringtheReportingPeriod
□Applicable√NotApplicable
SectionVIIIPreferenceshareRelatedSituation
□Applicable√NotApplicable
/
SectionIXBondRelatedSituationI.CorporateBonds(IncludingEnterpriseBonds)andNon-financialEnterpriseDebtFinancing
Instruments
□Applicable√NotApplicableII.ConvertibleCorporateBonds
□Applicable√NotApplicable
SectionXFinancialReport
I.Auditor'sReport
√Applicable□NotApplicable
Auditor'sReportErnst&YoungHuaMing(2024)ShenZiNo.70053916_P01LBXPharmacyChainJointStock
CompanyToallshareholdersofLBXPharmacyChainJointStockCompany:
I.AuditOpinionWehaveauditedthefinancialstatementsofLBXPharmacyChainJointStockCompany(the
"Company"),whichcomprisetheconsolidatedandcompanybalancesheetsasatDecember31,2024,theconsolidatedandcompanyincomestatements,statementsofchangesinshareholder'sequityandcashflowstatementsfortheyearthenended,andnotestothefinancialstatements.Inouropinion,theaccompanyingfinancialstatementsofLBXPharmacyChainJointStockCompanypresentfairly,inallmaterialrespects,theconsolidatedandcompanyfinancialpositionasatDecember31,2024,andtheirconsolidatedandcompanyoperationresultsandcashflowsfortheyearthenendedinaccordancewiththeAccountingStandardsforBusinessEnterprises.II.BasisforAuditOpinionWeconductedourauditinaccordancewiththeAuditingStandardsforChineseCertifiedPublicAccountants.Ourresponsibilitiesunderthosestandardsarefurtherdescribedinthe"ResponsibilitiesofCertifiedPublicAccountantsforAuditofFinancialStatements"sectionofourauditor'sreport.WeareindependentofLBXPharmacyChainJointStockCompanyinaccordancewiththeCodeofEthicsforChineseCertifiedPublicAccountants,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththecode.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.
III.KeyAuditMattersKeyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthefinancialstatementsforthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.Ourdescriptionofhowourauditaddressedeachmatterbelowisprovidedinthatcontext.
/
Wehavefulfilledtheresponsibilitiesdescribedinthe"ResponsibilitiesofCertifiedPublicAccountantsforAuditofFinancialStatements"sectionofourreport,includinginrelationtothesekeyauditmatters.Accordingly,ourauditincludedtheperformanceofproceduresdesignedtorespondtoourassessmentoftherisksofmaterialmisstatementofthefinancialstatements.Theresultsofourauditprocedures,includingtheproceduresperformedtoaddressthemattersbelow,providethebasisforourauditopinionontheaccompanyingfinancialstatements.
| KeyAuditMatter: | HowtheMatterWasAddressedintheAudit: |
| Impairmenttestingofgoodwill | |
| AsatDecember31,2024,thebookvalueofLBXPharmacyChainJointStockCompany'sgoodwillwasRMB5,756,158,728,representing27%oftotalassets.WhereintheoriginalvalueofgoodwillisRMB5,873,132,876,andthebalanceoftheprovisionforimpairmentofgoodwillisRMB116,974,148.Themanagementallocatesthebookvalueofgoodwilltotherelevantcash-generatingunit(CGU)orgroupsofCGUsandcomparestherecoverableamountofeachCGUorgroupofCGUscontaininggoodwillwithitsbookvaluetoassesswhethergoodwillisimpaired.TherelevantCGUsorgroupsofCGUsarethoseCGUsorgroupsofCGUsthatareexpectedtobenefitfromthesynergiesofthebusinesscombinationandarenotlargerthanthereportingsegmentsdeterminedbyLBXPharmacyChainJointStockCompany.TherecoverableamountofaCGUisdeterminedbasedonthepresentvalueoftheestimatedfuturecashflowsoftheCGU.AccordingtotheAccountingStandardsforBusinessEnterprises,themanagementperformsimpairmenttestingongoodwillatleastannually.ThedeterminationofCGUsorgroupsofCGUstowhichgoodwillisallocatedandthecalculationofrecoverableamountsinvolvesignificantmanagementjudgmentsandestimates.Thetestresultslargelydependonthejudgmentsmadeandassumptionsadoptedbymanagement,suchasthedeterminationofCGUsorgroupsofCGUs,forecastperiodrevenuegrowthratesandstableperiodrevenuegrowthrates,grossprofitmargins,anddiscountrates.Suchjudgmentsandestimatesareaffectedbymanagement'sjudgmentsonhowtomanageoperatingactivities,futuremarketandeconomicenvironments.Theuseofdifferentjudgmentsandestimatesmayhaveasignificantimpactonthecalculationofgoodwillimpairment.Thismatterisimportanttoouraudit,thereforeweidentifieditasakeyauditmatter.Foraccountingpoliciesandestimatesrelatedtogoodwillimpairmentassessmentandrelatedfinancialstatementdisclosures,pleaserefertoNoteIII.27.Impairmentoflong-termassets,NoteIII.39.OtherSignificantaccountingpoliciesandestimates,andNoteV.27.Goodwill. | Inresponsetothiskeyauditmatter,theauditproceduresweperformedmainlyincluded:(1)Understood,evaluated,andtestedmanagement'sinternalcontrolsrelatedtogoodwillimpairmentassessment;(2)Understoodthebasisformanagement'sidentificationofCGUsorgroupsofCGUsandevaluateditsreasonablenessinconjunctionwiththemanagementmodelofLBXPharmacyChainJointStockCompany'soperatingactivities;(3)Understoodthesituationofthethird-partyappraisalinstitutionengagedbymanagementandassesseditsindependence,professionalqualifications,andcompetence;(4)Invitedinternalvaluationexpertstoassistusinevaluatingthegoodwillimpairmenttestingmethodadoptedbymanagementandthekeyparametersusedintheimpairmenttest,includingdiscountratesandperpetualgrowthrates,etc.;(5)Reviewedthefutureannualsalesrevenueandoperatingperformanceusedinthecashflowforecast,andcomparedthemwiththehistoricaloperatingperformanceoftherelevantCGUsorgroupsofCGUs,especiallyfuturesalesgrowthrates,estimatedgrossprofitmargins,relatedexpenses,etc.;(6)Performedsensitivitytestsandanalysisonthekeyassumptionsusedintheimpairmenttest;(7)Reviewedtheadequacyofmanagement'sdisclosuresrelatedtogoodwillimpairment. |
/
IV.OtherInformationThemanagementofLBXPharmacyChainJointStockCompanyisresponsiblefortheotherinformation.Theotherinformationcomprisestheinformationincludedintheannualreport,butdoesnotincludethefinancialstatementsandourauditor'sreportthereon.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.Basedontheworkwehaveperformed,ifweconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.
V.ResponsibilitiesofManagementandThoseChargedwithGovernancefortheFinancialStatementsThemanagementisresponsibleforthepreparationandfairpresentationofthefinancialstatementsinaccordancewiththeAccountingStandardsforBusinessEnterprises,andfordesigning,implementingandmaintainingnecessaryinternalcontroltoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,managementisresponsibleforassessingLBXPharmacy
ChainJointStockCompany'sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessmanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhasnorealisticalternativebuttodoso.
ThosechargedwithgovernanceareresponsibleforoverseeingLBXPharmacyChainJointStockCompany'sfinancialreportingprocess.
VI.ResponsibilitiesofCertifiedPublicAccountantsforAuditofFinancialStatements
Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor'sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewiththeAuditingStandardsforChineseCertifiedPublicAccountantswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.
AspartofanauditinaccordancewiththeAuditingStandardsforChineseCertifiedPublicAccountants,weexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.Wealso:
(1)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whether
duetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.
/
(2)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignaudit
proceduresthatareappropriateinthecircumstances.
(3)Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessof
accountingestimatesandrelateddisclosuresmadebymanagement.
(4)Concludeontheappropriatenessofmanagement'suseofthegoingconcernbasisof
accounting.Also,basedontheauditevidenceobtained,concludewhetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtonLBXPharmacyChainJointStockCompany'sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredbyCSAstodrawattentioninourauditor'sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor'sreport.However,futureeventsorconditionsmaycauseLBXPharmacyChainJointStockCompanytoceasetocontinueasagoingconcern.
(5)Evaluatetheoverallpresentation(includingthedisclosures),structureandcontentofthe
financialstatements,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
(6)Obtainsufficientappropriateauditevidenceregardingthefinancialinformationofthe
entitiesorbusinessactivitieswithinLBXPharmacyChainJointStockCompanytoexpressanopiniononthefinancialstatements.Weareresponsibleforthedirection,supervisionandperformanceofthegroupaudit.Weremainsolelyresponsibleforourauditopinion.Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.
Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andcommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.
Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsforthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor'sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.
| Ernst&YoungHuaMingLLP | ChineseCPA:WangShijie(EngagementPartner) |
| ChineseCPA:LiangChang'e | |
| Beijing,China | April29,2025 |
/
II.FinancialStatements
ConsolidatedBalanceSheetDecember31,2024Preparedby:
Unit:YuanCurrency:RMB
| Item | Notes | December31,2024 | December31,2023 |
| Currentassets: | |||
| Cashandbankdeposits | 2,379,865,319 | 1,974,984,513 | |
| Depositreservationforbalance | |||
| Fundslent | |||
| Tradingfinancialassets | 1,500,000 | ||
| Derivativefinancialassets | |||
| Notesreceivable | 76,074,821 | 80,433,190 | |
| Accountsreceivable | 2,340,489,925 | 2,223,516,743 | |
| Receivablesfinancing | 15,269,288 | 8,332,713 | |
| Prepayments | 170,391,318 | 182,786,262 | |
| Premiumsreceivable | |||
| Reinsuranceaccountsreceivable | |||
| Reinsurancecontractreservereceivable | |||
| Otherreceivables | 265,281,348 | 308,579,953 | |
| Ofwhich:Interestreceivable | |||
| Dividendsreceivable | |||
| Redemptorymonetarycapitalforsale | |||
| Inventories | 3,573,538,507 | 4,152,484,967 | |
| Ofwhich:Dataresources | |||
| Contractassets | |||
| Held-for-saleassets | |||
| Non-currentassetsduewithinoneyear | 37,528,487 | 33,150,856 | |
| Othercurrentassets | 215,072,326 | 164,111,488 | |
| Totalcurrentassets | 9,073,511,339 | 9,129,880,685 | |
| Non-currentassets: | |||
| Loansandadvances | |||
| Debtinvestments | |||
| Otherdebtinvestments | |||
| Long-termreceivables | 79,389,411 | 84,390,074 | |
| Long-termequityinvestments | 85,352,717 | 67,821,191 | |
| Otherequityinstrumentinvestments | 35,877,723 | 37,177,723 | |
| Othernon-currentfinancialassets | 12,093,150 | 5,774,109 | |
| Investmentproperties | 316,529,855 | 325,674,762 | |
| Fixedassets | 1,365,648,334 | 1,341,028,196 | |
| Constructioninprogress | 107,795,924 | 75,754,943 | |
| Productivebiologicalassets | |||
| Oilandgasassets | |||
| Right-of-useassets | 2,502,807,163 | 2,723,994,585 | |
/
| Intangibleassets | 841,812,406 | 746,981,692 | |
| Ofwhich:Dataresources | |||
| R&Dexpenditures | - | ||
| Ofwhich:Dataresources | |||
| Goodwill | 5,756,158,728 | 5,835,861,208 | |
| Long-termdeferredexpenses | 734,121,761 | 735,870,287 | |
| Deferredtaxassets | 116,703,610 | 69,501,069 | |
| Othernon-currentassets | 17,051,558 | 51,289,452 | |
| Totalnon-currentassets | 11,971,342,340 | 12,101,119,291 | |
| Totalassets | 21,044,853,679 | 21,230,999,976 | |
| Currentliabilities: | |||
| Short-termloans | 1,656,884,090 | 799,754,553 | |
| Borrowingsfromcentralbank | |||
| Fundsborrowed | |||
| Tradingfinancialliabilities | |||
| Derivativefinancialliabilities | |||
| Notespayable | 4,546,258,111 | 4,785,990,053 | |
| Accountspayable | 2,008,964,593 | 2,209,026,977 | |
| Advancesreceived | 18,293,769 | 17,428,097 | |
| Contractliabilities | 195,193,795 | 230,303,595 | |
| Financialassetssoldforrepurchase | |||
| Depositsfromcustomersandinterbankplacements | |||
| Receivingfromvicariouslytradedsecurities | |||
| Receivingfromvicariouslysoldsecurities | |||
| Payrollpayable | 430,424,756 | 460,404,162 | |
| Taxesandduespayable | 191,184,507 | 212,780,957 | |
| Otherpayables | 653,535,414 | 936,519,479 | |
| Ofwhich:Interestpayable | |||
| Dividendspayable | 208,088 | 1,735,049 | |
| Feesandcommissionspayable | |||
| Reinsuranceaccountspayable | |||
| Held-for-saleliabilities | |||
| Non-currentliabilitiesduewithinoneyear | 1,204,356,466 | 1,483,510,595 | |
| Othercurrentliabilities | 14,443,599 | 19,374,284 | |
| Totalcurrentliabilities | 10,919,539,100 | 11,155,092,752 | |
| Non-currentliabilities: | |||
| Reservesforinsurancecontracts | |||
| Long-termloans | 1,397,226,137 | 1,378,359,287 | |
| Bondspayable | |||
| Including:Preferenceshares | |||
| Perpetualbond | |||
| Leaseliabilities | 1,522,516,044 | 1,371,360,192 | |
| Long-termpayables | |||
| Long-termemployeecompensationpayable | |||
/
| Provisions | |||
| Deferredincome | 12,925,575 | 15,908,923 | |
| Deferredtaxliabilities | 36,696,534 | 21,238,961 | |
| Othernon-currentliabilities | |||
| Totalnon-currentliabilities | 2,969,364,290 | 2,786,867,363 | |
| Totalliabilities | 13,888,903,390 | 13,941,960,115 | |
| Totalowner'sequity(orshareholder'sequity): | |||
| Paid-incapital(orcapitalstock) | 760,231,174 | 584,933,136 | |
| Otherequityinstruments | |||
| Including:Preferenceshares | |||
| Perpetualbond | |||
| Capitalreserves | 1,970,466,686 | 2,174,156,022 | |
| Less:Treasurystock | 16,935,356 | 43,256,912 | |
| Othercomprehensiveincome | 15,231,092 | 15,231,092 | |
| Specialreserve | |||
| Surplusreserve | 301,549,640 | 283,066,159 | |
| Generalriskreserve | |||
| Undistributedprofits | 3,550,314,034 | 3,687,106,079 | |
| Totalequityattributabletoownersoftheparentcompany(orshareholder'sequity) | 6,580,857,270 | 6,701,235,576 | |
| Minorityinterests | 575,093,019 | 587,804,285 | |
| Totalowner'sequity(orshareholder'sequity) | 7,155,950,289 | 7,289,039,861 | |
| Totalliabilitiesandowner'sequity(orshareholder'sequity) | 21,044,853,679 | 21,230,999,976 | |
PrincipaloftheCompany:XieZilongPersoninChargeofAccountingWork:ChenLishanPersoninChargeofAccountingDepartment:ShiLei
BalanceSheetofParentCompany
December31,2024Preparedby:
Unit:YuanCurrency:RMB
| Item | Notes | December31,2024 | December31,2023 |
| Currentassets: | |||
| Cashandbankdeposits | 2,064,268,383 | 1,733,411,341 | |
| Tradingfinancialassets | 1,500,000 | ||
| Derivativefinancialassets | |||
| Notesreceivable | |||
| Accountsreceivable | 515,726,687 | 464,683,585 | |
| Receivablesfinancing | |||
| Prepayments | 32,673,995 | 31,504,632 | |
| Otherreceivables | 5,009,698,877 | 5,546,278,807 | |
| Ofwhich:Interestreceivable | |||
| Dividendsreceivable | 8,198,830 | 63,198,830 | |
| Inventories | 467,483,217 | 576,804,172 | |
| Ofwhich:Dataresources | |||
| Contractassets | |||
| Held-for-saleassets | |||
| Non-currentassetsduewithin | 9,290,909 | 9,941,533 | |
/
| oneyear | |||
| Othercurrentassets | 24,364,116 | 31,774,555 | |
| Totalcurrentassets | 8,123,506,184 | 8,395,898,625 | |
| Non-currentassets: | |||
| Debtinvestments | |||
| Otherdebtinvestments | |||
| Long-termreceivables | 22,319,183 | 21,085,389 | |
| Long-termequityinvestments | 6,309,092,736 | 6,288,866,436 | |
| Otherequityinstrumentinvestments | 35,308,123 | 35,308,123 | |
| Othernon-currentfinancialassets | 5,774,109 | 5,774,109 | |
| Investmentproperties | 256,390,126 | 262,198,276 | |
| Fixedassets | 400,154,596 | 407,101,470 | |
| Constructioninprogress | 56,654,546 | 18,046,683 | |
| Productivebiologicalassets | |||
| Oilandgasassets | |||
| Right-of-useassets | 486,621,414 | 510,170,079 | |
| Intangibleassets | 160,285,902 | 148,162,384 | |
| Ofwhich:Dataresources | |||
| R&Dexpenditures | |||
| Ofwhich:Dataresources | |||
| Goodwill | 527,221,668 | 527,221,668 | |
| Long-termdeferredexpenses | 169,457,320 | 177,603,565 | |
| Deferredtaxassets | 39,013,461 | 13,745,634 | |
| Othernon-currentassets | 7,236,084 | 11,680,415 | |
| Totalnon-currentassets | 8,475,529,268 | 8,426,964,231 | |
| Totalassets | 16,599,035,452 | 16,822,862,856 | |
| Currentliabilities: | |||
| Short-termloans | 279,806,357 | ||
| Tradingfinancialliabilities | |||
| Derivativefinancialliabilities | |||
| Notespayable | 5,587,633,477 | 5,482,744,830 | |
| Accountspayable | 51,096,966 | 9,901,643 | |
| Advancesreceived | 2,144,697 | 2,609,209 | |
| Contractliabilities | 20,113,000 | 23,475,661 | |
| Payrollpayable | 117,599,031 | 111,072,788 | |
| Taxesandduespayable | 26,989,206 | 24,899,046 | |
| Otherpayables | 2,772,020,283 | 3,057,046,258 | |
| Ofwhich:Interestpayable | |||
| Dividendspayable | |||
| Held-for-saleliabilities | |||
| Non-currentliabilitiesduewithinoneyear | 417,377,528 | 468,112,147 | |
| Othercurrentliabilities | 747,518 | 1,103,513 | |
| Totalcurrentliabilities | 9,275,528,063 | 9,180,965,095 | |
| Non-currentliabilities: | |||
| Long-termloans | 1,397,226,137 | 1,378,359,287 | |
| Bondspayable | |||
| Including:Preferenceshares | |||
| Perpetualbond | |||
| Leaseliabilities | 421,441,914 | 328,201,622 | |
| Long-termpayables | |||
/
| Long-termemployeecompensationpayable | |||
| Provisions | |||
| Deferredincome | 4,315,135 | 4,417,269 | |
| Deferredtaxliabilities | |||
| Othernon-currentliabilities | |||
| Totalnon-currentliabilities | 1,822,983,186 | 1,710,978,178 | |
| Totalliabilities | 11,098,511,249 | 10,891,943,273 | |
| Totalowner'sequity(orshareholder'sequity): | |||
| Paid-incapital(orcapitalstock) | 760,231,174 | 584,933,136 | |
| Otherequityinstruments | |||
| Including:Preferenceshares | |||
| Perpetualbond | |||
| Capitalreserves | 3,435,977,166 | 3,615,454,984 | |
| Less:Treasurystock | 16,935,356 | 43,256,912 | |
| Othercomprehensiveincome | 15,231,092 | 15,231,092 | |
| Specialreserve | |||
| Surplusreserve | 301,549,640 | 283,066,159 | |
| Undistributedprofits | 1,004,470,487 | 1,475,491,124 | |
| Totalowner'sequity(orshareholder'sequity) | 5,500,524,203 | 5,930,919,583 | |
| Totalliabilitiesandowner'sequity(orshareholder'sequity) | 16,599,035,452 | 16,822,862,856 | |
PrincipaloftheCompany:XieZilongPersoninChargeofAccountingWork:ChenLishanPersoninChargeofAccountingDepartment:ShiLei
ConsolidatedIncomeStatement
January-December2024
Unit:YuanCurrency:RMB
| Item | Notes | 2024 | 2023 |
| I.Totaloperatingincome | 22,357,610,195 | 22,437,489,012 | |
| Ofwhich:Operatingincome | 22,357,610,195 | 22,437,489,012 | |
| Interestincome | |||
| Premiumsearned | |||
| Feeandcommissionincome | |||
| II.Totaloperatingcost | 21,403,375,972 | 21,146,321,234 | |
| Ofwhich:Operatingcost | 14,942,332,455 | 15,134,226,781 | |
| Interestexpense | |||
| Feeandcommissionexpense | |||
| Surrendervalue | |||
| Netclaimspaid | |||
| Netchangeininsurancecontractreserves | |||
| Expendituresforpolicydividends | |||
| Reinsuranceexpense | |||
| Taxesandsurcharges | 80,902,989 | 79,018,818 | |
| Sellingexpenses | 4,947,435,885 | 4,566,475,793 | |
| Administrativeexpenses | 1,257,665,102 | 1,186,691,499 |
/
| R&Dexpenses | 2,013,597 | 2,510,591 | |
| Financialexpenses | 173,025,944 | 177,397,752 | |
| Including:Interestexpenses | 178,247,831 | 185,604,447 | |
| Interestincome | 20,103,612 | 27,706,373 | |
| Add:Otherincome | 78,365,349 | 69,797,682 | |
| Investmentincome(lossindicatedwith"-") | 2,728,107 | 66,161,134 | |
| Including:incomefrominvestmentsinassociatesandjointventures | 2,831,526 | 3,766,073 | |
| Gainonderecognitionoffinancialassetsmeasuredatamortizedcost | |||
| Exchangegains(lossesindicatedwith"-") | |||
| Netgains(lossesindicatedwith"-")onnetinvestmenthedges | |||
| Gainsfromchangeinfairvalue(lossesindicatedwith"-") | - | -1,500,000 | |
| Creditimpairmentlosses(lossesindicatedwith"-") | -6,022,024 | -9,591,744 | |
| Assetimpairmentlosses(lossesindicatedwith"-") | -111,202,534 | -23,414,789 | |
| Gainsfromdisposalofassets(lossesindicatedwith"-") | -4,530,258 | 5,509,528 | |
| III.Operatingprofits(lossesindicatedwith"-") | 913,572,863 | 1,398,129,589 | |
| Add:non-operatingincome | 14,027,387 | 18,103,079 | |
| Less:non-operatingexpenditures | 11,628,766 | 8,399,569 | |
| IV.Profitbeforetax(totallossesindicatedwith"-") | 915,971,484 | 1,407,833,099 | |
| Less:incometaxexpenses | 230,853,330 | 284,273,739 | |
| IV.Netprofits(netlossesindicatedwith"-") | 685,118,154 | 1,123,559,360 | |
| (I)Byoperatingcontinuity | |||
| 1.Netprofitsfromcontinuingoperation(netlossesindicatedwith"-") | 685,118,154 | 1,123,559,360 | |
| 2.Netprofitsfromdiscontinuedoperation(netlossesindicatedwith"-") | |||
| (II)Byownershipattribution | |||
| 1.Netprofitattributabletoshareholdersoftheparentcompany(netlossindicatedwith"-") | 519,063,405 | 929,023,131 | |
| 2.Minorityinterestincome(netlossindicatedwith"-") | 166,054,749 | 194,536,229 | |
| VI.Netamountofothercomprehensiveincomeaftertax | -2,248,600 | ||
| (I)Netamountofothercomprehensiveincomeattributabletoownersoftheparentcompanyaftertax | -2,248,600 | ||
| 1.Othercomprehensiveincomethatcannotbereclassifiedtoprofitorloss | |||
| (1)Remeasurementchangesin | |||
/
| definedbenefitplans | |||
| (2)Othercomprehensiveincomeunderequitymethodthatcannotbetransferredtoprofitorloss | |||
| (3)Fairvaluechangesofotherequityinstrumentinvestments | -2,248,600 | ||
| (4)Fairvaluechangesduetoowncreditriskoftheenterprise | |||
| 2.Othercomprehensiveincomethatwillbereclassifiedtoprofitorloss | |||
| (1)Othercomprehensiveincomeunderequitymethodthatcanbetransferredtoprofitorloss | |||
| (2)Fairvaluechangesofotherdebtinvestments | |||
| (3)Amountreclassifiedtoothercomprehensiveincomefromfinancialassets | |||
| (4)Creditimpairmentprovisionforotherdebtinvestments | |||
| (5)Cashflowhedgereserve | |||
| (6)Foreigncurrencytranslationdifferences | |||
| (7)Other | |||
| (II)Netamountofothercomprehensiveincomeattributabletominorityinterestsaftertax | |||
| VII.Totalcomprehensiveincome | 685,118,154 | 1,121,310,760 | |
| (I)Totalcomprehensiveincomeattributabletoownersoftheparentcompany | 519,063,405 | 926,774,531 | |
| (II)Totalcomprehensiveincomeattributabletominorityinterests | 166,054,749 | 194,536,229 | |
| VIII.Earningspershare(EPS) | |||
| (I)BasicEPS(RMB/share) | 0.68 | 1.23 | |
| (II)DilutedEPS(RMB/share) | 0.68 | 1.23 | |
PrincipaloftheCompany:XieZilongPersoninChargeofAccountingWork:ChenLishanPersoninChargeofAccountingDepartment:ShiLei
IncomeStatementofParentCompany
January-December2024
Unit:YuanCurrency:RMB
| Item | Notes | 2024 | 2023 |
| I.Operatingincome | 4,478,468,650 | 4,439,954,277 | |
| Less:operatingcosts | 2,963,766,302 | 2,983,342,288 | |
| Taxesandsurcharges | 13,239,862 | 16,601,396 | |
| Sellingexpenses | 1,066,348,428 | 969,473,304 | |
| Administrativeexpenses | 431,615,514 | 360,862,727 | |
| R&Dexpenses | |||
| Financialexpenses | 74,310,998 | 81,042,792 | |
| Including:Interestexpenses | 84,375,489 | 93,452,782 | |
| Interestincome | 18,902,422 | 26,554,670 | |
| Add:Otherincome | 13,493,473 | 10,272,244 |
/
| Investmentincome(lossindicatedwith"-") | 230,447,487 | 606,257,556 | |
| Including:incomefrominvestmentsinassociatesandjointventures | 2,831,526 | 3,766,073 | |
| Gainonderecognitionoffinancialassetsmeasuredatamortizedcost | |||
| Netgains(lossesindicatedwith"-")onnetinvestmenthedges | |||
| Gainsfromchangeinfairvalue(lossesindicatedwith"-") | -1,500,000 | ||
| Creditimpairmentlosses(lossesindicatedwith"-") | -119,140 | 396,737 | |
| Assetimpairmentlosses(lossesindicatedwith"-") | -1,130,064 | -531,796 | |
| Gainsfromdisposalofassets(lossesindicatedwith"-") | 465,017 | 3,406,447 | |
| II.Operatingprofits(lossesindicatedwith"-") | 172,344,319 | 646,932,958 | |
| Add:non-operatingincome | 636,483 | 1,206,052 | |
| Less:non-operatingexpenditures | 3,523,051 | 2,955,632 | |
| III.Profitbeforetax(totallossesindicatedwith"-") | 169,457,751 | 645,183,378 | |
| Less:incometaxexpenses | -15,377,062 | 14,849,687 | |
| IV.Netprofits(netlossesindicatedwith"-") | 184,834,813 | 630,333,691 | |
| (I)Netprofitsfromcontinuingoperation(netlossesindicatedwith"-") | 184,834,813 | 630,333,691 | |
| (II)Netprofitsfromdiscontinuedoperation(netlossesindicatedwith"-") | |||
| V.Netamountofothercomprehensiveincomeaftertax | -2,248,600 | ||
| (I)Othercomprehensiveincomethatcannotbereclassifiedtoprofitorloss | -2,248,600 | ||
| 1.Remeasurementchangesindefinedbenefitplans | |||
| 2.Othercomprehensiveincomeunderequitymethodthatcannotbetransferredtoprofitorloss | |||
| 3.Fairvaluechangesofotherequityinstrumentinvestments | -2,248,600 | ||
| 4.Fairvaluechangesduetoowncreditriskoftheenterprise | |||
| (II)Othercomprehensiveincomethatwillbereclassifiedtoprofitorloss | |||
| 1.Othercomprehensiveincomeunderequitymethodthatcanbetransferredtoprofitorloss | |||
| 2.Fairvaluechangesofotherdebtinvestments | |||
| 3.Amountreclassifiedtoother |
/
| comprehensiveincomefromfinancialassets | |||
| 4.Creditimpairmentprovisionforotherdebtinvestments | |||
| 5.Cashflowhedgereserve | |||
| 6.Foreigncurrencytranslationdifferences | |||
| 7.Other | |||
| VI.Totalcomprehensiveincome | 184,834,813 | 628,085,091 | |
| VII.Earningspershare(EPS): | |||
| (I)BasicEPS(RMB/share) | |||
| (II)DilutedEPS(RMB/share) | |||
PrincipaloftheCompany:XieZilongPersoninChargeofAccountingWork:ChenLishanPersoninChargeofAccountingDepartment:ShiLei
ConsolidatedCashFlowStatement
January-December2024
Unit:YuanCurrency:RMB
| Item | Notes | 2024 | 2023 |
| I.Cashflowfromoperatingactivities: | |||
| Cashreceivedfromsalesofgoodsandrenderingofservices | 25,590,231,980 | 26,028,574,197 | |
| Netincreaseincustomerdepositsandinterbankplacements | |||
| Netincreaseinborrowingsfromcentralbank | |||
| Netincreaseinfundsborrowedfromotherfinancialinstitutions | |||
| Cashreceivedfrompremiumsoforiginalinsurancecontracts | |||
| Netcashreceivedfromreinsurancebusiness | |||
| Netincreaseinpolicyholderdepositsandinvestmentfunds | |||
| Cashreceivedfrominterest,fees,andcommissions | |||
| Netincreaseinfundsborrowed | |||
| Netincreaseinfundsfromrepurchaseagreements | |||
| Netcashreceivedfromsecuritiestradingonbehalfofclients | |||
| Refundoftaxesandlevies | |||
| Othercashreceivedfromoperatingrelatedactivities | 103,940,541 | 105,199,987 | |
| Subtotalofcashinflowsofoperatingactivities | 25,694,172,521 | 26,133,774,184 | |
| Cashpaidforpurchasinggoodsandreceivingservices | 18,046,362,509 | 18,132,852,446 | |
| Netincreaseincustomerloansandadvances | |||
| Netincreaseinplacementswithcentralbankandotherbanks | |||
/
| Cashpaidforclaimsoforiginalinsurancecontracts | |||
| Netincreaseinfundslent | |||
| Cashpaidforinterest,fees,andcommissions | |||
| Cashpaidforpolicydividends | |||
| Cashpaidtoandforemployees | 3,774,532,506 | 3,484,204,944 | |
| Taxpayments | 976,067,264 | 911,784,561 | |
| Othercashpaidforoperatingrelatedactivities | 870,751,445 | 875,093,286 | |
| Subtotalofcashoutflowsofoperatingactivities | 23,667,713,724 | 23,403,935,237 | |
| Netcashflowsfromoperatingactivities | 2,026,458,797 | 2,729,838,947 | |
| II.Cashflowsfrominvestingactivities: | |||
| Cashreceivedfromreturnoninvestments | 360,461,119 | ||
| Cashreceivedfrominvestmentincome | 7,539,466 | ||
| Netcashfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 8,242,106 | 7,480,253 | |
| Netcashfromdisposalofsubsidiariesandotherbusinessunits | 25,938,620 | 14,124,230 | |
| Othercashreceivedfrominvestingrelatedactivities | |||
| Subtotalofcashinflowsofinvestingactivities | 34,180,726 | 389,605,068 | |
| Cashpaidforacquisitionandconstructionoffixedassets,intangibleassetsandotherlong-termassets | 507,503,709 | 620,865,593 | |
| Cashpaidforinvestment | 19,719,041 | 580,000 | |
| Netincreaseinpledgedloans | |||
| Netcashpaidforacquisitionofsubsidiariesandotherbusinessunits | 134,833,847 | 529,423,822 | |
| Othercashpaidforinvestingrelatedactivities | |||
| Subtotalofcashoutflowsofinvestingactivities | 662,056,597 | 1,150,869,415 | |
| Netcashflowsfrominvestingactivities | -627,875,871 | -761,264,347 | |
| III.Cashflowsfromfinancingactivities: | |||
| Cashreceivedbyinvestors | 3,075,060 | 6,542,347 | |
| Including:cashreceivedbysubsidiariesfrominvestmentsofminorityshareholders | 3,075,060 | 239,154 | |
| Cashreceivedfromloans | 3,360,910,303 | 1,496,209,554 | |
| Othercashreceivedfromfinancingrelatedactivities | |||
| Subtotalofcashinflowsoffinancingactivities | 3,363,985,363 | 1,502,751,901 | |
| Cashpaidforrepaymentofdebts | 2,449,061,239 | 1,680,844,971 | |
/
| Cashpaidforallocationofdividendsandprofitsandpaymentofinterest | 883,337,195 | 471,317,759 | |
| Including:dividendsandprofitspaidbythesubsidiariestotheminorityshareholders | 169,332,688 | 96,611,210 | |
| Othercashpaidforfinancingrelatedactivities | 1,379,935,359 | 1,778,418,122 | |
| Subtotalofcashoutflowsoffinancingactivities | 4,712,333,793 | 3,930,580,852 | |
| Netcashflowsfromfinancingactivities | -1,348,348,430 | -2,427,828,951 | |
| IV.Effectofexchangeratechangeoncashandcashequivalents | -547,077 | ||
| V.Netincreaseincashandcashequivalents | 50,234,496 | -459,801,428 | |
| Add:Beginningbalanceofcashandcashequivalents | 936,501,157 | 1,396,302,585 | |
| VI.Endingbalanceofcashandcashequivalents | 986,735,653 | 936,501,157 |
PrincipaloftheCompany:XieZilongPersoninChargeofAccountingWork:ChenLishanPersoninChargeofAccountingDepartment:ShiLei
CashFlowStatementofParentCompany
January-December2024
Unit:YuanCurrency:RMB
| Item | Notes | 2024 | 2023 |
| I.Cashflowfromoperatingactivities: | |||
| Cashreceivedfromsalesofgoodsandrenderingofservices | 4,627,063,020 | 4,487,657,549 | |
| Refundoftaxesandlevies | |||
| Othercashreceivedfromoperatingrelatedactivities | 53,001,218 | 67,305,557 | |
| Subtotalofcashinflowsofoperatingactivities | 4,680,064,238 | 4,554,963,106 | |
| Cashpaidforpurchasinggoodsandreceivingservices | 3,185,285,195 | 2,848,518,303 | |
| Cashpaidtoandforemployees | 832,303,906 | 782,430,967 | |
| Taxpayments | 46,768,453 | 88,454,527 | |
| Othercashpaidforoperatingrelatedactivities | 367,558,221 | 383,832,815 | |
| Subtotalofcashoutflowsofoperatingactivities | 4,431,915,775 | 4,103,236,612 | |
| Netcashflowsfromoperatingactivities | 248,148,463 | 451,726,494 | |
| II.Cashflowsfrominvestingactivities: | |||
| Cashreceivedfromreturnoninvestments | 1,095,882 | 360,461,119 | |
| Cashreceivedfrominvestmentincome | 280,032,305 | 538,059,130 | |
| Netcashfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 239,353 | 5,951,925 | |
/
| Netcashfromdisposalofsubsidiariesandotherbusinessunits | |||
| Othercashreceivedfrominvestingrelatedactivities | 488,074,586 | ||
| Subtotalofcashinflowsofinvestingactivities | 769,442,126 | 904,472,174 | |
| Cashpaidforacquisitionandconstructionoffixedassets,intangibleassetsandotherlong-termassets | 125,223,618 | 61,919,483 | |
| Cashpaidforinvestment | 82,197,000 | 274,607,646 | |
| Netcashpaidforacquisitionofsubsidiariesandotherbusinessunits | |||
| Othercashpaidforinvestingrelatedactivities | 1,558,487,979 | ||
| Subtotalofcashoutflowsofinvestingactivities | 207,420,618 | 1,895,015,108 | |
| Netcashflowsfrominvestingactivities | 562,021,508 | -990,542,934 | |
| III.Cashflowsfromfinancingactivities: | |||
| Cashreceivedbyinvestors | 6,303,193 | ||
| Cashreceivedfromloans | 680,000,000 | 100,000,000 | |
| Othercashreceivedfromfinancingrelatedactivities | 878,930,693 | ||
| Subtotalofcashinflowsoffinancingactivities | 680,000,000 | 985,233,886 | |
| Cashpaidforrepaymentofdebts | 353,176,410 | 318,234,806 | |
| Cashpaidforallocationofdividendsandprofitsandpaymentofinterest | 699,989,964 | 363,884,372 | |
| Othercashpaidforfinancingrelatedactivities | 416,212,098 | 214,062,259 | |
| Subtotalofcashoutflowsoffinancingactivities | 1,469,378,472 | 896,181,437 | |
| Netcashflowsfromfinancingactivities | -789,378,472 | 89,052,449 | |
| IV.Effectofexchangeratechangeoncashandcashequivalents | -547,077 | ||
| V.Netincreaseincashandcashequivalents | 20,791,499 | -450,311,068 | |
| Add:Beginningbalanceofcashandcashequivalents | 728,709,823 | 1,179,020,891 | |
| VI.Endingbalanceofcashandcashequivalents | 749,501,322 | 728,709,823 | |
PrincipaloftheCompany:XieZilongPersoninChargeofAccountingWork:ChenLishanPersoninChargeofAccountingDepartment:ShiLei
/
ConsolidatedStatementofChangesinOwner'sEquity
January-December2024
Unit:YuanCurrency:RMB
| Item | 2024 | ||||||||||||||
| Equityattributabletoownersoftheparentcompany | Minorityinterests | Totalowner'sequity | |||||||||||||
| Paid-incapital(orcapitalstock) | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specialreserve | Surplusreserve | Generalriskreserve | Undistributedprofits | Other | Subtotal | |||||
| Preferenceshares | Perpetualbond | Other | |||||||||||||
| I.Balanceatendoflastyear | 584,933,136 | 2,174,156,022 | 43,256,912 | 15,231,092 | 283,066,159 | 3,687,106,079 | 6,701,235,576 | 587,804,285 | 7,289,039,861 | ||||||
| Add:Changesinaccountingpolicies | |||||||||||||||
| Correctionofpriorperioderrors | |||||||||||||||
| Other | |||||||||||||||
| II.Balanceatbeginningofthisyear | 584,933,136 | 2,174,156,022 | 43,256,912 | 15,231,092 | 283,066,159 | 3,687,106,079 | 6,701,235,576 | 587,804,285 | 7,289,039,861 | ||||||
| III.Increase/decreaseincurrentperiod(decreaseindicatedwith"-") | 175,298,038 | -203,689,336 | -26,321,556 | 18,483,481 | -136,792,045 | -120,378,306 | -12,711,266 | -133,089,572 | |||||||
| (I)Totalcomprehensiveincome | 519,063,405 | 519,063,405 | 166,054,749 | 685,118,154 | |||||||||||
| (II)Capital | 175,29 | -179,477,8 | -26,321,556 | 22,141,776 | 3,075,060 | 25,216,836 | |||||||||
/
| contributedandreducedbyowners | 8,038 | 18 | ||||||||||
| 1.Ordinarysharescontributedbyowners | 175,437,963 | -175,437,963 | 0 | 3,075,060 | 3,075,060 | |||||||
| 2.Capitalcontributedbyholdersofotherequityinstruments | ||||||||||||
| 3.Amountofshare-basedpaymentrecognizedinowner'sequity | -139,925 | -4,039,855 | -26,321,556 | 22,141,776 | 22,141,776 | |||||||
| 4.Other | ||||||||||||
| (III)Profitdistribution | 18,483,481 | -655,855,450 | -637,371,969 | -167,805,727 | -805,177,696 | |||||||
| 1.Appropriationtosurplusreserve | 18,483,481 | -18,483,481 | ||||||||||
| 2.Appropriationtogeneralriskreserve | ||||||||||||
| 3.Distributiontoowners(orshareholders) | -637,371,969 | -637,371,969 | -167,805,727 | -805,177,696 | ||||||||
| 4.Other | ||||||||||||
| (IV)Internaltransferwithinowner'sequity | -24,211,518 | -24,211,518 | -14,035,348 | -38,246,866 | ||||||||
| 1.Capitalizationofcapitalreserves(orsharecapital) | ||||||||||||
| 2.Capitalizationofsurplus |
/
| reserve(orsharecapital) | |||||||||||||
| 3.Surplusreserveusedtocoverlosses | |||||||||||||
| 4.Transferofchangesindefinedbenefitplanstoretainedearnings | |||||||||||||
| 5.Transferofothercomprehensiveincometoretainedearnings | |||||||||||||
| 6.Other | -24,211,518 | -24,211,518 | -14,035,348 | -38,246,866 | |||||||||
| (V)Specialreserve | |||||||||||||
| 1.Appropriationincurrentperiod | |||||||||||||
| 2.Useincurrentperiod | |||||||||||||
| (VI)Other | |||||||||||||
| IV.Balanceatendofcurrentperiod | 760,231,174 | 1,970,466,686 | 16,935,356 | 15,231,092 | 301,549,640 | 3,550,314,034 | 6,580,857,270 | 575,093,019 | 7,155,950,289 |
/
| Item | 2023 | ||||||||||||||
| Equityattributabletoownersoftheparentcompany | Minorityinterests | Totalowner'sequity | |||||||||||||
| Paid-incapital(orcapitalstock) | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specialreserve | Surplusreserve | Generalriskreserve | Undistributedprofits | Other | Subtotal | |||||
| Preferenceshares | Perpetualbond | Other | |||||||||||||
| I.Balanceatendoflastyear | 584,902,902 | 2,637,065,588 | 42,929,952 | 36,825,587 | 218,098,201 | 3,095,991,212 | 6,529,953,538 | 567,769,870 | 7,097,723,408 | ||||||
| Add:Changesinaccountingpolicies | |||||||||||||||
| Correctionofpriorperioderrors | |||||||||||||||
| Other | |||||||||||||||
| II.Balanceatbeginningofthisyear | 584,902,902 | 2,637,065,588 | 42,929,952 | 36,825,587 | 218,098,201 | 3,095,991,212 | 6,529,953,538 | 567,769,870 | 7,097,723,408 | ||||||
| III.Increase/decreaseincurrentperiod(decreaseindicatedwith"-") | 30,234 | -462,909,566 | 326,960 | -21,594,495 | 64,967,958 | 591,114,867 | 171,282,038 | 20,034,415 | 191,316,453 | ||||||
| (I)Totalcomprehensiveincome | -2,248,600 | 929,023,131 | 926,774,531 | 194,536,229 | 1,121,310,760 | ||||||||||
| (II)Capitalcontributedandreducedbyowners | 30,234 | 16,903,009 | 326,960 | 16,606,283 | 8,548,170 | 25,154,453 | |||||||||
| 1.Ordinarysharescontributedby | 239,154 | 239,154 | |||||||||||||
/
| owners | |||||||||||||
| 2.Capitalcontributedbyholdersofotherequityinstruments | |||||||||||||
| 3.Amountofshare-basedpaymentrecognizedinowner'sequity | 30,234 | 16,903,009 | 326,960 | 16,606,283 | 16,606,283 | ||||||||
| 4.Other | 8,309,016 | 8,309,016 | |||||||||||
| (III)Profitdistribution | 63,033,369 | -355,319,570 | -292,286,201 | -93,337,687 | -385,623,888 | ||||||||
| 1.Appropriationtosurplusreserve | 63,033,369 | -63,033,369 | |||||||||||
| 2.Appropriationtogeneralriskreserve | |||||||||||||
| 3.Distributiontoowners(orshareholders) | -292,286,201 | -292,286,201 | -93,337,687 | -385,623,888 | |||||||||
| 4.Other | |||||||||||||
| (IV)Internaltransferwithinowner'sequity | -479,812,575 | -19,345,895 | 1,934,589 | 17,411,306 | -479,812,575 | -89,712,297 | -569,524,872 | ||||||
| 1.Capitalizationofcapitalreserves(orsharecapital) | |||||||||||||
| 2.Capitalizationofsurplus |
/
| reserve(orsharecapital) | |||||||||||||
| 3.Surplusreserveusedtocoverlosses | |||||||||||||
| 4.Transferofchangesindefinedbenefitplanstoretainedearnings | |||||||||||||
| 5.Transferofothercomprehensiveincometoretainedearnings | -19,345,895 | 1,934,589 | 17,411,306 | - | |||||||||
| 6.Other | -479,812,575 | -479,812,575 | -89,712,297 | -569,524,872 | |||||||||
| (V)Specialreserve | |||||||||||||
| 1.Appropriationincurrentperiod | |||||||||||||
| 2.Useincurrentperiod | |||||||||||||
| (VI)Other | |||||||||||||
| IV.Balanceatendofcurrentperiod | 584,933,136 | 2,174,156,022 | 43,256,912 | 15,231,092 | 283,066,159 | 3,687,106,079 | 6,701,235,576 | 587,804,285 | 7,289,039,861 |
PrincipaloftheCompany:XieZilongPersoninChargeofAccountingWork:ChenLishanPersoninChargeofAccountingDepartment:ShiLei
/
StatementofChangesinOwner'sEquityofParentCompany
January-December2024
Unit:YuanCurrency:RMB
| Item | 2024 | ||||||||||
| Paid-incapital(orcapitalstock) | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specialreserve | Surplusreserve | Undistributedprofits | Totalowner'sequity | |||
| Preferenceshares | Perpetualbond | Other | |||||||||
| I.Balanceatendoflastyear | 584,933,136 | 3,615,454,984 | 43,256,912 | 15,231,092 | 283,066,159 | 1,475,491,124 | 5,930,919,583 | ||||
| Add:Changesinaccountingpolicies | |||||||||||
| Correctionofpriorperioderrors | |||||||||||
| Other | |||||||||||
| II.Balanceatbeginningofthisyear | 584,933,136 | 3,615,454,984 | 43,256,912 | 15,231,092 | 283,066,159 | 1,475,491,124 | 5,930,919,583 | ||||
| III.Increase/decreaseincurrentperiod(decreaseindicatedwith"-") | 175,298,038 | -179,477,818 | -26,321,556 | 18,483,481 | -471,020,637 | -430,395,380 | |||||
| (I)Totalcomprehensiveincome | 184,834,813 | 184,834,813 | |||||||||
| (II)Capitalcontributedandreducedbyowners | 175,298,038 | -179,477,818 | -26,321,556 | 22,141,776 | |||||||
| 1.Ordinarysharescontributedbyowners | 175,437,963 | -175,437,963 | |||||||||
| 2.Capitalcontributedbyholdersofotherequityinstruments | |||||||||||
| 3.Amountofshare-basedpaymentrecognizedinowner'sequity | -139,925 | -4,039,855 | -26,321,556 | 22,141,776 | |||||||
| 4.Other | |||||||||||
| (III)Profitdistribution | 18,483,481 | -655,855,450 | -637,371,969 | ||||||||
| 1.Appropriationtosurplus | 18,483,48 | -18,483,48 | |||||||||
/
| reserve | 1 | 1 | |||||||
| 2.Distributiontoowners(orshareholders) | -637,371,969 | -637,371,969 | |||||||
| 3.Other | |||||||||
| (IV)Internaltransferwithinowner'sequity | |||||||||
| 1.Capitalizationofcapitalreserves(orsharecapital) | |||||||||
| 2.Capitalizationofsurplusreserve(orsharecapital) | |||||||||
| 3.Surplusreserveusedtocoverlosses | |||||||||
| 4.Transferofchangesindefinedbenefitplanstoretainedearnings | |||||||||
| 5.Transferofothercomprehensiveincometoretainedearnings | |||||||||
| 6.Other | |||||||||
| (V)Specialreserve | |||||||||
| 1.Appropriationincurrentperiod | |||||||||
| 2.Useincurrentperiod | |||||||||
| (VI)Other | |||||||||
| IV.Balanceatendofcurrentperiod | 760,231,174 | 3,435,977,166 | 16,935,356 | 15,231,092 | 301,549,640 | 1,004,470,487 | 5,500,524,203 |
Item
| Item | 2023 | ||||||||||
| Paid-incapital(orcapitalstock) | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specialreserve | Surplusreserve | Undistributedprofits | Totalowner'sequity | |||
| Preferenceshares | Perpetualbond | Other | |||||||||
| I.Balanceatendoflastyear | 584,902,902 | 3,598,551,975 | 42,929,952 | 36,825,587 | 218,098,201 | 1,183,065,697 | 5,578,514,410 | ||||
| Add:Changesinaccounting | |||||||||||
/
| policies | |||||||||
| Correctionofpriorperioderrors | |||||||||
| Other | |||||||||
| II.Balanceatbeginningofthisyear | 584,902,902 | 3,598,551,975 | 42,929,952 | 36,825,587 | 218,098,201 | 1,183,065,697 | 5,578,514,410 | ||
| III.Increase/decreaseincurrentperiod(decreaseindicatedwith"-") | 30,234 | 16,903,009 | 326,960 | -21,594,495 | 64,967,958 | 292,425,427 | 352,405,173 | ||
| (I)Totalcomprehensiveincome | -2,248,600 | 630,333,691 | 628,085,091 | ||||||
| (II)Capitalcontributedandreducedbyowners | 30,234 | 16,903,009 | 326,960 | 16,606,283 | |||||
| 1.Ordinarysharescontributedbyowners | |||||||||
| 2.Capitalcontributedbyholdersofotherequityinstruments | |||||||||
| 3.Amountofshare-basedpaymentrecognizedinowner'sequity | 30,234 | 16,903,009 | 326,960 | 16,606,283 | |||||
| 4.Other | |||||||||
| (III)Profitdistribution | 63,033,369 | -355,319,570 | -292,286,201 | ||||||
| 1.Appropriationtosurplusreserve | 63,033,369 | -63,033,369 | |||||||
| 2.Distributiontoowners(orshareholders) | -292,286,201 | -292,286,201 | |||||||
| 3.Other | |||||||||
| (IV)Internaltransferwithinowner'sequity | -19,345,895 | 1,934,589 | 17,411,306 | ||||||
| 1.Capitalizationofcapitalreserves(orsharecapital) | |||||||||
| 2.Capitalizationofsurplusreserve(orsharecapital) | |||||||||
| 3.Surplusreserveusedto |
/
| coverlosses | |||||||||
| 4.Transferofchangesindefinedbenefitplanstoretainedearnings | |||||||||
| 5.Transferofothercomprehensiveincometoretainedearnings | -19,345,895 | 1,934,589 | 17,411,306 | ||||||
| 6.Other | |||||||||
| (V)Specialreserve | |||||||||
| 1.Appropriationincurrentperiod | |||||||||
| 2.Useincurrentperiod | |||||||||
| (VI)Other | |||||||||
| IV.Balanceatendofcurrentperiod | 584,933,136 | 3,615,454,984 | 43,256,912 | 15,231,092 | 283,066,159 | 1,475,491,124 | 5,930,919,583 |
PrincipaloftheCompany:XieZilongPersoninChargeofAccountingWork:ChenLishanPersoninChargeofAccountingDepartment:ShiLei
/
III.CompanyBasicInformation1.CompanyProfile
√Applicable□NotApplicableLBXPharmacyChainJointStockCompany(hereinafterreferredtoas"theCompany")isajoint-stocklimitedcompanyregisteredinChangshaCity,HunanProvince,People'sRepublicofChina,establishedinOctober2001.TheCompany'sissuedRMBordinaryA-sharestockswerelistedandtradedontheShanghaiStockExchangeonApril23,2015(StockCode:603883).TheCompany'sheadquartersislocatedat808QingzhuhuRoad,KaifuDistrict,ChangshaCity,HunanProvince.ThemainbusinessscopeoftheCompanyanditssubsidiaries(hereinafterreferredtoas"theGroup")is:
Licenseditems:Pharmaceuticalretail;pharmaceuticalwholesale;foodsales;pharmaceuticalinternetinformationservices;operationofClassIIImedicaldevices;retailoftobaccoproducts;alcoholoperation;cateringservices;foodinternetsales;medicaldeviceinternetinformationservices;ClassIIvalue-addedtelecommunicationsservices;inspectionandtestingservices;lifebeautyservices;operationandutilizationofnationallykeyprotectedaquaticwildlifeandtheirproducts;salesofdisinfectionequipment;internetlivestreamingtechnicalservices;retailofpublications;maternalandchildhealthtechnicalservices;vocationalintermediaryactivities;footbathservices;veterinarydrugoperation;importandexportofpharmaceuticals;roadfreighttransport(excludingdangerousgoods).(Projectsrequiringapprovalaccordingtolawcanonlybecarriedoutafterapprovalbyrelevantdepartments.Specificbusinessprojectsaresubjecttoapprovaldocumentsorpermitsfromrelevantdepartments)Generalprojects:SalesofClassImedicaldevices;salesofClassIImedicaldevices;salesofinfantformulamilkpowderandotherinfantformulafoods;retailofpetfoodandsupplies;salesofagriculturalandsidelineproducts;purchaseandsaleoflocalChinesemedicinalmaterials(excludingChineseherbalmedicinepieces);retailofedibleagriculturalproducts;salesofgoldandsilverproducts;salesofdailynecessities;salesofsanitaryproductsanddisposablemedicalsupplies;salesofdailychemicalproducts;salesofdisinfectants(excludinghazardouschemicals);retailofcosmetics;retailofshoesandhats;retailofjewelry;salesofhairaccessories;salesofglasses(excludingcontactlenses);rehabilitationassistivedeviceadaptationservices;internetsales(excludingsalesofgoodsrequiringpermits);agencysalesofsingle-purposecommercialprepaidcards;salesagency;healthpreservationservices(non-medical);remotehealthmanagementservices;healthconsultingservices(excludingdiagnosisandtreatmentservices);conductingexclusiveinsuranceagencybusinesswithinthescopeauthorizedbyinsurancecompanies(operatingbasedonauthorization);informationconsultingservices(excludinglicensedinformationconsultingservices);informationtechnologyconsultingservices;enterprisemanagementconsulting;advertisingproduction;advertisingdesign,agency;marketingplanning;marketresearch(excludingforeign-relatedsurveys);ticketingagencyservices;conferenceandexhibitionservices;photographyandprintingservices;clinicservices;importandexportofgoods;importandexportoftechnology;importandexportagency;residentdailylifeservices;salesofspecialmedicalpurposeformulafoods;typingandcopying;generalcargowarehousingservices(excludinghazardouschemicalsandotherprojectsrequiringlicensingapproval);advertisingpublication;domestictradeagency;enterprisemanagement;wholesaleofedibleagriculturalproducts;salesoffoodadditives;salesofgiftflowers;low-temperaturewarehousing(excludinghazardouschemicalsandotherprojectsrequiringlicensingapproval);salesofmaternalandinfantproducts;traditionalChinesemedicinehealthpreservationservices(non-medical);non-residentialrealestateleasing;housingrental;patientescortservices;retailofprotectiveequipmentformedicalpersonnel;salesofdetergentsforfooduse;salesofweighinginstruments;salesofelectronicproducts;wholesaleofpetfoodandsupplies;domesticfreighttransportagency;wholesaleofcosmetics;salesofneedles,textiles,andrawmaterials;housekeepingservices;investmentactivitieswithownfunds;organizingculturalandartisticexchangeactivities;packagingservices;loadingandunloading;hospitalmanagement;socialandeconomicconsultingservices;traditionalChinesemedicineclinicservices(mustbefiledwiththecompetentauthorityoftraditionalChinesemedicinebeforeoperation);salesofdailysundries;salesofadultproducts(excludingdrugs,medicaldevices);maternalandinfantlifecare(excludingmedicalservices);amusementparkservices;businessagencyservices;enterprisememberpointsmanagementservices;takeawaydeliveryservices;primaryagriculturalproductacquisition;wholesaleofshoesandhats;salesoftoys,animation,andamusementproducts;salesofartsandcraftsandceremonialitems(excludingivoryanditsproducts);softwaredevelopment;softwaresales;laborservices(excludinglabordispatch);
/
tradebrokerage;Chineseherbalmedicineacquisition;supplychainmanagementservices;counterandboothleasing;salesofficeequipment;wholesaleofjewelry;salesofcommunicationequipment;leasingservices(excludinglicensedleasingservices);importandexportoffood;salesofsanitaryinsecticides;salesofhealthfood(pre-packaged);foodsales(onlypre-packagedfood);foodinternetsales(onlypre-packagedfood);salesofdailynecessities;retailofsportsgoodsandequipment;retailofhardwareproducts;retailofstationery;wholesaleofhardwareproducts;wholesaleofsportsgoodsandequipment;wholesaleofclothingandapparel;salesofchemicalproducts(excludinglicensedchemicalproducts);salesofmachineryandequipment;salesofhouseholdappliances;retailofclothingandapparel;repairofspecialequipment.(exceptforbusinessitemssubjecttoapprovalpursuanttothelaw,theCompanyshallcarryoutbusinessactivitiesautonomouslywithbusinesslicensepursuanttothelaw).TheCompany'slargestshareholderisLBXPharmaceuticalGroupCo.,Ltd.(hereinafterreferredtoas"PharmaceuticalGroup"),andtheactualcontrollersareMr.XieZilongandMs.ChenXiulan(couple).ThesefinancialstatementswereapprovedforissuancebytheCompany'sBoardofDirectorsresolutiononApril29,2025.IV.BasisofPreparationofFinancialStatements
1.BasisofPreparationThesefinancialstatementsarepreparedinaccordancewiththeAccountingStandardsforBusinessEnterprises-BasicStandardspromulgatedbytheMinistryofFinance,aswellassubsequentlypromulgatedandrevisedspecificaccountingstandards,interpretations,andotherrelevantregulations(collectivelyreferredtoas"theAccountingStandardsforBusinessEnterprises").Inaddition,thesefinancialstatementsalsodiscloserelevantfinancialinformationinaccordancewiththeRulesGoverningtheFormatandContentofInformationDisclosurebyCompaniesOfferingSecuritiestothePublicNo.15-GeneralProvisionsonFinancialReports.2.GoingConcern
√Applicable□NotApplicableAsatDecember31,2024,theGroup'scurrentliabilitiesexceededitscurrentassetsbyRMB1,846,027,761.TheCompanyhasmadecertainfinancingarrangements.Basedonthemanagement'spreparedcashflowforecastfortheGroupforthenext12monthsandthefinancingfacilitiesobtainedbytheGroup,themanagementestimatesthattheGroupwillhavesufficientfundstorepaymaturingdebtsandmaintainnormaloperationsinthecomingyear.Therefore,theGroup'smanagementpreparedthesefinancialstatementsonagoingconcernbasis.V.SignificantAccountingPoliciesandAccountingEstimatesNotesonSpecificAccountingPoliciesandAccountingEstimates:
√Applicable□NotApplicableTheGrouphasformulatedspecificaccountingpoliciesandaccountingestimatesbasedonitsactualproductionandoperationcharacteristics,mainlyreflectedinbaddebtprovisionsforreceivables,inventoryimpairmentprovisions,depreciationoffixedassets,amortizationofintangibleassets,amortizationoflong-termdeferredexpenses,impairmentofinvestmentproperties,andimpairmentofgoodwill,etc.
1.StatementofCompliancewiththeAccountingStandardsforBusinessEnterprisesThefinancialstatementspreparedbytheCompanycomplywiththerequirementsoftheAccountingStandardsforBusinessEnterprises,andtrulyandcompletelyreflecttheCompany'sfinancialposition,operatingresults,changesinshareholder'sequity,cashflows,andotherrelevantinformation.
/
2.AccountingPeriodTheCompany'sfiscalyearisfromJanuary1toDecember31oftheGregoriancalendar.
3.OperatingCycle
□Applicable√NotApplicable
4.FunctionalcurrencyTheCompany'sfunctionalcurrencyisRenminbi(RMB).
5.MethodsandBasisforDeterminingtheCriteriaforSignificance
√Applicable□NotApplicable
| Item | CriteriaforSignificance |
| Significantrecoveryorreversalamountofbaddebtprovisionforreceivables | Individualrecoveryorreversalamountaccountsformorethan10%ofthetotalamountofvariousreceivablesortheamountisgreaterthanRMB30million |
| Significantactualwrite-offofreceivables | Individualwrite-offamountisgreaterthanRMB10million |
| Significantprepayments | Individualprepaymentagedover1yearaccountsformorethan10%ofthetotalprepaymentamountandtheamountisgreaterthanRMB30million |
| Significantcontractliabilities | Individualcontractliabilityagedover1yearaccountsformorethan10%ofthetotalcontractliabilityamountandtheamountisgreaterthanRMB30million |
| Significantaccountspayable | Individualaccountpayableagedover1yearaccountsformorethan1%ofthetotalaccountspayableamountandtheamountisgreaterthanRMB30million |
| Significantotherpayables | Individualotherpayableagedover1yearaccountsformorethan5%ofthetotalotherpayablesamountandtheamountisgreaterthanRMB30million |
| Significantconstructioninprogress | Endingbalanceexceeds1%oftheGroup'stotalassetsorthebudgetforasingleprojectisgreaterthanRMB300million |
| Subsidiarieswithsignificantnon-controllinginterests | Subsidiary'snetassetsaccountformorethan2%oftheGroup'snetassets,orasinglesubsidiary'soperatingincomeaccountsformorethan5%oftheGroup'sconsolidatedoperatingincome |
| Significantnon-cashinvestingandfinancingactivities | Activitiesnotinvolvingcurrentperiodcashreceiptsandexpenditureswithanamountgreaterthan10%ofthecorrespondingtotalcashinfloworoutflow |
6.AccountingTreatmentMethodsforBusinessCombinationsInvolvingEnterprisesunder
CommonControlandNotunderCommonControl
√Applicable□NotApplicable
/
Businesscombinationsareclassifiedintobusinesscombinationsinvolvingenterprisesundercommoncontrolandbusinesscombinationsnotinvolvingenterprisesundercommoncontrol.Abusinesscombinationinvolvingenterprisesundercommoncontrolisabusinesscombinationinwhichallofthecombiningenterprisesareultimatelycontrolledbythesamepartyorpartiesbothbeforeandafterthecombination,andthatcontrolisnottransitory.Theassetsandliabilities(includinggoodwillformedfromtheultimatecontrollingparty'sacquisitionoftheacquiree)obtainedbythecombiningpartyinabusinesscombinationinvolvingenterprisesundercommoncontrolareaccountedforbasedontheirbookvalueintheultimatecontrollingparty'sfinancialstatementsonthecombinationdate.Thedifferencebetweenthebookvalueofthenetassetsobtainedbythecombiningpartyandthebookvalueofthecombinationconsiderationpaid(orthetotalparvalueofsharesissued)isadjustedagainstthesharepremiumincapitalreserves.Ifthesharepremiumisinsufficienttoabsorbthedifference,retainedearningsareadjusted.Abusinesscombinationnotinvolvingenterprisesundercommoncontrolisabusinesscombinationinwhichthecombiningenterprisesarenotultimatelycontrolledbythesamepartyorpartiesbeforeandafterthecombination.Inabusinesscombinationnotinvolvingenterprisesundercommoncontrol,theidentifiableassets,liabilities,andcontingentliabilitiesoftheacquireeacquiredaremeasuredatfairvalueontheacquisitiondate.Theexcessofthecostofcombinationovertheacquirer'sinterestinthefairvalueoftheidentifiablenetassetsacquiredisrecognizedasgoodwill,whichissubsequentlymeasuredatcostlessaccumulatedimpairmentlosses.Ifthecostofcombinationislessthantheacquirer'sinterestinthefairvalueoftheidentifiablenetassetsacquired,theGroupreassessesthemeasurementofthefairvalueoftheacquiree'sidentifiableassets,liabilities,andcontingentliabilitiesandthecostofcombination.Ifafterreassessment,thecostofcombinationisstilllessthantheacquirer'sinterestinthefairvalueoftheidentifiablenetassetsacquired,thedifferenceisrecognizedinprofitorlossforthecurrentperiod.
7.Criteriafordeterminingcontrolandmethodforpreparingconsolidatedfinancialstatements
√Applicable□NotApplicableThescopeofconsolidationfortheconsolidatedfinancialstatementsisdeterminedbasedoncontrol,includingthefinancialstatementsoftheCompanyandallitssubsidiaries.AsubsidiaryisanentitycontrolledbytheCompany(includingenterprises,separablepartsofinvestees,structuredentitiescontrolledbytheCompany,etc.).Aninvestorcontrolsaninvesteeifandonlyiftheinvestorpossessesallofthefollowingthreeelements:powerovertheinvestee;exposure,orrights,tovariablereturnsfromitsinvolvementwiththeinvestee;andtheabilitytouseitspowerovertheinvesteetoaffecttheamountofitsreturns.WheretheaccountingpoliciesoraccountingperiodsadoptedbysubsidiariesareinconsistentwiththoseoftheCompany,necessaryadjustmentsaremadetothesubsidiaries'financialstatementsinaccordancewiththeCompany'saccountingpoliciesandaccountingperiodwhenpreparingtheconsolidatedfinancialstatements.Allintra-groupassets,liabilities,equity,income,expenses,andcashflowsarisingfromtransactionsbetweencompanieswithintheGroupareeliminatedinfullonconsolidation.Theportionofthecurrentperiodlossattributabletominorityintereststhatexceedstheminorityinterests'shareinthebeginningbalanceofthesubsidiary'sequityisstillchargedagainstminorityinterests.Forsubsidiariesacquiredthroughabusinesscombinationnotinvolvingenterprisesundercommoncontrol,theoperatingresultsandcashflowsoftheacquireeareincludedintheconsolidatedfinancialstatementsfromthedatetheGroupobtainscontroluntilthedatetheGroupceasestocontrolthesubsidiary.Whenpreparingtheconsolidatedfinancialstatements,adjustmentsaremadetothesubsidiary'sfinancialstatementsbasedonthefairvalueoftheidentifiableassets,liabilities,andcontingentliabilitiesdeterminedattheacquisitiondate.Forsubsidiariesacquiredthroughabusinesscombinationinvolvingenterprisesundercommoncontrol,theoperatingresultsandcashflowsoftheacquireeareincludedintheconsolidatedfinancialstatements
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fromthebeginningoftheconsolidationperiod.Whenpreparingcomparativeconsolidatedfinancialstatements,relevantitemsinthepriorperiodfinancialstatementsareadjustedasifthereportingentityformedafterthecombinationhadexistedsincetheultimatecontrollingpartybegantoexercisecontrol.Ifchangesinrelevantfactsandcircumstancesleadtochangesinoneormoreoftheelementsofcontrol,theGroupreassesseswhetheritcontrolstheinvestee.Changesinminorityintereststhatdonotresultinalossofcontrolareaccountedforasequitytransactions.
8.Classificationofjointarrangementsandaccountingtreatmentforjointoperations
□Applicable√NotApplicable
9.CriteriafordeterminingcashandcashequivalentsCashcomprisescashonhandanddepositsthatcanbereadilydrawnondemandbytheGroup;cashequivalentsareshort-term,highlyliquidinvestmentsheldbytheGroupthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue.
10.Foreigncurrencytransactionsandtranslationofforeigncurrencyfinancialstatements
√Applicable□NotApplicableForeigncurrencytransactionsenteredintobytheGrouparetranslatedintothefunctionalcurrencyamounts.Foreigncurrencytransactionsaretranslatedintothefunctionalcurrencyusingthespotexchangeratesprevailingatthedatesofthetransactions.Atthebalancesheetdate,foreigncurrencymonetaryitemsaretranslatedusingthespotexchangerateatthebalancesheetdate.Exchangedifferencesarisingfromthesettlementofmonetaryitemsandfromthetranslationofmonetaryitemsaregenerallyrecognizedinprofitorlossforthecurrentperiod,exceptforthosearisingfromforeigncurrencyspecificborrowingsrelatedtotheacquisitionorconstructionofqualifyingassets,whicharetreatedinaccordancewiththeprincipleofborrowingcostcapitalization.Non-monetaryitemsdenominatedinforeigncurrenciesthataremeasuredathistoricalcostaretranslatedusingthespotexchangeratesatthedateoftheinitialrecognitionandtheirfunctionalcurrencyamountsremainunchanged.Non-monetaryitemsdenominatedinforeigncurrenciesthataremeasuredatfairvaluearetranslatedusingthespotexchangeratesatthedatewhenthefairvaluewasdetermined.Theresultingexchangedifferencesarerecognizedinprofitorlossforthecurrentperiodorothercomprehensiveincomedependingonthenatureofthenon-monetaryitem.Foreigncurrencycashflowsaretranslatedusingtheaverageexchangeratefortheperiodwhenthecashflowsoccur(unlessexchangeratefluctuationsrendertheuseofthisrateinappropriate,inwhichcasethespotexchangerateatthedateofthecashflowisused).Theeffectofexchangeratechangesoncashispresentedseparatelyinthecashflowstatementasareconciliationitem.
11.Financialinstruments
√Applicable□NotApplicableAfinancialinstrumentisacontractthatgivesrisetoafinancialassetofoneentityandafinancialliabilityorequityinstrumentofanotherentity.
(1)RecognitionandderecognitionoffinancialinstrumentsTheGrouprecognizesafinancialassetorafinancialliabilitywhenitbecomesapartytothecontractualprovisionsoftheinstrument.Afinancialasset(orpartofafinancialasset,orpartofagroupofsimilarfinancialassets)isderecognized(i.e.,removedfromthebalancesheet)whenthefollowingconditionsaremet:
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(1)Therightstoreceivecashflowsfromthefinancialassetexpire;
(2)therightstoreceivecashflowsfromthefinancialassethavebeentransferred,oranobligationhasbeenassumedundera'pass-through'arrangementtopaythecollectedcashflowsinfulltoathirdpartywithoutmaterialdelay;andeithersubstantiallyalltherisksandrewardsofownershipofthefinancialassethavebeentransferred,orsubstantiallyalltherisksandrewardsofownershipofthefinancialassethavebeenneithertransferrednorretained,butcontrolofthefinancialassethasbeenrelinquished.Afinancialliabilityisderecognizedwhentheobligationspecifiedinthecontractisdischarged,cancelledorexpires.Ifanexistingfinancialliabilityisreplacedbyanotherfinancialliabilityfromthesamelenderonsubstantiallydifferentterms,orthetermsofanexistingliabilityaresubstantiallymodified,suchreplacementormodificationistreatedasthederecognitionoftheoriginalliabilityandtherecognitionofanewliability,andthedifferenceisrecognizedinprofitorloss.Financialassetspurchasedorsoldonaregularwaybasisarerecognizedandderecognizedusingtradedateaccounting.Regularwaypurchasesorsalesoffinancialassetsrefertothepurchaseorsaleoffinancialassetsunderacontractwhosetermsrequiredeliveryoftheassetwithinthetimeframeestablishedgenerallybyregulationorconventioninthemarketplaceconcerned.TradedateisthedateonwhichtheGroupcommitstopurchaseorsellthefinancialasset.
(2)ClassificationandmeasurementoffinancialassetsAtinitialrecognition,theGroup'sfinancialassetsareclassifiedbasedontheGroup'sbusinessmodelformanagingthefinancialassetsandthecontractualcashflowcharacteristicsofthefinancialassetsinto:
financialassetsmeasuredatamortizedcost,financialassetsmeasuredatfairvaluethroughothercomprehensiveincome(FVOCI),andfinancialassetsmeasuredatfairvaluethroughprofitorloss(FVTPL).AllrelevantfinancialassetsaffectedarereclassifiedonlywhentheGroupchangesitsbusinessmodelformanagingfinancialassets.Financialassetsaremeasuredatfairvalueatinitialrecognition.However,accountsreceivableornotesreceivablearisingfromthesaleofgoodsorprovisionofservicesthatdonotcontainasignificantfinancingcomponentordonotconsiderfinancingcomponentsofnomorethanoneyearareinitiallymeasuredatthetransactionprice.ForfinancialassetsatFVTPL,relatedtransactioncostsaredirectlyrecognizedinprofitorloss.Transactioncostsrelatedtoothercategoriesoffinancialassetsareincludedintheirinitialrecognitionamount.Subsequentmeasurementoffinancialassetsdependsontheirclassification:
DebtinstrumentinvestmentsmeasuredatamortizedcostAfinancialassetisclassifiedasmeasuredatamortizedcostifbothofthefollowingconditionsaremet:
thebusinessmodelformanagingthefinancialassetistocollectcontractualcashflows;thecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding.Suchfinancialassetsrecognizeinterestincomeusingtheeffectiveinterestmethod.Gainsorlossesarisingfromderecognition,modification,orimpairmentarerecognizedinprofitorloss.DebtinstrumentinvestmentsmeasuredatFVOCIAfinancialassetisclassifiedasmeasuredatFVOCIifbothofthefollowingconditionsaremet:theGroup'sbusinessmodelformanagingthefinancialassetisachievedbybothcollectingcontractualcashflowsandsellingthefinancialasset;thecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding.Suchfinancialassetsrecognizeinterestincomeusingtheeffectiveinterestmethod.Exceptforinterestincome,impairmentlosses,andexchangedifferencesrecognizedinprofitorloss,otherchangesinfairvaluearerecognizedinothercomprehensiveincome.Uponderecognitionofthefinancialasset,thecumulativegainorlosspreviouslyrecognizedinothercomprehensiveincomeisreclassifiedfromothercomprehensiveincometoprofitorloss.
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EquityinstrumentinvestmentsmeasuredatFVOCITheGroupirrevocablyelectstodesignatesomenon-tradingequityinstrumentinvestmentsasfinancialassetsmeasuredatFVOCI.Onlyrelevantdividendincome(excludingdividendincomeclearlyrecoveredaspartoftheinvestmentcost)isrecognizedinprofitorloss.Subsequentchangesinfairvaluearerecognizedinothercomprehensiveincome,andnoimpairmentprovisionisrequired.Uponderecognitionofthefinancialasset,thecumulativegainorlosspreviouslyrecognizedinothercomprehensiveincomeisreclassifiedfromothercomprehensiveincometoretainedearnings.FinancialassetsatFVTPLFinancialassetsotherthanthosemeasuredatamortizedcostandFVOCImentionedaboveareclassifiedasfinancialassetsatFVTPL.Forsuchfinancialassets,subsequentmeasurementisatfairvalue,andallchangesinfairvaluearerecognizedinprofitorloss.
(3)ClassificationandmeasurementoffinancialliabilitiesAtinitialrecognition,theGroup'sfinancialliabilitiesareclassifiedas:financialliabilitiesatFVTPLandfinancialliabilitiesmeasuredatamortizedcost.ForfinancialliabilitiesatFVTPL,relatedtransactioncostsaredirectlyrecognizedinprofitorloss.Transactioncostsrelatedtofinancialliabilitiesmeasuredatamortizedcostareincludedintheirinitialrecognitionamount.Subsequentmeasurementoffinancialliabilitiesdependsontheirclassification:
FinancialassetsatFVTPLFinancialliabilitiesatFVTPL,includingtradingfinancialliabilitiesandthosedesignatedatinitialrecognitionasatFVTPL,aresubsequentlymeasuredatfairvalue,withallchangesinfairvaluerecognizedinprofitorloss.FinancialliabilitiesmeasuredatamortizedcostForsuchfinancialliabilities,subsequentmeasurementisatamortizedcostusingtheeffectiveinterestmethod.
(4)ImpairmentoffinancialinstrumentsMethodfordeterminingECLandaccountingtreatmentmethodTheGroupassessesimpairmentandrecognizesalossallowanceforfinancialassetsmeasuredatamortizedcostbasedonexpectedcreditlosses(ECL).Forreceivablesthatdonotcontainasignificantfinancingcomponent,theGroupappliesthesimplifiedmeasurementapproachandmeasuresthelossallowanceatanamountequaltolifetimeECL.Forfinancialassetsotherthanthoseusingthesimplifiedmeasurementapproachmentionedabove,theGroupassessesateachbalancesheetdatewhethertheircreditriskhasincreasedsignificantlysinceinitialrecognition.Ifthecreditriskhasnotincreasedsignificantlysinceinitialrecognition(Stage1),theGroupmeasuresthelossallowanceatanamountequalto12-monthECLandcalculatesinterestincomebasedonthebookbalanceandeffectiveinterestrate.Ifthecreditriskhasincreasedsignificantlysinceinitialrecognitionbutisnotyetcredit-impaired(Stage2),theGroupmeasuresthelossallowanceatanamountequaltolifetimeECLandcalculatesinterestincomebasedonthebookbalanceandeffectiveinterestrate.Ifcreditimpairmenthasoccurredafterinitialrecognition(Stage3),theGroupmeasuresthelossallowanceatanamountequaltolifetimeECLandcalculatesinterestincomebasedonamortizedcostandeffectiveinterestrate.Forfinancialinstrumentsthathavelowcreditriskatthebalancesheetdate,theGroupassumesthattheircreditriskhasnotincreasedsignificantlysinceinitialrecognition.DisclosuresregardingtheGroup'scriteriafordeterminingsignificantincreaseincreditriskandthedefinitionofcredit-impairedassetscanbefoundinSectionXFinancialReport,XII.RisksRelatedtoFinancialInstruments,Point1.RisksofFinancialInstruments.
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ThemethodusedbytheGrouptomeasuretheECLoffinancialinstrumentsreflectsfactorsincluding:anunbiasedprobability-weightedaverageamountdeterminedbyevaluatingarangeofpossibleoutcomes;thetimevalueofmoney;andreasonableandsupportableinformationthatisavailablewithoutunduecostoreffortatthereportingdateaboutpastevents,currentconditions,andforecastsoffutureeconomicconditions.PortfoliocategoriesanddeterminationbasisforprovidingimpairmentprovisionsbasedoncreditriskcharacteristicsTheGroupconsidersthecreditriskcharacteristicsofdifferentcustomers.Basedoncommonriskcharacteristicsandagingportfolio,itassessestheECLoffinancialassetsmeasuredatamortizedcostanddebtinstrumentinvestmentsmeasuredatFVOCI.TheportfoliosdividedbytheGroupare:Medicalinsurancereceivablesportfolio,Enterprisetradereceivablesportfolio,Hospitalandhealthcentertradereceivablesandotherportfolios.AgingcalculationmethodforconfirmingcreditriskcharacteristicportfoliobasedonagingTheGroupdeterminestheagingbasedontheinvoicedate.JudgmentcriteriaforindividuallyprovidingbaddebtimpairmentprovisionsonanindividualbasisIfthecreditriskcharacteristicsofacounterpartyaresignificantlydifferentfromothercounterpartiesintheportfolio,alossprovisionisprovidedindividuallyforthereceivablesduefromthatcounterparty.Write-offofimpairmentprovisionsWhentheGroupnolongerreasonablyexpectstorecoverallorpartofthecontractualcashflowsofafinancialasset,theGroupdirectlywritesdownthebookbalanceofthatfinancialasset.
(5)OffsettingoffinancialinstrumentsFinancialassetsandfinancialliabilitiesarepresentednetinthebalancesheetif,andonlyif,thefollowingconditionsaremet:thereisalegallyenforceablerighttosetofftherecognizedamounts,andthatlegalrightiscurrentlyenforceable;thereisanintentiontosettleonanetbasis,ortorealizetheassetandsettletheliabilitysimultaneously.
(6)FinancialguaranteecontractsAfinancialguaranteecontractisacontractthatrequirestheissuertomakespecifiedpaymentstoreimbursetheholderforalossitincursbecauseaspecifieddebtorfailstomakepaymentwhendueinaccordancewiththeoriginalormodifiedtermsofadebtinstrument.Financialguaranteecontractsareinitiallymeasuredatfairvalue.ExceptforfinancialguaranteecontractsdesignatedasfinancialliabilitiesatFVTPL,otherfinancialguaranteecontractsaresubsequentlymeasuredatthehigheroftheamountoftheECLprovisiondeterminedatthebalancesheetdateandtheinitialrecognitionamountlessthecumulativeamortizationdeterminedinaccordancewithrevenuerecognitionprinciples.
(7)TransferoffinancialassetsTheGroupderecognizesafinancialassetifittransferssubstantiallyalltherisksandrewardsofownershipofthefinancialassettothetransferee;ifitretainssubstantiallyalltherisksandrewardsofownershipofthefinancialasset,itdoesnotderecognizethefinancialasset.IftheGroupneithertransfersnorretainssubstantiallyalltherisksandrewardsofownershipofthefinancialasset,itaccountsforthesituationasfollows:ifitrelinquishescontroloverthefinancialasset,itderecognizesthefinancialassetandrecognizestheassetsandliabilitiescreated;ifitdoesnotrelinquish
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controloverthefinancialasset,itrecognizestherelatedfinancialassettotheextentofitscontinuinginvolvementinthetransferredfinancialassetandrecognizestheassociatedliability.Ifcontinuinginvolvementtakestheformofguaranteeingthetransferredfinancialasset,thecontinuinginvolvementassetisrecognizedatthelowerofthebookvalueofthefinancialassetandtheamountofthefinancialguarantee.Theamountofthefinancialguaranteeisthemaximumamountoftheconsiderationreceivedthatcouldberequiredtoberepaid.
12.Notesreceivable
√Applicable□NotApplicablePortfoliocategoriesanddeterminationbasisforprovidingbaddebtprovisionsbasedoncreditriskcharacteristics
√Applicable□NotApplicableSeeSectionXFinancialReport,V.SignificantAccountingPoliciesandAccountingEstimates,Point11FinancialInstruments-ImpairmentofFinancialInstruments.Agingcalculationmethodforconfirmingcreditriskcharacteristicportfoliobasedonaging
√Applicable□NotApplicableSeeSectionXFinancialReport,V.SignificantAccountingPoliciesandAccountingEstimates,Point11FinancialInstruments-ImpairmentofFinancialInstruments.Judgmentcriteriaforindividuallyprovidingbaddebtprovisionsonanindividualbasis
√Applicable□NotApplicableSeeSectionXFinancialReport,V.SignificantAccountingPoliciesandAccountingEstimates,Point11FinancialInstruments-ImpairmentofFinancialInstruments.
13.Accountsreceivable
√Applicable□NotApplicablePortfoliocategoriesanddeterminationbasisforprovidingbaddebtprovisionsbasedoncreditriskcharacteristics
√Applicable□NotApplicableSeeSectionXFinancialReport,V.SignificantAccountingPoliciesandAccountingEstimates,Point11FinancialInstruments-ImpairmentofFinancialInstruments.Agingcalculationmethodforconfirmingcreditriskcharacteristicportfoliobasedonaging
√Applicable□NotApplicableSeeSectionXFinancialReport,V.SignificantAccountingPoliciesandAccountingEstimates,Point11FinancialInstruments-ImpairmentofFinancialInstruments.Recognitioncriteriaforindividuallyprovidingbaddebtprovisionsonanindividualbasis
√Applicable□NotApplicableSeeSectionXFinancialReport,V.SignificantAccountingPoliciesandAccountingEstimates,Point11FinancialInstruments-ImpairmentofFinancialInstruments.
14.Receivablesfinancing
√Applicable□NotApplicablePortfoliocategoriesanddeterminationbasisforprovidingbaddebtprovisionsbasedoncreditriskcharacteristics
√Applicable□NotApplicableSeeSectionXFinancialReport,V.SignificantAccountingPoliciesandAccountingEstimates,Point11FinancialInstruments-ImpairmentofFinancialInstruments.Agingcalculationmethodforconfirmingcreditriskcharacteristicportfoliobasedonaging
√Applicable□NotApplicable
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SeeSectionXFinancialReport,V.SignificantAccountingPoliciesandAccountingEstimates,Point11FinancialInstruments-ImpairmentofFinancialInstruments.Judgmentcriteriaforindividuallyprovidingbaddebtprovisionsonanindividualbasis
√Applicable□NotApplicableSeeSectionXFinancialReport,V.SignificantAccountingPoliciesandAccountingEstimates,Point11FinancialInstruments-ImpairmentofFinancialInstruments.
15.Otherreceivables
√Applicable□NotApplicablePortfoliocategoriesanddeterminationbasisforprovidingbaddebtprovisionsbasedoncreditriskcharacteristics
√Applicable□NotApplicableSeeSectionXFinancialReport,V.SignificantAccountingPoliciesandAccountingEstimates,Point11FinancialInstruments-ImpairmentofFinancialInstruments.Agingcalculationmethodforconfirmingcreditriskcharacteristicportfoliobasedonaging
√Applicable□NotApplicableSeeSectionXFinancialReport,V.SignificantAccountingPoliciesandAccountingEstimates,Point11FinancialInstruments-ImpairmentofFinancialInstruments.Judgmentcriteriaforindividuallyprovidingbaddebtprovisionsonanindividualbasis
√Applicable□NotApplicableSeeSectionXFinancialReport,V.SignificantAccountingPoliciesandAccountingEstimates,Point11FinancialInstruments-ImpairmentofFinancialInstruments.
16.Inventories
√Applicable□NotApplicableInventorycategory,costingmethodforissuedinventory,inventorysystem,amortizationmethodforlow-valueconsumablesandpackagingmaterials
√Applicable□NotApplicableInventoriesincludegoodsinstock,finishedgoods,rawmaterials,low-valueconsumables,andworkinprogress,etc.Inventoriesareinitiallymeasuredatcost.Thecostofinventoriesincludespurchasecost,processingcost,andothercosts.Thecostofinventoriesissuediscalculatedusingtheweightedaveragemethod.Thecostoffinishedgoodsandworkinprogressincludesrawmaterials,directlabor,andmanufacturingoverheadallocatedsystematicallybasedonnormalproductioncapacity.Theperpetualinventorysystemisusedforinventoryaccounting.Low-valueconsumablesareamortizedusingtheone-offwrite-offmethod.Recognitioncriteriaandprovisionmethodforinventoryimpairmentprovisions
√Applicable□NotApplicableAtthebalancesheetdate,inventoriesaremeasuredatthelowerofcostandnetrealizablevalue.Ifcostexceedsnetrealizablevalue,aprovisionforinventoryimpairmentisrecognizedinprofitorloss.Netrealizablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcostsofcompletionandtheestimatedcostsnecessarytomakethesaleandrelatedtaxes.Whenprovidingforinventorywrite-down,rawmaterialsareprovidedforbycategory,whilefinishedgoodsandgoodsinstockareprovidedforonanindividualinventoryitembasis.Inventoriesthatrelatetothesameproductseriesproducedandsoldinthesamegeographicalarea,havethesameorsimilarendusesorpurposes,andcannotbepracticablyevaluatedseparatelyfromotheritemsinthatproductseries,aregroupedtogetherwhenprovidingforinventorywrite-down.
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Portfoliocategoriesanddeterminationbasisforprovidinginventoryimpairmentprovisionsbyportfolio,anddeterminationbasisfornetrealizablevalueofdifferentinventorycategories
□Applicable√NotApplicableCalculationmethodanddeterminationbasisforthenetrealizablevalueofeachagingportfoliobasedoninventoryagingconfirmation
□Applicable√NotApplicable
17.Contractassets
□Applicable√NotApplicable
18.Non-currentassetsordisposalgroupsheldforsale
□Applicable√NotApplicableRecognitioncriteriaandaccountingtreatmentmethodforclassifyingnon-currentassetsordisposalgroupsasheldforsale
□Applicable√NotApplicableRecognitioncriteriaandpresentationmethodfordiscontinuedoperations
□Applicable√NotApplicable
19.Long-termequityinvestments
√Applicable□NotApplicableLong-termequityinvestmentsincludeequityinvestmentsinsubsidiariesandassociates.Long-termequityinvestmentsareinitiallymeasuredatinitialinvestmentcostuponacquisition.Forlong-termequityinvestmentsacquiredthroughabusinesscombinationinvolvingenterprisesundercommoncontrol,theinitialinvestmentcostistheshareoftheacquiree'sowner'sequityintheultimatecontrollingparty'sconsolidatedfinancialstatementsatthecombinationdatebasedonbookvalue;thedifferencebetweentheinitialinvestmentcostandthebookvalueofthecombinationconsiderationisadjustedagainstcapitalreserves(ifinsufficient,retainedearningsareadjusted).Forlong-termequityinvestmentsacquiredthroughabusinesscombinationnotinvolvingenterprisesundercommoncontrol,theinitialinvestmentcostisthecostofcombination(forbusinesscombinationsnotinvolvingenterprisesundercommoncontrolachievedinstagesthroughmultipletransactions,theinitialinvestmentcostisthesumofthebookvalueoftheequityinvestmentintheacquireeheldbeforetheacquisitiondateandthecostoftheadditionalinvestmentontheacquisitiondate).Forlong-termequityinvestmentsacquiredbymeansotherthanbusinesscombination,theinitialinvestmentcostisdeterminedasfollows:ifacquiredbycashpayment,theinitialinvestmentcostistheactualpurchasepricepaidanddirectlyrelatedexpenses,taxes,andothernecessaryexpendituresincurredtoacquirethelong-termequityinvestment;ifacquiredbyissuingequitysecurities,theinitialinvestmentcostisthefairvalueoftheequitysecuritiesissued.Long-termequityinvestmentsoverwhichtheCompanycanexercisecontrolovertheinvesteeareaccountedforusingthecostmethodintheCompany'sseparatefinancialstatements.Controlreferstohavingpowerovertheinvestee,exposure,orrights,tovariablereturnsfromitsinvolvementwiththeinvestee,andtheabilitytouseitspowerovertheinvesteetoaffecttheamountofthosereturns.Underthecostmethod,long-termequityinvestmentsaremeasuredatinitialinvestmentcost.Thecostoflong-termequityinvestmentsisadjustedforadditionalinvestmentsordisposals.Cashdividendsorprofitsdeclaredbytheinvesteearerecognizedasinvestmentincomeforthecurrentperiod.Long-termequityinvestmentswheretheGrouphassignificantinfluenceovertheinvesteeareaccountedforusingtheequitymethod.Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvestee,butisnotcontrolorjointcontroloverthosepolicies.
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Undertheequitymethod,iftheinitialinvestmentcostofalong-termequityinvestmentexceedstheinvestor'sshareofthefairvalueoftheinvestee'sidentifiablenetassetsatthetimeofinvestment,theexcessisincludedintheinitialinvestmentcostofthelong-termequityinvestment;iftheinitialinvestmentcostislessthantheinvestor'sshareofthefairvalueoftheinvestee'sidentifiablenetassets,thedifferenceisrecognizedinprofitorlossforthecurrentperiod,andthecostofthelong-termequityinvestmentisadjustedaccordingly.Undertheequitymethod,afteracquiringthelong-termequityinvestment,investmentincomeorlossandothercomprehensiveincomearerecognizedbasedontheshareofthenetprofitorlossandothercomprehensiveincomerealizedbytheinvesteethatshouldbeenjoyedorshared,andthebookvalueofthelong-termequityinvestmentisadjustedaccordingly.Whenrecognizingtheshareoftheinvestee'snetprofitorloss,itisconfirmedafteradjustingtheinvestee'snetprofitbasedonthefairvalueoftheinvestee'sidentifiableassets,etc.,atthetimeofinvestment,inaccordancewiththeGroup'saccountingpoliciesandaccountingperiod,andaftereliminatingtheportionofunrealizedintra-grouptransactiongainsorlossesattributabletotheinvestoraccordingtotheattributableproportion(however,iftheintra-grouptransactionlossisanassetimpairmentloss,itshouldberecognizedinfull),unlesstheassetsinvestedorsoldconstituteabusiness.Theportionattributablecalculatedbasedontheprofitsorcashdividendsdeclaredbytheinvesteereducesthebookvalueofthelong-termequityinvestmentaccordingly.TheGrouprecognizesthenetlossincurredbytheinvesteetotheextentthatthebookvalueofthelong-termequityinvestmentandotherlong-termequityintereststhatsubstantiallyformpartofthenetinvestmentintheinvesteearereducedtozero,unlesstheGrouphasobligationstoassumeadditionallosses.Forotherchangesinshareholder'sequityoftheinvesteeotherthannetprofitorloss,othercomprehensiveincome,andprofitdistribution,thebookvalueofthelong-termequityinvestmentisadjustedandincludedinshareholder'sequity.
20.Investmentproperties
(1).Ifthecostmeasurementmodelisadopted:
DepreciationoramortizationmethodInvestmentpropertyispropertyheldtoearnrentalsorforcapitalappreciationorboth.Investmentpropertyisinitiallymeasuredatcost.Subsequentexpendituresrelatedtoinvestmentpropertyareincludedinthecostoftheinvestmentpropertyifitisprobablethattheeconomicbenefitsassociatedwiththeassetwillflowtotheentityanditscostcanbemeasuredreliably.Otherwise,theyarerecognizedinprofitorlosswhenincurred.TheGroupusesthecostmodelforsubsequentmeasurementofinvestmentpropertyandappliesthesamedepreciationoramortizationmethodsasforfixedassetsandintangibleassets.Depreciationoramortizationiscalculatedforbuildingsandlanduserightsbasedontheirestimatedusefullivesandresidualvaluerates.Whentheuseofaninvestmentpropertychangestoowner-occupied,theGroupreclassifiestheinvestmentpropertytofixedassetsorintangibleassetsfromthedateofchange.Whentheuseofanowner-occupiedpropertychangestoearnrentalsorforcapitalappreciation,theGroupreclassifiesthefixedassettoinvestmentpropertyfromthedateofchange.Uponconversion,thebookvaluebeforeconversionisusedasthecarryingamountafterconversion.Ifthereareindicationsatthebalancesheetdatethataninvestmentpropertyisimpaired,acorrespondingimpairmentprovisionisrecognizedforthedifferencebetweenthebookvalueandtherecoverableamount.Aninvestmentpropertyisderecognizedwhenitisdisposedof,orpermanentlywithdrawnfromuseandnofutureeconomicbenefitsareexpectedfromitsdisposal.Thedisposalproceedsfromthesale,transfer,retirementordamageofaninvestmentproperty,netofitsbookvalueandrelatedtaxesandfees,arerecognizedinprofitorlossforthecurrentperiod.
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21.Fixedassets
(1).Recognitionconditions
√Applicable□NotApplicableFixedassetsarerecognizedonlywhenitisprobablethateconomicbenefitsassociatedwiththeassetwillflowtotheGroupandthecostoftheassetcanbemeasuredreliably.Subsequentexpendituresrelatedtofixedassetsthatmeettherecognitioncriteriaareincludedinthecostofthefixedasset,andthebookvalueofthereplacedpartisderecognized;otherwise,theyarerecognizedinprofitorlossforthecurrentperiodorthecostoftherelatedassetaccordingtothebeneficiaryobjectwhenincurred.Fixedassetsareinitiallymeasuredatcost.Thecostofacquiringfixedassetsincludesthepurchaseprice,relatedtaxesandfees,andotherexpendituresdirectlyattributabletobringingtheassettoitsintendedusecondition.Depreciationoffixedassetsiscalculatedusingthestraight-linemethod.Theusefullives,estimatedresidualvaluerates,andannualdepreciationratesforvarioustypesoffixedassetsareasfollows:
(2).Depreciationmethod
√Applicable□NotApplicable
| Category | Depreciationmethod | Depreciationperiod(years) | Residualvaluerate | Annualdepreciationrate |
| Buildingandconstruction | Straight-linemethod | 20-50years | 5% | 1.90％-4.75％ |
| Machineryandequipment | Straight-linemethod | 10 | 5% | 9.50% |
| Transportationvehicles | Straight-linemethod | 5 | 5% | 19.00% |
| Electronicandofficeequipment | Straight-linemethod | 5 | 5% | 19.00% |
22.Constructioninprogress
√Applicable□NotApplicableThecostofconstructioninprogressisdeterminedbasedonactualprojectexpenditures,includingallnecessaryprojectexpendituresincurredduringtheconstructionperiod,borrowingcostseligibleforcapitalizationbeforetheprojectreachesitsintendedusecondition,andotherrelatedexpenses.Constructioninprogressistransferredtofixedassets,intangibleassets,andothernon-currentassetswhenitreachesitsintendeduseconditionbasedonthefollowingstandards:
| Criteriaforcapitalization | |
| Buildingandconstruction | Earlierofactualcommencementofuse/completionacceptance |
| Machinery,equipment,andothers | Earlierofactualcommencementofuse/completionofinstallationacceptance |
23.Borrowingcosts
√Applicable□NotApplicableBorrowingcoststhataredirectlyattributabletotheacquisition,constructionorproductionofaqualifyingassetarecapitalized;otherborrowingcostsarerecognizedinprofitorlossforthecurrentperiod.
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Capitalizationofborrowingcostscommenceswhencapitalexpendituresandborrowingcostshavebeenincurred,andtheactivitiesnecessarytopreparetheassetforitsintendeduseorsaleareinprogress.Capitalizationofborrowingcostsceaseswhenthequalifyingassetisreadyforitsintendeduseorsale.Borrowingcostsincurredthereafterarerecognizedinprofitorlossforthecurrentperiod.Duringthecapitalizationperiod,theamountofinterestcapitalizedforeachaccountingperiodisdeterminedasfollows:forspecificborrowings,theamountisdeterminedbytheactualinterestexpenseincurredduringtheperiod,lessanytemporarydepositinterestincomeorinvestmentincome.Forgeneralborrowingsutilized,theamountisdeterminedbymultiplyingtheweightedaverageofassetexpendituresexceedingthespecificborrowingsbytheweightedaverageinterestrateofthegeneralborrowingsutilized.Iftheacquisition,constructionorproductionofaqualifyingassetisinterruptedabnormallyforreasonsotherthantheproceduresnecessarytopreparetheassetforitsintendeduseorsale,andtheinterruptionperiodexceeds3consecutivemonths,thecapitalizationofborrowingcostsissuspended.Borrowingcostsincurredduringtheinterruptionperiodarerecognizedasexpensesinprofitorlossforthecurrentperiod,untiltheacquisition,constructionorproductionactivitiesresume.
24.Biologicalassets
□Applicable√NotApplicable
25.Oilandgasassets
□Applicable√NotApplicable
26.Intangibleassets
(1).Usefullifeanditsdeterminationbasis,estimationsituation,amortizationmethodorreviewprocedure
√Applicable□NotApplicableTrademarkrightsaretreatedasintangibleassetswithindefiniteusefullives.Suchintangibleassetsarenotamortized.Regardlessofwhetherthereareindicationsofimpairment,theyaretestedforimpairmentatleastannually;theirusefullivesarereviewedineachaccountingperiod.Ifthereisevidencethattheusefullifeisfinite,theyareaccountedforaccordingtothepolicyforintangibleassetswithfiniteusefullives.Otherintangibleassetsareamortizedusingthestraight-linemethodovertheirusefullives.Theirusefullivesareasfollows:
| Usefullife | Determinationbasis | |
| Landuserights | 40-50years | Termoflanduseright |
| Softwareandpatentrights,others | 5-10years | Shorterofpatentrightterm/estimatedusefullife |
(2).ScopeofR&Dexpenditurecapitalizationandrelatedaccountingtreatmentmethods
√Applicable□NotApplicableTheGroupdistinguishesexpendituresoninternalresearchanddevelopmentprojectsintoresearchphaseexpendituresanddevelopmentphaseexpenditures.Expendituresintheresearchphasearerecognizedinprofitorlosswhenincurred.Expendituresinthedevelopmentphasearecapitalizedonlyifallthefollowingconditionsaremet:itistechnicallyfeasibletocompletetheintangibleassetsothatitwillbeavailableforuseorsale;thereisanintentiontocompletetheintangibleassetanduseorsellit;thewaytheintangibleassetwillgenerateeconomicbenefits,includingdemonstratingtheexistenceofamarketfortheoutputoftheintangibleassetortheintangibleassetitself,or,ifitistobeusedinternally,the
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usefulnessoftheintangibleasset;thereareadequatetechnical,financialandotherresourcestocompletethedevelopmentandtheabilitytouseorselltheintangibleasset;theexpenditureattributabletotheintangibleassetduringitsdevelopmentphasecanbemeasuredreliably.Developmentexpendituresthatdonotmeettheaboveconditionsarerecognizedinprofitorlosswhenincurred.
27.Impairmentoflong-termassets
√Applicable□NotApplicableForimpairmentofassetsotherthaninventories,deferredincometax,andfinancialassets,thefollowingmethodisused:atthebalancesheetdate,assesswhetherthereareindicationsthatanassetmaybeimpaired.Ifimpairmentindicationsexist,theGroupestimatesitsrecoverableamountandconductsanimpairmenttest.Forgoodwillarisingfrombusinesscombinations,intangibleassetswithindefiniteusefullives,andintangibleassetsnotyetreadyforuse,regardlessofwhetherimpairmentindicationsexist,animpairmenttestisconductedatleastattheendofeachyear.Therecoverableamountisdeterminedasthehigheroftheasset'sfairvaluelesscoststosellandthepresentvalueoftheestimatedfuturecashflowsoftheasset.TheGroupestimatestherecoverableamountonanindividualassetbasis;ifitisdifficulttoestimatetherecoverableamountofanindividualasset,therecoverableamountoftheCGUtowhichtheassetbelongsisdetermined.TheidentificationofaCGUisbasedonwhetherthemaincashinflowsgeneratedbytheCGUareindependentofthecashinflowsfromotherassetsorCGUs.WhentherecoverableamountofanassetorCGUislowerthanitsbookvalue,theGroupwritesdownitsbookvaluetotherecoverableamount.Thewrite-downamountisrecognizedinprofitorlossforthecurrentperiod,andacorrespondingassetimpairmentprovisionisrecognized.Forgoodwillimpairmenttesting,thebookvalueofgoodwillisallocatedtotherelevantCGUsorgroupsofCGUsfromtheacquisitiondateusingareasonablemethod.TherelevantCGUsorgroupsofCGUsarethoseCGUsorgroupsofCGUsthatareexpectedtobenefitfromthesynergiesofthebusinesscombinationandarenotlargerthantheoperatingsegmentsdeterminedbytheGroup.ComparethebookvalueoftheCGUorgroupofCGUscontaininggoodwillwithitsrecoverableamount.Iftherecoverableamountislowerthanthebookvalue,theimpairmentlossamountfirstreducesthebookvalueofgoodwillallocatedtotheCGUorgroupofCGUs,andthenreducesthebookvalueofotherassetsintheCGUorgroupofCGUsproportionallybasedonthebookvalueofeachassetotherthangoodwill.Oncetheaboveassetimpairmentlossisrecognized,itisnotreversedinsubsequentaccountingperiods.
28.Long-termdeferredexpenses
√Applicable□NotApplicableLong-termdeferredexpensesincludeimprovementstoleasedfixedassetsunderoperatingleasesandotherexpensesalreadyincurredbuttobebornebythecurrentandfutureperiods,withanamortizationperiodexceedingoneyear.Theyarerecordedattheactualamountincurredandamortizedusingthestraight-linemethodoverthebenefitperiodorthestipulatedperiod.Ifalong-termdeferredexpenseitemcannotbenefitfutureaccountingperiods,theunamortizedbalanceoftheitemisfullytransferredtoprofitorlossforthecurrentperiod.
29.Contractliabilities
√Applicable□NotApplicableTheGrouppresentscontractassetsorcontractliabilitiesinthebalancesheetbasedontherelationshipbetweenperformanceobligationsfulfilledandcustomerpayments.TheGrouppresentscontractassetsandcontractliabilitiesunderthesamecontractonanetbasis.
(1)Contractliabilities
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AnobligationtotransfergoodsorservicestoacustomerforwhichtheGrouphasreceivedconsiderationfromthecustomerorhasanunconditionalrighttoreceiveconsiderationbeforetransferringthegoodsorservicesisrecognizedasacontractliability.
30.EmployeeCompensation
(1).Accountingtreatmentmethodforshort-termcompensation
√Applicable□NotApplicableDuringtheaccountingperiodinwhichtheemployeeprovidesservices,theactuallyincurredshort-termcompensationarerecognizedasaliabilityandincludedinprofitorlossforthecurrentperiodorthecostofrelatedassets.
(2).Accountingtreatmentmethodforpost-employmentbenefits
√Applicable□NotApplicableTheGroup'semployeesparticipateinpensioninsuranceandunemploymentinsurancemanagedbythelocalgovernment.Correspondingexpendituresareincludedinthecostofrelatedassetsorprofitorlossforthecurrentperiodwhenincurred.
(3).Accountingtreatmentmethodforterminationbenefits
√Applicable□NotApplicableIftheGroupprovidesterminationbenefitstoemployees,theemployeebenefitliabilityarisingfromterminationbenefitsisrecognizedandincludedinprofitorlossforthecurrentperiodattheearlierofthefollowingdates:whentheenterprisecannotunilaterallywithdrawtheterminationbenefitsprovidedduetotheterminationofemploymentrelationshipplanorredundancyproposal;whentheenterpriserecognizescostsorexpensesrelatedtorestructuringinvolvingthepaymentofterminationbenefits.
(4).Accountingtreatmentmethodforotherlong-termemployeebenefits
□Applicable√NotApplicable
31.Provisions
√Applicable□NotApplicableExceptforcontingentconsiderationandcontingentliabilitiesassumedinabusinesscombinationnotinvolvingenterprisesundercommoncontrol,anobligationrelatedtoacontingenteventisrecognizedbytheGroupasaprovisionifitisapresentobligationoftheGroup,itisprobablethatanoutflowofeconomicbenefitswillberequiredtosettletheobligation,andtheamountcanbemeasuredreliably.Provisionsareinitiallymeasuredatthebestestimateoftheexpenditurerequiredtosettletherelevantpresentobligation,takingintoaccountfactorssuchasrisks,uncertainties,andthetimevalueofmoneyrelatedtothecontingentevent.Thebookvalueofprovisionsisreviewedatthebalancesheetdateandadjustedappropriatelytoreflectthecurrentbestestimate.
32.Share-basedpayment
√Applicable□NotApplicableShare-basedpaymentisclassifiedintoequity-settledshare-basedpaymentandcash-settledshare-basedpayment.Equity-settledshare-basedpaymentisatransactioninwhichtheGroupreceivesservicesinexchangeforsharesorotherequityinstrumentsasconsideration.Equity-settledshare-basedpaymentsinexchangeforemployeeservicesaremeasuredatthefairvalueoftheequityinstrumentsgrantedtoemployees.Iftheoptionsgrantedvestimmediately,thefairvalueisrecognizedinrelevantcostsorexpensesonthegrantdate,withacorrespondingincreaseincapitalreserves;iftheoptionsvestonlyaftercompletingservicesduringthevestingperiodormeetingspecifiedperformanceconditions,thenoneachbalancesheetdateduringthevestingperiod,basedonthebest
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estimateofthenumberofequityinstrumentsexpectedtovest,theservicesreceivedinthecurrentperiodarerecognizedinrelevantcostsorexpensesatthegrantdatefairvalue,withacorrespondingincreaseincapitalreserves.Ifthetermsofanequity-settledshare-basedpaymentaremodified,servicesreceivedarerecognizedatleastasifthetermshadnotbeenmodified.Inaddition,anymodificationthatincreasesthefairvalueoftheequityinstrumentsgranted,orthatisotherwisebeneficialtotheemployeeatthedateofmodification,isrecognizedasanincreaseinservicesreceived.Ifanequity-settledshare-basedpaymentiscancelled,itistreatedasifvestingoccurredonthedateofcancellation,andanyamountnotyetrecognizedisrecognizedimmediately.Ifemployeesorotherpartiescanchoosetosatisfynon-vestingconditionsbutfailtodosoduringthevestingperiod,itistreatedasacancellationoftheequity-settledshare-basedpayment.However,ifnewequityinstrumentsaregrantedand,onthedatethenewequityinstrumentsaregranted,thenewequityinstrumentsgrantedareidentifiedasreplacementequityinstrumentsforthecancelledequityinstruments,thereplacementequityinstrumentsareaccountedforinthesamewayasamodificationoftheoriginalequityinstruments.
33.Preferenceshares,perpetualbonds,andotherfinancialinstruments
□Applicable√NotApplicable
34.Revenue
(1).Disclosureofaccountingpoliciesforrevenuerecognitionandmeasurementbybusinesstype
√Applicable□NotApplicableTheGrouprecognizesrevenuewhenithassatisfiedaperformanceobligationinacontract,i.e.,whenthecustomerobtainscontroloftherelatedgoodsorservices.Obtainingcontroloftherelatedgoodsorservicesmeansbeingabletodirecttheuseofthegoodsortheprovisionoftheserviceandobtainsubstantiallyalltheremainingbenefitsfromit.
(1)ContractsforthesaleofgoodsTheGroup'scontractsforthesaleofgoodswithcustomersusuallyinvolveretailandwholesalebusinessofgoods.Revenueisrecognizedatthepointofcustomeracceptancebasedoncomprehensiveconsiderationofthefollowingfactors:thepresentrighttoreceivepaymentforthegoods,thetransferofsignificantrisksandrewardsofownershipofthegoods,thetransferoflegaltitleofthegoods,thetransferofphysicalpossessionofthegoods,andcustomeracceptanceofthegoods.Forretailbusiness,theGroupsellsgoodsdirectlytocustomersthroughdirectly-operatedstoresande-commerce,andrecognizesrevenuewhenthecustomerobtainsthegoods.Forwholesalebusiness,theGroupsellsgoodstopurchasersinvariouslocations.TheGrouptransportstheproductstotheagreeddeliverylocationaccordingtothecontractandrecognizesrevenueafterthepurchaseracceptsthegoodsandbothpartiessignthegoodshandoverdocument.TheGroupgrantsrewardpointstocustomerswhensellinggoods.Customerscanredeemrewardpointsforfreeordiscountedgoods.Thisrewardpointsprogramprovidescustomerswithamaterialright.TheGrouptreatsitasaseparateperformanceobligation,allocatesaportionofthetransactionpricetotherewardpointsbasedontherelativeproportionofthestandalonesellingpricesofthegoodsorservicesprovidedandtherewardpoints,andrecognizesrevenuewhenthecustomerobtainscontrolofthegoodsorservicesredeemedwithpointsorwhenthepointsexpire.Forcontractscontainingasignificantfinancingcomponent,theGroupdeterminesthetransactionpricebasedontheamountpayableassumingthecustomerpaysincashwhenobtainingcontrolofthegoods.Usingthediscountratethatdiscountsthenominalamountofthecontractconsiderationtothecashsellingpriceofthegoods,thedifferencebetweenthedeterminedtransactionpriceandthepromisedconsiderationamountinthecontractisamortizedusingtheeffectiveinterestmethodoverthecontractperiod.Forcontractswheretheintervalbetweenthecustomerobtainingcontrolofthegoodsandthe
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customerpayingthepriceisexpectedtobenomorethanoneyear,theGroupdoesnotconsiderthesignificantfinancingcomponentexistinginthecontract.
(2)ContractsfortherenderingofservicesTheGroupfulfillsperformanceobligationsbyprovidingservicessuchasinformationconsultingandpromotionalactivitiestocustomers.SincethecustomersimultaneouslyobtainsandconsumestheeconomicbenefitsbroughtbytheGroup'sperformanceastheGroupperforms,theGrouptreatsitasaperformanceobligationsatisfiedovertimeandrecognizesrevenuebasedontheprogressofperformance,unlesstheprogressofperformancecannotbereasonablydetermined.TheGroupdeterminestheprogressofserviceprovisionusingtheinputmethod.Whentheprogressofperformancecannotbereasonablydetermined,ifthecostsincurredbytheGroupareexpectedtoberecovered,revenueisrecognizedbasedontheamountofcostsincurreduntiltheprogressofperformancecanbereasonablydetermined.
(3)FranchisefeecontractsWhenafranchisedstorepassestheGroup'sreview,meetstheGroup'srequirements,andformallysignsafranchiseagreement,thefranchisefeeiscollectedaccordingtothecontract.Theone-timefranchisefeecollectedwhenthefranchiseecooperateswiththeGroupisrecognizedasrevenuefromanintellectualpropertylicensesatisfiedovertime.
(2).Differentrevenuerecognitionmethodsandmeasurementmethodsinvolvedinsimilarbusinessesusingdifferentoperatingmodels
□Applicable√NotApplicable
35.Contractcosts
□Applicable√NotApplicable
36.Governmentgrants
√Applicable□NotApplicable5758Governmentgrantsarerecognizedwhentheconditionsattachedtothemcanbemetandthegrantscanbereceived.Ifagovernmentgrantisintheformofmonetaryassets,itismeasuredattheamountreceivedorreceivable.Ifagovernmentgrantisintheformofnon-monetaryassets,itismeasuredatfairvalue;ifthefairvaluecannotbereliablyobtained,itismeasuredatanominalamount.Asset-relatedgovernmentgrantsarethosespecifiedingovernmentdocumentsfortheacquisition,construction,orformationoflong-termassetsinotherways;ifthegovernmentdocumentsareunclear,judgmentisbasedonthebasicconditionsnecessarytoobtainthegrant.Grantsrequiringtheacquisitionorconstructionoflong-termassetsasabasicconditionaretreatedasasset-relatedgovernmentgrants;othersaretreatedasincome-relatedgovernmentgrants.Income-relatedgovernmentgrantsusedtocompensateforrelatedcosts,expensesorlossesinfutureperiodsarerecognizedasdeferredincomeandincludedinprofitorlossforthecurrentperiodduringtheperiodswhentherelatedcosts,expensesorlossesarerecognized;grantsusedtocompensateforrelatedcosts,expensesorlossesalreadyincurredaredirectlyincludedinprofitorlossforthecurrentperiod.Asset-relatedgovernmentgrantsarerecognizedasdeferredincomeandincludedinprofitorlossonareasonableandsystematicbasisovertheusefullifeoftherelatedasset.However,governmentgrantsmeasuredatanominalamountaredirectlyincludedinprofitorlossforthecurrentperiod.Iftherelatedassetissold,transferred,scrapped,ordestroyedbeforetheendofitsusefullife,theremainingbalanceofrelateddeferredincomeistransferredtoprofitorlossfortheperiodofdisposal.
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37.Deferredtaxassets/Deferredtaxliabilities
√Applicable□NotApplicableTheGrouprecognizesdeferredincometaxusingthebalancesheetliabilitymethodbasedontemporarydifferencesarisingbetweenthebookvalueandtaxbaseofassetsandliabilitiesatthebalancesheetdate,aswellastemporarydifferencesarisingfromthedifferencebetweenthebookvalueandtaxbaseofitemsnotrecognizedasassetsandliabilitiesbutwhosetaxbasecanbedeterminedaccordingtotaxlaw.Deferredtaxliabilitiesarerecognizedforalltaxabletemporarydifferences,unless:
(1)Thetaxabletemporarydifferencearisesfromtheinitialrecognitionofgoodwillortheinitialrecognitionofanassetorliabilityinatransactionthat:isnotabusinesscombination;atthetimeofthetransaction,affectsneitheraccountingprofitnortaxableprofitordeductibleloss;andtheinitialrecognitionoftheassetandliabilitydoesnotgiverisetoequaltaxableanddeductibletemporarydifferences;
(2)Fortaxabletemporarydifferencesassociatedwithinvestmentsinsubsidiariesandassociates,thetimingofthereversalofthetemporarydifferencecanbecontrolledanditisprobablethatthetemporarydifferencewillnotreverseintheforeseeablefuture.Deferredtaxassetsarerecognizedfordeductibletemporarydifferences,deductiblelossesthatcanbecarriedforwardtosubsequentyears,andtaxcredits,totheextentthatitisprobablethatfuturetaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferences,deductiblelosses,andtaxcreditscanbeutilized,unless:
(1)Thedeductibletemporarydifferencearisesfromatransactionthat:isnotabusinesscombination;atthetimeofthetransaction,affectsneitheraccountingprofitnortaxableprofitordeductibleloss;andtheinitialrecognitionoftheassetandliabilitydoesnotgiverisetoequaltaxableanddeductibletemporarydifferences;
(2)Fordeductibletemporarydifferencesassociatedwithinvestmentsinsubsidiariesandassociates,itisprobablethatthetemporarydifferencewillreverseintheforeseeablefutureandtaxableprofitwillbeavailableagainstwhichthetemporarydifferencecanbeutilized.Atthebalancesheetdate,theGroupmeasuresdeferredtaxassetsandliabilitiesatthetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealizedortheliabilityissettled,basedontaxlawsenactedorsubstantivelyenactedbythebalancesheetdate,andreflectstheincometaxeffectsofthemannerinwhichtheassetsareexpectedtoberecoveredortheliabilitiessettledatthebalancesheetdate.Atthebalancesheetdate,theGroupreviewsthebookvalueofdeferredtaxassets.Ifitisprobablethatsufficienttaxableprofitwillnotbeavailableinfutureperiodstoutilizethebenefitofthedeferredtaxasset,thebookvalueofthedeferredtaxassetiswrittendown.Atthebalancesheetdate,theGroupreassessesunrecognizeddeferredtaxassets.Deferredtaxassetsarerecognizedtotheextentthatithasbecomeprobablethatsufficienttaxableprofitwillbeavailabletoallowallorpartofthedeferredtaxassettoberecovered.Deferredtaxassetsanddeferredtaxliabilitiesareoffsetandpresentedonanetbasisif,andonlyif,thefollowingconditionsaremet:thereisalegallyenforceablerighttosetoffcurrenttaxassetsagainstcurrenttaxliabilities;thedeferredtaxassetsandthedeferredtaxliabilitiesrelatetoincometaxesleviedbythesametaxationauthorityoneitherthesametaxableentityordifferenttaxableentitieswhichintendeithertosettlecurrenttaxliabilitiesandassetsonanetbasis,ortorealizetheassetsandsettletheliabilitiessimultaneously,ineachfutureperiodinwhichsignificantamountsofdeferredtaxliabilitiesorassetsareexpectedtobesettledorrecovered.
38.Leases
√Applicable□NotApplicableJudgmentbasisandaccountingtreatmentmethodforsimplifiedhandlingofshort-termleasesandlow-valueassetleasesasalessee
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√Applicable□NotApplicableTheGrouprecognizesright-of-useassetsandleaseliabilitiesforleases.Atthecommencementdateoftheleaseterm,theGrouprecognizesitsrighttousetheleasedassetduringtheleasetermasaright-of-useasset,initiallymeasuredatcost.Thecostoftheright-of-useassetcomprises:theinitialmeasurementamountoftheleaseliability;leasepaymentsmadeatorbeforethecommencementdate(lessanyleaseincentivesreceived);initialdirectcostsincurredbythelessee;estimatedcoststobeincurredbythelesseeindismantlingandremovingtheunderlyingasset,restoringthesiteonwhichitislocatedorrestoringtheunderlyingassettotheconditionrequiredbythetermsandconditionsofthelease.IftheGroupremeasurestheleaseliabilityduetochangesinleasepayments,thebookvalueoftheright-of-useassetisadjustedaccordingly.TheGroupsubsequentlydepreciatestheright-of-useassetusingthestraight-linemethod.Ifitisreasonablycertainthatownershipoftheleasedassetwillbeobtainedattheendoftheleaseterm,theGroupdepreciatestheright-of-useassetovertheremainingusefullifeoftheleasedasset.Ifitcannotbereasonablycertainthatownershipoftheleasedassetwillbeobtainedattheendoftheleaseterm,theGroupdepreciatestheright-of-useassetovertheshorteroftheleasetermandtheremainingusefullifeoftheleasedasset.Atthecommencementdateoftheleaseterm,theGrouprecognizesthepresentvalueoftheleasepaymentsnotyetpaidasaleaseliability.Leasepaymentsincludefixedpaymentsandsubstantivefixedpaymentslessanyleaseincentivesreceivable,variableleasepaymentsthatdependonanindexorarate,amountsexpectedtobepayablebythelesseeunderresidualvalueguarantees,andtheexercisepriceofapurchaseoptionorpaymentsofpenaltiesforterminatingthelease,iftheleasetermreflectsthelesseeexercisinganoptiontoterminatetheleaseoritisreasonablycertainthattheGroupwillexercisethepurchaseoption.Whensubstantivefixedpaymentschange,theamountexpectedtobepayableunderresidualvalueguaranteeschanges,theindexorrateusedtodetermineleasepaymentschanges,ortheassessmentresultoractualexerciseofpurchaseoptions,extensionoptions,orterminationoptionschanges,theGroupremeasurestheleaseliabilitybasedonthepresentvalueoftherevisedleasepayments.Leaseclassificationcriteriaandaccountingtreatmentmethodsasalessor
√Applicable□NotApplicableAleasewheresubstantiallyalltherisksandrewardsincidentaltoownershipoftheleasedassetaretransferredatthecommencementdateisclassifiedasafinancelease;otherwise,itisclassifiedasanoperatinglease.Rentalincomefromoperatingleasesisrecognizedinprofitorlossforthecurrentperiodonastraight-linebasisovertheleaseterm.Variableleasepaymentsnotincludedintheleasepaymentsarerecognizedinprofitorlossforthecurrentperiodwhenincurred.
39.Othersignificantaccountingpoliciesandestimates
√Applicable□NotApplicable
Thepreparationoffinancialstatementsrequiresmanagementtomakejudgments,estimates,andassumptionsthataffectthereportedamountsofrevenues,expenses,assets,andliabilities,andthedisclosurethereof,aswellasthedisclosureofcontingentliabilitiesatthebalancesheetdate.Theuncertaintyoftheseassumptionsandestimatescouldresultinoutcomesthatrequireamaterialadjustmenttothebookvalueoftheassetsorliabilitiesaffectedinthefuture.
(1)Judgments
IntheprocessofapplyingtheGroup'saccountingpolicies,managementhasmadethefollowing
judgmentsthathavethemostsignificanteffectontheamountsrecognizedinthefinancialstatements:
Businessmodel
TheclassificationoffinancialassetsatinitialrecognitiondependsontheGroup'sbusinessmodelfor
managingthefinancialassets.Whenjudgingthebusinessmodel,theGroupconsidersfactorsincluding
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howtheenterpriseevaluatesandreportstheperformanceoffinancialassetstokeymanagementpersonnel,therisksaffectingtheperformanceoffinancialassetsandthewaytheyaremanaged,andthewayrelevantbusinessmanagementpersonnelareremunerated.Whenassessingwhethertheobjectiveistocollectcontractualcashflows,theGroupneedstoanalyzeandjudgethereasons,timing,frequency,andvalueofsalesbeforethematuritydateofthefinancialassets.ContractualcashflowcharacteristicsTheclassificationoffinancialassetsatinitialrecognitiondependsonthecontractualcashflowcharacteristicsofthefinancialassets.Itneedstobejudgedwhetherthecontractualcashflowsaresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding.Whenassessingmodificationstothetimevalueofmoney,itneedstobejudgedwhetherthereisasignificantdifferencecomparedtothebenchmarkcashflows.Forfinancialassetswithprepaymentfeatures,itneedstobejudgedwhetherthefairvalueoftheprepaymentfeatureisinsignificant,etc.Leaseterm-LeasecontractscontainingextensionoptionsTheleasetermisthenon-cancellableperiodforwhichtheGrouphastherighttousetheleasedasset,plusperiodscoveredbyanoptiontoextendtheleaseifthelesseeisreasonablycertaintoexercisethatoption.Whenassessingwhetheritisreasonablycertaintoexerciseanextensionoption,theGroupconsidersallrelevantfactsandcircumstancesthatcreateaneconomicincentivefortheGrouptoexercisetheextensionoption,includingexpectedchangesinfactsandcircumstancesfromthecommencementdateuntiltheexercisedateoftheoption.Atthecommencementdate,theGroupbelievesthatduetosignificantleaseholdimprovementsmadeorexpectedtobemadeduringthecontractperiod,itisreasonablycertainthattheGroupwillexercisetheextensionoption.Therefore,theleasetermincludestheperiodcoveredbytheextensionoption.Afterthecommencementdate,ifasignificanteventorchangewithintheGroup'scontroloccursthataffectswhethertheGroupisreasonablycertaintoexercisethecorrespondingextensionoption,theGroupwillreassesswhethertoexercisetheextensionoptionandrevisetheleasetermbasedonthereassessmentresults.IdentificationofgoodwillimpairmentCGUsWhenconductinggoodwillimpairmenttesting,theGroupestimatesthepresentvalueofthefuturecashflowsoftheCGUorgroupofCGUstowhichgoodwillhasbeenallocated.TheidentificationofaCGUisbasedonwhetherthemaincashinflowsgeneratedbytheCGUareindependentofthecashinflowsfromotherassetsorCGUs.WhenidentifyingCGUs,managementconsidersthewaytheGroupmanagesitsproductionandoperatingactivitiesanditsdecision-makingprocessforthecontinuoususeordisposalofassets,etc.TheidentificationofgoodwillimpairmentCGUsthisyearisconsistentwithpreviousperiods.IdentificationofbusinessacquisitionsInacquisitionprojects,theGroupneedstojudgewhethertheacquiredassetportfolioconstitutesabusiness.TheGroupusestheconditionthat"theacquiredportfoliomusthaveatleastoneinputandonesubstantiveprocess,andthecombinationofthetwosignificantlycontributestotheabilitytocreateoutput"asthecriterionforjudgingwhethertheportfolioconstitutesabusiness.
(2)EstimationuncertaintyThefollowingarekeyassumptionsconcerningthefuture,andotherkeysourcesofestimationuncertaintyatthebalancesheetdate,whichmaycauseamaterialadjustmenttothebookvaluesofassetsandliabilitieswithinthenextfinancialyear.ImpairmentoffinancialinstrumentsTheGroupusestheECLmodeltoassesstheimpairmentoffinancialinstruments.ApplyingtheECLmodelrequiressignificantjudgmentandestimation,consideringallreasonableandsupportableinformation,includingforward-lookinginformation.Whenmakingthesejudgmentsandestimates,theGroupinferstheexpectedchangesinthecreditriskofdebtorsbasedonhistoricalrepaymentdatacombinedwitheconomicpolicies,macroeconomicindicators,industryrisks,andotherfactors.Differentestimatesmayaffecttheamountofimpairmentprovisionrecognized,andtheimpairmentprovisionrecognizedmaynotbeequaltotheactualimpairmentlossamountinthefuture.
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Impairmentofnon-currentassetsotherthanfinancialassets(excludinggoodwill)TheGroupassessesateachbalancesheetdatewhetherthereisanyindicationthatnon-currentassetsotherthanfinancialassetsmaybeimpaired.Intangibleassetswithindefiniteusefullivesaretestedforimpairmentannuallyandwheneverthereisanindicationthattheymaybeimpaired.Othernon-currentassetsotherthanfinancialassetsaretestedforimpairmentwhenthereareindicationsthattheirbookvaluemaynotberecoverable.AnimpairmentexistswhenthebookvalueofanassetorCGUexceedsitsrecoverableamount,whichisthehigherofitsfairvaluelesscoststosellanditsvalueinuse.Thefairvaluelesscoststosellisdeterminedbyreferencetothepriceinasaleagreementforsimilarassetsinanarm'slengthtransactionorobservablemarketprices,lessincrementalcostsdirectlyattributabletothedisposaloftheasset.Whenestimatingthepresentvalueoffuturecashflows,managementmustestimatetheexpectedfuturecashflowsfromtheassetorCGUandselectanappropriatediscountratetodeterminethepresentvalueofthefuturecashflows.GoodwillimpairmentTheGrouptestsgoodwillforimpairmentatleastannually.ThisrequiresestimatingthepresentvalueofthefuturecashflowsoftheCGUorgroupofCGUstowhichgoodwillhasbeenallocated(goodwillbookvalueisallocatedtotheCGUorgroupofCGUsexpectedtobenefitfromthesynergiesofthebusinesscombination).Whenestimatingthepresentvalueoffuturecashflows,theGroupneedstoestimatethefuturecashflowsgeneratedbytheCGUorgroupofCGUsandselectanappropriatediscountratetodeterminethepresentvalueofthefuturecashflows.Assumingotherparametersremainunchanged,ifmanagementrevisesthegrossprofitmarginusedinthecalculationoffuturecashflowsfortheCGUandgroupofCGUs,andtherevisedgrossprofitmarginislowerthanthecurrentlyusedgrossprofitmargin,ortherevisedrevenuegrowthrateislowerthanthecurrentlyusedrevenuegrowthrate,theGroupmayneedtorecognizeadditionalimpairmentprovisionsforgoodwill.Assumingotherparametersremainunchanged,ifmanagementrevisesthepre-taxdiscountrateappliedtothecashflowdiscounting,andtherevisedpre-taxdiscountrateishigherthanthecurrentlyuseddiscountrate,theGroupmayneedtorecognizeadditionalimpairmentprovisionsforgoodwill.Iftheactualgrowthrateandgrossprofitmarginarehigherortheactualpre-taxdiscountrateislowerthanmanagement'sestimates,theGroupcannotreversepreviouslyrecognizedgoodwillimpairmentlosses.InventoryimpairmentprovisionAsdescribedinNoteV.16,theGroup'sinventoriesaremeasuredatthelowerofcostandnetrealizablevalue.Thenetrealizablevalueofinventoryistheestimatedsellingpriceintheordinarycourseofbusiness,lesstheestimatedcostsofcompletionandtheestimatedcostsnecessarytomakethesaleandrelatedtaxes.TheGroupreassessesateachbalancesheetdatewhetherthenetrealizablevalueofinventoryitemsislowerthantheinventorycost.DepreciationandamortizationTheGroupdepreciatesandamortizesinvestmentproperty,fixedassets,long-termdeferredexpenses,andintangibleassetsusingthestraight-linemethodovertheirusefullivesafterconsideringtheirresidualvalues.TheGroupperiodicallyreviewstheusefullivestodeterminetheamountofdepreciationandamortizationexpensetoberecognizedineachreportingperiod.TheusefullifeisdeterminedbytheGroupbasedonpastexperiencewithsimilarassetscombinedwithexpectedtechnologicalupdates.Ifpreviousestimateschangesignificantly,thedepreciationandamortizationexpensewillbeadjustedinfutureperiods.FairvalueofunlistedequityinvestmentsTheGroupestimatesthefairvaluebasedonthepresentvalueofexpectedfuturecashflowsdiscountedusingcurrentdiscountratesforotherfinancialinstrumentswithsimilarcontractualtermsandriskcharacteristics.ThisrequirestheGrouptoestimateexpectedfuturecashflows,creditrisk,volatility,anddiscountrates,thusinvolvinguncertainty.
/
Share-basedpaymentEquity-settledshare-basedpaymentsinexchangeforemployeeservicesaremeasuredatthefairvalueoftheequityinstrumentsgrantedtoemployees.Iftheoptionsgrantedvestimmediately,thefairvalueisrecognizedinrelevantcostsorexpensesonthegrantdate,withacorrespondingincreaseincapitalreserves;iftheoptionsvestonlyaftercompletingservicesduringthevestingperiodormeetingspecifiedperformanceconditions,thenoneachbalancesheetdateduringthevestingperiod,basedonthebestestimateofthenumberofequityinstrumentsexpectedtovest,theservicesreceivedinthecurrentperiodarerecognizedinrelevantcostsorexpensesatthegrantdatefairvalue,withacorrespondingincreaseincapitalreserves.DeferredtaxassetsDeferredtaxassetsshouldberecognizedforallunuseddeductiblelossestotheextentthatitisprobablethatsufficienttaxableprofitwillbeavailableagainstwhichthedeductiblelossescanbeutilized.Thisrequiresmanagementtoexercisesignificantjudgmenttoestimatethetimingandamountoffuturetaxableprofits,combinedwithtaxplanningstrategies,todeterminetheamountofdeferredtaxassetsthatshouldberecognized.Lessee'sincrementalborrowingrateForleaseswheretheinterestrateimplicitintheleasecannotbereadilydetermined,theGroupusesthelessee'sincrementalborrowingrateasthediscountratetocalculatethepresentvalueofleasepayments.Whendeterminingtheincrementalborrowingrate,theGroupusesobservableinterestratesasareferencebasisbasedontheeconomicenvironmentitoperatesin.Onthisbasis,theGroupadjuststhereferencerateaccordingtoitsownsituation,theunderlyingassetsituation,theleaseterm,theleaseliabilityamount,andotherspecificcircumstancesoftheleasetransactiontoarriveattheapplicableincrementalborrowingrate.
40.Changesinsignificantaccountingpoliciesandaccountingestimates
(1).Changesinsignificantaccountingpolicies
□Applicable√NotApplicable
(2).Changesinsignificantaccountingestimates
□Applicable√NotApplicable
(3).First-timeadoptionofnewaccountingstandardsorinterpretations,etc.,in2024involvingadjustmentofthefinancialstatementsatthebeginningofthefirstyearofadoption
□Applicable√NotApplicable
41.Other
□Applicable√NotApplicableVI.Taxes
1.MaintaxtypesandratesMaintaxtypesandratessituation
√Applicable□NotApplicable
/
| Taxtype | Taxbasis | Taxrate |
| Valueaddedtax(VAT) | --Companiesandstoresassessedasgeneraltaxpayers:Taxablevalue-addedamount(calculatedbasedonsalesamountandapplicabletaxrateforoutputtax,lessdeductibleinputtax)--Companiesandstoresassessedassmall-scaletaxpayers:Taxablesalesamount--Consultingservices--Leasingbusiness | Simplifiedcollectionprojects3%;Familyplanningsuppliestax-exempt;Chineseherbalmedicinepieces9%,othergoods13%0%or1%or3%6%5%or9% |
| Consumptiontax | ||
| Businesstax | ||
| Urbanmaintenanceandconstructiontax | ActualVATpaid | 5%or7% |
| Enterpriseincometax | Taxableincome | 25%,15%,5%,3% |
| Educationalsurcharge | ActualVATpaid | 3% |
| Localeducationalsurcharge | VATpaid | 2% |
Forcompaniesandstoresassessedasgeneraltaxpayers,theapplicableVATrateforsalesofanti-cancerdrugsandbiologicalproductsisthesimplifiedcollectionrateof3%.Salesofcontraceptivedrugsanddevicesaretax-exempt.Disclosureexplanationfortaxableentitiessubjecttodifferententerpriseincometaxrates
□Applicable√NotApplicable
2.Taxpreferences
√Applicable□NotApplicable
(1)VATpreferencesForcompaniesandstoresassessedassmall-scaletaxpayers,accordingtotheAnnouncementonVATReductionandExemptionPoliciesforSmall-scaleVATTaxpayers(MinistryofFinance,StateTaxationAdministrationAnnouncement[2023]No.19),fromJanuary1,2023toDecember31,2027,small-scaleVATtaxpayerswithmonthlysalesofRMB100,000orless(inclusive)areexemptfromVAT.Small-scaletaxpayerstoresoftheGroupmeetingtheaboveconditionsenjoytheaboveVATexemptionpolicy.AccordingtotheAnnouncementonClarifyingPoliciessuchasVATReductionandExemptionforSmall-scaleVATTaxpayers(MinistryofFinance,StateTaxationAdministrationAnnouncement[2023]No.1),fromJanuary1,2023toDecember31,2027,taxablesalesincomesubjecttothe3%collectionrateforsmall-scaleVATtaxpayersshallbeleviedVATatareducedrateof1%;VATprepaymentitemssubjecttothe3%prepaymentrateshallbeprepaidatareducedrateof1%.
(2)EnterpriseincometaxpreferencesAccordingtotheAnnouncementonContinuingtheEnterpriseIncomeTaxPoliciesfortheWesternDevelopment[MinistryofFinanceAnnouncement2020No.23]jointlyissuedbytheMinistryofFinance,StateTaxationAdministration,andNationalDevelopmentandReformCommission,from
/
January1,2021toDecember31,2030,encouragedindustrieslocatedinthewesternregionaresubjecttoareducedenterpriseincometaxrateof15%.TheCompany'ssubsidiariesLBXPharmacyChain(Guangxi)Co.,Ltd.(hereinafterreferredtoas"GuangxiCompany"),ForworldMedicine(Guangxi)Co.,Ltd.(hereinafterreferredtoas"GuangxiForworld"),LBXHealthPharmacyGroup(Guangxi)Co.,Ltd.(hereinafterreferredtoas"HealthPharmacyGuangxi"),LBXPharmacyChain(Shaanxi)Co.,Ltd.(hereinafterreferredtoas"ShaanxiCompany"),Xi'anLongshengPharmaceuticalCo.,Ltd.(hereinafterreferredtoas"Xi'anLongsheng"),ShaanxiLBXSanqinJishengtangPharmaceuticalChainCo.,Ltd.(hereinafterreferredtoas"ShaanxiSanqinJishengtang"),LBXHealthPharmacyGroup(Shaanxi)Co.,Ltd.(hereinafterreferredtoas"HealthPharmacyShaanxi"),LanzhouHuirentangPharmaceuticalChainCo.,Ltd.(hereinafterreferredtoas"LanzhouHuirentang"),LanzhouHuirenChangqingPharmaceuticalCo.,Ltd.(hereinafterreferredtoas"LanzhouChangqing"),NingxiaLBXHuirentangPharmaceuticalCo.,Ltd.(hereinafterreferredtoas"NingxiaHuirentangPharmaceutical"),TongliaoZeqiangPharmacyChainCo.,Ltd.(hereinafterreferredtoas"TongliaoZeqiang"),InnerMongoliaZeqiangPharmaceuticalCo.,Ltd.(hereinafterreferredtoas"InnerMongoliaZeqiang"),ChifengLBXPharmacyChainCo.,Ltd.(hereinafterreferredtoas"ChifengLBX"),ChifengRenchuanPharmaceuticalCo.,Ltd.(hereinafterreferredtoas"RenchuanPharmaceutical"),LBXHealthPharmacyGroup(Ningxia)ChainCo.,Ltd.(hereinafterreferredtoas"NingxiaHealthPharmacy")enjoythepreferentialenterpriseincometaxpolicyfortheWesternDevelopment,applyinga15%enterpriseincometaxrateforthe2024fiscalyear(15%forthe2023fiscalyear).AccordingtotheAnnouncementonFurtherSupportingtheDevelopmentofSmallandMicroEnterprisesandIndividualIndustrialandCommercialHouseholdsRegardingRelevantTaxandFeePolicies(MinistryofFinance,StateTaxationAdministrationAnnouncement[2023]No.12),fromJanuary1,2023toDecember31,2027,forsmallprofitableenterpriseswithannualtaxableincomenotexceedingRMB1million,theportionshallbeincludedintaxableincomeatareducedrateof25%andenterpriseincometaxshallbepaidatarateof20%;fromJanuary1,2022toDecember31,2027,forsmallprofitableenterpriseswithannualtaxableincomeexceedingRMB1millionbutnotexceedingRMB3million,theportionshallbeincludedintaxableincomeatareducedrateof25%andenterpriseincometaxshallbepaidatarateof20%,resultinginanapplicableeffectivetaxrateof5%.TheCompany'ssubsidiariesHenanEasyDrugPharmaceuticalTechnologyCo.,Ltd.,XinjianCountyBaihuiPharmaceuticalCo.,Ltd.,and83othercompaniesmeetingtheconditionsforsmallprofitableenterprisesenjoytheaboveincometaxpreferentialpolicies.AccordingtotheNoticeofthePeople'sGovernmentofGuangxiZhuangAutonomousRegiononPrintingandDistributingSeveralPoliciesforPromotingHigh-LevelOpening-upandHigh-QualityDevelopmentoftheGuangxiBeibuGulfEconomicZoneintheNewEra(GuiZhengFa[2020]No.42),GuangxiForworld,beinganewlyregisteredenterprisewithintheBeibuGulfEconomicZoneandmeetingtheconditionsfortheWesternDevelopmententerpriseincometaxpreference,isexemptfromthelocalshare(40%)ofenterpriseincometaxfor5yearsstartingfromthetaxyearinwhichthefirstmainbusinessincomeisobtained,applyinga9%enterpriseincometaxrateforthe2024fiscalyear(9%forthe2023fiscalyear);GuangxiLBXPharmacyHealthTechnologyCo.,Ltd.,GuangxiLongxingCenturyPharmaceuticalConsultingCo.,Ltd.,GuangxiLongxingCenturyHealthManagementCo.,Ltd.,beingnewlyregisteredenterpriseswithintheBeibuGulfEconomicZoneandmeetingtheconditionsforsmall-scaletaxpayertaxpreferences,areexemptfromthelocalshare(40%)ofenterpriseincometaxfor5yearsstartingfromthetaxyearinwhichthefirstmainbusinessincomeisobtained,applyinga3%enterpriseincometaxrateforthe2024fiscalyear.AccordingtotheMeasuresforFurtherSupportingtheHigh-QualityDevelopmentofthePrivateEconomyissuedbythePartyCommitteeandGovernmentoftheInnerMongoliaAutonomousRegion,fromSeptember27,2022toDecember31,2025,smallprofitableenterpriseswithannualtaxableincomebelowRMB1million(inclusive)areexemptfromthelocalshare(40%)ofenterpriseincometax,withanactualapplicabletaxrateof3%.TheCompany'ssubsidiariesTongliaoZeqiangBinheLeyouMaternalandInfantProductsCo.,Ltd.,TongliaoZeqiangMeilejiaSupermarketCo.,Ltd.,TongliaoZeqiangLeyouMaternalandInfantProductsCo.,Ltd.,TongliaoNo.2MeilejiaSupermarketCo.,Ltd.,TongliaoNo.4MeilejiaSupermarketCo.,Ltd.meettheabovepreferentialconditions,applyinga3%enterpriseincometaxrateforthe2024fiscalyear.
/
TheCompany'ssubsidiaryHunanYaoshengtangChineseMedicineTechnologyCo.,Ltd.(hereinafterreferredtoas"YaoshengtangChineseMedicineTechnology"),whosemainbusinessistheproductionofChineseherbalmedicinepiecesandChinesepatentmedicines,enjoysenterpriseincometaxexemptionforthesalesincomefromitsproducedChineseherbalmedicinepieces,whichcomplieswiththeregulationsforprimaryprocessingofagriculturalproductsunderArticle27(1)oftheEnterpriseIncomeTaxLaw.Basedonthecertificateofhigh-techenterpriseobtainedbytheCompany'ssubsidiaryHunanBaixinInformationTechnologyCo.,Ltd.(hereinafterreferredtoas"HunanBaixin")inDecember2024,itcalculatesandpaysenterpriseincometaxatareducedpreferentialrateof15%forthe2024fiscalyear.
3.Other
□Applicable√NotApplicableVII.NotestoConsolidatedFinancialStatementItems
1.Cashandbankdeposits
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance |
| Cashonhand | 7,404,677 | 10,037,560 |
| Bankdeposits | 931,407,077 | 918,508,843 |
| Othercashandcashequivalents | 1,441,053,565 | 1,046,438,110 |
| Total | 2,379,865,319 | 1,974,984,513 |
| Ofwhich:Totalamountdepositedoverseas |
OtherExplanations:
Othercashandcashequivalentsmainlyconsistofmarginsforbankacceptancebill.AsofDecember31,2024,theGroup'sothercashandcashequivalentswithrestrictedownershipamountedtoRMB1,393,129,666(December31,2023:RMB1,038,483,356).
2.Tradingfinancialassets
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance | Reasonandbasisfordesignation |
| FinancialassetsatFVTPL | 0 | 1,500,000 | / |
| Where: | |||
| Other | 0 | 1,500,000 | / |
| / | |||
| FinancialassetsatFVTPL | |||
| Where: | |||
Total
| Total | 1,500,000 | / |
OtherExplanations:
□Applicable√NotApplicable
3.Derivativefinancialassets
□Applicable√NotApplicable
/
4.Notesreceivable
(1).Classifiedpresentationofnotesreceivable
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance |
| Bankacceptancebills | 76,074,821 | 80,433,190 |
| Total | 76,074,821 | 80,433,190 |
(2).NotesreceivablepledgedbytheCompanyatperiod-end
□Applicable√NotApplicable
(3).NotesreceivableendorsedordiscountedbytheCompanyandnotyetmaturedatthebalancesheetdate
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Amountderecognizedatperiod-end | Amountnotderecognizedatperiod-end |
| Bankacceptancebills | 74,641,240 | |
| Total | 74,641,240 |
(4).Disclosurebybaddebtprovisionmethodclassification
□Applicable√NotApplicableBaddebtprovisionmadeindividually:
□Applicable√NotApplicableBaddebtprovisionmadebyportfolio:
□Applicable√NotApplicableBaddebtprovisionmadeusingthegeneralmodelofECL
□Applicable√NotApplicableBasisforstageclassificationandbaddebtprovisionratioExplanationofsignificantchangesinthebookbalanceofnotesreceivablewithchangesinlossprovisionduringtheperiod:
□Applicable√NotApplicable
(5).Baddebtprovision
□Applicable√NotApplicableOfwhich,significantrecoveryorreversalamountofbaddebtprovisionduringtheperiod:
□Applicable√NotApplicable
(6).Actualwrite-offsituationofnotesreceivableduringtheperiod
□Applicable√NotApplicable
/
Ofwhich,significantwrite-offsituationofnotesreceivable:
□Applicable√NotApplicableExplanationofnotesreceivablewrite-off:
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicable
5.Accountsreceivable
(1).Disclosurebyaging
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Aging | Endingbookbalance | Beginningbookbalance |
| Within1year | ||
| Ofwhich:Sub-itemswithin1year | ||
| Within1year | 2,299,856,094 | 2,179,048,864 |
Subtotalwithin1year
| Subtotalwithin1year | 2,299,856,094 | 2,179,048,864 |
| 1-2year(s) | 54,328,176 | 48,011,747 |
| 2-3years | 10,773,852 | 23,549,524 |
| Over3years | 6,112,830 | 5,391,237 |
| 3-4years | ||
| 4-5years | ||
| Over5years |
Total
| Total | 2,371,070,952 | 2,256,001,372 |
(2).Disclosurebybaddebtprovisionmethodclassification
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Bookbalance | Baddebtprovision | Bookvalue | Bookbalance | Baddebtprovision | Bookvalue | |||||
| Amount | Proportion(%) | Amount | Provisionratio(%) | Amount | Proportion(%) | Amount | Provisionratio(%) | |||
| Baddebtprovisionmadeindividually | ||||||||||
| Where: | ||||||||||
Baddebtprovisi
| Baddebtprovisi | 2,371,070,952 | 100 | 30,581,027 | 1.29 | 2,340,489,925 | 2,256,001,372 | 100 | 32,484,629 | 1.44 | 2,223,516,743 |
/
| onmadebyportfolio | ||||||||||
| Where: | ||||||||||
| Portfolioofcreditriskcharacteristic | 2,371,070,952 | 100 | 30,581,027 | 1.29 | 2,340,489,925 | 2,256,001,372 | 100 | 32,484,629 | 1.44 | 2,223,516,743 |
Total
| Total | 2,371,070,952 | / | 30,581,027 | / | 2,340,489,925 | 2,256,001,372 | / | 32,484,629 | / | 2,223,516,743 |
Baddebtprovisionmadeindividually:
□Applicable√NotApplicableBaddebtprovisionmadebyportfolio:
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Name | Endingbalance | ||
| Accountsreceivable | Baddebtprovision | Provisionratio(%) | |
| Medicalinsurancereceivables | 1,601,899,196 | 9,797,069 | 0.61 |
| Enterprisetradereceivables | 335,325,354 | 14,383,976 | 4.29 |
| Hospitalandhealthcentertradereceivables | 279,409,507 | 3,619,336 | 1.3 |
| Other | 154,436,895 | 2,780,646 | 1.8 |
| Total | 2,371,070,952 | 30,581,027 | 1.29 |
Explanationofbaddebtprovisionmadebyportfolio:
□Applicable√NotApplicableBaddebtprovisionmadeusingthegeneralmodelofECL
□Applicable√NotApplicableBasisforstageclassificationandbaddebtprovisionratioExplanationofsignificantchangesinthebookbalanceofaccountsreceivablewithchangesinlossprovisionduringtheperiod:
□Applicable√NotApplicable
(3).Baddebtprovision
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Category | Beginningbalance | Changeamountduringtheperiod | Endingbalance | |||
| Provision | Recoveryorreversal | Write-offorcancellation | OtherChanges | |||
| Accounts | 32,484,629 | 13,495,679 | -13,283,501 | -2,115,780 | 30,581,027 | |
/
receivableTotal
| Total | 32,484,629 | 13,495,679 | -13,283,501 | -2,115,780 | - | 30,581,027 |
Ofwhich,significantrecoveryorreversalamountofbaddebtprovisionduringtheperiod:
□Applicable√NotApplicableOtherExplanations:
None______
(4).Actualwrite-offofaccountsreceivableduringtheperiod
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Write-offamount |
| Actualwrite-offofaccountsreceivable | -2,115,780 |
Ofwhich,significantwrite-offsituationofaccountsreceivable
□Applicable√NotApplicableExplanationofaccountsreceivablewrite-off:
□Applicable√NotApplicable
(5).Situationofaccountsreceivableandcontractassetsforthetopfivedebtorsbyendingbalance
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Companyname | Endingbalanceofaccountsreceivable | Endingbalanceofcontractassets | Endingbalanceofaccountsreceivableandcontractassets | Proportionoftotalendingbalanceofaccountsreceivableandcontractassets(%) | Endingbalanceofbaddebtprovision |
| Totalaccountsreceivableforthetopfivedebtorsbybalance | 538,354,210 | 538,354,210 | 23 | 1,883,319 |
Total
| Total | 538,354,210 | 538,354,210 | 23 | 1,883,319 |
OtherExplanations:
NoneOtherExplanations:
□Applicable√NotApplicable
6.Contractassets
(1).Contractassets
□Applicable√NotApplicable
/
(2).Amountandreasonforsignificantchangesinbookvalueduringthereportingperiod
□Applicable√NotApplicable
(3).Disclosurebybaddebtprovisionmethodclassification
□Applicable√NotApplicableBaddebtprovisionmadeindividually:
□Applicable√NotApplicableExplanationofbaddebtprovisionmadeindividually:
□Applicable√NotApplicableBaddebtprovisionmadebyportfolio:
□Applicable√NotApplicableBaddebtprovisionmadeusingthegeneralmodelofECL
□Applicable√NotApplicableBasisforstageclassificationandbaddebtprovisionratioExplanationofsignificantchangesinthebookbalanceofcontractassetswithchangesinlossprovisionduringtheperiod:
□Applicable√NotApplicable
(4).Baddebtprovisionforcontractassetsduringtheperiod
□Applicable√NotApplicableOfwhich,significantrecoveryorreversalamountofbaddebtprovisionduringtheperiod:
□Applicable√NotApplicableOtherExplanations:
None
(5).Actualwrite-offofcontractassetsduringtheperiod
□Applicable√NotApplicableOfwhich,significantwrite-offofcontractassets
□Applicable√NotApplicableExplanationofcontractassetwrite-off:
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicable
7.Receivablesfinancing
(1).Classificationandpresentationofreceivablesfinancing
/
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance |
| Bankacceptancebills | 15,269,288 | 8,332,713 |
| Total | 15,269,288 | 8,332,713 |
(2).ReceivablesfinancingpledgedbytheCompanyatperiod-end
□Applicable√NotApplicable
(3).ReceivablesfinancingendorsedordiscountedbytheCompanyandnotyetmaturedatthe
balancesheetdate
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Amountderecognizedatperiod-end | Amountnotderecognizedatperiod-end |
| Bankacceptancebills | 135,933,315 | |
| Total | 135,933,315 |
(4).Disclosurebybaddebtprovisionmethodclassification
□Applicable√NotApplicableBaddebtprovisionmadeindividually:
□Applicable√NotApplicableExplanationofbaddebtprovisionmadeindividually:
□Applicable√NotApplicableBaddebtprovisionmadebyportfolio:
□Applicable√NotApplicableBaddebtprovisionmadeusingthegeneralmodelofECL
□Applicable√NotApplicableBasisforstageclassificationandbaddebtprovisionratioExplanationofsignificantchangesinthebookbalanceofreceivablesfinancingwithchangesinlossprovisionduringtheperiod:
√Applicable□NotApplicable
(5).Baddebtprovision
□Applicable√NotApplicableOfwhich,significantrecoveryorreversalamountofbaddebtprovisionduringtheperiod:
□Applicable√NotApplicable
/
(6).Actualwrite-offofreceivablesfinancingduringtheperiod
□Applicable√NotApplicableOfwhich,significantwrite-offofreceivablesfinancing
□Applicable√NotApplicableWrite-offexplanation:
□Applicable√NotApplicable
(7).Changesinreceivablesfinancingandfairvaluechangesduringtheperiod:
□Applicable√NotApplicable
(8).OtherExplanations
□Applicable√NotApplicable
8.Prepayments
(1).Prepaymentspresentedbyaging
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Aging | Endingbalance | Beginningbalance | ||
| Amount | Proportion(%) | Amount | Proportion(%) | |
| Within1year | 156,162,500 | 91.60 | 165,077,413 | 89.66 |
| 1-2year(s) | 4,936,304 | 2.90 | 15,838,402 | 8.60 |
| 2-3years | 9,378,208 | 5.50 | 3,203,648 | 1.74 |
| Over3years | - | - | - | - |
Impairmentprovisionforprepayments
| Impairmentprovisionforprepayments | 85,694 | 1,333,201 |
Total
| Total | 170,391,318 | 100.00 | 182,786,262 | 100.00 |
Explanationofreasonsforprepaymentsagedover1yearandwithsignificantamountsnotsettledtimely:
None
(2).Situationofprepaymentsforthetopfivecounterpartiesbyendingbalance
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Companyname | Endingbalance | Proportionoftotalendingbalanceofprepayments(%) |
| Totalprepaymentsforthetopfivecounterparties | 42,688,798 | 25.05 |
Total
| Total | 42,688,798 | 25.05 |
OtherExplanations:
None
/
OtherExplanations:
□Applicable√NotApplicable
9.OtherreceivablesPresentationbyitem
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance |
| Interestreceivable | ||
| Dividendsreceivable | ||
| Otherreceivables | 265,281,348 | 308,579,953 |
| Total | 265,281,348 | 308,579,953 |
OtherExplanations:
□适用√不适用Interestreceivable
(1).Classificationofinterestreceivable
□Applicable√NotApplicable
(2).Significantoverdueinterest
□Applicable√NotApplicable
(3).Disclosurebybaddebtprovisionmethodclassification
□Applicable√NotApplicableBaddebtprovisionmadeindividually:
□Applicable√NotApplicableExplanationofbaddebtprovisionmadeindividually:
□Applicable√NotApplicableBaddebtprovisionmadebyportfolio:
□Applicable√NotApplicable
(4).BaddebtprovisionmadeusingthegeneralmodelofECL
□Applicable√NotApplicableBasisforstageclassificationandbaddebtprovisionratio
/
Explanationofsignificantchangesinthebookbalanceofinterestreceivablewithchangesinlossprovisionduringtheperiod:
□Applicable√NotApplicable
(5).Baddebtprovision
□Applicable√NotApplicableOfwhich,significantrecoveryorreversalamountofbaddebtprovisionduringtheperiod:
□Applicable√NotApplicableOtherExplanations:
None
(6).Actualwrite-offofinterestreceivableduringtheperiod
□Applicable√NotApplicableOfwhich,significantwrite-offofinterestreceivable
□Applicable√NotApplicableWrite-offexplanation:
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicableDividendsreceivable
(1).Dividendsreceivable
□Applicable√NotApplicable
(2).Significantdividendsreceivableagedover1year
□Applicable√NotApplicable
(3).Disclosurebybaddebtprovisionmethodclassification
□Applicable√NotApplicableBaddebtprovisionmadeindividually:
□Applicable√NotApplicableExplanationofbaddebtprovisionmadeindividually:
□Applicable√NotApplicableBaddebtprovisionmadebyportfolio:
□Applicable√NotApplicable
(4).BaddebtprovisionmadeusingthegeneralmodelofECL
□Applicable√NotApplicableBasisforstageclassificationandbaddebtprovisionratio:
Explanationofsignificantchangesinthebookbalanceofdividendsreceivablewithchangesinloss
/
provisionduringtheperiod:
□Applicable√NotApplicable
(5).Baddebtprovision
□Applicable√NotApplicableOfwhich,significantrecoveryorreversalamountofbaddebtprovisionduringtheperiod:
□Applicable√NotApplicableOtherExplanations:
None
(6).Actualwrite-offofdividendsreceivableduringtheperiod
□Applicable√NotApplicableOfwhich,significantwrite-offofdividendsreceivable
□Applicable√NotApplicableWrite-offexplanation:
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicableOtherreceivables
(1).Disclosurebyaging
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Aging | Endingbookbalance | Beginningbookbalance |
| Within1year | ||
| Ofwhich:Sub-itemswithin1year | ||
| Within1year | 179,742,532 | 212,558,357 |
Subtotalwithin1year
| Subtotalwithin1year | 179,742,532 | 212,558,357 |
| 1-2year(s) | 64,261,281 | 74,959,424 |
| 2-3years | 14,549,506 | 15,582,103 |
| Over3years | 23,220,747 | 17,600,150 |
Less:Baddebtprovisionforotherreceivables
| Less:Baddebtprovisionforotherreceivables | 16,492,718 | 12,120,081 |
Total
| Total | 265,281,348 | 308,579,953 |
(2).Classificationbynatureoffunds
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Natureoffunds | Endingbookbalance | Beginningbookbalance |
| Receivablesfromthirdparties | 89,277,703 | 101,868,636 |
| Electronicwallet | 95,221,972 | 127,061,770 |
| Deposits | 12,011,421 | 11,751,640 |
| Advances | 22,114,711 | 20,064,780 |
/
| Storepettycash | 24,350,523 | 19,788,008 |
| Employeeadvances | 17,288,714 | 13,338,275 |
| Receivablesfromminorityshareholders | 604,507 | 604,507 |
| Other | 20,904,515 | 26,222,418 |
Less:Baddebtprovisionforotherreceivables
| Less:Baddebtprovisionforotherreceivables | 16,492,718 | 12,120,081 |
Total
| Total | 265,281,348 | 308,579,953 |
(3).Baddebtprovision
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Baddebtprovision | Stage1 | Stage2 | Stage3 | Total |
| ECLforthenext12months | LifetimeECL(notcredit-impaired) | LifetimeECL(credit-impaired) | ||
| BalanceasofJanuary1,2024 | 1,833,294 | 10,286,787 | 12,120,081 | |
| BalanceasofJanuary1,2024duringthisperiod | 1,833,294 | 10,286,787 | 12,120,081 | |
| Provisionduringtheperiod | 5,642,526 | 1,600,000 | 7,242,526 | |
| Reversalduringtheperiod | -2,053,814 | -253,000 | -2,306,814 | |
| Write-offduringtheperiod | -563,075 | -563,075 | ||
| BalanceasofDecember31,2024 | 4,858,931 | 11,633,787 | 16,492,718 |
BasisforstageclassificationandbaddebtprovisionratioExplanationofsignificantchangesinthebookbalanceofotherreceivableswithchangesinlossprovisionduringtheperiod:
□Applicable√NotApplicableAmountofbaddebtprovisionmadeduringtheperiodandbasisforassessingsignificantincreaseincreditriskoffinancialinstruments:
□Applicable√NotApplicable
(4).Baddebtprovision
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Category | Beginningbalance | Changeamountduringtheperiod | Endingbalance | |||
| Provision | Recoveryorreversal | Write-offorcancellation | OtherChanges | |||
| 2024 | 12,120,081 | 7,242,526 | -2,306,814 | -563,075 | 16,492,718 | |
Total
| Total | 12,120,081 | 7,242,526 | -2,306,814 | -563,075 | 16,492,718 |
/
Ofwhich,significantreversalorrecoveryamountofbaddebtprovisionduringtheperiod:
□Applicable√NotApplicableOtherExplanations:
None
(5).Actualwrite-offofotherreceivablesduringtheperiod
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Write-offamount |
| Actualwrite-offofotherreceivables | 563,075 |
Ofwhich,significantwrite-offofotherreceivables:
□Applicable√NotApplicableExplanationofotherreceivableswrite-off:
□Applicable√NotApplicable
(6).Situationofotherreceivablesforthetopfivedebtorsbyendingbalance
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Companyname | Endingbalance | Proportionoftotalendingbalanceofotherreceivables(%) | Natureoffunds | Aging | BaddebtprovisionEndingbalance |
| CompanyA | 23,153,693 | 8.22 | Receivablesfromthirdparties | 1-2year(s) | 305,629 |
| CompanyB | 18,411,089 | 6.53 | Electronicwallet | Within1year | 92,055 |
| CompanyC | 11,324,462 | 4.02 | Electronicwallet | Within1year | 56,622 |
| CompanyD | 10,823,390 | 3.84 | Electronicwallet | Within1year | 54,117 |
| CompanyE | 10,504,520 | 3.73 | Electronicwallet | Within1year | 52,523 |
| Total | 74,217,154 | 26.34 | / | / | 560,946 |
(7).Presentedunderotherreceivablesduetocentralizedfundmanagement
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicable
10.Inventories
(1).Classificationofinventories
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Book | Inventory | Bookvalue | Bookbalance | Inventory | Bookvalue | |
/
| balance | impairmentprovision/impairmentprovisionforcontractperformancecost | impairmentprovision/impairmentprovisionforcontractperformancecost | ||||
| Goodsinstock | 3,549,914,801 | 24,340,300 | 3,525,574,501 | 4,125,643,111 | 30,070,905 | 4,095,572,206 |
| Finishedgoods | 19,019,017 | - | 19,019,017 | 21,096,956 | - | 21,096,956 |
| Rawmaterials | 17,142,236 | - | 17,142,236 | 20,881,647 | - | 20,881,647 |
| Low-valueconsumables | 7,372,862 | - | 7,372,862 | 9,888,462 | - | 9,888,462 |
| Workinprogress | 4,429,891 | - | 4,429,891 | 5,045,696 | - | 5,045,696 |
Total
| Total | 3,597,878,807 | 24,340,300 | 3,573,538,507 | 4,182,555,872 | 30,070,905 | 4,152,484,967 |
(2).Dataresourcesrecognizedasinventory
□Applicable√NotApplicable
(3).Inventoryimpairmentprovisionandimpairmentprovisionforcontractperformancecost
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance | ||
| Provision | Other | Reversalorwrite-off | Other | |||
| Goodsinstock | 30,070,905 | 2,875,375 | - | -8,605,980 | - | 24,340,300 |
| Finishedgoods | - | 112,348 | - | -112,348 | - | - |
Total
| Total | 30,070,905 | 2,987,723 | - | -8,718,328 | - | 24,340,300 |
Reasonforreversalorwrite-offofinventoryimpairmentprovisionduringtheperiod
√Applicable□NotApplicable
| Item | Basisforproviding/(reversing)inventoryimpairmentprovision | Reasonforwrite-offofinventoryimpairmentprovisionthisyear |
| Goodsinstock | Measurementatlowerofcostandnetrealizablevalue | Inventoryscrapped |
| Finishedgoods | Measurementatlowerofcostandnetrealizablevalue | Inventoryscrapped |
/
Inventoryimpairmentprovisionmadebyportfolio
□Applicable√NotApplicableProvisionstandardforinventoryimpairmentprovisionmadebyportfolio
□Applicable√NotApplicable
(4).Amountofcapitalizedborrowingcostsincludedintheendingbalanceofinventoryandits
calculationstandardandbasis
□Applicable√NotApplicable
(5).Explanationoftheamortizationamountofcontractfulfillmentcostsduringtheperiod
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicable
11.Held-for-saleassets
□Applicable√NotApplicable
12.Non-currentassetsduewithinoneyear
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance |
| Long-termreceivablesduewithinoneyear | 37,528,487 | 33,150,856 |
| Total | 37,528,487 | 33,150,856 |
Debtinvestmentsduewithinoneyear
□Applicable√NotApplicableOtherdebtinvestmentsduewithinoneyear
□Applicable√NotApplicableOtherexplanationfornon-currentassetsduewithinoneyear:
None
13.Othercurrentassets
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance |
| InputVATtobededucted | 215,072,326 | 164,111,488 |
| Total | 215,072,326 | 164,111,488 |
OtherExplanations:
None
/
14.Debtinvestments
(1).Debtinvestment
□Applicable√NotApplicableChangesinimpairmentprovisionfordebtinvestmentsduringtheperiod
□Applicable√NotApplicable
(2).Significantdebtinvestmentsatperiod-end
□Applicable√NotApplicable
(3).Impairmentprovision
□Applicable√NotApplicableBasisforstageclassificationandimpairmentprovisionratio:
Explanationofsignificantchangesinthebookbalanceofdebtinvestmentswithchangesinlossprovisionduringtheperiod:
□Applicable√NotApplicableAmountofimpairmentprovisionmadeduringtheperiodandbasisforassessingsignificantincreaseincreditriskoffinancialinstruments
□Applicable√NotApplicable
(4).Actualwrite-offofdebtinvestmentsduringtheperiod
□Applicable√NotApplicableOfwhich,significantwrite-offofdebtinvestments
□Applicable√NotApplicableExplanationofdebtinvestmentwrite-off:
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicable
15.Otherdebtinvestments
(1).Otherdebtinvestment
□Applicable√NotApplicableChangesinimpairmentprovisionforotherdebtinvestmentsduringtheperiod
□Applicable√NotApplicable
(2).Significantotherdebtinvestmentsatperiod-end
□Applicable√NotApplicable
(3).Impairmentprovision
□Applicable√NotApplicableBasisforstageclassificationandimpairmentprovisionratio:
/
Explanationofsignificantchangesinthebookbalanceofotherdebtinvestmentswithchangesinlossprovisionduringtheperiod:
□Applicable√NotApplicableAmountofimpairmentprovisionmadeduringtheperiodandbasisforassessingsignificantincreaseincreditriskoffinancialinstruments
□Applicable√NotApplicable
(4).Actualwrite-offofotherdebtinvestmentsduringtheperiod
□Applicable√NotApplicableOfwhich,significantwrite-offofotherdebtinvestments
□Applicable√NotApplicableExplanationofotherdebtinvestmentwrite-off:
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicable
16.Long-termreceivables
(1).Long-termreceivables
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance | Discountraterange | ||||
| Bookbalance | Baddebtprovision | Bookvalue | Bookbalance | Baddebtprovision | Bookvalue | ||
| Houseleasedeposits | 116,917,898 | - | 116,917,898 | 117,540,930 | - | 117,540,930 | 4.35％-4.47％ |
| Less:Houseleasedepositsduewithinoneyear | 37,528,487 | - | 37,528,487 | 33,150,856 | - | 33,150,856 | |
| Total | 79,389,411 | - | 79,389,411 | 84,390,074 | - | 84,390,074 | / |
(2).Disclosurebybaddebtprovisionmethodclassification
□Applicable√NotApplicableBaddebtprovisionmadeindividually:
□Applicable√NotApplicableExplanationofbaddebtprovisionmadeindividually:
□Applicable√NotApplicableBaddebtprovisionmadebyportfolio:
□Applicable√NotApplicable
(3).BaddebtprovisionmadeusingthegeneralmodelofECL
□Applicable√NotApplicable
/
BasisforstageclassificationandbaddebtprovisionratioExplanationofsignificantchangesinthebookbalanceoflong-termreceivableswithchangesinlossprovisionduringtheperiod:
□Applicable√NotApplicableAmountofbaddebtprovisionmadeduringtheperiodandbasisforassessingsignificantincreaseincreditriskoffinancialinstruments
□Applicable√NotApplicable
(4).Baddebtprovision
□Applicable√NotApplicableOfwhich,significantrecoveryorreversalamountofbaddebtprovisionduringtheperiod:
□Applicable√NotApplicableOtherExplanations:
None
(5).Actualwrite-offoflong-termreceivablesduringtheperiod
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Write-offamount |
| Actualwrite-offoflong-termreceivables | 874,134 |
Ofwhich,significantwrite-offoflong-termreceivables
□Applicable√NotApplicableExplanationoflong-termreceivableswrite-off:
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicable
17.Long-termequityinvestments
(1).Long-termequityinvestment
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Investee | BeginningBalance | Increase/decreaseduringtheperiod | EndingBalance | Endingbalanceofimpairmentprovision | |||||||
| Additionalinvestment | Reductionininvestment | Investmentgain/lossrecognizedunderequitymethod | Othercomprehensiveincomeadjustment | Otherequitychanges | Declaredcashdividendsorprofits | Impairmentprovisionmade | Other | ||||
| I.Jointventures | |||||||||||
/
| Subtotal | |||||||
| II.Associates | |||||||
| HunanPharmaceuticalGroupCo.,Ltd. | 67,821,191 | - | 4,319,300 | 72,140,491 | |||
| BeijingTongRenTangHunanPharmaceuticalCo.,Ltd. | - | 14,700,000 | -1,487,774 | 13,212,226 | |||
| Subtotal | 67,821,191 | 14,700,000 | 2,831,526 | 85,352,717 | |||
| Total | 67,821,191 | 14,700,000 | 2,831,526 | 85,352,717 | |||
(2).Impairmenttestforlong-termequityinvestments
□Applicable√NotApplicableOtherExplanations:
InOctober2019,theCompanysignedacontributionagreementwithathird-partycompanytojointlyestablishHunanPharmaceuticalGroupCo.,Ltd.TheCompanyholds12.5%equityinHunanPharmaceuticalGroupCo.,Ltd.ByDecember31,2020,theCompanyhadpaidthecontributionamountofRMB62,500,000correspondingto6.25%equityasagreedinthecontributionagreement.TheCompanycanappointonedirectorandexercisesignificantinfluenceoverit,accountingforitasanassociate.InFebruary2023,theCompanysignedanagreementwithHunanHezhongChangdaEnterpriseManagementPartnership,sellingtheunpaid6.25%equitytoHunanHezhongChangdaEnterpriseManagementPartnershipforatransferpriceofRMB1.Theobligationforthepaid-incapitalcorrespondingtothetargetequityisassumedbyHunanHezhongChangdaEnterpriseManagementPartnership.ThechangeregistrationwascompletedonMarch10,2023.TheCompanyholds6.25%equityinHunanPharmaceuticalGroupCo.,Ltd.,canstillappointonedirector,andexercisessignificantinfluenceoverit.InMarch2024,theCompany'ssubsidiaryHunanMingyuLongxingPharmaceuticalSalesCo.,Ltd.signedacontributionagreementwithBeijingTongRenTangCommercialInvestmentGroupCo.,Ltd.tojointlyestablishBeijingTongRenTangHunanPharmaceuticalCo.,Ltd.HunanMingyuLongxingPharmaceuticalSalesCo.,Ltd.holds49%equityinBeijingTongRenTangHunanPharmaceuticalCo.,Ltd.AsofDecember31,2024,HunanMingyuLongxingPharmaceuticalSalesCo.,Ltd.haspaidthecontributionamountofRMB14,700,000correspondingto49%equityaccordingtothecontributionagreement.TheGroupcanappointtwodirectorsandexercisesignificantinfluenceoverit,accountingforitasanassociate.
/
18.Otherequityinstrumentinvestments
(1).Otherequityinstrumentinvestment
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | BeginningBalance | Increase/decreaseduringtheperiod | EndingBalance | Dividendincomerecognizedduringtheperiod | Cumulativegainsrecognizedinothercomprehensiveincome | Cumulativelossesrecognizedinothercomprehensiveincome | ReasonfordesignationasmeasuredatFVOCI |
Addition
alinvestme
nt
| Additionalinvestment | Reductionininvestment | Gainsrecognizedinothercomprehensiveincomeduringtheperiod | Lossesrecognizedinothercomprehensiveincomeduringtheperiod | Other | |||||||
| GuangzhouXinchengInformationTechnologyCo.,Ltd.(hereinafterreferredtoas"XinchengCompany") | 35,308,123 | 35,308,123 | 20,308,123 | Long-termholdingfornon-tradingpurposes | |||||||
| BeijingBoyunLikangPharmaceuticalInformationConsultingCenter(hereinafterreferredtoas"BoyunLikang") | 460,000 | 460,000 | Long-termholdingfornon-tradingpurposes | ||||||||
| Chifeng | 109,600 | 109,600 | Long-ter |
/
| YuanbaoshanRuralCommercialBankCo.,Ltd.(hereinafterreferredtoas"YuanbaoshanRuralCommercialBank") | mholdingfornon-tradingpurposes | |||||||
| HubeiHongtaiPharmacyChainCo.,Ltd. | 1,000,000 | 1,000,000 | Long-termholdingfornon-tradingpurposes | |||||
| JilinJianliHailanjiangPharmaceuticalGroupCo.,Ltd. | 300,000 | 300,000 | Long-termholdingfornon-tradingpurposes | |||||
| Total | 37,177,723 | 1,300,000 | 35,877,723 | 20,308,123 | / |
(2).Explanationofderecognitionsituationduringtheperiod
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicable
19.Othernon-currentfinancialassets
√Applicable□NotApplicable
/
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance |
| FinancialassetsatFVTPL | 12,093,150 | 5,774,109 |
| Total | 12,093,150 | 5,774,109 |
OtherExplanations:
√Applicable□NotApplicableIn2020,theCompanyinvestedRMB84,069,900ofitsownfundsinHunanHuairenGreatHealthIndustryDevelopmentCo.,Ltd.(hereinafterreferredtoas"HuairenGreatHealth"),holdinga4.28%share.InDecember2020,athirdpartyincreasedcapitalinHuairenGreatHealth.Afterthecapitalincrease,theCompany'ssharebecame4.1556%.TheCompanymeasuresthisequityinvestmentwithaputoptionclauseatFVTPL.InJanuary2022,HuairenGreatHealthspunoffandderivedanewcompany,HunanHuairenHealthIndustryDevelopmentCo.,Ltd.(hereinafterreferredtoas"HuairenHealth").TheCompanyholdsthesameequityshareinthenewlyspun-offcompanyHuairenHealthasbeforethespin-off,i.e.,4.1556%.AsofDecember31,2024,thefairvalueofthisequitywasRMB5,774,109.OnApril20,2022,theCompanyfurtherpurchasedequityinthespun-offHuairenGreatHealth,makingHuairenGreatHealthasubsidiaryoftheCompany.Theoriginalrelatedbookvaluewasfullytransferredout.OnMay25,2022,thespun-offHuairenGreatHealthwasrenamedHunanLBXHuairenPharmacyChainCo.,Ltd.(hereinafterreferredtoas"LBXHuairen").In2024,theCompany'ssubsidiaryHunanEasyDrugTechnologyCo.,Ltd.(hereinafterreferredtoas"EasyDrug")holds1%-2%equitystakesin43companiesincludingJingzhouHongtaiPharmacyChainCo.,Ltd.andJilinJianliHailanjiangPharmaceuticalGroupCo.,Ltd.Itdoesnotparticipateinorinfluencethefinancialandoperatingdecisionsoftheaboveinvesteecompaniesinanyway.Therefore,theCompany'ssubsidiaryHunanEasyDrugTechnologyCo.,Ltd.doesnothavesignificantinfluenceovertheaboveinvesteecompaniesandaccountsforthemasothernon-currentfinancialassets.
20.InvestmentpropertiesMeasurementmodelforinvestmentproperty
(1).Investmentpropertyusingthecostmeasurementmodel
Unit:YuanCurrency:RMB
| Item | Buildingsandstructures | Landuserights | Constructioninprogress | Total |
| I.Originalbookvalue | ||||
| 1.Beginningbalance | 37,315,751 | 5,896,566 | 309,921,887 | 353,134,204 |
| 2.Increaseforthecurrentperiod | ||||
| (1)Purchased | - | - | - | - |
| (2)Transferredfrominventory\fixedassets\constructioninprogress | - | - | - | - |
| (3)Increasefrombusinesscombination | - | - | - | - |
/
| 3.Decreaseforthecurrentperiod | ||||
| (1)Disposal | - | - | - | - |
| (2)Othertransfer-out | - | - | - | - |
4.Endingbalance
| 4.Endingbalance | 37,315,751 | 5,896,566 | 309,921,887 | 353,134,204 |
| II.Accumulateddepreciationandamortization | ||||
| 1.Beginningbalance | 6,796,203 | 1,360,576 | 19,302,663 | 27,459,442 |
| 2.Increaseforthecurrentperiod | ||||
| (1)Provisionoramortization | 710,422 | 130,821 | 8,303,664 | 9,144,907 |
3.Decreaseforthecurrentperiod
| 3.Decreaseforthecurrentperiod | ||||
| (1)Disposal | - | - | - | - |
| (2)Othertransfer-out | - | - | - | - |
4.Endingbalance
| 4.Endingbalance | 7,506,625 | 1,491,397 | 27,606,327 | 36,604,349 |
| III.Impairmentprovision | ||||
| 1.Beginningbalance | - | - | - | - |
| 2.Increaseforthecurrentperiod | ||||
| (1)Provision | - | - | - | - |
3.Decreaseforthecurrentperiod
| 3.Decreaseforthecurrentperiod | ||||
| (1)Disposal | - | - | - | - |
| (2)Othertransfer-out | - | - | - | - |
/
| 4.Endingbalance | - | - | - | - |
| IV.Bookvalue | ||||
| 1.Endingbookvalue | 29,809,126 | 4,405,169 | 282,315,560 | 316,529,855 |
| 2.Beginningbookvalue | 30,519,548 | 4,535,990 | 290,619,224 | 325,674,762 |
(2).Investmentpropertysituationwithtitlecertificatesnotyetobtained
□Applicable√NotApplicable
(3).Impairmenttestforinvestmentpropertyusingthecostmeasurementmodel
□Applicable√NotApplicableOtherExplanations:
√Applicable□NotApplicableAsofDecember31,2024,theGroup'sinvestmentpropertyprojectunderconstructionistheXiangyaplotproject,i.e.,thelanduserightcertificate"Xiang(2019)ChangshaCityRealEstateRightNo.0040100"obtainedbytheGroup'ssubsidiaryHunanFaxiangdiIndustrialCo.,Ltd.onAugust13,2018.Asof[December31,2024],investmentpropertybookvalueisRMB282,315,560,intangibleassetbookvalueisRMB88,792,872.TheChangshaNaturalResourcesandPlanningAdministrativeLawEnforcementDetachmentimposedtemporaryregulatorymeasuresonthelanduserightinDecember2022.Thesemeasurescanbeliftedonceconstructionbeginsontheland.In2023,theCompanysubmittedaregulatoryadjustmentreporttotheChangshaMunicipalNaturalResourcesandPlanningBureau,whichhaspassedtheexpertreviewmeetingandcompletedtheprocessofsolicitingopinionsfromfunctionaldepartmentssuchasurbanmanagement,railtransit,andfireprotection.Currently,theChangshaMunicipalNaturalResourcesandPlanningBureauhasapprovedtheregulatoryadjustmentIn2024,therewerenochangesinthebuilding,constructionandlanduserightsleasedoutbytheGroupcompared2023to2023.Theaboveinvestmentpropertiesareleasedtothirdpartiesunderoperatingleases.AsofDecember31,2024andDecember31,2023,theGrouphadnoinvestmentpropertieswithtitlecertificatesnotyetobtained.AsofDecember31,2024,theownershipofinvestmentpropertywithabookvalueofRMB4,405,169(December31,2022:RMB4,535,989)wasrestricted.
/
21.FixedassetsPresentationbyitem
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance |
| Fixedassets | 1,365,648,334 | 1,341,028,196 |
| Disposaloffixedassets | ||
| Total | 1,365,648,334 | 1,341,028,196 |
OtherExplanations:
√Applicable□NotApplicableAsofDecember31,2024andDecember31,2023,theGrouphadnotemporarilyidlefixedassets.AsofDecember31,2024andDecember31,2023,theGrouphadnofixedassetsleasedoutunderoperatingleases.AsofDecember31,2024andDecember31,2023,theGrouphadnobuildingandconstructionwithtitlecertificatesnotyetobtained.AsofDecember31,2024,theownershipofhousesandbuildingswithabookvalueofRMB548,238,569(December31,2023:RMB549,318,741)wasrestricted.Fixedassets
(1).Fixedassets
□Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Buildingandconstruction | Machineryandequipment | Transportationvehicles | Electronicandofficeequipment | Total |
| I.Originalbookvalue: | |||||
| 1.Beginningbalance | 982,085,889 | 106,790,462 | 26,675,336 | 811,002,381 | 1,926,554,068 |
| 2.Increaseforthecurrentperiod | 17,719,810 | 17,904,825 | 6,139,782 | 173,295,332 | 215,059,749 |
| (1)Purchase | 762,604 | 6,139,782 | 169,693,073 | 176,595,459 | |
| (2)Transferfromconstructioninprogress | 17,719,810 | 3,217,527 | 3,602,259 | 24,539,596 | |
/
| (3)Reclassification | 13,924,694 | 13,924,694 |
3.Decreaseforthecurrentperiod
| 3.Decreaseforthecurrentperiod | 13,924,694 | 58,078 | 2,289,149 | 62,339,582 | 78,611,503 |
| (1)Disposalorretirement | 58,078 | 2,289,149 | 62,339,582 | 64,686,809 | |
| (2)Reclassification | 13,924,694 | 13,924,694 |
4.Endingbalance
| 4.Endingbalance | 985,881,005 | 124,637,209 | 30,525,969 | 921,958,131 | 2,063,002,314 |
| II.Accumulateddepreciation | |||||
| 1.Beginningbalance | 94,159,514 | 18,108,666 | 17,345,648 | 455,912,044 | 585,525,872 |
| 2.Increaseforthecurrentperiod | 23,174,167 | 7,381,719 | 3,051,417 | 132,458,740 | 166,066,043 |
| (1)Provision | 23,174,167 | 7,381,719 | 3,051,417 | 132,458,740 | 166,066,043 |
3.Decreaseforthecurrentperiod
| 3.Decreaseforthecurrentperiod | 1,833 | 1,764,433 | 52,471,669 | 54,237,935 | |
| (1)Disposalorretirement | 1,833 | 1,764,433 | 52,471,669 | 54,237,935 |
4.Endingbalance
| 4.Endingbalance | 117,333,681 | 25,488,552 | 18,632,632 | 535,899,115 | 697,353,980 |
| III.Impairmentprovision | |||||
| 1.Beginningbalance | |||||
| 2.Increaseforthecurrentperiod | |||||
| (1)Provision | |||||
3.Decreaseforthecurrentperiod
| 3.Decreaseforthecurrentperiod |
| (1)Disposalorretirement |
/
| 4.Endingbalance | |||||
| IV.Bookvalue | |||||
| 1.Endingbookvalue | 868,547,324 | 99,148,657 | 11,893,337 | 391,585,146 | 1,365,648,334 |
| 2.Beginningbookvalue | 887,926,375 | 88,681,796 | 9,329,688 | 355,090,337 | 1,341,028,196 |
(2).Temporarilyidlefixedassets
□Applicable√NotApplicable
(3).Fixedassetsleasedoutthroughoperatinglease
□Applicable√NotApplicable
(4).Fixedassetswithtitlecertificatesnotyetobtained
□Applicable√NotApplicable
(5).Impairmenttestforfixedassets
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicableDisposaloffixedassets
□Applicable√NotApplicable
/
22.ConstructioninprogressPresentationbyitem
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicableConstructioninprogress
(1).Constructioninprogress
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Bookbalance | Impairmentprovision | Bookvalue | Bookbalance | Impairmentprovision | Bookvalue | |
| ChangshaNDCExpansionProject(PhaseI)ofLBX(FormerName:LBXLogisticsHubandE-commerceBasePhaseIIProject) | 49,445,587 | 49,445,587 | 4,874,403 | 4,874,403 | ||
| EnterpriseDigitalPlatformandNewRetailConstructionProject | 50,107,825 | 50,107,825 | 62,578,129 | 62,578,129 | ||
| EastChinaPharmaceuticalProductSortingandProcessingProject | - | - | 4,852,899 | 4,852,899 | ||
| Miscellaneousandpettyconstructionprojects | 8,242,512 | 8,242,512 | 3,449,512 | 3,449,512 | ||
| Total | 107,795,924 | 107,795,924 | 75,754,943 | 75,754,943 | ||
(2).Changesinsignificantconstructioninprogressprojectsduringtheperiod
√Applicable□NotApplicable
/
Unit:YuanCurrency:RMB
| NameofProject | Budgetamount | BeginningBalance | Increaseforthecurrentperiod | Amounttransferredtofixedassetsduringtheperiod | Otherdecreaseforthecurrentperiod | EndingBalance | Ratioofcumulativeprojectinvestmenttobudget(%) | Projectprogress | Cumulativeamountofcapitalizedinterest | Ofwhich:Amountofcapitalizedinterestduringtheperiod | Interestcapitalizationrateduringtheperiod(%) | Sourceoffunds |
| ChangshaNDCExpansionProject(PhaseI)ofLBX | 128,160,000 | 4,874,403 | 48,225,842 | 3,654,658 | - | 49,445,587 | 64.61% | Bankloansandownfunds | ||||
| EnterpriseDigitalPlatformandNewRetailConstructionProject | 611,872,491 | 62,578,129 | 133,998,334 | - | 146,468,638 | 50,107,825 | 93.68% | Ownfundsandraisedfunds | ||||
| EastChinaPharmaceuticalProductSortingandProcessingProject | 311,484,700 | 4,852,899 | 14,962,451 | 18,343,652 | 1,471,698 | - | 87.18% | Ownfundsandraisedfunds | ||||
| Total | 1,051,517,191 | 72,305,431 | 197,186,626 | 21,998,310 | 147,940,335 | 99,553,412 | / | / | 931,500 | / | / |
(3).Impairmentprovisionmadeforconstructioninprogressduringtheperiod
□Applicable√NotApplicable
/
(4).Impairmenttestforconstructioninprogress
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicableEngineeringmaterials
(1).Engineeringmaterials
□Applicable√NotApplicable
23.Productivebiologicalassets
(1).Productivebiologicalassetsusingthecostmeasurementmodel
□Applicable√NotApplicable
(2).Impairmenttestforproductivebiologicalassetsusingthecostmeasurementmodel
□Applicable√NotApplicable
(3).Productivebiologicalassetsusingthefairvaluemeasurementmodel
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicable
24.Oilandgasassets
(1)Oilandgasassets
□Applicable√NotApplicable
/
(2)Impairmenttestforoilandgasassets
□Applicable√NotApplicableOtherExplanations:
None
25.Right-of-useassets
(1)Right-of-useassets
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Buildingandconstruction | Total |
| I.Originalbookvalue | ||
| 1.Beginningbalance | 6,777,056,892 | 6,777,056,892 |
| 2.Increaseforthecurrentperiod | 1,129,069,230 | 1,129,069,230 |
| Newadditions | 1,129,069,230 | 1,129,069,230 |
| 3.Decreaseforthecurrentperiod | -506,891,030 | -506,891,030 |
| Leasemodification | -51,440,326 | -51,440,326 |
| Disposal | -455,450,704 | -455,450,704 |
| 4.Endingbalance | 7,399,235,092 | 7,399,235,092 |
| II.Accumulateddepreciation | ||
| 1.Beginningbalance | 4,053,062,307 | 4,053,062,307 |
| 2.Increaseforthecurrentperiod | 1,234,580,552 | 1,234,580,552 |
| (1)Provision | 1,234,580,552 | 1,234,580,552 |
| 3.Decreaseforthecurrentperiod | -391,214,930 | -391,214,930 |
| (1)Disposal | -391,214,930 | -391,214,930 |
| 4.Endingbalance | 4,896,427,929 | 4,896,427,929 |
| III.Impairmentprovision | ||
| 1.Beginningbalance | ||
/
| 2.Increaseforthecurrentperiod |
| (1)Provision |
3.Decreaseforthecurrentperiod
| 3.Decreaseforthecurrentperiod |
| (1)Disposal |
4.Endingbalance
| 4.Endingbalance | ||
| IV.Bookvalue | ||
| 1.Endingbookvalue | 2,502,807,163 | 2,502,807,163 |
| 2.Beginningbookvalue | 2,723,994,585 | 2,723,994,585 |
(2)Impairmenttestforright-of-useassets
□Applicable√NotApplicableOtherExplanations:
None
26.Intangibleassets
(1).Intangibleassets
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Landuserights | Softwareandpatentrights | Non-patentedtechnology | Trademarkrights | Other | Total |
| I.Originalbookvalue | ||||||
| 1.Beginningbalance | 277,092,776 | 490,642,616 | 139,051,061 | 3,828,064 | 910,614,517 | |
| 2.Increaseforthecurrentperiod | ||||||
| (1)Purchase | 10,020,269 | - | 10,020,269 | |||
/
| (2)InternalR&D | 147,940,335 | 85,000 | 148,025,335 |
3.Decreaseforthecurrentperiod
| 3.Decreaseforthecurrentperiod | ||||
| (1)Disposal | -27,874,357 | -27,874,357 |
4.Endingbalance
| 4.Endingbalance | 277,092,776 | 620,728,863 | 139,051,061 | 3,913,064 | 1,040,785,764 | |
| II.Accumulatedamortization | ||||||
| 1.Beginningbalance | 20,939,879 | 140,549,425 | 2,143,521 | 163,632,825 | ||
| 2.Increaseforthecurrentperiod | ||||||
| (1)Provision | 3,558,002 | 58,584,419 | - | 1,072,469 | 63,214,890 | |
3.Decreaseforthecurrentperiod
| 3.Decreaseforthecurrentperiod | ||||||
| (1)Disposal | - | -27,874,357 | - | - | -27,874,357 |
4.Endingbalance
| 4.Endingbalance | 24,497,881 | 171,259,487 | - | 3,215,990 | 198,973,358 | |
| III.Impairmentprovision | ||||||
| 1.Beginningbalance | ||||||
| 2.Increaseforthecurrentperiod | ||||||
| (1)Provision | ||||||
/
| 3.Decreaseforthecurrentperiod |
| (1)Disposal |
4.Endingbalance
| 4.Endingbalance | ||||||
| IV.Bookvalue | ||||||
| 1.Endingbookvalue | 252,594,895 | 449,469,376 | 139,051,061 | 697,074 | 841,812,406 | |
| 2.Beginningbookvalue | 256,152,897 | 350,093,191 | 139,051,061 | 1,684,543 | 746,981,692 | |
TheproportionofintangibleassetsformedthroughinternalR&Dtothebalanceofintangibleassetsattheendoftheperiodis17.57%
(2).Dataresourcesrecognizedasintangibleassets
□Applicable√NotApplicable
(3).Landuserightswithtitlecertificatesnotyetobtained
□Applicable√NotApplicable
(3)Impairmenttestforintangibleassets
□Applicable√NotApplicableOtherExplanations:
√Applicable□NotApplicableAsofDecember31,2024andDecember31,2023,theGrouphadnointangibleassetswithtitlecertificatesnotyetobtained.AsofDecember31,2024,theownershipofintangibleassetswithabookvalueofRMB93,712,413(December31,2023:RMB94,533,877)wasrestricted.
/
27.Goodwill
(1).Originalbookvalueofgoodwill
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Nameofinvesteeoreventforminggoodwill | Beginningbalance | Increaseduringtheperiod | Decreaseduringtheperiod | Endingbalance | ||
| Formedfrombusinesscombination | Businesscombinationnotinvolvingenterprisesundercommoncontrol | Disposal | Otherdecrease | |||
| AnhuiBaixingyuanPharmacyChainCo.,Ltd.("AnhuiBaixingyuan") | 194,274,936 | - | - | 194,274,936 | ||
| 39storesofChangdeQinghetangPharmacyChainCo.,Ltd.("Qinghetang39stores") | 93,850,314 | - | - | 93,850,314 | ||
| ChangzhouWanrenPharmacyCo.,Ltd.("ChangzhouWanrenCompany") | 80,466,574 | - | - | 80,466,574 | ||
| 55storesofHunanKangyixinPharmacyRetailChainCo.,Ltd.("Kangyixin55stores") | 78,864,078 | - | - | 78,864,078 | ||
| 27storesofAnyangXinglinPharmaceuticalChainCo.,Ltd.("XinglinPharmaceutical27stores") | 49,699,999 | - | - | 49,699,999 | ||
| Xi'anLongsheng | 45,221,026 | - | - | 45,221,026 | ||
| 34storesofHunanFushoutangPharmacyRetailChainCo.,Ltd.("Fushoutang34stores") | 38,938,235 | - | - | 38,938,235 | ||
| 100%equityacquisitionofHenanPharmaceuticalSupermarketCo.,Ltd.("Henan | 34,206,934 | - | - | 34,206,934 | ||
/
| PharmaceuticalSupermarket") | ||||||
| 46storesofTianjinJingyitangPharmacyCo.,Ltd.("Jingyitang46stores") | 25,581,196 | - | - | 25,581,196 | ||
| 12storesofMa'anshanBaiyuanPharmacyChainCo.,Ltd.("Baiyuan12stores") | 20,566,038 | - | - | 20,566,038 | ||
| 18storesofHunanYaohaitangPharmaceuticalChainCo.,Ltd.("Yaohaitang18stores") | 20,413,527 | - | - | 20,413,527 | ||
| ChangdeMinkangPharmacyChainCo.,Ltd.("ChangdeMinkang") | 17,471,648 | - | - | 17,471,648 | ||
| 25storesofAnhuiHefeiWeiminPharmacyChainCo.,Ltd.("HefeiWeimin25stores") | 18,575,471 | - | - | 18,575,471 | ||
| 24storesofHunanKang'erjiaBaoqingPharmacyChainCo.,Ltd.("BaoqingPharmacy24stores") | 16,977,528 | - | - | 16,977,528 | ||
| 14storesofXiangxiangXiangrentangPharmacyandXiangxiangHuashangPharmacy("Xiangxiang14stores") | 9,866,416 | - | - | 9,866,416 | ||
| 32HaichengPharmacystores | 8,700,000 | - | - | 8,700,000 | ||
| AnxiangKangyuanPharmacyChainCo.,Ltd.("AnxiangKangyuan18stores") | 5,800,000 | - | - | 5,800,000 | ||
| LanzhouHuirentang | 285,048,544 | - | - | 285,048,544 | ||
| YangzhouBaixinyuanPharmaceuticalChainCo.,Ltd.("YangzhouBaixinyuan") | 114,813,534 | - | - | 114,813,534 | ||
| RenxinPharmacy | 12,735,849 | - | - | 12,735,849 | ||
| 100%equityofWuhanNanfangPharmacyChainCo.,Ltd. | 55,519,338 | - | - | 55,519,338 |
/
| ("WuhanNanfang") | ||||||
| JiangsuBaijiahuiSuhePharmacyChainCo.,Ltd.("JiangsuBaijiahui") | 59,658,890 | - | - | 59,658,890 | ||
| TongliaoZeqiang | 236,100,252 | - | - | 236,100,252 | ||
| YangzhouMingxuanPharmacyCo.,Ltd.,YangzhouXingyanghePharmacyCo.,Ltd. | 7,193,637 | - | - | 7,193,637 | ||
| ZhenjiangHuakangPharmacyChainCo.,Ltd.("ZhenjiangHuakang") | 58,767,810 | - | - | 58,767,810 | ||
| TaizhouLongtaiyuanPharmaceuticalChainCo.,Ltd.("Longtaiyuan") | 52,874,568 | - | - | 52,874,568 | ||
| NantongPuzePharmacyChainCo.,Ltd.("NantongPuze") | 93,418,352 | - | - | 93,418,352 | ||
| AnhuiLinjiayiKangfuPharmacyChainCo.,Ltd.("Linjiayi") | 40,024,723 | - | - | 40,024,723 | ||
| WuhuXinshiminPharmacyCo.,Ltd. | 11,023,271 | - | - | 11,023,271 | ||
| HunanEasyDrugTechnologyCo.,Ltd.("EasyDrug") | 7,987,199 | - | - | 7,987,199 | ||
| WuxiSanpintanPharmaceuticalChainCo.,Ltd.("Sanpintan") | 29,017,544 | - | - | 29,017,544 | ||
| ChangzhouJintanXinqianqiuPharmacyCo.,Ltd.("JintanXinqianqiu") | 14,148,071 | - | - | 14,148,071 | ||
| JiangsuHaipengPharmaceuticalChainCo.,Ltd.("JiangsuHaipeng") | 69,484,357 | - | - | 69,484,357 | ||
| ChangzhouWeizhikangPharmacyCo.,Ltd.,ChangzhouWeikangPharmacyCo.,Ltd.,etc.("ChangzhouWeizhikang6 | 11,893,907 | - | - | 11,893,907 |
/
| stores") | ||||||
| AnhuiZhengtongPharmacyChainCo.,Ltd.("ZhengtongPharmacy15store") | 25,728,476 | - | - | 25,728,476 | ||
| AnhuiZhengtongPharmacyChainCo.,Ltd.("ZhengtongPharmacy1store") | 3,921,132 | - | - | 3,921,132 | ||
| AnhuiYaoshantangPharmacyChainCo.,Ltd.("YaoshantangPharmacy16stores") | 23,584,907 | - | - | 23,584,907 | ||
| 9HuaríPharmacystores | 28,373,090 | - | - | 28,373,090 | ||
| LinyiRendePharmacyChainCo.,Ltd.("LinyiRende") | 59,797,199 | - | - | 59,797,199 | ||
| HengyangQianxiYixintangPharmacyChainCo.,Ltd.(renamed"LBXPharmacyChain(Hengyang)Co.,Ltd."afteracquisition) | 22,523,948 | - | - | 22,523,948 | ||
| ZhenjiangKaitaiPharmacyCo.,Ltd.(renamed"ZhenjiangHuakangKaitaiPharmacyCo.,Ltd."afteracquisition) | 4,991,549 | - | - | 4,991,549 | ||
| NingxiaTongshengxiangTongjitangPharmaceuticalCo.,Ltd. | 38,307,089 | - | - | 38,307,089 | ||
| ShanxiBaihuiPharmaceuticalChainCo.,Ltd.("ShanxiBaihui") | 98,721,210 | - | - | 98,721,210 | ||
| TianjinQianweiJinqilinPharmaceuticalCo.,Ltd.(renamed"TianjinLBXJinqilinPharmaceuticalSalesCo.,Ltd."afteracquisition) | 541,081 | - | - | 541,081 | ||
| 10storesofXi'anShisanchaoLaoyaopuPharmaceuticalCo.,Ltd. | 9,339,622 | - | - | 9,339,622 |
/
| ChangshaKaifuDistrictChujiaRenkangtaiPharmacy,ChangshaKaifuDistrictMaifeiRenkangtaiPharmacy,etc.11stores | 16,176,078 | - | - | 16,176,078 | ||
| 21storesofGuangxiGuangpuPharmaceuticalCo.,Ltd. | 34,866,132 | - | - | 34,866,132 | ||
| 17storesofXi'anJinxiuHuatuoPharmaceuticalCo.,Ltd.,etc. | 15,705,331 | - | - | 15,705,331 | ||
| 8storesofAnhuiXingtianxiaPharmacyChainCo.,Ltd. | 11,838,157 | - | - | 11,838,157 | ||
| 14storesofHengyangRenxintangPharmacyChainCo.,Ltd. | 4,630,000 | - | - | 4,630,000 | ||
| 10storesofHuixianRen'aiLBXPharmacy,GanguCountyJiankangLBXPharmaceuticalCo.,Ltd.,etc. | 15,335,872 | - | - | 15,335,872 | ||
| 19storesofAnhuiAnningPharmacyChainCo.,Ltd. | 44,339,623 | - | - | 44,339,623 | ||
| NantongChengxinPharmacyChainCo.,Ltd. | 36,009,600 | - | - | 36,009,600 | ||
| 21JiangyinHaipengstores | 34,922,102 | - | - | 34,922,102 | ||
| 16storesofXi'anDexiangPharmaceuticalCo.,Ltd. | 33,443,396 | - | - | 33,443,396 | ||
| 12storesofYixingBaixinPharmacyCo.,Ltd.,etc. | 32,000,000 | - | - | 32,000,000 | ||
| 26storesofShaoyangBaoqingChuntianPharmacy | 30,905,710 | - | - | 30,905,710 | ||
| UlanhotShengjianShiyiCo.,Ltd.,etc.11pharmacies | 26,000,000 | - | - | 26,000,000 | ||
| 11storesofZhuzhouXinglinPharmacy | 15,967,117 | - | - | 15,967,117 | ||
| 22storesofChenzhouLexianPharmacy | 15,800,000 | - | - | 15,800,000 | ||
| 10storesofQidongCounty | 14,505,248 | - | - | 14,505,248 |
/
| KangzhiyuanPharmacyCo.,Ltd. | ||||||
| 19storesofNantongBainianPharmacyChainCo.,Ltd. | 11,322,924 | - | - | 11,322,924 | ||
| 12storesofRuichengCountyBaihuiPharmaceuticalCo.,Ltd. | 11,000,000 | - | - | 11,000,000 | ||
| 11storesofHefeiPushengtangPharmaceuticalChainCo.,Ltd. | 9,933,962 | - | - | 9,933,962 | ||
| HejinRenguoBaihuiPharmaceuticalCo.,Ltd. | 9,078,000 | - | - | 9,078,000 | ||
| YuanquCountyBaihuiPharmaceuticalCo.,Ltd. | 6,915,600 | - | - | 6,915,600 | ||
| 7ChangdeShunxingstores | 2,830,024 | - | - | 2,830,024 | ||
| WuhuJian'erjiaPharmaceuticalTradingCo.,Ltd.(renamed"ForworldMedicineLogistics(Anhui)Co.,Ltd."afteracquisition) | 1,000,000 | - | - | 1,000,000 | ||
| TianjinLBXTonghuiPharmacyCo.,Ltd. | 116,096 | - | - | 116,096 | ||
| 111storesofHuairenGreatHealth | 148,580,000 | - | - | 148,580,000 | ||
| ChifengLBX | 594,799,828 | - | - | 594,799,828 | ||
| ShaanxiSanqinJishengtang | 118,032,360 | - | - | 118,032,360 | ||
| 27storesofAnhuiBaijiaxinPharmacyChainCo.,Ltd.("AnhuiBaijiaxin27stores") | 39,148,515 | - | - | 39,148,515 | ||
| 7storesofYunchengKanghuiTonghuiPharmaceuticalCo.,Ltd.XinjianCountyKanghuidaPharmacy("XinjianBaijiahui7stores") | 19,800,000 | - | - | 19,800,000 | ||
| 28LoudiChujitangstores | 15,320,592 | - | - | 15,320,592 | ||
| 19storesinNingxiaArea1 | 34,627,634 | - | - | 34,627,634 | ||
| 36storesofChenzhouGuiyang | 26,237,624 | - | - | 26,237,624 |
/
| Fukang | ||||||
| 46storesofAnhuiYuyongPharmacy | 38,239,623 | - | - | 38,239,623 | ||
| 25storesofShanxiLBXBinhaiCo.,Ltd. | 14,150,943 | - | - | 14,150,943 | ||
| 11storesofHunanYongkangtangPharmacyChainCo.,Ltd. | 30,000,000 | - | - | 30,000,000 | ||
| BaichengTongtaiPharmaceuticalCo.,Ltd.,etc.39stores | 12,362,264 | - | - | 12,362,264 | ||
| 3storesofKangleCountyBaijiakangPharmacy | 5,106,796 | - | - | 5,106,796 | ||
| EquityofXuanchengLBXJiangnanPharmaceuticalChainCo.,Ltd. | 37,500,000 | - | - | 37,500,000 | ||
| EquityofWuhuYuanchuPharmacyChainCo.,Ltd. | 105,000,000 | - | - | 105,000,000 | ||
| 25storesofJiangsuPuzePharmacyChainCo.,Ltd. | 42,760,000 | - | - | 42,760,000 | ||
| 20storesofXinghuaChushuiPharmacyChainCo.,Ltd. | 58,500,000 | - | - | 58,500,000 | ||
| EquityofHuairenGreatHealth | 1,492,257,067 | - | - | 1,492,257,067 | ||
| EquityofWuhuLBXYijiarenPharmacyChainCo.,Ltd. | 121,000,000 | - | 121,000,000 | |||
| EquityofAnqingLBXPharmacyChainCo.,Ltd. | 109,120,000 | - | 2,728,000 | 106,392,000 | ||
| EquityofShandongLBXChuntianPharmacyChainCo.,Ltd. | 95,793,589 | - | 95,793,589 | |||
| E-commerceofJiangsuPuzePharmacyChainCo.,Ltd. | 10,000,000 | - | 10,000,000 | |||
| 17storesofHengyuPharmacy | 7,300,000 | - | 7,300,000 | |||
| 25storesofHefeiJingtianPharmacy | - | 25,070,000 | - | 25,070,000 |
/
| Acquisitionof7QianjinDayestores | - | 5,500,000 | - | 5,500,000 | ||
| Total | 5,845,290,876 | 30,570,000 | - | 2,728,000 | 5,873,132,876 |
(2).Goodwillimpairmentprovision
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Nameofinvesteeoreventforminggoodwill | Beginningbalance | Increaseduringtheperiod | Decreaseduringtheperiod | Endingbalance | ||
| Provision | Disposal | |||||
| TianjinArea | 9,429,668 | 16,079,140 | 25,508,808 | |||
| ZhenjiangArea,JiangsuProvince | - | 26,247,143 | 26,247,143 | |||
| KunshanArea,JiangsuProvince | - | 15,273,603 | 15,273,603 | |||
| HuaihuaArea,Hunan | - | 49,944,594 | 49,944,594 | |||
Total
| Total | 9,429,668 | 107,544,480 | 116,974,148 |
(3).InformationrelatedtotheCGUorgroupofCGUswheregoodwillresides
√Applicable□NotApplicable
| Name | CompositionandbasisoftheaffiliatedCGUorcombination | Affiliatedoperatingsegmentandbasis | Whetherconsistentwithpreviousyears |
| HunanProvinceArea | MainlycomposedofpharmacieswithintheHunanProvincearea.ThebeneficiaryofthesynergyeffectfromacquiringpharmaciesinthisareaistheentireHunanProvincepharmacyCGUgroup,anditisdifficulttoallocatetoindividualCGUs.Therefore,goodwillisallocatedtotheCGUgroup. | Basedoninternalmanagementpurposes,thisCGUgroupbelongstotheretailbusinesssegment. | Yes |
| OtherAreasinAnhuiProvince | MainlycomposedofpharmaciesinotherareasofAnhuiProvince.ThebeneficiaryofthesynergyeffectfromacquiringpharmaciesinthisareaistheentireAnhui | Basedoninternalmanagementpurposes,thisCGUgroupbelongstotheretailbusinesssegment. | Yes |
/
| ProvinceotherareaspharmacyCGUgroup,anditisdifficulttoallocatetoindividualCGUs.Therefore,goodwillisallocatedtotheCGUgroup. | |||
| GansuandNingxiaProvinceArea | MainlycomposedofpharmacieswithintheGansuandNingxiaProvincearea.ThebeneficiaryofthesynergyeffectfromacquiringpharmaciesinthisareaistheentireGansuandNingxiaProvincepharmacyCGUgroup,anditisdifficulttoallocatetoindividualCGUs.Therefore,goodwillisallocatedtotheCGUgroup. | Basedoninternalmanagementpurposes,thisCGUgroupbelongstotheretailbusinesssegment. | Yes |
| InnerMongoliaAutonomousRegionArea | MainlycomposedofpharmacieswithintheInnerMongoliaAutonomousRegionarea.ThebeneficiaryofthesynergyeffectfromacquiringpharmaciesinthisareaistheentireInnerMongoliaAutonomousRegionpharmacyCGUgroup,anditisdifficulttoallocatetoindividualCGUs.Therefore,goodwillisallocatedtotheCGUgroup. | Basedoninternalmanagementpurposes,thisCGUgroupbelongstotheretailbusinesssegment. | Yes |
| ShaanxiProvinceArea | MainlycomposedofpharmacieswithintheShaanxiProvincearea.ThebeneficiaryofthesynergyeffectfromacquiringpharmaciesinthisareaistheentireShaanxiProvincepharmacyCGUgroup,anditisdifficulttoallocatetoindividualCGUs.Therefore,goodwillisallocatedtotheCGUgroup. | Basedoninternalmanagementpurposes,thisCGUgroupbelongstotheretailbusinesssegment. | Yes |
| ChangzhouArea,JiangsuProvince | MainlycomposedofpharmacieswithintheChangzhouareainJiangsuProvince.ThebeneficiaryofthesynergyeffectfromacquiringpharmaciesinthisareaistheentireJiangsuProvinceChangzhoupharmacyCGUgroup,anditisdifficulttoallocatetoindividualCGUs.Therefore,goodwillisallocatedtotheCGUgroup. | Basedoninternalmanagementpurposes,thisCGUgroupbelongstotheretailbusinesssegment. | Yes |
| NantongArea,JiangsuProvince | MainlycomposedofpharmacieswithintheNantongareainJiangsuProvince.ThebeneficiaryofthesynergyeffectfromacquiringpharmaciesinthisareaistheentireJiangsuProvinceNantongpharmacyCGUgroup,anditisdifficulttoallocatetoindividualCGUs.Therefore,goodwillisallocatedtotheCGUgroup. | Basedoninternalmanagementpurposes,thisCGUgroupbelongstotheretailbusinesssegment. | Yes |
| YunchengArea,ShanxiProvince | MainlycomposedofpharmacieswithintheYunchengareainShanxiProvince.ThebeneficiaryofthesynergyeffectfromacquiringpharmaciesinthisareaistheentireShanxi | Basedoninternalmanagementpurposes,thisCGUgroupbelongstotheretailbusinesssegment. | Yes |
/
| ProvinceYunchengpharmacyCGUgroup,anditisdifficulttoallocatetoindividualCGUs.Therefore,goodwillisallocatedtotheCGUgroup. | |||
| YangzhouArea,JiangsuProvince | MainlycomposedofpharmacieswithintheYangzhouareainJiangsuProvince.ThebeneficiaryofthesynergyeffectfromacquiringpharmaciesinthisareaistheentireJiangsuProvinceYangzhoupharmacyCGUgroup,anditisdifficulttoallocatetoindividualCGUs.Therefore,goodwillisallocatedtotheCGUgroup. | Basedoninternalmanagementpurposes,thisCGUgroupbelongstotheretailbusinesssegment. | Yes |
| JiangyinArea,JiangsuProvince | MainlycomposedofpharmacieswithintheJiangyinareainJiangsuProvince.ThebeneficiaryofthesynergyeffectfromacquiringpharmaciesinthisareaistheentireJiangsuProvinceJiangyinpharmacyCGUgroup,anditisdifficulttoallocatetoindividualCGUs.Therefore,goodwillisallocatedtotheCGUgroup. | Basedoninternalmanagementpurposes,thisCGUgroupbelongstotheretailbusinesssegment. | Yes |
| HenanProvinceArea | MainlycomposedofpharmacieswithintheHenanProvincearea.ThebeneficiaryofthesynergyeffectfromacquiringpharmaciesinthisareaistheentireHenanProvincepharmacyCGUgroup,anditisdifficulttoallocatetoindividualCGUs.Therefore,goodwillisallocatedtotheCGUgroup. | Basedoninternalmanagementpurposes,thisCGUgroupbelongstotheretailbusinesssegment. | Yes |
| HubeiProvinceArea | MainlycomposedofpharmacieswithintheHubeiProvincearea.ThebeneficiaryofthesynergyeffectfromacquiringpharmaciesinthisareaistheentireHubeiProvincepharmacyCGUgroup,anditisdifficulttoallocatetoindividualCGUs.Therefore,goodwillisallocatedtotheCGUgroup. | Basedoninternalmanagementpurposes,thisCGUgroupbelongstotheretailbusinesssegment. | Yes |
| ZhenjiangArea,JiangsuProvince | MainlycomposedofpharmacieswithintheZhenjiangareainJiangsuProvince.ThebeneficiaryofthesynergyeffectfromacquiringpharmaciesinthisareaistheentireJiangsuProvinceZhenjiangpharmacyCGUgroup,anditisdifficulttoallocatetoindividualCGUs.Therefore,goodwillisallocatedtotheCGUgroup. | Basedoninternalmanagementpurposes,thisCGUgroupbelongstotheretailbusinesssegment. | Yes |
| ChaohuArea,AnhuiProvince |
MainlycomposedofpharmacieswithintheChaohuareainAnhuiProvince.ThebeneficiaryofthesynergyeffectfromacquiringpharmaciesinthisareaistheentireAnhui
| Basedoninternalmanagementpurposes,thisCGUgroupbelongstotheretailbusinesssegment. | Yes |
/
| ProvinceChaohupharmacyCGUgroup,anditisdifficulttoallocatetoindividualCGUs.Therefore,goodwillisallocatedtotheCGUgroup. | |||
| WuxiArea,JiangsuProvince | MainlycomposedofpharmacieswithintheWuxiareainJiangsuProvince.ThebeneficiaryofthesynergyeffectfromacquiringpharmaciesinthisareaistheentireJiangsuProvinceWuxipharmacyCGUgroup,anditisdifficulttoallocatetoindividualCGUs.Therefore,goodwillisallocatedtotheCGUgroup. | Basedoninternalmanagementpurposes,thisCGUgroupbelongstotheretailbusinesssegment. | Yes |
| LinyiArea,ShandongProvince | MainlycomposedofpharmacieswithintheLinyiareainShandongProvince.ThebeneficiaryofthesynergyeffectfromacquiringpharmaciesinthisareaistheentireShandongProvinceLinyipharmacyCGUgroup,anditisdifficulttoallocatetoindividualCGUs.Therefore,goodwillisallocatedtotheCGUgroup. | Basedoninternalmanagementpurposes,thisCGUgroupbelongstotheretailbusinesssegment. | Yes |
| KunshanArea,JiangsuProvince | MainlycomposedofpharmacieswithintheKunshanareainJiangsuProvince.ThebeneficiaryofthesynergyeffectfromacquiringpharmaciesinthisareaistheentireJiangsuProvinceKunshanpharmacyCGUgroup,anditisdifficulttoallocatetoindividualCGUs.Therefore,goodwillisallocatedtotheCGUgroup. | Basedoninternalmanagementpurposes,thisCGUgroupbelongstotheretailbusinesssegment. | Yes |
| TaizhouArea,JiangsuProvince | MainlycomposedofpharmacieswithintheTaizhouareainJiangsuProvince.ThebeneficiaryofthesynergyeffectfromacquiringpharmaciesinthisareaistheentireJiangsuProvinceTaizhoupharmacyCGUgroup,anditisdifficulttoallocatetoindividualCGUs.Therefore,goodwillisallocatedtotheCGUgroup. | Basedoninternalmanagementpurposes,thisCGUgroupbelongstotheretailbusinesssegment. | Yes |
| GuangxiZhuangAutonomousRegionArea | MainlycomposedofpharmacieswithintheGuangxiZhuangAutonomousRegionarea.ThebeneficiaryofthesynergyeffectfromacquiringpharmaciesinthisareaistheentireGuangxiZhuangAutonomousRegionpharmacyCGUgroup,anditisdifficulttoallocatetoindividualCGUs.Therefore,goodwillisallocatedtotheCGUgroup. | Basedoninternalmanagementpurposes,thisCGUgroupbelongstotheretailbusinesssegment. | Yes |
| TianjinArea | MainlycomposedofpharmacieswithintheTianjinarea.ThebeneficiaryofthesynergyeffectfromacquiringpharmaciesinthisareaistheentireTianjinCitypharmacyCGUgroup,anditisdifficulttoallocatetoindividualCGUs.Therefore,goodwillisallocatedtotheCGUgroup. | Basedoninternalmanagementpurposes,thisCGUgroupbelongstotheretailbusinesssegment. | Yes |
| ChifengArea,InnerMongolia | MainlycomposedofpharmacieswithintheChifengareainInnerMongolia.ThebeneficiaryofthesynergyeffectfromacquiringpharmaciesinthisareaistheentireInnerMongoliaChifengpharmacyCGUgroup,anditisdifficulttoallocatetoindividualCGUs.Therefore,goodwillisallocatedtotheCGUgroup. | Basedoninternalmanagementpurposes,thisCGUgroupbelongstotheretailbusinesssegment. | Yes |
| NingxiaHealthArea | MainlycomposedofpharmacieswithintheNingxiaHealtharea.Thebeneficiaryofthesynergyeffectfromacquiring | Basedoninternalmanagementpurposes,thisCGUgroupbelongsto | Yes |
/
| pharmaciesinthisareaistheentireNingxiaHealthpharmacyCGUgroup,anditisdifficulttoallocatetoindividualCGUs.Therefore,goodwillisallocatedtotheCGUgroup. | theretailbusinesssegment. | ||
| ShanxiHealthArea | MainlycomposedofpharmacieswithintheShanxiHealtharea.ThebeneficiaryofthesynergyeffectfromacquiringpharmaciesinthisareaistheentireShanxiHealthpharmacyCGUgroup,anditisdifficulttoallocatetoindividualCGUs.Therefore,goodwillisallocatedtotheCGUgroup. | Basedoninternalmanagementpurposes,thisCGUgroupbelongstotheretailbusinesssegment. | Yes |
| HuaihuaArea,Hunan | MainlycomposedofpharmacieswithintheHunanHuaihuaarea.ThebeneficiaryofthesynergyeffectfromacquiringpharmaciesinthisareaistheentireHunanHuaihuapharmacyCGUgroup,anditisdifficulttoallocatetoindividualCGUs.Therefore,goodwillisallocatedtotheCGUgroup. | Basedoninternalmanagementpurposes,thisCGUgroupbelongstotheretailbusinesssegment. | Yes |
| EasyDrug | MainlycomposedofHunanEasyDrug,whosecashinflowsarebasicallyindependentofcashinflowsgeneratedbyotherassetsorCGUs. | Basedoninternalmanagementpurposes,thisCGUbelongstothewholesalebusinesssegment. | Yes |
ChangesinCGUorgroupofCGUs
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicable
(4).SpecificdeterminationmethodforrecoverableamountRecoverableamountdeterminedbasedonfairvaluelesscoststosell
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Bookvalue | Recoverableamount | Impairmentamount | Numberofyearsintheforecastperiod | Keyparametersfortheforecastperiod | Basisfordeterminingparameterswithintheforecast | Keyparametersforthestableperiod | Basisfordeterminingkeyparametersforthe |
/
| period | stableperiod | |||||||
| HunanProvinceArea | 1,549,847,202 | 1,762,000,000 | - | 2025-2029,2030toperpetuity | Revenuegrowthrate2%-4%,Grossprofitmargin33%,Discountrate12.32% | Combinedhistoricaldata,marketconditions,andmanagement'slong-termbusinessforecast | Revenuegrowthrate1.8%,Grossprofitmargin33%,Discountrate12.32% | Stableperiodrevenuegrowthrateis1.8%,grossprofitmarginanddiscountratearebasicallyconsistentwiththelastyearoftheforecastperiod |
| OtherAreasinAnhuiProvince | 1,247,308,717 | 1,352,000,000 | - | 2025-2029,2030toperpetuity | Revenuegrowthrate3%-6%,Grossprofitmargin35%-38%,Discountrate11.35% | Combinedhistoricaldata,marketconditions,andmanagement'slong-termbusinessforecast | Revenuegrowthrate1.8%,Grossprofitmargin38%,Discountrate11.35% | Stableperiodrevenuegrowthrateis1.8%,grossprofitmarginanddiscountratearebasicallyconsistentwiththelastyearoftheforecastperiod |
| GansuandNingxiaProvinceArea | 824,788,166 | 1,015,000,000 | - | 2025-2029,2030toperpetuity | Revenuegrowthrate1%-3%, | Combinedhistoricaldata,marketconditions, | Revenuegrowthrate1.8%,Gross | Stableperiodrevenuegrowthrate |
/
| Grossprofitmargin33%,Discountrate12.11% | andmanagement'slong-termbusinessforecast | profitmargin33%,Discountrate12.11% | is1.8%,grossprofitmarginanddiscountratearebasicallyconsistentwiththelastyearoftheforecastperiod | |||||
| InnerMongoliaAutonomousRegionArea | 605,251,926 | 739,000,000 | - | 2025-2029,2030toperpetuity | Revenuegrowthrate2%,Grossprofitmargin27%-28%,Discountrate10.83% | Combinedhistoricaldata,marketconditions,andmanagement'slong-termbusinessforecast | Revenuegrowthrate1.8%,Grossprofitmargin28%,Discountrate10.83% | Stableperiodrevenuegrowthrateis1.8%,grossprofitmarginanddiscountratearebasicallyconsistentwiththelastyearoftheforecastperiod |
| ShaanxiProvinceArea | 652,130,444 | 850,000,000 | - | 2025-2029,2030toperpetuity | Revenuegrowthrate2%,Grossprofitmargin29%,Discountrate10.84% | Combinedhistoricaldata,marketconditions,andmanagement'slong-termbusinessforecast | Revenuegrowthrate1.8%,Grossprofitmargin29%,Discountrate10.84% | Stableperiodrevenuegrowthrateis1.8%,grossprofitmarginanddiscountratearebasically |
/
| consistentwiththelastyearoftheforecastperiod | ||||||||
| ChangzhouArea,JiangsuProvince | 297,272,732 | 323,000,000 | - | 2025-2029,2030toperpetuity | Revenuegrowthrate2%-3%,Grossprofitmargin42%-43%,Discountrate11.93% | Combinedhistoricaldata,marketconditions,andmanagement'slong-termbusinessforecast | Revenuegrowthrate1.8%,Grossprofitmargin43%,Discountrate11.93% | Stableperiodrevenuegrowthrateis1.8%,grossprofitmarginanddiscountratearebasicallyconsistentwiththelastyearoftheforecastperiod |
| NantongArea,JiangsuProvince | 450,363,945 | 505,000,000 | - | 2025-2029,2030toperpetuity | Revenuegrowthrate3%-5%,Grossprofitmargin28%,Discountrate11.94% | Combinedhistoricaldata,marketconditions,andmanagement'slong-termbusinessforecast | Revenuegrowthrate1.8%,Grossprofitmargin28%,Discountrate11.9% | Stableperiodrevenuegrowthrateis1.8%,grossprofitmarginanddiscountratearebasicallyconsistentwiththelastyearoftheforecastperiod |
| Yuncheng | 333,011,647 | 350,000,000 | 2025-2029, | Revenue | Combined | Revenue | Stable |
/
| Area,ShanxiProvince | - | 2030toperpetuity | growthrate2%-5%,Grossprofitmargin32%,Discountrate11.92% | historicaldata,marketconditions,andmanagement'slong-termbusinessforecast | growthrate1.8%,Grossprofitmargin33%,Discountrate11.92% | periodrevenuegrowthrateis1.8%,grossprofitmarginanddiscountratearebasicallyconsistentwiththelastyearoftheforecastperiod | ||
| YangzhouArea,JiangsuProvince | 313,109,792 | 380,000,000 | - | 2025-2029,2030toperpetuity | Revenuegrowthrate0%-3%,Grossprofitmargin32%,Discountrate11.84% | Combinedhistoricaldata,marketconditions,andmanagement'slong-termbusinessforecast | Revenuegrowthrate1.8%,Grossprofitmargin32%,Discountrate11.84% | Stableperiodrevenuegrowthrateis1.8%,grossprofitmarginanddiscountratearebasicallyconsistentwiththelastyearoftheforecastperiod |
| JiangyinArea,JiangsuProvince | 241,925,213 | 255,000,000 | - | 2025-2029,2030toperpetuity | Revenuegrowthrate2%-3%,Grossprofitmargin | Combinedhistoricaldata,marketconditions,andmanagement'slong-term | Revenuegrowthrate1.8%,Grossprofitmargin43%, | Stableperiodrevenuegrowthrateis1.8%,grossprofitmarginand |
/
| 42%-43%,Discountrate11.96% | businessforecast | Discountrate11.96% | discountratearebasicallyconsistentwiththelastyearoftheforecastperiod | |||||
| HenanProvinceArea | 173,426,633 | 191,000,000 | - | 2025-2029,2030toperpetuity | Revenuegrowthrate2%,Grossprofitmargin36%-37%,Discountrate11.68% | Combinedhistoricaldata,marketconditions,andmanagement'slong-termbusinessforecast | Revenuegrowthrate1.8%,Grossprofitmargin37%,Discountrate11.68% | Stableperiodrevenuegrowthrateis1.8%,grossprofitmarginanddiscountratearebasicallyconsistentwiththelastyearoftheforecastperiod |
| HubeiProvinceArea | 166,059,454 | 207,000,000 | - | 2025-2029,2030toperpetuity | Revenuegrowthrate2%,Grossprofitmargin31%,Discountrate12.09% | Combinedhistoricaldata,marketconditions,andmanagement'slong-termbusinessforecast | Revenuegrowthrate1.8%,Grossprofitmargin31%,Discountrate12.09% | Stableperiodrevenuegrowthrateis1.8%,grossprofitmarginanddiscountratearebasicallyconsistentwiththelastyearof |
/
| theforecastperiod | ||||||||
| ZhenjiangArea,JiangsuProvince | 116,380,220 | 76,000,000 | -26,247,143 | 2025-2029,2030toperpetuity | Revenuegrowthrate1%-3%,Grossprofitmargin42%,Discountrate11.95% | Combinedhistoricaldata,marketconditions,andmanagement'slong-termbusinessforecast | Revenuegrowthrate1.8%,Grossprofitmargin43%,Discountrate11.95% | Stableperiodrevenuegrowthrateis1.8%,grossprofitmarginanddiscountratearebasicallyconsistentwiththelastyearoftheforecastperiod |
| ChaohuArea,AnhuiProvince | 158,465,432 | 165,000,000 | - | 2025-2029,2030toperpetuity | Revenuegrowthrate2%,Grossprofitmargin42%,Discountrate11.78% | Combinedhistoricaldata,marketconditions,andmanagement'slong-termbusinessforecast | Revenuegrowthrate1.8%,Grossprofitmargin42%,Discountrate11.78% | Stableperiodrevenuegrowthrateis1.8%,grossprofitmarginanddiscountratearebasicallyconsistentwiththelastyearoftheforecastperiod |
| WuxiArea,JiangsuProvince | 169,604,339 | 189,000,000 | - | 2025-2029,2030toperpetuity | Revenuegrowthrate4%-9%, | Combinedhistoricaldata,marketconditions, | Revenuegrowthrate1.8%,Gross | Stableperiodrevenuegrowthrate |
/
| Grossprofitmargin39%-42%,Discountrate11.79% | andmanagement'slong-termbusinessforecast | profitmargin42%,Discountrate11.79% | is1.8%,grossprofitmarginanddiscountratearebasicallyconsistentwiththelastyearoftheforecastperiod | |||||
| LinyiArea,ShandongProvince | 346,481,949 | 378,000,000 | - | 2025-2029,2030toperpetuity | Revenuegrowthrate4%-8%,Grossprofitmargin36%-40%,Discountrate11.62% | Combinedhistoricaldata,marketconditions,andmanagement'slong-termbusinessforecast | Revenuegrowthrate1.8%,Grossprofitmargin40%,Discountrate11.62% | Stableperiodrevenuegrowthrateis1.8%,grossprofitmarginanddiscountratearebasicallyconsistentwiththelastyearoftheforecastperiod |
| KunshanArea,JiangsuProvince | 157,948,241 | 128,000,000 | -15,273,603 | 2025-2029,2030toperpetuity | Revenuegrowthrate2%-3%,Grossprofitmargin39%-40%,Discountrate | Combinedhistoricaldata,marketconditions,andmanagement'slong-termbusinessforecast | Revenuegrowthrate1.8%,Grossprofitmargin40%,Discountrate11.94% | Stableperiodrevenuegrowthrateis1.8%,grossprofitmarginanddiscountratearebasically |
/
| 11.94% | consistentwiththelastyearoftheforecastperiod | |||||||
| TaizhouArea,JiangsuProvince | 228,500,703 | 247,000,000 | - | 2025-2029,2030toperpetuity | Revenuegrowthrate3%-5%,Grossprofitmargin41%-42%,Discountrate11.90% | Combinedhistoricaldata,marketconditions,andmanagement'slong-termbusinessforecast | Revenuegrowthrate1.8%,Grossprofitmargin42%,Discountrate11.90% | Stableperiodrevenuegrowthrateis1.8%,grossprofitmarginanddiscountratearebasicallyconsistentwiththelastyearoftheforecastperiod |
| GuangxiZhuangAutonomousRegionArea | 304,511,995 | 344,000,000 | - | 2025-2029,2030toperpetuity | Revenuegrowthrate2%,Grossprofitmargin34%,Discountrate11.01% | Combinedhistoricaldata,marketconditions,andmanagement'slong-termbusinessforecast | Revenuegrowthrate1.8%,Grossprofitmargin34%,Discountrate11.01% | Stableperiodrevenuegrowthrateis1.8%,grossprofitmarginanddiscountratearebasicallyconsistentwiththelastyearoftheforecastperiod |
| TianjinArea | 205,079,140 | 189,000,000 | -16,079,140 | 2025-2029, | Revenue | Combined | Revenue | Stable |
/
| 2030toperpetuity | growthrate2%-4%,Grossprofitmargin32%-33%,Discountrate12.50% | historicaldata,marketconditions,andmanagement'slong-termbusinessforecast | growthrate1.8%,Grossprofitmargin33%,Discountrate12.50% | periodrevenuegrowthrateis1.8%,grossprofitmarginanddiscountratearebasicallyconsistentwiththelastyearoftheforecastperiod | ||||
| ChifengArea,InnerMongolia | 661,480,780 | 705,000,000 | - | 2025-2029,2030toperpetuity | Revenuegrowthrate4%-12%,Grossprofitmargin38%-40%,Discountrate10.69% | Combinedhistoricaldata,marketconditions,andmanagement'slong-termbusinessforecast | Revenuegrowthrate1.8%,Grossprofitmargin40%,Discountrate10.69% | Stableperiodrevenuegrowthrateis1.8%,grossprofitmarginanddiscountratearebasicallyconsistentwiththelastyearoftheforecastperiod |
| NingxiaHealthArea | 44,785,536 | 92,000,000 | - | 2025-2029,2030toperpetuity | Revenuegrowthrate2%,Grossprofitmargin20%, | Combinedhistoricaldata,marketconditions,andmanagement'slong-term | Revenuegrowthrate1.8%,Grossprofitmargin20%, | Stableperiodrevenuegrowthrateis1.8%,grossprofitmarginand |
/
| Discountrate10.78% | businessforecast | Discountrate10.78% | discountratearebasicallyconsistentwiththelastyearoftheforecastperiod | |||||
| ShanxiHealthArea | 18,770,928 | 20,000,000 | - | 2025-2029,2030toperpetuity | Revenuegrowthrate3%,Grossprofitmargin17%-19%,Discountrate11.75% | Combinedhistoricaldata,marketconditions,andmanagement'slong-termbusinessforecast | Revenuegrowthrate1.8%,Grossprofitmargin19%,Discountrate11.75% | Stableperiodrevenuegrowthrateis1.8%,grossprofitmarginanddiscountratearebasicallyconsistentwiththelastyearoftheforecastperiod |
| HuaihuaArea,Hunan | 2,397,613,057 | 2,332,000,000 | -49,944,594 | 2025-2029,2030toperpetuity | Revenuegrowthrate3%-4%,Grossprofitmargin38%,Discountrate10.85% | Combinedhistoricaldata,marketconditions,andmanagement'slong-termbusinessforecast | Revenuegrowthrate1.8%,Grossprofitmargin38%,Discountrate10.85% | Stableperiodrevenuegrowthrateis1.8%,grossprofitmarginanddiscountratearebasicallyconsistentwiththelastyearof |
/
| theforecastperiod | ||||||||
| EasyDrug | 14,294,397 | 281,000,000 | - | 2025-2029,2030toperpetuity | Revenuegrowthrate2%-18%,Grossprofitmargin49%,Discountrate10.69% | Combinedhistoricaldata,marketconditions,andmanagement'slong-termbusinessforecast | Revenuegrowthrate1.8%,Grossprofitmargin49%,Discountrate10.69% | Stableperiodrevenuegrowthrateis1.8%,grossprofitmarginanddiscountratearebasicallyconsistentwiththelastyearoftheforecastperiod |
| Total | 11,678,412,588 | 13,075,000,000 | -91,465,340 |
Note:Theimpairmentamountistheimpairmentlossofgoodwillcalculatedanddeterminedbasedontheshareholdingratioatthepointintimewhencontrolwasobtained.Recoverableamountdeterminedbasedonpresentvalueofestimatedfuturecashflows
□Applicable√NotApplicableReasonsforsignificantinconsistencybetweentheaforementionedinformationandinformationusedinpreviousyear'simpairmenttestorexternalinformation
□Applicable√NotApplicableReasonsforsignificantinconsistencybetweeninformationusedintheCompany'spreviousyear'simpairmenttestandtheactualsituationofthecurrentyear
□Applicable√NotApplicable
(5).PerformancecommitmentandcorrespondinggoodwillimpairmentExistenceofperformancecommitmentwhengoodwillwasformed,andthereportingperiodortheprecedingperiodfallswithintheperformancecommitmentperiod
√Applicable□NotApplicable
/
GoodwillgeneratedfromtheacquisitionofHunanHuairenisincludedintheHunanHuaihuaareaCGUgroupforgoodwillimpairmenttesting.TheperformancecommitmentsituationatthetimeofacquiringHunanHuairenisasfollows:
1.Theperformancecommitmentperiodisfrom2022to2024.Accordingtotheagreement,thecumulativenetprofitduringtheperformancecommitmentperiodshallnotbelessthanRMB393million.Specifically:netprofitafterdeductingnon-recurringgainsandlossesin2022shallnotbelessthanRMB110million,netprofitafterdeductingnon-recurringgainsandlossesin2023shallnotbelessthanRMB131million,netprofitafterdeductingnon-recurringgainsandlossesin2024shallnotbelessthanRMB152million.Ifthecumulativeactualnetprofitrealizedduringthecommitmentperiodislessthan90%ofthetotalpredictednetprofitforthecommitmentperiod,theperformancecommitmentpartyshallcompensatetheCompanyincash.
2.Upontheexpirationoftheperformancecommitmentperiod,theCompanyshallengageanaccountingfirmandanappraisalfirmqualifiedforsecuritiesbusinesstoconductanimpairmenttestonHunanHuairen,andshallissuetheimpairmenttestreportwithin30workingdaysaftertheissuanceofthespecialauditreportfortheyearwhentheperformancecommitmentperiodexpires.Iftheresultoftheimpairmenttestis:theimpairmentamountofHunanHuairenattheendoftheperformancecommitmentperiodisgreaterthantheamountpayableascompensation,thentheperformancecommittingpartyshallcompensatetheCompanyfortheassetimpairment.Assetimpairmentcompensationamount=Impairmentamountofthetargetassetattheendoftheperformancecommitmentperiod-Amountpayableascompensation.Impairmentamountofthetargetassetattheendoftheperformancecommitmentperiod=TransactionpriceofHunanHuairen-AssessedvalueofHunanHuairenattheendoftheperformancecommitmentperiod(deductingtheimpactoffactorssuchasshareholdercapitalincreases,capitalreductions,acceptanceofdonations,andprofitdistributionsofthetargetcompanyduringtheperformancecommitmentperiod).TheperformancecommitmentresultsfortheHuaihuaareainHunanProvinceasofDecember31,2024areasfollows:
1.Thecumulativeactuallyrealizednetprofitattributabletoownersoftheparentcompanyonaconsolidatedstatementbasisafterdeductingnon-recurringgainsandlossesduringtheperformancecommitmentperiodamountedtoRMB362,795,900.Thecumulativecompletionratewas92.31%,reaching90%ofthecumulativenetprofitcommitted;thisitemdidnottriggerthepaymentarrangementforperformancecompensation.
2.TheCompanyengagedZhongruiShilianAssetAppraisalGroupCo.,Ltd.toassessthe100%equityvalueofHunanHuairenwithDecember31,2024asthedateofvalue,andissuedthetheEquityValueProjectofHunanLBXHuairenPharmacyChainCo.,Ltd.InvolvedintheImpairmentTestofPlaced-inAssetsforLBXPharmacyChainJointStockCompany(ZhongRuiPingBaoZi[2025]No.500830).Accordingtotheassessmentresults,usingtheincomeapproachforthetargetasset,asofDecember31,2024,theassessedvalueof100%equityofHunanHuairenwasRMB2,444,900,000.Attheendoftheperformancecommitmentperiod,thetargetassetwasthe71.9643%equityshareofHunanHuairen,andtheassessedequityvalueofthetargetassetwasRMB1,759,455,200.ThetransactionpriceofthetargetassetwasRMB1,637,188,400.Duringtheperformancecommitmentperiod,theprofitdistributionofthetargetcompanywasRMB150,000,000.Basedontheimpairmenttestresults,theperformancecommittingpartyisnotrequiredtomakecashcompensation.Fortheyear2024,thegoodwillimpairmentamountfortheHunanHuaihuaareawasRMB49,944,594(2023:None).RegardingtheperformancecommitmentsituationofNantongPuze
/
GoodwillgeneratedfromtheacquisitionofNantongPuzeisincludedintheJiangsuProvinceNantongareaCGUgroupforgoodwillimpairmenttesting.TheperformancecommitmentsituationatthetimeofacquiringNantongPuzeisasfollows:
FortheacquisitionofNantongPuzepharmacybusiness,thecommitmentperiodisfromtheacquisitiondatein2022to2024.Thenetprofitafterdeductingnon-recurringgainsandlossesshallnotbelessthanRMB25.10millionfor2022,notlessthanRMB33.00millionfor2023,andRMB38.00millionfor2024.Ifthethree-yearcumulativeactualnetprofitexceedsthecumulativecommittednetprofit,andifcashcompensationhasalreadybeenpaid,theperformancecommitmentpaymentalreadypaidshallberefunded,limitedtotheloweroftheamountbywhichthethree-yearcumulativeactualnetprofitexceedsthecumulativecommittednetprofitandtheamountofcashcompensationalreadypaid.Forthepharmaceuticale-commerceB2Cbusiness,thecommitmentperiodisfromtheacquisitiondatein2023to2027,withanaverageannualnetprofitofRMB2.00millionfrom2023to2024,andanaverageannualnetprofitofRMB3.00millionfrom2025to2027.Thisperformancecommitmentisadjustedbasedonthecalculationfromthedatetheacquiredpartyisactuallyincludedinthescopeofconsolidation.TheperformancecommitmentresultsforNantongPuzeasofDecember31,2024areasfollows:
AsofDecember31,2024,NantongPuze'scumulativeactualnetprofitexcludingnon-recurringgainsandlossesofreachedRMB101.2463million,withacumulativecompletionrateof102.57%,achievingthecommittedcumulativenetprofit.Therewasnogoodwillimpairmentforthisareafortheyears2024and2023.OtherExplanations:
√Applicable□NotApplicableThefollowingexplainsthekeyassumptionsmadewhenconductingthegoodwillimpairmenttest:
| CGUgroup | Keyassumptions |
Budget/forecastperiodrevenuegrowthrate
| Budget/forecastperiodrevenuegrowthrate | - | Thebasisfordeterminationistherevenueachievedintheyearpriortothebudget/forecastperiod,withthegrowthrateappropriatelyincreasedaccordingtotheexpectedmarketdevelopmentsituation. |
| Budget/forecastperiodgrossprofitmargin | - | Thebasisfordeterminationistheaveragegrossprofitmarginachievedintheyearpriortotheforecastperiod,withthisaveragegrossprofitmarginappropriatelyincreasedaccordingtotheexpectedimprovementinefficiencyandtheexpectedmarketdevelopmentsituation. |
| Discountrate | - | Thediscountrateusedisapre-taxdiscountratethatreflectsthespecificrisksoftherelevantCGU. |
Thekeyassumptionvaluesregardingthemarketdevelopmentsituationareconsistentwithexternalinformationsources.TheallocationofthecarryingamountofgoodwilltoCGUsorgroupsofCGUsisasfollows:
/
| 2024 | 2023 |
OtherAreasinAnhuiProvince
| OtherAreasinAnhuiProvince | 813,551,203 | 791,209,203 |
| ChangzhouArea,JiangsuProvince | 205,858,866 | 200,358,866 |
| HunanProvinceArea | 568,880,865 | 568,880,865 |
| HenanProvinceArea | 83,906,933 | 83,906,933 |
| ShaanxiProvinceArea | 221,741,734 | 221,741,734 |
| TianjinArea | 729,565 | 16,808,705 |
| GansuandNingxiaProvinceArea | 343,798,301 | 343,798,301 |
| YangzhouArea,JiangsuProvince | 129,307,171 | 129,307,171 |
| HubeiProvinceArea | 68,255,187 | 68,255,187 |
| KunshanArea,JiangsuProvince | 44,385,287 | 59,658,890 |
| InnerMongoliaAutonomousRegionArea | 274,462,516 | 274,462,516 |
| ZhenjiangArea,JiangsuProvince | 37,512,216 | 63,759,359 |
| TaizhouArea,JiangsuProvince | 111,374,568 | 111,374,568 |
| NantongArea,JiangsuProvince | 193,510,876 | 193,510,876 |
| ChaohuArea,AnhuiProvince | 63,609,630 | 63,609,630 |
| WuxiArea,JiangsuProvince | 61,017,544 | 61,017,544 |
| JiangyinArea,JiangsuProvince | 104,406,459 | 104,406,459 |
| LinyiArea,ShandongProvince | 155,590,787 | 155,590,787 |
| YunchengArea,ShanxiProvince | 145,514,810 | 145,514,810 |
| GuangxiZhuangAutonomousRegionArea | 34,866,132 | 34,866,132 |
| ChifengArea,InnerMongolia | 594,799,829 | 594,799,829 |
| NingxiaHealthArea | 34,627,634 | 34,627,634 |
| HuaihuaArea,Hunan | 1,442,312,473 | 1,492,257,067 |
| ShanxiHealthArea | 14,150,943 | 14,150,943 |
| EasyDrug | 7,987,199 | 7,987,199 |
Total
| Total | 5,756,158,728 | 5,835,861,208 |
Note:Thecarryingamountofgoodwillincludestheamountofgoodwillimpairment.
/
28.Long-termdeferredexpenses
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Amortizationforthecurrentperiod | Otherdecrease | Endingbalance | Endingbalanceofimpairmentprovision |
| Improvementstoleasedfixedassetsunderoperatinglease | 560,185,965 | 180,134,192 | 148,290,207 | 12,889,903 | 579,140,047 | 11,691,541 |
| Transferservicefee | 172,558,703 | 17,623,216 | 34,600,521 | 2,991,821 | 152,589,577 | 1,065,140 |
| Other | 3,125,619 | 7,416,973 | 1,011,639 | 7,138,816 | 2,392,137 | - |
| Total | 735,870,287 | 205,174,381 | 183,902,367 | 23,020,540 | 734,121,761 | 12,756,681 |
OtherExplanations:
Impairmentprovisionforlong-termdeferredexpenses
| Beginningbalance | Increaseforthecurrentyear | Write-offduringtheyear | Endingbalance | |
| Improvementstoleasedfixedassetsunderoperatinglease | 13,035,704 | 754,617 | -2,098,780 | 11,691,541 |
| Transferservicefee | 1,065,140 | - | - | 1,065,140 |
| Total | 14,100,844 | 754,617 | -2,098,780 | 12,756,681 |
29.Deferredtaxassets/Deferredtaxliabilities
(1).Deferredtaxassetsbeforeoffset
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
/
| Item | Endingbalance | Beginningbalance | ||
| Deductibletemporarydifferences | DeferredincometaxAssets | Deductibletemporarydifferences | DeferredincometaxAssets | |
| Equityincentiveexpenses | - | - | 23,089,269 | 5,772,317 |
| Deductiblelosses | 153,077,439 | 37,113,686 | 27,347,422 | 6,836,855 |
| Newleasestandard | 2,674,750,286 | 598,168,062 | 2,807,273,443 | 503,497,461 |
| Unrealizedprofitfrominternaltransactions | 47,128,203 | 11,782,051 | 58,417,893 | 14,604,473 |
| Assetimpairmentprovision | 92,709,439 | 20,592,241 | 84,962,097 | 18,504,439 |
| Pointsrewardplan | 11,675,294 | 2,714,337 | 5,119,876 | 1,033,039 |
| Governmentspecialsubsidiesincludedindeferredincome | 9,848,863 | 2,462,216 | 13,668,797 | 3,417,199 |
| Other | 1,233,539 | 308,197 | 1,679,339 | 416,212 |
| Total | 2,990,423,063 | 673,140,790 | 3,021,558,136 | 554,081,995 |
(2).Deferredtaxliabilitiesbeforeoffset
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance | ||
| Taxabletemporarydifferences | DeferredincometaxLiabilities | Taxabletemporarydifferences | DeferredincometaxLiabilities | |
| Temporarydifferencesonlong-termassetsarisingfrombusinesscombinationsnotinvolvingenterprisesundercommoncontrol | 131,216,486 | 32,804,122 | 134,002,589 | 33,500,647 |
| Fairvaluechangesofotherequityinstrumentinvestments | 20,308,123 | 5,077,031 | 20,308,123 | 5,077,031 |
| Fairvaluechangesofothernon-currentfinancialassets | 5,774,109 | 1,443,527 | 5,774,109 | 1,443,527 |
| Newleasestandard | 2,502,807,163 | 553,757,449 | 2,683,116,728 | 465,558,576 |
| Other | 206,342 | 51,585 | 960,422 | 240,106 |
| Total | 2,660,312,223 | 593,133,714 | 2,844,161,971 | 505,819,887 |
/
(3).Deferredtaxassetsorliabilitiespresentednetafteroffset
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalanceoffsetamountfordeferredtaxassetsandliabilities | Endingbalanceofdeferredtaxassetsorliabilitiesafteroffset | Beginningbalanceoffsetamountfordeferredtaxassetsandliabilities | Beginningbalanceofdeferredtaxassetsorliabilitiesafteroffset |
| Deferredtaxassets | 556,437,180 | 116,703,610 | 484,580,926 | 69,501,069 |
| Deferredtaxliabilities | 556,437,180 | 36,696,534 | 484,580,926 | 21,238,961 |
(4).Detailsofunrecognizeddeferredtaxassets
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance |
| Deductibletemporarydifferences | 35,435,284 | 54,565,204 |
| Deductiblelosses | 168,703,659 | 105,762,546 |
Total
| Total | 204,138,943 | 160,327,750 |
(5).Deductiblelossesforwhichunrecognizeddeferredtaxassetswillexpireinthefollowingyears
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Year | Endingamount | Beginningamount | Remarks |
| 2024 | - | 7,011,712 | |
| 2025 | 3,375,755 | 4,322,782 | |
| 2026 | 8,156,652 | 8,266,987 | |
| 2027 | 19,161,781 | 21,129,183 | |
| 2028 | 44,013,765 | 54,904,629 | |
| 2029andlater | 93,995,706 | 10,127,253 |
/
| Total | 168,703,659 | 105,762,546 | / |
OtherExplanations:
√适用□不适用TheGroupbelievesitisnotprobablethatsufficienttaxableprofitwillbegeneratedinthefuturetoutilizetheabovedeductibletemporarydifferencesanddeductiblelosses,therefore,deferredtaxassetsfortheaboveitemshavenotbeenrecognized.
30.Othernon-currentassets
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Bookbalance | Impairmentprovision | Bookvalue | Bookbalance | Impairmentprovision | Bookvalue | |
| Prepaidengineeringcosts | 5,913,932 | - | 5,913,932 | 49,892,704 | - | 49,892,704 |
| Prepaidequityandstorebusinessacquisitioncosts | 5,720,000 | 5,720,000 | - | - | - | |
| Prepaidequipmentcosts | 504,500 | - | 504,500 | - | - | - |
| Prepaidsoftwarepurchasecosts | 3,541,000 | - | 3,541,000 | 69,749 | - | 69,749 |
| Other | 1,372,126 | - | 1,372,126 | 1,326,999 | - | 1,326,999 |
Total
| Total | 17,051,558 | 17,051,558 | 51,289,452 | - | 51,289,452 |
OtherExplanations:
None
31.Assetswithrestrictedownershiporuserights
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Ending | Beginning | ||||||
| Bookbalance | Bookvalue | Typeofrestriction | Restrictionsituation | Bookbalance | Bookvalue | Typeofrestriction | Restrictionsituation | |
/
| Cashandbankdeposits | 1,393,129,666 | 1,393,129,666 | Other | Marginforacceptancebill | 1,038,483,356 | 1,038,483,356 | Other | Marginforacceptancebill |
| Investmentproperties | 5,896,566 | 4,405,169 | Mortgage | Bankloansobtainedthroughmortgage | 5,896,566 | 4,535,989 | Mortgage | Bankloansobtainedthroughmortgage |
| Fixedassets | 723,635,988 | 548,238,569 | Mortgage | Bankloansobtainedthroughmortgage | 723,635,988 | 549,318,741 | Mortgage | Bankloansobtainedthroughmortgage |
| Intangibleassets | 108,933,140 | 93,712,413 | Mortgage | Bankloansobtainedthroughmortgage | 108,933,140 | 94,533,877 | Mortgage | Bankloansobtainedthroughmortgage |
| Subsidiaryequity | 1,136,006,439 | 1,136,006,439 | Pledged | Bankloansobtainedthroughpledge | 1,636,793,579 | 1,636,793,579 | Pledged | Bankloansobtainedthroughpledge |
| Total | 3,367,601,799 | 3,175,492,256 | 3,513,742,629 | 3,323,665,542 | / | / |
OtherExplanations:
None
32.Short-termloans
(1).Classificationofshort-termborrowing
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance |
| Letterofcreditborrowing | 100,000,000 | - |
| Creditborrowing | 279,806,357 | - |
| Billdiscountingborrowing | 1,277,077,733 | 799,754,553 |
Total
| Total | 1,656,884,090 | 799,754,553 |
Explanationofclassificationofshort-termborrowing:
None
/
(2).Situationofoverdueandunpaidshort-termborrowings
□Applicable√NotApplicableOfwhich,significantoverdueandunpaidshort-termborrowingsareasfollows:
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicable
33.Tradingfinancialliabilities
□Applicable√NotApplicableOtherExplanations:
√Applicable□NotApplicableNone
34.Derivativefinancialliabilities
□Applicable√NotApplicable
35.Notespayable
(1).Presentationofnotespayable
√Applicable□NotApplicable
Unit:Yuan:RMB
| Type | Endingbalance | Beginningbalance |
| Commercialacceptancebills | ||
| Bankacceptancebills | 4,546,258,111 | 4,785,990,053 |
Total
| Total | 4,546,258,111 | 4,785,990,053 |
/
Yuan
36.Accountspayable
(1).Presentationofaccountspayable
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance |
| Payablesforgoods | 2,008,964,593 | 2,209,026,977 |
Total
| Total | 2,008,964,593 | 2,209,026,977 |
(2).Significantaccountspayableagedover1yearoroverdue
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicable
37.Advancesreceived
(1).Presentationofadvancesreceived
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance |
| Rentreceivedinadvance | 18,293,769 | 17,428,097 |
Total
| Total | 18,293,769 | 17,428,097 |
(2).Significantadvancesreceivedagedover1year
□Applicable√NotApplicable
/
(3).Amountandreasonforsignificantchangesinbookvalueduringthereportingperiod
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicable
38.Contractliabilities
(1).Contractliabilities
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance |
| Advancesreceivedforgoods | 76,783,937 | 95,244,711 |
| Franchisefeesreceivedinadvance | 30,764,866 | 37,933,151 |
| Advancesreceivedforstorepurchases | 72,833,355 | 87,934,830 |
| Pointsplan | 10,612,473 | 5,771,292 |
| Other | 4,199,164 | 3,419,611 |
Total
| Total | 195,193,795 | 230,303,595 |
(2).Significantcontractliabilitiesagedover1year
□Applicable√NotApplicable
(3).Amountandreasonforsignificantchangesinbookvalueduringthereportingperiod
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicable
/
39.Payrollpayable
(1).Presentationofemployeecompensationpayable
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Beginningbalance | Increaseduringtheperiod | Decreaseduringtheperiod | Endingbalance |
| I.Short-termcompensation | 446,758,451 | 3,418,171,925 | 3,436,379,699 | 428,550,677 |
| II.Post-employmentbenefits-definedcontributionplan | 12,655,767 | 324,050,616 | 335,352,669 | 1,353,714 |
| III.Terminationbenefits | 989,944 | 2,330,559 | 2,800,138 | 520,365 |
| IV.Otherbenefitsduewithinoneyear |
Total
| Total | 460,404,162 | 3,744,553,100 | 3,774,532,506 | 430,424,756 |
(2).Presentationofshort-termcompensation
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Beginningbalance | Increaseduringtheperiod | Decreaseduringtheperiod | Endingbalance |
| I.Wages,bonuses,allowances,andsubsidies | 405,622,726 | 3,073,330,582 | 3,099,791,647 | 379,161,661 |
| II.Employeewelfareexpenses | 1,233,750 | 59,731,722 | 60,652,673 | 312,799 |
| III.Socialinsurancecontributions | 198,691 | 171,758,015 | 171,713,157 | 243,549 |
| Ofwhich:Medicalinsurancecontributions | 174,311 | 160,174,696 | 160,116,007 | 233,000 |
| Work-relatedinjuryinsurancecontributions | 23,443 | 9,606,395 | 9,620,226 | 9,612 |
| Maternityinsurancecontributions | 937 | 1,976,924 | 1,976,924 | 937 |
| IV.Housingprovidentfund | 1,286,702 | 57,206,110 | 55,532,095 | 2,960,717 |
| V.Unionfundsandemployeeeducationfunds | 38,416,582 | 56,145,496 | 48,690,127 | 45,871,951 |
| VI.Short-termpaidabsences | ||||
| VII.Short-termprofit-sharingplans |
Total
| Total | 446,758,451 | 3,418,171,925 | 3,436,379,699 | 428,550,677 |
/
(3).Presentationofdefinedcontributionplan
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Beginningbalance | Increaseduringtheperiod | Decreaseduringtheperiod | Endingbalance |
| 1.Basicpensioninsurance | 12,640,651 | 312,050,894 | 323,347,323 | 1,344,222 |
| 2.Unemploymentinsurancecontributions | 15,116 | 11,999,722 | 12,005,346 | 9,492 |
| 3.Enterpriseannuitycontributions |
Total
| Total | 12,655,767 | 324,050,616 | 335,352,669 | 1,353,714 |
OtherExplanations:
□Applicable√NotApplicable
40.Taxesandduespayable
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance |
| Enterpriseincometax | 84,147,117 | 85,754,982 |
| Valueaddedtax(VAT) | 71,019,842 | 100,511,634 |
| Urbanmaintenanceandconstructiontax | 4,288,626 | 4,403,321 |
| Educationalsurchargeandlocaleducationalsurcharge | 2,956,213 | 3,246,194 |
| Individualincometax | 17,121,218 | 10,351,389 |
| Other | 11,651,491 | 8,513,437 |
Total
| Total | 191,184,507 | 212,780,957 |
OtherExplanations:
None
/
41.Otherpayables
(1).Presentationbyitem
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance |
| Interestpayable | ||
| Dividendspayable | 208,088 | 1,735,049 |
| Otherpayables | 653,327,326 | 934,784,430 |
| Total | 653,535,414 | 936,519,479 |
OtherExplanations:
□Applicable√NotApplicable
(2).InterestpayableClassificationpresentation
□Applicable√NotApplicableSignificantoverdueinterestpayable:
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicable
(3).DividendspayableClassificationpresentation
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance |
| Dividendspayable-subsidiaryminorityshareholders | 208,088 | 1,735,049 |
| Total | 208,088 | 1,735,049 |
Otherexplanations,includingsignificantdividendspayableoutstandingformorethan1year,shoulddisclosethereasonfornon-payment:
/
NotApplicable
(4).OtherpayablesOtherpayablespresentedbynatureoffunds
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance |
| Payablesforacquisitions | 54,142,110 | 228,860,305 |
| Payablesforpledgedepositsandrentdeposits | 125,284,327 | 110,585,927 |
| Restrictedstockrepurchaseobligation | 15,350,449 | 43,256,912 |
| Payablesforprofessionalservices | 73,332,714 | 102,839,847 |
| Payablesforfreightandmiscellaneouscharges | 40,316,621 | 26,854,429 |
| Payablesforstoredecoration | 27,420,810 | 86,475,053 |
| Payablesforengineeringcosts | 49,557,900 | 88,800,181 |
| Payablestoformershareholders | - | 1,467,030 |
| Payablesforbusinesspromotionfees | 35,016,972 | 21,119,417 |
| Payablesforutilities | 980,995 | 5,609,270 |
| Payablesforminorityshareholdersofsubsidiaries | 42,398,775 | 42,398,775 |
| Other | 189,525,653 | 176,517,284 |
| Total | 653,327,326 | 934,784,430 |
Significantotherpayablesagedover1yearoroverdue
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Reasonfornon-repaymentorcarry-forward |
| Payablestosubsidiaryminorityshareholders | 42,398,775 | Paymenttimenotyetreachedasstipulatedinthecontract |
| Total | 42,398,775 | / |
OtherExplanations:
□Applicable√NotApplicable
42.Held-for-saleliabilities
□Applicable√NotApplicable
/
43.Non-currentliabilitiesduewithinoneyear
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance |
| Long-termborrowingsduewithinoneyear | 222,960,000 | 184,984,693 |
| Bondspayableduewithinoneyear | ||
| Long-termpayablesduewithinoneyear | ||
| Leaseliabilitiesduewithinoneyear | 981,396,466 | 1,298,525,902 |
Total
| Total | 1,204,356,466 | 1,483,510,595 |
OtherExplanations:
None
44.OthercurrentliabilitiesOthercurrentliabilities
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance |
| Outputtaxtobetransferred | 14,443,599 | 19,374,284 |
Total
| Total | 14,443,599 | 19,374,284 |
Changesinshort-termbondspayable:
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicable
/
45.Long-termloans
(1).Classificationoflong-termborrowing
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance |
| Mortgageborrowings | 643,186,137 | 744,302,399 |
| Pledgedborrowings | 578,000,000 | 819,041,581 |
| Creditborrowing | 399,000,000 | - |
Less:Long-termborrowingsduewithinoneyear
| Less:Long-termborrowingsduewithinoneyear | 222,960,000 | 184,984,693 |
Total
| Total | 1,397,226,137 | 1,378,359,287 |
Explanationoflong-termborrowingclassification:
NoneOtherExplanations:
√Applicable□NotApplicableAsofDecember31,2024,theannualinterestratesfortheaboveborrowingsrangedfrom2.49%to
7.06%(December31,2023:3.40%to6.95%).AsofDecember31,2024,mortgageborrowingsweresecuredbytherealestate,equipmentandsoftware,trademarks,etc.,oftheCompanyandYaoshengtangChineseMedicineTechnologylocatedinYaoshengtangChineseMedicineTechnologyParkandQingzhuhuPark.MortgageborrowingswereprovidedbytheInternationalFinanceCorporation(IFC),WorldBankGroup,includingRMBborrowingsandUSDborrowings.TheprincipalamountforRMBborrowingswasRMB700million,andtheprincipalamountforUSDborrowingswasUSD44,072,602(equivalenttoRMB280,993,689).ThetermforRMBborrowingsisfromApril2021toDecember2027,andthetermforUSDborrowingsisfromMarch2021toJune2024.AsofDecember31,2024,theoutstandingbalanceofthisborrowingwasRMB650million.TheUSDborrowinghasbeenfullyrepaid.PledgedborrowingsareacquisitionloansusedfortheequityacquisitionofLBXHuairenin2022.Amongthem,theprincipalfromChinaConstructionBankisRMB280million,withaloantermfromJuly2022toJuly2027,securedbyapledgeof20.5612%equityofLBXHuairen;theprincipalfromPingAnBankisRMB400million,withaloantermfromOctober2022toOctober2027,securedbyapledgeof29.3731%equityofLBXHuairen.CreditborrowingsincludeRMB200millionborrowedfromChinaConstructionBankin2024,withaloantermfromFebruary2024toFebruary2027;andRMB200millionborrowedfromChinaMerchantsBank,withaloantermfromDecember2024toDecember2027.
46.Bondspayable
(1).Bondspayable
□Applicable√NotApplicable
/
(2).Specificsituationofbondspayable:(excludingpreferenceshares,perpetualbonds,andotherfinancialinstrumentsclassifiedasfinancialliabilities)
□Applicable√NotApplicable
(3).Explanationofconvertiblecorporatebonds
□Applicable√NotApplicableAccountingtreatmentandjudgmentbasisforconversionrights
□Applicable√NotApplicable
(4).ExplanationofotherfinancialinstrumentsclassifiedasfinancialliabilitiesBasicsituationofoutstandingpreferenceshares,perpetualbonds,andotherfinancialinstrumentsatperiod-end
□Applicable√NotApplicableTableofchangesinoutstandingpreferenceshares,perpetualbonds,andotherfinancialinstrumentsatperiod-end
□Applicable√NotApplicableExplanationofthebasisforclassifyingotherfinancialinstrumentsasfinancialliabilities
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicable
/
47.Leaseliabilities
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance |
| Leaseliabilities | 2,503,912,510 | 2,669,886,094 |
| Less:Leaseliabilitiesduewithinoneyear | 981,396,466 | 1,298,525,902 |
| Total | 1,522,516,044 | 1,371,360,192 |
OtherExplanations:
None
48.Long-termpayablesPresentationbyitem
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicableLong-termpayables
(1).Long-termpayablespresentedbynatureoffunds
□Applicable√NotApplicableSpecialpayables
(1).Specialpayablespresentedbynatureoffunds
□Applicable√NotApplicable
49.Long-termemployeecompensationpayable
□Applicable√NotApplicable
50.Provisions
□Applicable√NotApplicable
51.DeferredincomeDeferredincome
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Beginningbalance | Increaseduringtheperiod | Decreaseduringtheperiod | Endingbalance | Reasonforformation |
| Governmentgrants | 15,908,923 | 234,000 | 3,217,348 | 12,925,575 | / |
/
| Total | 15,908,923 | 234,000 | 3,217,348 | 12,925,575 | / |
OtherExplanations:
□Applicable√NotApplicable
52.Othernon-currentliabilities
□Applicable√NotApplicable
53.Sharecapital
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Beginningbalance | Increase/decreaseinthischange(+,-) | Endingbalance | |||||
| IssuanceNewshares | BonusShares | CapitalreservesConversiontoshares | Other | Subtotal | |||
| Totalshares | 584,933,136 | 175,437,963 | -139,925 | 175,298,038 | 760,231,174 | ||
| Sharessubjecttosalesrestrictions:Domesticnaturalpersonshares | 2,588,634 | 534,102 | -808,295 | -274,193 | 2,314,441 | ||
| Sharesnotsubjecttosalesrestrictions:RMBordinaryshares | 582,344,502 | 174,903,861 | 668,370 | 175,572,231 | 757,916,733 | ||
Total
| Total | 584,933,136 | 175,437,963 | -139,925 | 175,298,038 | 760,231,174 |
OtherExplanations:
Note1:In2024,duetothedepartureofgranteesoftheCompany'srestrictedstockresultinginthelapseofsomerestrictedstock,theCompanyrepurchasedandcancelledthecorrespondingrestrictedstock,leadingtoadecreaseinsharecapitalbyRMB139,925(NoteXIII).Note2:Accordingtotheresolutionoftheshareholders'generalmeetingheldonJune13,2024,basedonthesharecapitalasoftherecorddateforthe2023profitdistributionplan,theCompanydistributedacashdividendofRMB6.6per10shares(taxincluded)toallshareholders,distributingatotalcashdividendofRMB385,963,519(taxincluded)toallshareholdersregisteredasoftherecorddateforthe2023profitdistributionplan.Simultaneously,3sharesweretransferredper10sharestoallshareholdersthroughcapitalizationofcapitalreserves,totaling175,437,963sharestransferredtosharecapital.
54.Otherequityinstruments
(1).Basicsituationofoutstandingpreferenceshares,perpetualbonds,andotherfinancial
instrumentsatperiod-end
□Applicable√NotApplicable
/
(2).Tableofchangesinoutstandingpreferenceshares,perpetualbonds,andotherfinancial
instrumentsatperiod-end
□Applicable√NotApplicableChangesinotherequityinstrumentsduringtheperiod,explanationofreasonsforchange,andbasisforrelatedaccountingtreatment:
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicable
55.Capitalreserves
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Beginningbalance | Increaseduringtheperiod | Decreaseduringtheperiod | Endingbalance |
| Capitalpremium(sharepremium) | ||||
| Capitalcontributedbyshareholders | 139,867,494 | 139,867,494 | ||
| IssuanceofNewShares | 3,400,165,127 | 3,400,165,127 | ||
| Capitalreservesconvertedtosharecapital | -251,167,791 | 175,437,963 | -426,605,754 | |
| Conversionofconvertiblebondstoshares | 323,009,972 | 323,009,972 | ||
| Equityincentiveplan | 107,585,057 | 21,187,469 | 2,138,055 | 126,634,471 |
| Other | 1,910,628 | 1,910,628 |
Othercapitalreserves
| Othercapitalreserves | ||||
| Equityincentiveplan | 23,089,269 | 23,089,269 | ||
| Changesinminorityinterests | -1,570,303,734 | 24,211,518 | -1,594,515,252 |
Total
| Total | 2,174,156,022 | 21,187,469 | 224,876,805 | 1,970,466,686 |
Otherexplanations,includingchangesduringtheperiod,explanationofreasonsforchange:
Thisyear,theCompany'scapitalizationofcapitalreservesledtochangesincapitalreserves;Thisyear,theCompany'sequityincentiveplanledtochangesincapitalreserves;Thisyear,changesoccurredintheGroup'sminorityinterests.
56.Treasurystock
√Applicable□NotApplicable
/
Unit:YuanCurrency:RMB
| Item | Beginningbalance | Increaseduringtheperiod | Decreaseduringtheperiod | Endingbalance |
Equityincentiverepurchase
| Equityincentiverepurchase | 43,256,912 | 26,321,556 | 16,935,356 | |
| Total | 43,256,912 | 26,321,556 | 16,935,356 |
Otherexplanations,includingchangesduringtheperiod,explanationofreasonsforchange:
Note1:Duetotheinitiallygrantedrestrictedstockwasunlocked,reducingtreasurystockbyRMB24,043,577.Note2:AccordingtotheCompany's2022restrictedstockincentiveplan,onApril12,2024,duetothedepartureofsomeincentiveobjectswhonolongermettherelevantprovisionsforincentiveobjectsintheCompany'sincentiveplan,theCompanyrepurchasedandcancelled139,925restrictedshares,reducingtreasurystockbyRMB2,277,979.
57.Othercomprehensiveincome
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | BeginningBalance | Amountincurredduringtheperiod | EndingBalance | |||||
| Amountincurredbeforeincometaxduringtheperiod | Less:Amounttransferredtoprofitorlossfromothercomprehensiveincomerecognizedinpriorperiods | Less:Amounttransferredtoretainedearningsfromothercomprehensiveincomerecognizedinpriorperiods | Less:incometaxexpenses | Attributabletoparentcompanyaftertax | Attributabletominorityinterestsaftertax | |||
| I.Othercomprehensiveincomethatcannotbereclassifiedtoprofitorloss | 15,231,092 | 15,231,092 | ||||||
| Ofwhich:Remeasurementchangesindefinedbenefitplans | ||||||||
| Othercomprehensiveincomeunderequitymethodthatcannotbetransferred | ||||||||
/
| toprofitorloss | |||
| Fairvaluechangesofotherequityinstrumentinvestments | 15,231,092 | 15,231,092 | |
| Fairvaluechangesduetoowncreditriskoftheenterprise |
II.Othercomprehensiveincomethatwillbereclassifiedtoprofitorloss
| II.Othercomprehensiveincomethatwillbereclassifiedtoprofitorloss |
| Ofwhich:Othercomprehensiveincomeunderequitymethodthatcanbetransferredtoprofitorloss |
| Fairvaluechangesofotherdebtinvestments |
| Amountreclassifiedtoothercomprehensiveincomefromfinancialassets |
| Creditimpairmentprovisionforotherdebtinvestments |
| Cashflowhedge |
/
| reserve |
| Foreigncurrencytranslationdifferences |
Totalothercomprehensiveincome
| Totalothercomprehensiveincome | 15,231,092 | 15,231,092 |
Otherexplanations,includingadjustmentfortheeffectiveportionofcashflowhedgegainsorlossestransferredtotheinitialrecognitionamountofthehedgeditem:
None
58.Specialreserve
□Applicable√NotApplicable
59.Surplusreserve
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Beginningbalance | Increaseduringtheperiod | Decreaseduringtheperiod | Endingbalance |
| Statutorysurplusreserve | 283,066,159 | 18,483,481 | - | 301,549,640 |
| Total | 283,066,159 | 18,483,481 | - | 301,549,640 |
Explanationofsurplusreserve,includingchangesduringtheperiod,explanationofreasonsforchange:
AccordingtotheCompanyLawandtheCompany'sArticlesofAssociation,theCompanyappropriates10%ofitsnetprofittothestatutorysurplusreserve.Appropriationisnolongerrequiredwhenthecumulativeamountofthestatutorysurplusreservereaches50%ormoreoftheCompany'sregisteredcapital.
60.Undistributedprofits
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Currentperiod | Previousperiod |
| Undistributedprofitatendofpreviousperiodbeforeadjustment | 3,687,106,079 | 3,095,991,212 |
| Totaladjustmenttobeginningundistributedprofit(increase+,decrease-) | ||
| Beginningundistributedprofitafteradjustment | 3,687,106,079 | 3,095,991,212 |
| Add:Netprofitattributabletoownersoftheparentcompanyduringtheperiod | 519,063,405 | 929,023,131 |
| Less:Appropriationtostatutorysurplusreserve | 18,483,481 | 63,033,369 |
| Appropriationtodiscretionarysurplusreserve | ||
| Appropriationtogeneralrisk |
/
| reserve | ||
| Dividendspayableonordinaryshares | 637,371,969 | 292,286,201 |
| Ordinarysharedividendsconvertedtosharecapital | ||
| Othercomprehensiveincometransferredtoretainedearnings | 17,411,306 |
Endingundistributedprofit
| Endingundistributedprofit | 3,550,314,034 | 3,687,106,079 |
Note1:Accordingtotheresolutionoftheshareholders'generalmeetingheldonJune13,2024,basedonthesharecapitalasoftherecorddateforthe2023profitdistributionplan,theCompanydistributedacashdividendofRMB6.6per10shares(taxincluded)toallshareholders,distributingatotalcashdividendofRMB385,963,519.26(taxincluded)toallshareholdersregisteredasoftherecorddateforthe2023profitdistributionplan.Simultaneously,3sharesweretransferredper10sharestoallshareholdersthroughcapitalizationofcapitalreserves,totalingaproposedtransferof175,437,963sharestosharecapital.Note2:Accordingtothe2024SecondExtraordinaryGeneralMeetingonSeptember18,2024,theCompanydistributedcashdividendstoallshareholders.ThisprofitdistributionisbasedontheCompany'stotalsharecapitalof760,231,174sharesbeforetheimplementationoftheplan,distributingacashdividendofRMB0.3307pershare(taxincluded),totalingRMB251,408,449.24incashdividends.
61.Operatingincomeandoperatingcost
(1).Detailsofoperatingincomeandoperatingcost
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Amountincurredduringtheperiod | Amountincurredinthepreviousperiod | ||
| Revenue | Cost | Revenue | Cost | |
| Mainbusiness | 22,213,132,767 | 14,850,489,230 | 22,288,226,659 | 15,041,484,730 |
| Otherbusiness | 144,477,428 | 91,843,225 | 149,262,353 | 92,742,051 |
| Total | 22,357,610,195 | 14,942,332,455 | 22,437,489,012 | 15,134,226,781 |
/
(2).Breakdownofoperatingincomeandoperatingcost
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Contractclassification | Retail-Segment | Wholesale-Segment | Other-Segment | Total | ||||
| Operatingincome | Operatingcost | Operatingincome | Operatingcost | Operatingincome | Operatingcost | Operatingincome | Operatingcost | |
| Producttype | ||||||||
| Saleofgoods | 18,620,167,315 | 12,144,459,175 | 3,104,570,127 | 2,699,022,682 | 70,304,121 | 30,095,081 | 21,795,041,563 | 14,873,576,938 |
| Renderingofservices | 486,543,209 | 4,210,763 | - | - | - | - | 486,543,209 | 4,210,763 |
| Leasingbusiness | - | - | - | - | 76,025,423 | 64,544,754 | 76,025,423 | 64,544,754 |
| Classificationbyoperatingregion | ||||||||
| China | 19,106,710,524 | 12,148,669,938 | 3,104,570,127 | 2,699,022,682 | 146,329,544 | 94,639,835 | 22,357,610,195 | 14,942,332,455 |
| Classificationbytimingofgoodstransfer | ||||||||
| Transferredatapointintime | 18,620,167,315 | 12,144,459,175 | 3,104,570,127 | 2,699,022,682 | 70,304,121 | 30,095,081 | 21,795,041,563 | 14,873,576,938 |
| Transferredovertime | 486,543,209 | 4,210,763 | - | - | 76,025,423 | 64,544,754 | 562,568,632 | 68,755,517 |
| Total | 19,106,710,524 | 12,148,669,938 | 3,104,570,127 | 2,699,022,682 | 146,329,544 | 94,639,835 | 22,357,610,195 | 14,942,332,455 |
OtherExplanations:
√Applicable□NotApplicableRevenuerecognizedduringtheperiodincludedinthebeginningbookvalueofcontractliabilitiesisasfollows:
| 2024 | 2023 | |
| Saleofgoods | 230,303,595 | 220,002,353 |
AsofDecember31,2024,theestimatedtimingforrecognizingrevenuefromperformanceobligationsinsignedcontractsthatareunsatisfiedorpartiallyunsatisfiedisasfollows:
| 2024 | 2023 | |
| Within1year | 195,193,795 | 230,303,595 |
(3).Descriptionofperformanceobligation
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
/
| Timeofperformanceobligationfulfillment | Significantpaymentterms | Natureofgoodspromisedtobetransferred | Whetherprincipalobligor | Amountexpectedtoberefundedtocustomers | Typeofqualityassuranceprovidedandrelatedobligations | |
| Saleofgoods | Upondelivery | Paymentuponarrival | Mainlysalesofpharmaceuticalproducts | Yes | Statutorywarranty,service-typewarranty | |
| Renderingofservices | Duringserviceperiod | Consultingfees | Mainlyprovidinginformationconsulting,promotionalservices,etc. | Yes | None | |
| Total | / | / | / | / | / |
TheGrouprecognizesrevenueafterthetransferofcontrolofgoods.Forretailcustomers,paymentismadeupondeliveryofgoods.Forwholesalecustomers,theGroupadoptsacombinationofprepaymentandcreditsales.Contractpaymentsforcreditsalescustomersareusuallyduewithin30or60daysafterdeliveryofgoods.TheGrouprecognizesrevenueovertheperiodofserviceprovision.Contractpaymentsettlementis
basedoncontractstipulations.Contractpaymentsareusuallyduewithinoneyear.Contractstypicallydonotcontainsignificantfinancingcomponents.Somecontractshavevariableconsiderationssuchascashdiscountsandpriceprotection,andtheestimationofvariableconsiderationisusuallynotconstrained.
(4).Explanationofallocationtoremainingperformanceobligations
□Applicable√NotApplicable
(5).Significantcontractmodificationsorsignificanttransactionpriceadjustments
□Applicable√NotApplicableOtherExplanations:
None
62.Taxesandsurcharges
√适用□不适用
Unit:YuanCurrency:RMB
| Item | Amountincurredduringtheperiod | Amountincurredinthepreviousperiod |
| Urbanmaintenanceandconstructiontax | 31,271,321 | 27,998,168 |
| Educationalsurcharge | 22,830,957 | 20,454,377 |
| Stampduty | 17,426,936 | 18,632,661 |
| Propertytax | 8,036,619 | 6,677,209 |
| Other | 1,337,156 | 5,256,403 |
Total
| Total | 80,902,989 | 79,018,818 |
/
OtherExplanations:
None
63.Sellingexpenses
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Amountincurredduringtheperiod | Amountincurredinthepreviousperiod |
| Wages,bonuses,socialsecurity,andemployeebenefits | 2,819,881,888 | 2,577,252,567 |
| Amortizationofright-of-useassets | 1,222,169,498 | 1,131,493,097 |
| Depreciationandamortization | 260,942,278 | 200,095,244 |
| Businesspromotionfees | 115,570,844 | 117,991,618 |
| Utilities | 116,382,565 | 115,730,914 |
| Paymentplatformservicefees | 76,551,080 | 100,752,908 |
| Freightandmiscellaneouscharges | 105,162,132 | 98,235,474 |
| Officeandnetworkexpenses | 54,360,851 | 59,337,583 |
| Propertymanagementandrepairfees | 85,964,562 | 88,375,081 |
| Laboroutsourcingfees | 35,999,268 | 33,831,723 |
| Other | 54,450,919 | 43,379,584 |
| Total | 4,947,435,885 | 4,566,475,793 |
OtherExplanations:
None
64.Administrativeexpenses
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Amountincurredduringtheperiod | Amountincurredinthepreviousperiod |
| Wages,bonuses,socialsecurity,andemployeebenefits | 750,001,484 | 700,424,445 |
| Depreciationandamortization | 149,210,202 | 121,635,922 |
| Professionalservicefees | 81,831,930 | 75,770,846 |
| Officeandutilities | 59,097,198 | 60,466,603 |
| Businessentertainmentexpenses | 43,786,301 | 39,995,984 |
| Inventoryretirementorgains/losses | 63,542,785 | 55,649,359 |
| Travelexpenses | 37,521,636 | 37,202,561 |
| Planningfees | 34,254,111 | 32,841,050 |
| Equityincentiveexpenses | -1,901,800 | 16,606,284 |
| Other | 40,321,255 | 46,098,445 |
| Total | 1,257,665,102 | 1,186,691,499 |
OtherExplanations:
None
65.R&Dexpenses
□Applicable√NotApplicable
66.Financialexpenses
√Applicable□NotApplicable
/
Unit:YuanCurrency:RMB
| Item | Amountincurredduringtheperiod | Amountincurredinthepreviousperiod |
| Interestexpense | 178,247,831 | 185,604,447 |
| Less:Interestincome | 20,103,612 | 27,706,373 |
| Handlingfees | 13,257,306 | 13,814,421 |
| Exchangegains/losses | 1,254,199 | 5,216,589 |
| Other | 370,220 | 468,668 |
Total
| Total | 173,025,944 | 177,397,752 |
OtherExplanations:
None
67.Otherincome
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Classificationbynature | Amountincurredduringtheperiod | Amountincurredinthepreviousperiod |
| Governmentgrantsrelatedtodailyactivities | 77,685,603 | 69,094,626 |
| Handlingfeerefundforwithholdingindividualincometax | 679,746 | 703,056 |
Total
| Total | 78,365,349 | 69,797,682 |
OtherExplanations:
None
68.Investmentincome
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Amountincurredduringtheperiod | Amountincurredinthepreviousperiod |
| Incomefromlong-termequityinvestmentsaccountedforusingtheequitymethod | 2,831,526 | 3,766,073 |
| Investmentincomefromdisposaloflong-termequityinvestments | -1,327,944 | |
| Investmentincomefromtradingfinancialassetsduringtheholdingperiod | 1,206,496 | 1,317,089 |
| Dividendincomefromotherequityinstrumentinvestmentsduringtheholdingperiod | ||
| Interestincomefromdebtinvestmentsduringtheholdingperiod | 4,812,500 | |
| Interestincomefromotherdebtinvestmentsduringtheholdingperiod | ||
| Investmentincomefromdisposaloftradingfinancialassets | ||
| Investmentincomefromdisposalofotherequityinstrumentinvestments | ||
| Investmentincomefromdisposalof |
/
| debtinvestments | ||
| Investmentincomefromdisposalofotherdebtinvestments | ||
| Debtrestructuringincome | ||
| Investmentincomefromdisposalofstores | -1,309,915 | 57,593,416 |
Total
| Total | 2,728,107 | 66,161,134 |
OtherExplanations:
None
69.Netgainsonnetinvestmenthedges
□Applicable√NotApplicable
70.Gainsfromchangesinfairvalue
□Applicable√NotApplicable
71.Creditimpairmentlosses
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Amountincurredduringtheperiod | Amountincurredinthepreviousperiod |
| Baddebtlossesonnotesreceivable | ||
| Baddebtlossesonaccountsreceivable | 212,178 | 10,586,321 |
| Baddebtlossesonotherreceivables | 4,935,712 | -994,577 |
| Impairmentlossesondebtinvestments | ||
| Impairmentlossesonotherdebtinvestments | ||
| Baddebtlossesonlong-termreceivables | 874,134 | - |
| Impairmentlossesrelatedtofinancialguarantees |
Total
| Total | 6,022,024 | 9,591,744 |
OtherExplanations:
None
72.Assetimpairmentloss
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Amountincurredduringtheperiod | Amountincurredinthepreviousperiod |
| I.Impairmentlossesoncontractassets | ||
| II.Inventorywrite-downlossesandimpairmentlossesoncontractfulfillmentcosts | 2,881,743 | 21,563,724 |
| III.Impairmentlossesonlong-term |
/
| equityinvestments | ||
| IV.Impairmentlossesoninvestmentproperties | ||
| V.Impairmentlossesonfixedassets | - | |
| VI.Impairmentlossesonengineeringmaterials | ||
| VII.Impairmentlossesonconstructioninprogress | ||
| VIII.Impairmentlossesonproductivebiologicalassets | ||
| IX.Impairmentlossesonoilandgasassets | ||
| X.Impairmentlossesonintangibleassets | ||
| XI.Impairmentlossesongoodwill | 107,544,480 | - |
| XII.Other | ||
| XIII.Impairmentlossesonlong-termdeferredexpenses | 754,617 | 1,528,738 |
| XIV.Impairmentlossesonprepayments | 21,694 | 322,327 |
| Total | 111,202,534 | 23,414,789 |
OtherExplanations:
None
73.Gainsondisposalofassets
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Amountincurredduringtheperiod | Amountincurredinthepreviousperiod |
| Gainsorlossesondisposaloffixedassets | -6,427,167 | 631,215 |
| Gainsorlossesondisposalofright-of-useassets | 1,896,909 | 4,878,313 |
| Total | -4,530,258 | 5,509,528 |
OtherExplanations:
None
74.Non-operatingincomeDetailsofnon-operatingincome
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Amountincurredduringtheperiod | Amountincurredinthepreviousperiod | Amountincludedincurrentnon-recurringgainsandlosses |
| Totalgainsondisposalofnon-currentassets | |||
| Ofwhich:Gainsondisposaloffixedassets | |||
| Gainsondisposalofintangibleassets |
/
| Gainsonnon-monetaryassetexchange | |||
| Donationsreceived | |||
| Governmentgrants | |||
| Amountsnolongerrequiredtobepaid | 5,572,459 | 7,161,395 | 5,572,459 |
| Compensationordepositsreceived | 5,713,484 | 5,700,757 | 5,713,484 |
| Incomefromfinesandconfiscations | 1,160,813 | 2,649,199 | 1,160,813 |
| Other | 1,580,631 | 2,591,728 | 1,580,631 |
| Total | 14,027,387 | 18,103,079 | 14,027,387 |
OtherExplanations:
□Applicable√NotApplicable
75.Non-operatingexpenses
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Amountincurredduringtheperiod | Amountincurredinthepreviousperiod | Amountincludedincurrentnon-recurringgainsandlosses |
| Totallossesondisposalofnon-currentassets | |||
| Ofwhich:Lossesondisposaloffixedassets | |||
| Lossesondisposalofintangibleassets | |||
| Lossesonnon-monetaryassetexchange | |||
| Finesorcompensationpayments | 7,112,793 | 4,486,545 | 7,112,793 |
| Externaldonations | 2,405,459 | 1,721,619 | 2,405,459 |
| Lossesonclearingintercompanybalances | 1,002,260 | 385,562 | 1,002,260 |
| Other | 1,108,254 | 1,805,843 | 1,098,254 |
| Total | 11,628,766 | 8,399,569 | 11,618,766 |
OtherExplanations:
None
76.Incometaxexpense
(1).Statementofincometaxexpenses
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
/
| Item | Amountincurredduringtheperiod | Amountincurredinthepreviousperiod |
| Currentincometaxexpense | 262,598,298 | 275,830,689 |
| Deferredincometaxexpense | -31,744,968 | 8,443,050 |
Total
| Total | 230,853,330 | 284,273,739 |
(2).Reconciliationbetweenaccountingprofitandincometaxexpense
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Amountincurredduringtheperiod |
| Profitbeforetax | 915,971,484 |
| Incometaxexpensecalculatedatthestatutory/applicabletaxrate | 228,992,871 |
| Effectofdifferenttaxratesapplicabletosubsidiaries | -68,950,370 |
| Effectofadjustingincometaxforpriorperiods | 20,655,329 |
| Effectofnon-taxableincome | -707,882 |
| Effectofnon-deductiblecosts,expenses,andlosses | 32,143,543 |
| Effectofusingdeductiblelossesfrompriorperiodsforwhichdeferredtaxassetswerenotpreviouslyrecognized | -1,284,648 |
| Effectofdeductibletemporarydifferencesordeductiblelossesforwhichdeferredtaxassetswerenotrecognizedinthecurrentperiod | 20,004,487 |
Incometaxexpense
| Incometaxexpense | 230,853,330 |
OtherExplanations:
√Applicable□NotApplicableNote1:TheGroup'sincometaxisprovidedbasedontheestimatedtaxableincomeobtainedwithinChinaandtheapplicabletaxrates.Taxesontaxableincomederivedfromotherregionsarecalculatedbasedontheprevailinglaws,interpretations,announcements,andpracticesinthecountries/jurisdictionswheretheGroupoperates,attheapplicabletaxrates.
77.Othercomprehensiveincome
□Applicable√NotApplicable
78.Itemsofcashflowstatement
(1).CashrelatedtooperatingactivitiesOthercashreceivedfromoperatingrelatedactivities
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Amountincurredduringtheperiod | Amountincurredinthepreviousperiod |
| Governmentgrants | 75,382,001 | 66,608,122 |
| Interestincome | 20,103,612 | 27,650,181 |
| Compensationreceived | 5,713,484 | 5,700,757 |
| Other | 2,741,444 | 5,240,927 |
/
| Total | 103,940,541 | 105,199,987 |
Explanationofothercashreceivedrelatedtooperatingactivities:
NoneOthercashpaidrelatedtooperatingactivities
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Amountincurredduringtheperiod | Amountincurredinthepreviousperiod |
| Officeexpensesandmiscellaneousexpenses | 202,326,001 | 203,948,053 |
| Businesspromotionfees | 135,927,400 | 142,649,674 |
| Professionalservicefees | 86,318,492 | 85,496,582 |
| Utilities | 130,166,160 | 126,357,709 |
| Paymentplatformhandlingfees | 76,551,080 | 80,187,686 |
| Businessentertainmentexpenses | 37,521,636 | 37,202,561 |
| Travelexpenses | 59,340,729 | 54,242,962 |
| Bankcardhandlingfees | 12,421,030 | 14,283,089 |
| Donationexpenditure | 2,405,459 | 1,721,619 |
| Storeopeningexpenses | 7,148,120 | 7,276,519 |
| Other | 120,625,338 | 121,726,832 |
| Total | 870,751,445 | 875,093,286 |
Explanationofothercashpaidrelatedtooperatingactivities:
None
(2).CashrelatedtoinvestingactivitiesSignificantcashreceivedrelatedtoinvestingactivities
□Applicable√NotApplicableSignificantcashpaidrelatedtoinvestingactivities
□Applicable√NotApplicableOthercashreceivedrelatedtoinvestingactivities
□Applicable√NotApplicableOthercashpaidrelatedtoinvestingactivities
□Applicable√NotApplicable
(3).CashrelatedtofinancingactivitiesOthercashreceivedrelatedtofinancingactivities
□Applicable√NotApplicableOthercashpaidrelatedtofinancingactivities
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Amountincurredduringtheperiod | Amountincurredinthepreviousperiod |
| Cashpaidforpurchasingminority | 96,736,267 | 469,554,872 |
/
| interestsinsubsidiaries | ||
| Repurchaseofrestrictedstocks | 3,862,887 | 5,976,234 |
| Leasepaymentsmade | 1,279,336,205 | 1,302,887,016 |
| Total | 1,379,935,359 | 1,778,418,122 |
Explanationofothercashpaidrelatedtofinancingactivities:
NoneChangesinliabilitiesarisingfromfinancingactivities
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Beginningbalance | Increaseduringtheperiod | Decreaseduringtheperiod | Endingbalance | ||
| Cashchanges | Non-cashchanges | Cashchanges | Non-cashchanges | |||
| Short-termloans | 799,754,553 | 2,960,910,303 | - | 2,103,780,766 | - | 1,656,884,090 |
| Otherpayables | 187,360,736 | - | 920,560,343 | 983,936,349 | 22,942,511 | 101,042,219 |
| Long-termborrowings(includingnon-currentliabilitiesduewithinoneyear) | 1,563,343,980 | 400,000,000 | 2,122,630 | 345,280,473 | - | 1,620,186,137 |
| Leaseliabilities(includingnon-currentliabilitiesduewithinoneyear) | 2,669,886,094 | - | 1,113,111,519 | 1,279,085,103 | - | 2,503,912,510 |
| Total | 5,220,345,363 | 3,360,910,303 | 2,035,794,492 | 4,712,082,691 | 22,942,511 | 5,882,024,956 |
(4).Explanationofreportingcashflowsonanetbasis
□Applicable√NotApplicable
(5).Significantactivitiesandfinancialimpactsnotinvolvingcurrentcashreceiptsandpaymentsbutaffectingtheenterprise'sfinancialpositionorpotentiallyaffectingfuturecashflows
√Applicable□NotApplicable
| 2024 | 2023 |
Newlyaddedright-of-useassets
| Newlyaddedright-of-useassets | 1,129,069,230 | 936,655,641 |
2024
| 2024 | 2023 |
Endorsementtransferofbankacceptancebillsreceivedfromsellinggoodsandprovidingservices
| Endorsementtransferofbankacceptancebillsreceivedfromsellinggoodsandprovidingservices | 210,574,555 | 491,455,208 |
/
79.Supplementaryinformationtothecashflowstatement
(1).Supplementaryinformationtothecashflowstatement
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Supplementaryinformation | Amountofthecurrentperiod | Amountofthepreviousperiod |
| 1.Reconciliationofnetprofittocashflowfromoperatingactivities: | ||
| Netprofit | 685,118,154 | 1,123,559,360 |
| Add:Assetimpairmentprovisions | 111,202,534 | 23,414,789 |
| Creditimpairmentlosses | 6,022,024 | 9,591,744 |
| Depreciationoffixedassets,depletionofoilandgasassets,depreciationofproductivebiologicalassets | 175,210,950 | 144,071,113 |
| Amortizationofright-of-useassets | 1,234,580,552 | 1,140,056,443 |
| Amortizationofintangibleassets | 63,214,890 | 49,618,188 |
| Amortizationoflong-termdeferredexpenses | 183,902,367 | 131,731,937 |
| Lossesondisposaloffixedassets,intangibleassets,andotherlong-termassets(gainsindicatedwith"-") | 4,530,258 | -5,509,528 |
| Lossesonretirementoffixedassets(gainsindicatedwith"-") | ||
| Lossesfromchangesinfairvalue(gainsindicatedwith"-") | 1,500,000 | |
| Financialexpenses(incomeindicatedwith"-") | 180,708,526 | 190,764,844 |
| Investmentlosses(gainsindicatedwith"-") | -2,728,107 | -66,161,134 |
| Decreaseindeferredtaxassets(increaseindicatedwith"-") | -47,202,541 | 5,122,978 |
| Increaseindeferredtaxliabilities(decreaseindicatedwith"-") | 15,457,573 | -6,060,150 |
| Decreaseininventories(increaseindicatedwith"-") | 576,064,717 | -202,631,274 |
| Decreaseinoperatingreceivables(increaseindicatedwith"-") | -633,155,554 | 39,968,163 |
| Increaseinoperatingpayables(decreaseindicatedwith"-") | -526,467,546 | 150,801,474 |
| Other | ||
| Netcashflowsfromoperatingactivities | 2,026,458,797 | 2,729,838,947 |
| 2.Significantinvestingandfinancingactivitiesnotinvolvingcashreceiptsandpayments: | ||
| Debtconvertedtocapital | ||
| Convertiblecorporatebondsduewithinoneyear | ||
| Fixedassetsacquiredunderfinanceleases | ||
| 3.Netchangeincashandcashequivalents: | ||
| Endingbalanceofcash | 986,735,653 | 936,501,157 |
| Less:Beginningbalanceofcash | 936,501,157 | 1,396,302,585 |
| Add:Endingbalanceofcashequivalents | ||
/
| Less:Beginningbalanceofcashequivalents | ||
| Netincreaseincashandcashequivalents | 50,234,496 | -459,801,428 |
(2).Netcashpaidforacquiringsubsidiariesduringtheperiod
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Amount | |
| Cashorcashequivalentspaidduringtheperiodforbusinesscombinationsoccurredinthecurrentperiod | 30,020,000 |
Less:Cashandcashequivalentsheldbysubsidiariesontheacquisitiondate
| Less:Cashandcashequivalentsheldbysubsidiariesontheacquisitiondate | - |
Add:Cashorcashequivalentspaidduringtheperiodforbusinesscombinationsoccurredinpriorperiods
| Add:Cashorcashequivalentspaidduringtheperiodforbusinesscombinationsoccurredinpriorperiods | 104,813,847 |
Netcashpaidforacquiringsubsidiaries
| Netcashpaidforacquiringsubsidiaries | 134,833,847 |
OtherExplanations:
None
(3).Netcashreceivedfromdisposingofsubsidiariesduringtheperiod
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Amount | |
| Cashorcashequivalentsreceivedduringtheperiodfromdisposingofsubsidiariesinthecurrentperiod | 25,938,620 |
Less:Cashandcashequivalentsheldbysubsidiariesonthedateoflossofcontrol
Less:CashandcashequivalentsheldbysubsidiariesonthedateoflossofcontrolAdd:Cashorcashequivalentsreceivedduringtheperiodfromdisposingofsubsidiariesinpriorperiods
Add:CashorcashequivalentsreceivedduringtheperiodfromdisposingofsubsidiariesinpriorperiodsNetcashreceivedfromdisposingofsubsidiaries
| Netcashreceivedfromdisposingofsubsidiaries | 25,938,620 |
OtherExplanations:
None
(4).Compositionofcashandcashequivalents
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance |
| I.Cash | 986,735,653 | 936,501,157 |
| Ofwhich:Cashonhand | 7,404,677 | 10,037,560 |
/
| Bankdepositsreadilyavailableforpayment | 931,407,077 | 918,508,843 |
| Othercashandcashequivalentsreadilyavailableforpayment | 47,923,899 | 7,954,754 |
| Depositswithcentralbankavailableforpayment | ||
| Placementswithotherbanks | ||
| Fundslenttootherbanks |
II.Cashequivalents
| II.Cashequivalents |
| Ofwhich:Bondinvestmentsmaturingwithinthreemonths |
III.Endingbalanceofcashandcashequivalents
| III.Endingbalanceofcashandcashequivalents | 986,735,653 | 936,501,157 |
| Ofwhich:Cashandcashequivalentswithrestrictedusewithintheparentcompanyorgroupsubsidiaries |
(5).Situationwherethescopeofuseisrestrictedbutstillpresentedascashandcashequivalents
□Applicable√NotApplicable
(6).Cashandcashequivalentsnotclassifiedascashandcashequivalents
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicable
80.Notestoitemsinthestatementofchangesinowner'sequityExplanationofthe"Other"itemnameandadjustmentamount,etc.,foradjustingtheprioryearendingbalance:
□Applicable√NotApplicable
81.Foreigncurrencymonetaryitems
(1).Foreigncurrencymonetaryitems
√Applicable□NotApplicable
Unit:Yuan
| Item | Endingforeigncurrencybalance | Translationexchangerate | EndingbalancetranslatedtoRMBBalance |
| Cashandbankdeposits | - | - | |
| Ofwhich:USD | 4.16 | 7.1884 | 29.90 |
| EUR | |||
| HKD | |||
| Accountsreceivable | - | - | |
| Ofwhich:USD | |||
| EUR | |||
| HKD |
/
| Long-termloans | - | - |
| Ofwhich:USD | ||
| EUR | ||
| HKD |
OtherExplanations:
None
(2).Explanationofforeignoperatingentities,includingdisclosureoftheprincipalplaceofbusiness,functionalcurrencyandbasisforselectionforsignificantforeignoperatingentities.Reasonsshouldalsobedisclosedifthefunctionalcurrencychanges.
□Applicable√NotApplicable
82.Leases
(1)Aslessee
√Applicable□NotApplicable
| Interestexpenseonleaseliabilities | 101,615,298 | 103,184,100 |
| Incomefromsubleasingright-of-useassets | 72,267,940 | 64,713,172 |
| Totalcashoutflowrelatedtoleases | 1,279,085,103 | 1,293,645,150 |
Variableleasepaymentsnotincludedinthemeasurementofleaseliabilities
□Applicable√NotApplicableLeaseexpensesforshort-termleasesorlow-valueassetstreatedwithsimplification
□Applicable√NotApplicableSale-and-leasebacktransactionsandjudgmentbasis
□Applicable√NotApplicableTotalcashoutflowrelatedtoleases1,279,085,103(Unit:YuanCurrency:RMB)
(2)AslessorOperatingleasesaslessor
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Leaseincome | Ofwhich:Incomerelatedtovariableleasepaymentsnotincludedinleasepayments |
| Leaseincome | 76,025,423 |
Total
| Total | 76,025,423 |
Financeleasesaslessor
□Applicable√NotApplicableReconciliationofundiscountedleasepaymentsandnetinvestmentinthelease
/
□Applicable√NotApplicableUndiscountedleasepaymentsforthenextfiveyears
□Applicable√NotApplicable
(3)Recognitionoffinanceleasesalesprofitorlossasamanufacturerordealer
□Applicable√NotApplicableOtherExplanations:
TheGroupleasesoutpartofitsself-ownedbuildingsforaleasetermof2years,formingoperatingleases;theGroupleasesoutpartofitsleased-inbuildings,typicallyforaleasetermof1-5years,formingoperatingleases.OperatingleaseGainsandlossesrelatedtooperatingleasesarepresentedasfollows:
| 2024 | 2023 | |
| Leaseincome | 76,025,423 | 73,189,042 |
Accordingtotheleasecontractssignedwithlessees,theundiscountedminimumleasepaymentsareasfollows:
| 2024 | 2023 | |
| Within1year(inclusive) | 49,968,727 | 48,381,604 |
| 1to2years(inclusive) | 22,975,027 | 26,639,436 |
| 2to3years(inclusive) | 14,977,810 | 8,639,871 |
| Over3years | 18,252,442 | 6,666,162 |
| Total | 106,174,006 | 90,327,073 |
83.Dataresources
□Applicable√NotApplicable
84.Other
□Applicable√NotApplicableVIII.R&Dexpenditures
1.Presentedbynatureofexpense
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Amountincurredduringtheperiod | Amountincurredinthepreviousperiod |
| R&Dpersonnelremuneration | 130,104,680 | 120,414,294 |
| OutsourcedR&Dfees | 4,447,043 | 11,392,123 |
| Depreciationandamortizationexpenses | 158,934 | 181,490 |
| Other | 1,301,274 | 836,793 |
| Total | 136,011,931 | 132,824,700 |
| Ofwhich:ExpensedR&Dexpenditure | 2,013,597 | 2,510,591 |
| CapitalizedR&Dexpenditure | 133,998,334 | 130,314,109 |
OtherExplanations:
None
/
2.DevelopmentexpenditureforR&Dprojectsqualifyingforcapitalization
□Applicable√NotApplicableSignificantcapitalizedR&Dprojects
□Applicable√NotApplicableImpairmentprovisionfordevelopmentexpenditure
□Applicable√NotApplicableOtherExplanations:
None
3.SignificantexternallyacquiredR&Dprojects
□Applicable√NotApplicableIX.Changesinthescopeofconsolidation
1.Businesscombinationnotinvolvingenterprisesundercommoncontrol
□Applicable√NotApplicable
2.Businesscombinationsinvolvingenterprisesundercommoncontrol
□Applicable√NotApplicable
3.Reverseacquisition
□Applicable√NotApplicable
/
4.DisposalofsubsidiariesWhetherthereweretransactionsoreventsresultinginlossofcontroloversubsidiariesduringtheperiod
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicableWhethertherewasasituationofdisposingofinvestmentinsubsidiariesinstagesthroughmultipletransactionsandlosingcontrolduringtheperiod
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicable
5.ChangesinthescopeofconsolidationduetootherreasonsExplanationofchangesinthescopeofconsolidationduetootherreasons(e.g.,establishmentofnewsubsidiaries,liquidationofsubsidiaries,etc.)andrelatedsituations:
√Applicable□NotApplicable
(1)EstablishmentofnewsubsidiariesSubsidiariesnewlyestablishedbytheGroupduringthe2024fiscalyearincludeHefeiBaizhikangInternalMedicineClinicCo.,Ltd.,NantongRenyuanClinicCo.,Ltd.,Hai'anTianshoutangTraditionalChineseMedicineClinicCo.,Ltd.;LBXHealthPharmacyGroupChain(InnerMongolia)PharmaceuticalCo.,Ltd.,Shangyouzhixuan(Hunan)CommercialCo.,Ltd.,TianjinHebeiDistrictBaixingtangOutpatientDepartmentCo.,Ltd.,LBXPharmacyChain(Baiyin)Co.,Ltd.,YangzhongLBXTraditionalChineseMedicineComprehensiveClinicCo.,Ltd.,YangzhongLBXTraditionalChineseMedicineComprehensiveClinicCo.,Ltd.,LBXPharmacy(HK)CompanyLimited,HongKongHealthPharmaceuticalCo.,Limited
(2)Deregistrationofsubsidiaries
| Placeofregistration | Businessnature | TotalshareholdingratiooftheGroup(%) | TotalvotingrightsratioenjoyedbytheGroup(%) | Reasonfornolongerbeingasubsidiary | |
| WuweiHuirentangPharmaceuticalChainCo.,Ltd. | WuweiCity | Commoditywholesale | 100 | 100 | Deregistration |
| ShenzhenBaixinjiInformationTechnologyCo.,Ltd. | ShenzhenMunicipality | Computer | 100 | 100 | Deregistration |
| ShangyouChainManagementCo.,Ltd. | ChangshaCity | Commodityretail | 100 | 100 | Deregistration |
| TianjinBaikan'anPharmaceuticalTechnologyCo.,Ltd. | TianjinCity | Medicalservices | 80 | 80 | Deregistration |
/
| InnerMongoliaMengdongZeqiangMedicalDeviceCo.,Ltd. | TongliaoCity | Pharmaceuticalcommerce | 51 | 51 | Deregistration |
| UlanhotNo.3MeimeijiaSupermarketCo.,Ltd. | Xing'anLeagueUlanhotCity | Commodityretail | 51 | 51 | Deregistration |
| HohhotNo.17ZeqiangPharmacyCo.,Ltd. | HohhotCity | Pharmaceuticalcommerce | 51 | 51 | Deregistration |
| HohhotNo.15ZeqiangPharmacyCo.,Ltd. | HohhotCity | Pharmaceuticalcommerce | 51 | 51 | Deregistration |
| TongliaoNo.4MeilejiaSupermarketCo.,Ltd. | TongliaoCity | Commodityretail | 51 | 51 | Deregistration |
| TongliaoNo.2MeilejiaSupermarketCo.,Ltd. | TongliaoCity | Commodityretail | 51 | 51 | Deregistration |
| HohhotNo.7ZeqiangPharmacyCo.,Ltd. | HohhotCity | Pharmaceuticalcommerce | 51 | 51 | Deregistration |
| HohhotNo.8ZeqiangPharmacyCo.,Ltd. | HohhotCity | Pharmaceuticalcommerce | 51 | 51 | Deregistration |
| HohhotNo.10ZeqiangPharmacyCo.,Ltd. | HohhotCity | Pharmaceuticalcommerce | 51 | 51 | Deregistration |
| HohhotNo.2ZeqiangPharmacyCo.,Ltd. | HohhotCity | Pharmaceuticalcommerce | 51 | 51 | Deregistration |
| HohhotNo.6ZeqiangPharmacyCo.,Ltd. | HohhotCity | Pharmaceuticalcommerce | 51 | 51 | Deregistration |
| HohhotQiyuanPharmacyCo.,Ltd. | HohhotCity | Pharmaceuticalcommerce | 51 | 51 | Deregistration |
| HohhotNo.3ZeqiangPharmacyCo.,Ltd. | HohhotCity | Pharmaceuticalcommerce | 51 | 51 | Deregistration |
| HohhotNo.12ZeqiangPharmacyCo.,Ltd. | HohhotCity | Pharmaceuticalcommerce | 51 | 51 | Deregistration |
| HohhotNo.9ZeqiangPharmacyCo.,Ltd. | HohhotCity | Pharmaceuticalcommerce | 51 | 51 | Deregistration |
| HohhotNo.5ZeqiangPharmacyCo.,Ltd. | HohhotCity | Pharmaceuticalcommerce | 51 | 51 | Deregistration |
| HohhotNo.16ZeqiangPharmacyCo.,Ltd. | HohhotCity | Pharmaceuticalcommerce | 51 | 51 | Deregistration |
| HohhotNo.11ZeqiangPharmacyCo.,Ltd. | HohhotCity | Pharmaceuticalcommerce | 51 | 51 | Deregistration |
6.Other
√Applicable□NotApplicableNone
/
X.Equityinotherentities
1.Equityinsubsidiaries
(1).Compositionoftheenterprisegroup
√Applicable□NotApplicable
Unit:TenthousandyuanYuanCurrency:RMB
| SubsidiaryName | Principalplaceofbusiness | RegisteredCapital | Placeofregistration | Businessnature | Shareholdingratio(%) | AcquisitionMethod | |
| Direct | Indirect | ||||||
| ForworldMedicineTechnology(Jiangsu)Co.,Ltd. | Nanjing | 10,000 | Nanjing | PharmaceuticalWholesale | 100% | 0% | |
| ChangshaFaxiangdiIndustrialCo.,Ltd. | Changsha | 9,000 | Changsha | Businessservices | 100% | 0% | |
| ForworldMedicineLogistics(Hunan)Co.,Ltd. | Changsha | 8,700 | Changsha | PharmaceuticalWholesale | 100% | 0% | |
| JinanXinchengEnterpriseManagementCo.,Ltd. | Jinan | 8,500 | Jinan | Businessservices | 100% | 0% | |
| LBXPharmacyChain(Anhui)Co.,Ltd.(formerlyAnhuiBaixingyuanPharmacyChainCo.,Ltd.) | Hefei | 7,500 | Hefei | PharmaceuticalRetail | 100% | 0% | |
| Xi'anLongshengPharmaceuticalCo.,Ltd. | Xi'an | 6,660 | Xi'an | PharmaceuticalRetail | 0% | 100% | |
| ChifengLBXPharmacyChainCo.,Ltd.(formerlyChifengRenchuanPharmacyChainCo.,Ltd.) | Chifeng | 6,000 | Chifeng | PharmaceuticalWholesale | 0% | 100% | |
| HunanBaibiTechnologyCo.,Ltd. | Changsha | 6,000 | Changsha | Informationtechnologyconsulting | 100% | 0% | |
| ChifengRenchuanPharmaceuticalCo.,Ltd. | Chifeng | 5,800 | Chifeng | PharmaceuticalWholesale | 0% | 100% | |
| HunanYaoshengtangChineseMedicine | Changsha | 5,500 | Changsha | ChinesemedicineR&D | 100% | 0% | |
/
| TechnologyCo.,Ltd. | ||||||
| LBXPharmacyChain(Hubei)Co.,Ltd. | Wuhan | 5,000 | Wuhan | PharmaceuticalRetail | 100% | 0% |
| LBXPharmacyChainGuangdongCo.,Ltd. | Guangzhou | 5,000 | Guangzhou | PharmaceuticalRetail | 100% | 0% |
| ForworldMedicine(Tianjin)Co.,Ltd. | Tianjin | 4,000 | Tianjin | PharmaceuticalWholesale | 0% | 100% |
| ForworldMedicineLogistics(Anhui)Co.,Ltd. | Hefei | 3,010 | Hefei | PharmaceuticalWholesale | 0% | 100% |
| LBXPharmacyChain(Gansu)Co.,Ltd.(formerlyLanzhouHuirentangPharmaceuticalChainCo.,Ltd.) | Lanzhou | 3,000 | Lanzhou | PharmaceuticalRetail | 100% | 0% |
| LBXPharmacyChain(Zhejiang)Co.,Ltd. | Hangzhou | 3,000 | Hangzhou | PharmaceuticalRetail | 100% | 0% |
| NingxiaLBXHuirentangPharmaceuticalCo.,Ltd. | Yinchuan | 2,380 | Yinchuan | PharmaceuticalRetail | 0% | 100% |
| LBXPharmacy(Jiangsu)Co.,Ltd. | Nanjing | 1,700 | Nanjing | PharmaceuticalRetail | 0% | 100% |
| BeijingLBXE-commerceCo.,Ltd. | Beijing | 1,200 | Beijing | E-commerce | 100% | 0% |
| ShaanxiLBXSanqinJishengtangPharmaceuticalChainCo.,Ltd. | Weinan | 1,077 | Weinan | PharmaceuticalRetail | 0% | 100% |
| WuhuYuanchuPharmacyChainCo.,Ltd. | Wuhu | 1,000 | Wuhu | PharmaceuticalRetail | 0% | 100% |
| ForworldBiotechnology(Hangzhou)Co.,Ltd. | Hangzhou | 1,000 | Hangzhou | Technicalservices | 0% | 100% |
| WuhuLBXYijiarenPharmacyChainCo.,Ltd. | Wuhu | 1,000 | Wuhu | PharmaceuticalRetail | 0% | 100% |
| ForworldMedicine | Zhengzhou | 1,000 | Zhengzhou | PharmaceuticalWholesale | 0% | 100% |
/
| (Henan)Co.,Ltd. | ||||||
| YinchuanXinchengInternetHospitalCo.,Ltd. | Yinchuan | 1,000 | Yinchuan | Informationtechnologyconsulting | 100% | 0% |
| HunanBaixinInformationTechnologyCo.,Ltd. | Changsha | 1,000 | Changsha | Informationtechnologyconsulting | 100% | 0% |
| ForworldMedicineLogistics(Hangzhou)Co.,Ltd. | Hangzhou | 1,000 | Hangzhou | PharmaceuticalWholesale | 0% | 100% |
| ZhejiangLBXFoodCo.,Ltd. | Hangzhou | 1,000 | Hangzhou | Foodanddepartmentstoreretail | 0% | 100% |
| ForworldMedicine(Guangxi)Co.,Ltd. | Nanning | 1,000 | Nanning | PharmaceuticalWholesale | 0% | 100% |
| LBXPharmacyChain(Changde)Co.,Ltd. | Changde | 1,000 | Changde | PharmaceuticalRetail | 100% | 0% |
| HenanProvincialPharmaceuticalSupermarketCo.,Ltd. | Zhengzhou | 1,000 | Zhengzhou | PharmaceuticalRetail | 0% | 100% |
| HainanLBXMedicalHealthCo.,Ltd. | Chengmai | 1,000 | Chengmai | Pharmaceuticalconsulting | 100% | 0% |
| LBXPharmacyChain(Taizhou)Co.,Ltd.(formerlyTaizhouLongtaiyuanPharmaceuticalChainCo.,Ltd.) | Taixing | 800 | Taixing | PharmaceuticalRetail | 100% | 0% |
| LBXPharmacyChain(Shaanxi)Co.,Ltd. | Xi'an | 600 | Xi'an | PharmaceuticalRetail | 100% | 0% |
| LBXPharmacyChain(Yangzhou)Co.,Ltd.(formerlyYangzhouBaixinyuanPharmaceuticalChainCo.,Ltd.) | Yangzhou | 500 | Yangzhou | PharmaceuticalRetail | 100% | 0% |
| JiangsuBaijiahuiSuhePharmacyChainCo.,Ltd. | Kunshan | 500 | Kunshan | PharmaceuticalRetail | 100% | 0% |
| LBXHealthManagementConsulting | Shanghai | 500 | Shanghai | Pharmaceuticalconsulting | 0% | 100% |
/
| (Shanghai)Co.,Ltd. | ||||||
| AnhuiBaixingyuanPharmacyGaoxinCo.,Ltd. | Hefei | 500 | Hefei | PharmaceuticalRetail | 0% | 100% |
| LanzhouHuirenChangqingPharmaceuticalCo.,Ltd. | Lanzhou | 500 | Lanzhou | PharmaceuticalRetail | 0% | 100% |
| LBXPharmacyChainHenanCo.,Ltd. | Zhengzhou | 500 | Zhengzhou | PharmaceuticalRetail | 100% | 0% |
| LBXPharmacyChain(Guangxi)Co.,Ltd. | Nanning | 500 | Nanning | PharmaceuticalRetail | 100% | 0% |
| AnhuiBaixingyuanPharmacyLuyangCo.,Ltd. | Hefei | 500 | Hefei | PharmaceuticalRetail | 0% | 100% |
| LBXPharmacyChain(Tianjin)Co.,Ltd. | Tianjin | 500 | Tianjin | PharmaceuticalRetail | 100% | 0% |
| ZhenjiangLBXKaitaiPharmacyCo.,Ltd.(formerlyZhenjiangHuakangKaitaiPharmacyCo.,Ltd.) | Zhenjiang | 500 | Zhenjiang | PharmaceuticalRetail | 0% | 100% |
| LBXPharmacyChain(Zhenjiang)Co.,Ltd.(formerlyZhenjiangHuakangPharmacyChainCo.,Ltd.) | Yangzhong | 500 | Yangzhong | PharmaceuticalRetail | 100% | 0% |
| XuanchengLBXPharmacyChainCo.,Ltd.(formerlyXuanchengLBXJiangnanPharmaceuticalChainCo.,Ltd.) | Xuancheng | 450 | Xuancheng | PharmaceuticalRetail | 0% | 100% |
| YangzhouBaixingtangGuoyiguanTraditionalChineseMedicineOutpatientDepartmentCo.,Ltd. | Yangzhou | 428 | Yangzhou | TCMclinic | 0% | 100% |
/
| LBXPharmacyChain(Shanghai)Co.,Ltd. | Shanghai | 300 | Shanghai | PharmaceuticalRetail | 100% | 0% |
| NingxiaHuirentangPharmaceuticalChainCo.,Ltd. | Wuzhong | 300 | Wuzhong | PharmaceuticalRetail | 0% | 100% |
| Xi'anBaixingtangZhangShiwuTangTraditionalChineseMedicineClinicCo.,Ltd. | Xi'an | 300 | Xi'an | TCMclinic | 0% | 100% |
| LBXHealthPharmacy(Shandong)Co.,Ltd. | Jinan | 300 | Jinan | PharmaceuticalRetail | 0% | 100% |
| TianjinXiqingDistrictBai'ankangComprehensiveOutpatientDepartmentCo.,Ltd. | Tianjin | 200 | Tianjin | Clinic | 0% | 100% |
| LBXPharmacy(Jiangxi)Co.,Ltd. | Pingxiang | 200 | Pingxiang | PharmaceuticalRetail | 100% | 0% |
| LBXPharmacyChain(Shandong)Co.,Ltd. | Jinan | 200 | Jinan | PharmaceuticalRetail | 100% | 0% |
| GuangxiLBXPharmacyHealthTechnologyCo.,Ltd. | Nanning | 200 | Nanning | PharmaceuticalRetail | 0% | 100% |
| HunanLingganYaodianCulturalCreativityCo.,Ltd. | Changsha | 200 | Changsha | Businessservices | 100% | 0% |
| ChangzhouWanrenPharmacyCo.,Ltd. | Changzhou | 100 | Changzhou | PharmaceuticalRetail | 100% | 0% |
| TianjinHebeiDistrictBaixingtangPharmaceuticalTechnologyCo.,Ltd. | Tianjin | 100 | Tianjin | PharmaceuticalRetail | 0% | 100% |
| TianjinBinhaiBaixingtangClinicCo.,Ltd. | Tianjin | 100 | Tianjin | Clinic | 0% | 100% |
| KunshanBaijiahuiSuheNingkang | Kunshan | 100 | Kunshan | PharmaceuticalRetail | 0% | 100% |
/
| PharmacyCo.,Ltd. | ||||||
| HefeiShushanBaixingyuanOutpatientDepartmentCo.,Ltd. | Hefei | 60 | Hefei | Clinic | 0% | 100% |
| LBXPharmacyChain(Lintao)Co.,Ltd.(formerlyLintaoHuirentangPharmaceuticalChainCo.,Ltd.) | Dingxi | 50 | Dingxi | PharmaceuticalWholesale | 0% | 100% |
| ChangshaKaifuDistrictBaiyiHealthComprehensiveOutpatientDepartmentCo.,Ltd. | Changsha | 50 | Changsha | Clinic | 100% | 0% |
| LBXPharmacyChain(Zhangye)Co.,Ltd. | Zhangye | 50 | Zhangye | PharmaceuticalRetail | 0% | 100% |
| LBXPharmacyChain(Hanzhong)Co.,Ltd. | Hanzhong | 50 | Hanzhong | PharmaceuticalRetail | 0% | 100% |
| Xi'anBaixinHealthComprehensiveOutpatientDepartmentCo.,Ltd. | Xi'an | 50 | Xi'an | Clinic | 0% | 100% |
| BaiyinXiangjitangChainPharmaceuticalCo.,Ltd. | Baiyin | 50 | Baiyin | PharmaceuticalRetail | 0% | 100% |
| LBXPharmacyChain(Baiyin)Co.,Ltd.(formerlyBaiyinLBXHuirentangPharmacyChainCo.,Ltd.) | Baiyin | 50 | Baiyin | PharmaceuticalRetail | 0% | 100% |
| TianjinHedongDistrictLBXTraditionalChineseMedicineOutpatientDepartmentCo.,Ltd. | Tianjin | 35 | Tianjin | Clinic | 0% | 100% |
| LanzhouBaixingHuirentang | Lanzhou | 30 | Lanzhou | PharmaceuticalRetail | 0% | 100% |
/
| PharmaceuticalCo.,Ltd. | ||||||
| TianjinLBXJinqilinPharmaceuticalSalesCo.,Ltd. | Tianjin | 30 | Tianjin | PharmaceuticalRetail | 0% | 100% |
| KunshanDuhaoConvenienceChainCo.,Ltd. | Kunshan | 20 | Kunshan | Foodanddepartmentstoreretail | 0% | 100% |
| LBXJianningPharmaceutical(Yangzhong)Co.,Ltd.(formerlyZhenjiangHuakangJianningPharmacyCo.,Ltd.) | Yangzhong | 10 | Yangzhong | PharmaceuticalRetail | 0% | 100% |
| LBXKangrenPharmaceutical(Yangzhong)Co.,Ltd.(formerlyZhenjiangHuakangKangrenPharmacyCo.,Ltd.) | Zhenjiang | 10 | Zhenjiang | PharmaceuticalRetail | 0% | 100% |
| Xi'anChangjiaPharmaceuticalCo.,Ltd. | Xi'an | 10 | Xi'an | Pharmaceuticalwholesale | 0% | 100% |
| TianjinHedongDistrictRen'aiBaixingComprehensiveOutpatientDepartmentCo.,Ltd. | Tianjin | 10 | Tianjin | Clinic | 0% | 100% |
| WugongCountyLongshengPharmaceuticalCo.,Ltd. | Xi'an | 10 | Xi'an | PharmaceuticalRetail | 0% | 100% |
| LBXComprehensiveOutpatientDepartment(Tianjin)Co.,Ltd. | Tianjin | 10 | Tianjin | Clinic | 0% | 100% |
| HangzhouZhongbeiqiaoClinicCo.,Ltd. | Hangzhou | 10 | Hangzhou | Clinic | 0% | 100% |
| HefeiBaizhikangInternalMedicineClinicCo.,Ltd. | Hefei | 10 | Hefei | Clinic | 0% | 100% |
| Kunshan | Kunshan | 8 | Kunshan | Pharmaceutical | 0% | 100% |
/
| BaijiahuiSuheChunqiuPharmacyCo.,Ltd. | Retail | |||||
| ChenzhouForworldPharmacyCo.,Ltd. | Chenzhou | 5 | Chenzhou | PharmaceuticalRetail | 0% | 100% |
| ChenzhouLinyiChronicDiseaseProfessionalPharmacyCo.,Ltd. | Chenzhou | 5 | Chenzhou | PharmaceuticalRetail | 0% | 100% |
| TianjinLBXTonghuiPharmacyCo.,Ltd. | Tianjin | 1 | Tianjin | PharmaceuticalRetail | 0% | 100% |
| WuhuBaixingyuanPharmacyChainCo.,Ltd. | Wuhu | 1,500 | Wuhu | PharmaceuticalRetail | 0% | 85% |
| LBXHealthPharmacyGroupChainCo.,Ltd. | Changsha | 5,000 | Changsha | Pharmaceuticalconsulting | 0% | 81% |
| LBXHealthPharmacy(Zhejiang)Co.,Ltd. | Hangzhou | 1,000 | Hangzhou | Pharmaceuticalconsulting | 0% | 81% |
| LBXHealthPharmacy(Jiangsu)Co.,Ltd. | Nanjing | 1,000 | Nanjing | Pharmaceuticalconsulting | 0% | 81% |
| LBXHealthPharmacy(Henan)Co.,Ltd. | Zhengzhou | 500 | Zhengzhou | Pharmaceuticalconsulting | 0% | 81% |
| Shangyouzhixuan(Hunan)CommercialCo.,Ltd. | Changsha | 500 | Changsha | Commoditywholesale | 0% | 81% |
| LBXHealthPharmacy(Tianjin)Co.,Ltd. | Tianjin | 500 | Tianjin | Pharmaceuticalconsulting | 0% | 81% |
| LBXHealthPharmacy(Guangdong)Co.,Ltd. | Guangzhou | 500 | Guangzhou | Pharmaceuticalconsulting | 0% | 81% |
| LBXHealthPharmacyManagement(Anhui)Co.,Ltd. | Hefei | 500 | Hefei | Pharmaceuticalconsulting | 0% | 81% |
| LBXHealthPharmacy(Shaanxi)Co.,Ltd. | Xi'an | 500 | Xi'an | Pharmaceuticalconsulting | 0% | 81% |
| LBXHealth | Nanning | 500 | Nanning | Pharmaceutical | 0% | 81% |
/
| PharmacyChain(Guangxi)Co.,Ltd. | consulting | |||||
| HunanLongxingTianxiaHealthManagementCo.,Ltd. | Changsha | 500 | Changsha | Pharmaceuticalconsulting | 0% | 81% |
| LBXHealthPharmacy(Hubei)Co.,Ltd. | Wuhan | 500 | Wuhan | Pharmaceuticalconsulting | 0% | 81% |
| LanzhouHuirentangHealthPharmacyCo.,Ltd. | Lanzhou | 300 | Lanzhou | Pharmaceuticalconsulting | 0% | 81% |
| TianjinLongxingCenturyHealthManagementCo.,Ltd. | Tianjin | 200 | Tianjin | Pharmaceuticalconsulting | 0% | 81% |
| HunanLongxingQianyiHealthManagementCo.,Ltd. | Changsha | 200 | Changsha | Pharmaceuticalconsulting | 0% | 81% |
| ChangdeLongxingCenturyHealthManagementCo.,Ltd. | Changde | 200 | Changde | Pharmaceuticalconsulting | 0% | 81% |
| HenanLongxingCenturyHealthManagementCo.,Ltd. | Luohe | 200 | Luohe | Pharmaceuticalconsulting | 0% | 81% |
| GuangxiLongxingQianyiHealthManagementCo.,Ltd. | Nanning | 200 | Nanning | Pharmaceuticalconsulting | 0% | 81% |
| XiangtanLongxingCenturyHealthManagementCo.,Ltd. | Xiangtan | 200 | Xiangtan | Pharmaceuticalconsulting | 0% | 81% |
| LoudiLongxingCenturyHealthManagementCo.,Ltd. | Loudi | 200 | Loudi | Pharmaceuticalconsulting | 0% | 81% |
| GuangxiLongxingCenturyHealthManagementCo.,Ltd. | Hechi | 200 | Hechi | Businessservices | 0% | 81% |
| ShaanxiLongxingCenturyHealthManagementCo.,Ltd. | Xi'an | 200 | Xi'an | Pharmaceuticalconsulting | 0% | 81% |
| Shaoyang | Shaoyang | 200 | Shaoyang | Pharmaceutical | 0% | 81% |
/
| LongxingCenturyHealthManagementCo.,Ltd. | consulting | |||||
| HunanLongxingCenturyHealthManagementCo.,Ltd. | Changsha | 200 | Changsha | Pharmaceuticalconsulting | 0% | 81% |
| HefeiLongxingCenturyHealthManagementConsultingCo.,Ltd. | Hefei | 100 | Hefei | Pharmaceuticalconsulting | 0% | 81% |
| LanzhouLongxingQianyiHealthManagementCo.,Ltd. | Lanzhou | 100 | Lanzhou | Pharmaceuticalconsulting | 0% | 81% |
| LanzhouLongxingCenturyHealthManagementCo.,Ltd. | Lanzhou | 100 | Lanzhou | Pharmaceuticalconsulting | 0% | 81% |
| HubeiLongxingCenturyHealthManagementCo.,Ltd. | Wuhan | 100 | Wuhan | Pharmaceuticalconsulting | 0% | 81% |
| NanjingLongxingCenturyHealthManagementCo.,Ltd. | Nanjing | 50 | Nanjing | Pharmaceuticalconsulting | 0% | 81% |
| ChangshaHigh-techIndustrialDevelopmentZoneLongxingQianyiTechnologyCo.,Ltd. | Changsha | 50 | Changsha | Pharmaceuticalconsulting | 0% | 81% |
| HengyangLongxingCenturyHealthManagementCo.,Ltd. | Hengyang | 50 | Hengyang | Pharmaceuticalconsulting | 0% | 81% |
| HangzhouLongxingQianyiHealthManagementCo.,Ltd. | Hangzhou | 50 | Hangzhou | Pharmaceuticalconsulting | 0% | 81% |
| HangzhouLongxingCenturyHealthManagementCo.,Ltd. | Hangzhou | 50 | Hangzhou | Pharmaceuticalconsulting | 0% | 81% |
| HunanLBX | Huaihua | 12,700 | Huaihua | Pharmaceutical | 80% | 0% |
/
| HuairenPharmacyChainCo.,Ltd. | Retail | |||||
| HunanLBXHuairenPharmaceuticalCo.,Ltd. | Huaihua | 2,000 | Huaihua | PharmaceuticalWholesale | 80% | 0% |
| AnqingLBXPharmacyChainCo.,Ltd. | Anqing | 1,860 | Anqing | PharmaceuticalRetail | 0% | 80% |
| HunanLBXHuairenMaternalandInfantLifePavilionCo.,Ltd. | Huaihua | 1,000 | Huaihua | Retailofmaternalandinfantproducts | 80% | 0% |
| HunanLBXHuaixinrenPharmacyChainCo.,Ltd. | Huaihua | 1,000 | Huaihua | PharmaceuticalRetail | 80% | 0% |
| HuaihuaLBXHuairenMedicalEnterpriseManagementCo.,Ltd. | Huaihua | 200 | Huaihua | Clinic | 80% | 0% |
| QianxiLBXPharmacyCo.,Ltd. | Bijie | 50 | Bijie | PharmaceuticalRetail | 80% | 0% |
| LBXHealthPharmacyChain(Guizhou)Co.,Ltd. | Guiyang | 500 | Guiyang | Pharmaceuticalconsulting | 0% | 73% |
| GuizhouLongxingCenturyHealthManagementCo.,Ltd. | Guiyang | 50 | Guiyang | Pharmaceuticalconsulting | 0% | 73% |
| LBXPharmacyChain(Hengyang)Co.,Ltd. | Hengyang | 2,600 | Hengyang | PharmaceuticalRetail | 66% | 0% |
| WuxiSanpintanPharmaceuticalChainCo.,Ltd. | Wuxi | 720 | Wuxi | PharmaceuticalRetail | 65% | 0% |
| ChangzhouJintanXinqianqiuPharmacyCo.,Ltd. | Changzhou | 324 | Changzhou | PharmaceuticalRetail | 0% | 65% |
| YixingSanpintanTraditionalChineseMedicineClinicCo.,Ltd. | Yixing | 30 | Yixing | Clinic | 0% | 65% |
| LBXHealthPharmacy(InnerMongolia)Co.,Ltd. | Hohhot | 1,000 | Hohhot | Pharmaceuticalconsulting | 0% | 59% |
| Hunan | Changsha | 1,000 | Changsha | Medical | 58% | 0% |
/
| BaixingtangFamousDoctors'ClinicTraditionalChineseMedicineManagementCo.,Ltd. | services | |||||
| ChengduBaixingtangHospitalManagementCo.,Ltd. | Chengdu | 1,000 | Chengdu | TCMclinic | 0% | 58% |
| HunanBaixingtangFamousDoctors'ClinicTraditionalChineseMedicineOutpatientDepartmentCo.,Ltd. | Changsha | 800 | Changsha | TCMclinic | 0% | 58% |
| ChangzhouBaixingtangHepingTraditionalChineseMedicineOutpatientDepartmentCo.,Ltd. | Changzhou | 200 | Changzhou | TCMclinic | 0% | 58% |
| HunanBaixingtangHealthManagementCo.,Ltd. | Changsha | 200 | Changsha | Businessservices | 0% | 58% |
| ChangzhouBaixingtangRenminTraditionalChineseMedicineOutpatientDepartmentCo.,Ltd. | Changzhou | 200 | Changzhou | TCMclinic | 0% | 58% |
| JiangsuHaipengPharmaceuticalChainCo.,Ltd. | Jiangyin | 830 | Jiangyin | PharmaceuticalRetail | 55% | 0% |
| InnerMongoliaZeqiangPharmaceuticalCo.,Ltd. | Tongliao | 5,100 | Tongliao | PharmaceuticalWholesale | 0% | 51% |
| TongliaoZeqiangPharmacyChainCo.,Ltd. | Tongliao | 5,000 | Tongliao | PharmaceuticalRetail | 51% | 0% |
| HunanMingyuLongxing | Changsha | 3,000 | Changsha | Pharmaceuticalwholesale | 51% | 0% |
/
| PharmaceuticalSalesCo.,Ltd. | ||||||
| NantongPuzePharmacyChainCo.,Ltd. | Hai'an | 2,760 | Hai'an | PharmaceuticalRetail | 51% | 0% |
| LinyiRendePharmacyChainCo.,Ltd. | Linyi | 1,474 | Linyi | PharmaceuticalRetail | 51% | 0% |
| LBXPharmacy(TianjinBinhaiNewArea)Co.,Ltd. | Tianjin | 1,400 | Tianjin | PharmaceuticalRetail | 0% | 51% |
| ShanxiBaihuiPharmaceuticalChainCo.,Ltd. | Yuncheng | 1,007 | Yuncheng | PharmaceuticalRetail | 51% | 0% |
| JilinLBXTongtaiPharmacyChainCo.,Ltd. | Baicheng | 1,000 | Baicheng | PharmaceuticalRetail | 0% | 51% |
| InnerMongoliaZeqiangPharmacyChainCo.,Ltd. | Tongliao | 1,000 | Tongliao | PharmaceuticalWholesale | 0% | 51% |
| ShanxiBaihuiPharmaceuticalCo.,Ltd. | Yuncheng | 1,000 | Yuncheng | Pharmaceuticalwholesale | 0% | 51% |
| AnhuiLinjiayiKangfuPharmacyChainCo.,Ltd. | Chaohu | 538 | Chaohu | PharmaceuticalRetail | 51% | 0% |
| HunanLBXEasyDrugTechnologyCo.,Ltd. | Changsha | 500 | Changsha | Pharmaceuticalpromotion | 51% | 0% |
| BaichengMintaiMedicalDeviceCo.,Ltd. | Baicheng | 100 | Baicheng | PharmaceuticalWholesale | 0% | 100% |
| TongliaoZeqiangBinheLeyouMaternalandInfantProductsCo.,Ltd. | Tongliao | 100 | Tongliao | Retailofmaternalandinfantproducts | 0% | 51% |
| TongliaoZeqiangMeilejiaSupermarketCo.,Ltd. | Tongliao | 100 | Tongliao | Foodanddepartmentstoreretail | 0% | 51% |
| TongliaoZeqiangLeyouMaternalandInfantProductsCo.,Ltd. | Tongliao | 100 | Tongliao | Retailofmaternalandinfantproducts | 0% | 51% |
| NantongRenyuanClinicCo.,Ltd. | Nantong | 50 | Nantong | Clinic | 0% | 51% |
| YunchengYanhuDistrictBaihuiShenghuinan | Yuncheng | 10 | Yuncheng | PharmaceuticalRetail | 0% | 51% |
/
| PharmaceuticalCo.,Ltd. | ||||||
| YunchengEconomicandTechnologicalDevelopmentZoneBaihuiPharmaceuticalYuduyiPharmacyCo.,Ltd. | Yuncheng | 10 | Yuncheng | PharmaceuticalRetail | 0% | 51% |
| YunchengEconomicandTechnologicalDevelopmentZoneBaihuiPharmaceuticalHuangjinshuianPharmacyCo.,Ltd. | Yuncheng | 10 | Yuncheng | PharmaceuticalRetail | 0% | 51% |
| YunchengYanhuDistrictBaihuiZhongyinPharmaceuticalCo.,Ltd. | Yuncheng | 10 | Yuncheng | PharmaceuticalRetail | 0% | 51% |
| JishanCountyBaihuiPharmaceuticalKangfuRoadPharmacyCo.,Ltd. | Jishan | 10 | Jishan | PharmaceuticalRetail | 0% | 51% |
| YunchengEconomicandTechnologicalDevelopmentZoneBaihuiPharmaceuticalKonggangyiPharmacyCo.,Ltd. | Yuncheng | 10 | Yuncheng | PharmaceuticalRetail | 0% | 51% |
| RuichengCountyBaihuiPharmaceuticalCo.,Ltd. | Ruicheng | 10 | Ruicheng | PharmaceuticalRetail | 0% | 51% |
| YunchengYanhuDistrictBaihuiNanhuanPharmaceuticalCo.,Ltd. | Yuncheng | 10 | Yuncheng | PharmaceuticalRetail | 0% | 51% |
| YunchengYanhuDistrictBaihuiZhonglouPharmaceuticalCo.,Ltd. | Yuncheng | 10 | Yuncheng | PharmaceuticalRetail | 0% | 51% |
| XinjianCountyBaihui | Yuncheng | 10 | Yuncheng | PharmaceuticalRetail | 0% | 51% |
/
| PharmaceuticalCo.,Ltd. | ||||||
| JishanCountyBaihuiPharmaceuticalJifengdongStreetPharmacyCo.,Ltd. | Jishan | 10 | Jishan | PharmaceuticalRetail | 0% | 51% |
| Hai'anTianshoutangTraditionalChineseMedicineClinicCo.,Ltd. | Nantong | 10 | Nantong | Clinic | 0% | 51% |
| YunchengYanhuDistrictBaihuiLaodongPharmaceuticalCo.,Ltd. | Yuncheng | 10 | Yuncheng | PharmaceuticalRetail | 0% | 51% |
| ShandongLBXChuntianPharmacyChainCo.,Ltd. | Linyi | 1,868 | Linyi | PharmaceuticalRetail | 0% | 45% |
| LiaoningEasyDrugTechnologyCo.,Ltd. | Panjin | 300 | Panjin | Pharmaceuticalpromotion | 0% | 34% |
| LBXHealthPharmacyChain(Shanxi)Co.,Ltd. | Taiyuan | 2,000 | Taiyuan | Pharmaceuticalconsulting | 0% | 41% |
| LBXHealthPharmacyChain(Ningxia)Co.,Ltd. | Yinchuan | 1,000 | Yinchuan | PharmaceuticalRetail | 0% | 41% |
| LBXHealthPharmacy(Jiangxi)Co.,Ltd. | Yichun | 500 | Yichun | PharmaceuticalRetail | 0% | 41% |
| NantongPuzeChengxinChainPharmacyCo.,Ltd. | Nantong | 500 | Nantong | PharmaceuticalRetail | 0% | 41% |
| HebeiEasyDrugEnterpriseManagementConsultingCo.,Ltd. | Shijiazhuang | 300 | Shijiazhuang | Pharmaceuticalpromotion | 0% | 34% |
| ShaanxiEasyDrugTechnologyCo.,Ltd. | Xi'an | 200 | Xi'an | Pharmaceuticalpromotion | 0% | 34% |
| ChongqingEasyDrugTechnologyCo.,Ltd. | Chongqing | 200 | Chongqing | Pharmaceuticalpromotion | 0% | 34% |
| JilinEasyDrugTechnologyCo.,Ltd. | Changchun | 200 | Changchun | Pharmaceuticalpromotion | 0% | 34% |
/
| HubeiEasyDrugYixinTechnologyCo.,Ltd. | Wuhan | 200 | Wuhan | Pharmaceuticalpromotion | 0% | 34% |
| HenanEasyDrugPharmaceuticalTechnologyCo.,Ltd. | Zhengzhou | 200 | Zhengzhou | Pharmaceuticalpromotion | 0% | 34% |
| HejinRenguoBaihuiPharmaceuticalCo.,Ltd. | Hejin | 220 | Hejin | PharmaceuticalRetail | 0% | 26% |
| YuanquCountyBaihuiPharmaceuticalCo.,Ltd. | Yuanqu | 151 | Yuanqu | PharmaceuticalRetail | 0% | 26% |
| LBXPharmacy(HK)CompanyLimited | HongKong | HKD10,000 | HongKong | PharmaceuticalRetail | 100% | 0% |
| HongKongHealthPharmaceuticalCo.,Limited | HongKong | HKD10,000 | HongKong | Pharmaceutical | 0% | 100% |
Explanationofdifferencebetweenshareholdingratioandvotingrightsratioinsubsidiaries:
NoneBasisforcontrollinganinvesteedespiteholdinghalforlessofthevotingrights,andbasisfornotcontrollinganinvesteedespiteholdingmorethanhalfofthevotingrights:
NoneBasisforcontroloversignificantstructuredentitiesincludedinthescopeofconsolidation:
NoneBasisfordeterminingwhethertheCompanyisanagentorprincipal:
NoneOtherExplanations:
None
(2).Significantnon-wholly-ownedsubsidiaries
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| SubsidiaryName | MinorityinterestshareholdingRatio | Profitorlossattributabletominorityinterestsduringtheperiod | Dividendsdeclaredtominorityshareholdersduringtheperiod | Endingbalanceofminorityinterests |
| TongliaoZeqiang | 49% | 40,244,659 | 36,959,100 | 123,093,910 |
| LBXHuairen | 20% | 22,971,871 | 30,000,000 | 104,444,648 |
Explanationofdifferencebetweenminorityshareholders'shareholdingratioandvotingrightsratioinsubsidiaries:
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicable
/
(3).Mainfinancialinformationofsignificantnon-wholly-ownedsubsidiaries
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| SubsidiaryName | Endingbalance | Beginningbalance | ||||||||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliabilities | Totalliabilities | Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliabilities | Totalliabilities | |
| TongliaoZeqiang | 441,178,219 | 134,283,045 | 575,461,264 | 290,358,700 | 33,449,067 | 323,807,767 | 447,380,860 | 134,373,129 | 581,753,989 | 304,213,232 | 33,033,919 | 337,247,151 |
| LBXHuairen | 1,252,683,010 | 407,826,092 | 1,660,509,102 | 974,665,255 | 168,533,094 | 1,143,198,349 | 1,052,232,871 | 405,032,228 | 1,457,265,099 | 730,823,907 | 169,077,306 | 899,901,213 |
SubsidiaryName
| SubsidiaryName | Amountincurredduringtheperiod | Amountincurredinthepreviousperiod | ||||||
| Operatingincome | Netprofit | Totalcomprehensiveincome | Cashflowfromoperatingactivities | Operatingincome | Netprofit | Totalcomprehensiveincome | Cashflowfromoperatingactivities | |
| TongliaoZeqiang | 1,189,583,407 | 82,131,957 | 82,131,957 | 191,855,586 | 1,185,492,225 | 72,504,540 | 72,504,540 | 117,534,491 |
| LBXHuairen | 1,721,995,604 | 114,859,353 | 114,859,353 | 734,666,020 | 1,665,911,199 | 121,966,273 | 121,966,273 | 167,300,933 |
OtherExplanations:
None
(4).Significantrestrictionsontheuseofenterprisegroupassetsandsettlementofenterprise
groupdebts
□Applicable√NotApplicable
(5).Financialorothersupportprovidedtostructuredentitiesincludedinthescopeof
consolidatedfinancialstatements
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicable
2.Transactionsinvolvingchangesintheownershipinterestshareinsubsidiarieswhilestillretainingcontrol
√Applicable□NotApplicable
/
(1).Explanationofchangesintheownershipinterestshareinsubsidiaries
√Applicable□NotApplicableInAugust2024,theCompanyacquiredpartoftheinvestmentinLBXHengyang(accountingfor
15.12%ofLBXHengyang).TheconsiderationpaidfortheequityacquisitionwasRMB15,876,000.ThistransactionresultedinadecreaseinminorityinterestsintheconsolidatedfinancialstatementsbyRMB4,385,688andadecreaseincapitalreservesbyRMB11,490,312.InOctober2024,theCompanyacquiredpartoftheinvestmentinHealthPharmacy(Zhejiang)(accountingfor6%ofHealthPharmacy(Zhejiang)).TheconsiderationpaidfortheequityacquisitionwasRMB1,331,680.ThistransactionresultedinadecreaseinminorityinterestsintheconsolidatedfinancialstatementsbyRMB589,846andadecreaseincapitalreservesbyRMB741,834.InDecember2024,theCompanyacquiredpartoftheinvestmentinHealthPharmacy(Hubei)(accountingfor9%ofHealthPharmacy(Hubei)).TheconsiderationpaidfortheequityacquisitionwasRMB724,649.ThistransactionresultedinadecreaseinminorityinterestsintheconsolidatedfinancialstatementsbyRMB658,326andadecreaseincapitalreservesbyRMB66,323.InDecember2024,theCompanyacquiredpartoftheinvestmentinLanzhouHuirentangHealthPharmacyCo.,Ltd.(accountingfor5%ofLanzhouHuirentangHealthPharmacyCo.,Ltd.).TheconsiderationpaidfortheequityacquisitionwasRMB1,713,752.ThistransactionresultedinadecreaseinminorityinterestsintheconsolidatedfinancialstatementsbyRMB212,857andadecreaseincapitalreservesbyRMB1,500,895.InDecember2024,theCompanyacquiredpartoftheinvestmentinLBXHealthPharmacyChain(Guizhou)Co.,Ltd.(accountingfor29%ofLBXHealthPharmacyChain(Guizhou)Co.,Ltd.).TheconsiderationpaidfortheequityacquisitionwasRMB4,204,684.ThistransactionresultedinadecreaseinminorityinterestsintheconsolidatedfinancialstatementsbyRMB1,875,999andadecreaseincapitalreservesbyRMB2,328,685.InDecember2024,theCompanyacquiredpartoftheinvestmentinLBXHealthPharmacyGroupChain(Guangxi)Co.,Ltd.(accountingfor9%ofLBXHealthPharmacyGroupChain(Guangxi)Co.,Ltd.).TheconsiderationpaidfortheequityacquisitionwasRMB7,487,561.ThistransactionresultedinadecreaseinminorityinterestsintheconsolidatedfinancialstatementsbyRMB2,492,363andadecreaseincapitalreservesbyRMB4,995,198.InDecember2024,theCompanyacquiredpartoftheinvestmentinLBXHealthPharmacyManagement(Anhui)Co.,Ltd.(accountingfor2%ofLBXHealthPharmacyManagement(Anhui)Co.,Ltd.).TheconsiderationpaidfortheequityacquisitionwasRMB254,822.ThistransactionresultedinadecreaseinminorityinterestsintheconsolidatedfinancialstatementsbyRMB281,100andanincreaseincapitalreservesbyRMB26,278.InDecember2024,theCompanyacquiredpartoftheinvestmentinLBXHealthPharmacy(Shaanxi)Co.,Ltd.(accountingfor9%ofLBXHealthPharmacy(Shaanxi)Co.,Ltd.).TheconsiderationpaidfortheequityacquisitionwasRMB4,173,832.ThistransactionresultedinadecreaseinminorityinterestsintheconsolidatedfinancialstatementsbyRMB2,245,023andadecreaseincapitalreservesbyRMB1,928,809.InDecember2024,theCompanyacquiredpartoftheinvestmentinLBXHealthPharmacy(Henan)Co.,Ltd.(accountingfor4%ofLBXHealthPharmacy(Shaanxi)Co.,Ltd.).TheconsiderationpaidfortheequityacquisitionwasRMB402,406.ThistransactionresultedinadecreaseinminorityinterestsintheconsolidatedfinancialstatementsbyRMB147,093andadecreaseincapitalreservesbyRMB255,313.InDecember2024,theCompanyacquiredpartoftheinvestmentinLBXHealthPharmacy(Tianjin)Co.,Ltd.(accountingfor7%ofLBXHealthPharmacy(Tianjin)Co.,Ltd.).TheconsiderationpaidfortheequityacquisitionwasRMB2,077,481.Thistransactionresultedinadecreaseinminorityinterestsin
/
theconsolidatedfinancialstatementsbyRMB1,147,054andadecreaseincapitalreservesbyRMB930,427.
(2).Impactofthetransactiononminorityinterestsandequityattributabletoownersofthe
parentcompany
□Applicable√NotApplicable
3.Equityinjointventuresorassociates
√Applicable□NotApplicable
(1).Significantjointventuresorassociates
□Applicable√NotApplicable
(2).Mainfinancialinformationofsignificantjointventures
□Applicable√NotApplicable
(3).Mainfinancialinformationofsignificantassociates
□Applicable√NotApplicable
(4).Aggregatedfinancialinformationofinsignificantjointventuresandassociates
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Endingbalance/Amountincurredduringtheperiod | Beginningbalance/Amountincurredinthepreviousperiod | |
| Jointventures: | ||
| Totalbookvalueofinvestments | ||
| Totalcalculatedbasedonshareholdingratioforthefollowingitems | ||
| --Netprofit | ||
| --Othercomprehensiveincome | ||
| --Totalcomprehensiveincome | ||
Associates:
| Associates: | ||
| Totalbookvalueofinvestments | 85,352,717 | 67,821,191 |
| Totalcalculatedbasedonshareholdingratioforthefollowingitems | ||
| --Netprofit | 2,831,526 | 3,766,073 |
| --Othercomprehensiveincome | ||
| --Totalcomprehensiveincome | 2,831,526 | 3,766,073 |
OtherExplanations:
None
(5).Explanationofsignificantrestrictionsontheabilityofjointventuresorassociatestotransfer
fundstotheCompany
□Applicable√NotApplicable
/
(6).Excesslossesincurredbyjointventuresorassociates
□Applicable√NotApplicable
(7).Unrecognizedcommitmentsrelatedtoinvestmentsinjointventures
□Applicable√NotApplicable
(8).Contingentliabilitiesrelatedtoinvestmentsinjointventuresorassociates
□Applicable√NotApplicable
4.Significantjointoperations
□Applicable√NotApplicable
5.EquityinstructuredentitiesnotincludedinthescopeofconsolidatedfinancialstatementsExplanationrelatedtostructuredentitiesnotincludedinthescopeofconsolidatedfinancialstatements:
□Applicable√NotApplicable
6.Other
□Applicable√NotApplicableXI.Governmentgrants
1.Governmentgrantsrecognizedbasedonreceivableamountattheendofthereportingperiod
□Applicable√NotApplicableReasonsfornotreceivingtheestimatedamountofgovernmentgrantsattheexpectedtimepoint
□Applicable√NotApplicable
2.Liabilityitemsinvolvinggovernmentgrants
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Financialstatementitem | Beginningbalance | Amountofnewsubsidiesduringtheperiod | Amountincludedinnon-operatingincomeduringtheperiod | Amounttransferredtootherincomeduringtheperiod | Otherchangesduringtheperiod | Endingbalance | Relatedtoassets/income |
| Deferredincome | 15,908,923 | 234,000 | 3,217,348 | 12,925,575 | Relatedtoassets |
Total
| Total | 15,908,923 | 3,217,348 | 12,925,575 | / |
3.Governmentgrantsincludedincurrentprofitorloss
√Applicable□NotApplicable
/
Unit:YuanCurrency:RMB
| Type | Amountincurredduringtheperiod | Amountincurredinthepreviousperiod |
| Relatedtoassets | 3,217,348 | 3,189,560 |
| Relatedtoincome | 74,468,255 | 65,905,066 |
| Total | 77,685,603 | 69,094,626 |
OtherExplanations:
NoneXII.Risksrelatedtofinancialinstruments
1.Risksoffinancialinstruments
√Applicable□NotApplicableTheGroupfacesvariousfinancialinstrumentrisksinitsdailyactivities,mainlyincludingcreditrisk,liquidityrisk,andmarketrisk.TheGroup'sriskmanagementpolicyoverviewfortheserisksisasfollows.CreditriskTheGrouponlytradeswithrecognized,reputablethirdparties.AccordingtotheGroup'spolicy,creditchecksarerequiredforallcustomersrequestingcreditterms.Inaddition,theGroupcontinuouslymonitorsaccountsreceivablebalancestoensurethattheGroupdoesnotfacesignificantbaddebtrisk.Fortransactionsnotsettledinthefunctionalcurrencyoftherelevantoperatingunit,theGroupdoesnotoffercredittermsunlessspecificallyapprovedbytheGroup'screditcontroldepartment.Sincethecounterpartiesforcashandcashequivalents,notesreceivable,andreceivablesfinancingarereputablebankswithhighcreditratings,thecreditriskofthesefinancialinstrumentsislow.TheGroup'sotherfinancialassetsincludeaccountsreceivable,long-termreceivables,andotherreceivables.Thecreditriskofthesefinancialassetsarisesfromcounterpartydefault,andthemaximumriskexposureequalsthebookvalueoftheseinstruments.Cashandcashequivalents,debtinvestments,andlong-termreceivablesareallinStage1,withbaddebtprovisionsmadebasedon12-monthECL.Theamountofbaddebtprovisionsisnotsignificant.SincetheGrouponlytradeswithrecognizedandreputablethirdparties,nocollateralisrequired.Creditriskconcentrationismanagedbycustomer/counterparty,geographicalregion,andindustry.AstheCompany'saccountsreceivableriskpointsaredistributedamongmultiplepartnersandcustomers,asofDecember31,2024,23%(December31,2023:17%)oftheCompany'saccountsreceivableoriginatedfromthetopfivecustomersbybalance.Therefore,thereisnosignificantconcentrationofcreditriskwithintheGroup.TheGroupholdsnocollateralorothercreditenhancementsforaccountsreceivableandreceivablesfinancingbalances.ThemaximumcreditriskexposurebornebytheGroupisthebookvalueofeachfinancialassetinthebalancesheet.CriteriaforjudgingsignificantincreaseincreditriskTheGroupassessesateachbalancesheetdatewhetherthecreditriskofrelevantfinancialinstrumentshasincreasedsignificantlysinceinitialrecognition.ThemaincriteriausedbytheGrouptojudgeasignificantincreaseincreditriskareoverduedaysexceeding30days,orsignificantchangesinoneormoreofthefollowingindicators:theoperatingenvironmentinwhichthedebtoroperates,internalandexternalcreditratings,significantadversechangesinactualorexpectedoperatingresults,etc.Definitionofcredit-impairedassetsThemaincriterionusedbytheGrouptojudgecreditimpairmentisoverduedaysexceeding90days.However,insomecases,ifinternalorexternalinformationindicatesthatthecontractualamountmaynotbefullyrecoveredbeforeconsideringanycreditenhancementsheld,theGroupalsoconsidersitcredit-impaired.
/
Creditimpairmentoffinancialassetsmayresultfromthecombinedeffectofmultipleevents,notnecessarilycausedbyasingleidentifiableevent.CreditriskexposureForaccountsreceivableandotherreceivablesforwhichimpairmentprovisionsaremadebasedonlifetimeECL,theriskmatrixisdetailedinthedisclosuresinNoteVII.5andNoteVII.9.LiquidityriskTheGroup'sobjectiveistomaintainabalancebetweencontinuityoffundingandflexibilitythroughtheuseofvariousfinancingmeans.TheGroupfinancesitsoperationsthroughfundsgeneratedfromoperationsandborrowings.Exceptforthenon-currentportionoflong-termborrowingsandleaseliabilities,allborrowingsmaturewithinoneyear.Thefollowingtablesummarizesthematurityanalysisoffinancialliabilitiesbasedonundiscountedcontractualcashflows:
2024
| Within1year | 1to5years | Over5years | Total | |
| Short-termloans | 1,659,806,358 | 1,659,806,358 | ||
| Notespayable | 4,546,258,111 | 4,546,258,111 | ||
| Accountspayable | 2,008,964,593 | 2,008,964,593 | ||
| Otherpayables | 653,535,414 | 653,535,414 | ||
| Non-currentliabilitiesduewithinoneyear | 1,202,733,964 | 1,202,733,964 | ||
| Long-termloans | 1,575,629,494 | 1,575,629,494 | ||
| Leaseliabilities | 1,633,031,096 | 35,059,937 | 1,668,091,033 |
Total
| Total | 10,071,298,440 | 3,208,660,590 | 35,059,937 | 13,315,018,967 |
2023
| Within1year | 1to5years | Over5years | Total | |
| Short-termloans | 801,543,347 | - | - | 801,543,347 |
| Notespayable | 4,785,990,053 | - | - | 4,785,990,053 |
| Accountspayable | 2,209,026,977 | - | - | 2,209,026,977 |
| Otherpayables | 936,519,479 | - | - | 936,519,479 |
| Non-currentliabilitiesduewithinoneyear | 1,516,049,318 | - | - | 1,516,049,318 |
| Long-termloans | - | 1,473,230,359 | - | 1,473,230,359 |
| Leaseliabilities | - | 3,000,619,437 | 69,579,957 | 3,070,199,394 |
Total
| Total | 10,249,129,174 | 4,473,849,796 | 69,579,957 | 14,792,558,927 |
MarketriskInterestrateriskTheGroup'sexposuretotheriskofchangesinmarketinterestratesrelatesprimarilytotheGroup'slong-termliabilitieswithfloatinginterestrates.TheGroupmanagesinterestrateriskbycloselymonitoringchangesininterestratesandperiodicallyreviewingborrowings.
/
Thefollowingtableillustratesthesensitivityanalysisofinterestraterisk,reflectingtheimpactonnetprofitorloss(throughtheeffectonfloatingrateborrowings)andthenetamountofothercomprehensiveincomeaftertax,assumingareasonable,possiblechangeininterestrates,holdingallothervariablesconstant.2024
| Interestrate | Netprofit/loss | Netamountofothercomprehensiveincomeaftertax | Totalshareholder'sequity |
| Increase/(decrease) | Increase/(decrease) | Increase/(decrease) | Increase/(decrease) |
RMB
| RMB | 1.00% | -24,578,027 | - | -24,578,027 |
RMB
| RMB | (1.00%) | 24,578,027 | - | 24,578,027 |
2023
| Interestrate | Netprofit/loss | Netamountofothercomprehensiveincomeaftertax | Totalshareholder'sequity |
| Increase/(decrease) | Increase/(decrease) | Increase/(decrease) | Increase/(decrease) |
RMB
| RMB | 1.00% | -17,333,204 | - | -17,333,204 |
| USD | 1.00% | -390,035 | - | (390,035 |
RMB
| RMB | (1.00%) | 17,333,204 | - | 17,333,204 |
| USD | (1.00%) | 390,035 | - | 390,035 |
EquityinstrumentinvestmentriskEquityinstrumentinvestmentpriceriskistheriskthatthefairvalueofequitysecuritiesdecreasesasaresultofchangesinthelevelofstockindicesandthevalueofindividualsecurities.AsofDecember31,2024,theGroupwasexposedtoequityinstrumentinvestmentpriceriskarisingfromindividualequityinvestmentsclassifiedasequityinvestmentsmeasuredatFVTPLandequityinvestmentsmeasuredatFVOCI.TheGroupmanagesriskbyholdingaportfolioofinvestmentswithdifferentrisks.ThefollowingtableillustratesthesensitivityoftheGroup'snetprofitorlossandnetamountofothercomprehensiveincomeaftertaxtoeach5%changeinthefairvalueofequityinvestments(basedonthebookvalueatthebalancesheetdate),assumingallothervariablesremainconstant.2024
| Equityinstrumentinvestment | Netprofit/loss | Othercomprehensiveincome | Shareholderequity |
| Increase/(decrease) | Netamountaftertax | Total | |
| Bookvalue | Increase/(decrease) | Increase/(decrease) |
Equityinstrumentinvestment
| Equityinstrumentinvestment | ||||
| -Measuredatfairvalueandchanges | 12,093,150 | 453,493/(453,493) | 453,493/(453,493) |
/
| recognizedinprofitorlossinstrumentinvestment | ||||
| EquityinstrumentinvestmentsmeasuredatFVOCI | 35,877,723 | 1,345,415/(1,345,415) | 1,345,415/(1,345,415) |
2023
| Equityinstrumentinvestment | Netprofit/loss | Othercomprehensiveincome | Shareholderequity |
| Increase/(decrease) | Netamountaftertax | Total | |
| Bookvalue | Increase/(decrease) | Increase/(decrease) |
Equityinstrumentinvestment
| Equityinstrumentinvestment | ||||
| -Measuredatfairvalueandchangesrecognizedinprofitorlossinstrumentinvestment | 7,274,109 | 272,779/(272,779) | - | 272,779/(272,779) |
| EquityinstrumentinvestmentsmeasuredatFVOCI | 37,177,723 | - | 1,394,165/(1,394,165) | 1,394,165/(1,394,165) |
2.Hedging
(1)TheCompanyconductshedgingactivitiesforriskmanagement
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicable
(2)TheCompanyconductsqualifyinghedgingactivitiesandapplieshedgeaccounting
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicable
(3)TheCompanyconductshedgingactivitiesforriskmanagement,expectedtoachieveriskmanagementobjectivesbutdoesnotapplyhedgeaccounting
□Applicable√NotApplicable
/
OtherExplanations:
□Applicable√NotApplicable
3.Transferoffinancialassets
(1)Classificationbytransfermethod
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Transfermethod | Natureoftransferredfinancialasset | Amountoftransferredfinancialasset | Derecognition | Judgmentbasisforderecognition |
| Notesendorsement | Notesreceivable | 74,641,240 | Notderecognized | Retainedsubstantiallyallrisksandrewards,includingrelateddefaultrisk |
| Notesendorsement | Receivablesfinancing | 135,933,315 | Derecognized | Transferredsubstantiallyallrisksandrewards |
| Total | / | 210,574,555 | / |
(2)Financialassetsderecognizedduetotransfer
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Methodoffinancialassettransfer | Amountofderecognizedfinancialasset | Gainsorlossesrelatedtoderecognition |
| Receivablesfinancing | Notesendorsement | 135,933,315 | - |
| Total | / | 135,933,315 |
(3)Transferredfinancialassetswithcontinuinginvolvement
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Assettransfermethod | Amountofassetformedfromcontinuinginvolvement | Amountofliabilityformedfromcontinuinginvolvement |
| Notesreceivable | Notesendorsement | 74,641,240 | 74,641,240 |
| Total | / | 74,641,240 | 74,641,240 |
OtherExplanations:
√Applicable□NotApplicableTransferredbutnotfullyderecognizedfinancialassetsAsofDecember31,2024,thebookvalueofbankacceptancebillsendorsedtosuppliersforsettlingaccountspayablebytheGroupwasRMB74,641,240(December31,2023:RMB72,363,151).TheGroupbelievesthatitretainssubstantiallyalltherisksandrewards,includingtherelateddefaultrisk.Therefore,theGroupcontinuestofullyrecognizethemandtherelatedsettledaccountspayable.Afterendorsement,theGroupnolongerretainstherighttousethem,includingtherighttosell,transfer,orpledgethemtootherthirdparties.Fullyderecognizedtransferredfinancialassetswithcontinuinginvolvement
/
AsofDecember31,2024,thebookvalueofbankacceptancebillsendorsedtosuppliersforsettlingaccountspayableanddiscountedwithbanksbytheGroupwasRMB135,933,315(December31,2023:
RMB412,713,588).AccordingtotherelevantprovisionsoftheNegotiableInstrumentsLaw,iftheacceptingbankrefusespayment,theholderhastherightofrecourseagainsttheGroup("continuinginvolvement").TheGroupbelievesthatithastransferredsubstantiallyalltherisksandrewards,therefore,fullyderecognizesthemandtherelatedsettledaccountspayable.Themaximumlossfromcontinuinginvolvementandrepurchaseandtheundiscountedcashflowsequalitsbookvalue.TheGroupbelievesthatthefairvalueofcontinuinginvolvementisnotsignificant.AsofDecember31,2024,theGroupdidnotrecognizegainsorlossesonthetransferdate.TheGrouphasnoincomeorexpensesrecognizedinthecurrentyearorcumulativelyduetocontinuinginvolvementinderecognizedfinancialassets.Endorsementsoccurredroughlyevenlythroughouttheyear.XIII.Disclosureoffairvalue
1.Endingfairvalueofassetsandliabilitiesmeasuredatfairvalue
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingfairvalue | |||
| Level1fairvaluemeasurement | Level2fairvaluemeasurement | Level3fairvaluemeasurement | Total | |
| I.Continuousfairvaluemeasurement | ||||
| (I)Tradingfinancialassets | ||||
| 1.FinancialassetsatFVTPL | ||||
| (1)Debtinstrumentinvestments | ||||
| (2)Equityinstrumentinvestments | ||||
| (3)Derivativefinancialassets | ||||
| 2.FinancialassetsatFVTPL | ||||
| (1)Debtinstrumentinvestments | ||||
| (2)Equityinstrumentinvestments | ||||
| (II)Otherdebtinvestments | ||||
| (III)Otherequityinstrumentinvestments | - | - | 35,877,723 | 35,877,723 |
| (IV)Investmentproperties | ||||
| 1.Landuserightsheldforrental | ||||
| 2.Buildingsheldforrental | ||||
| 3.Landuserightsheldforcapitalappreciation | ||||
| (V)Biologicalassets | ||||
/
| 1.Consumablebiologicalassets | ||||
| 2.Productivebiologicalassets | ||||
| (VI)Receivablesfinancing | - | 15,269,288 | - | 15,269,288 |
| (VII)Othernon-currentfinancialassets | - | - | 12,093,150 | 12,093,150 |
| Totalassetscontinuouslymeasuredatfairvalue | - | 15,269,288 | 47,970,873 | 63,240,161 |
| (VI)Tradingfinancialliabilities | ||||
| 1.FinancialliabilitiesatFVTPL | ||||
| Ofwhich:Issuedtradingbonds | ||||
| Derivativefinancialliabilities | ||||
| Other | ||||
| 2.FinancialliabilitiesdesignatedasmeasuredatFVTPL | ||||
| (IX)Otherpayables | 42,398,775 | 42,398,775 |
Totalliabilitiescontinuouslymeasuredatfairvalue
| Totalliabilitiescontinuouslymeasuredatfairvalue | 42,398,775 | 42,398,775 | |
| II.Non-continuousfairvaluemeasurement | |||
| (I)Assetsheldforsale |
Totalassetsnon-continuouslymeasuredatfairvalue
Totalassetsnon-continuouslymeasuredatfairvalueTotalliabilitiesnon-continuouslymeasuredatfairvalue
Totalliabilitiesnon-continuouslymeasuredatfairvalueBeginningbalance
| Beginningbalance | Transferredout | Totalgainorlossduringtheperiod | Newlyadded | Endingbalance | Assetsheldatyear-end | ||
| Level3 | Recognizedinprofitorloss | Recognizedinothercomprehensiveincome | Level3 | Changesinunrealizedgainsorlossesrecognizedinprofitorloss | |||
/
duringtheperiodTradingfinancialassets
| Tradingfinancialassets | 1,500,000 | 1,500,000 | - | - | - | |
| Othernon-currentfinancialassets | 5,774,109 | - | - | - | 6,319,041 | 12,093,150 |
| Otherequityinstrumentinvestments | 37,177,723 | 1,300,000 | - | - | - | 35,877,723 |
Total
| Total | 44,451,832 | 2,800,000- | - | 6,319,041 | 47,970,873 |
Otherpayables
| Otherpayables | 42,398,775 | - | - | - | - | 42,398,775 |
2.BasisfordeterminingmarketpriceforLevel1continuousandnon-continuousfairvalue
measurementitems
√Applicable□NotApplicableListedequityinvestments,fairvaluedeterminedbymarketquotation.
3.Qualitativeandquantitativeinformationonvaluationtechniquesandsignificantparameters
usedforLevel2continuousandnon-continuousfairvaluemeasurementitems
√Applicable□NotApplicableBankacceptancebillsinreceivablesfinancing,fairvalueapproximatesbookvalueduetoshortremainingterm.
4.Qualitativeandquantitativeinformationonvaluationtechniquesandsignificantparameters
usedforLevel3continuousandnon-continuousfairvaluemeasurementitems
√Applicable□NotApplicableThefollowingisanoverviewofsignificantunobservableinputsforLevel3fairvaluemeasurement:
| Endingfairvalue | Valuationtechnique | Unobservableinput | Rangeinterval | |
| (Weightedaveragevalue) | ||||
| Otherequityinstrumentinvestments | 35,877,723 | Marketapproach | Liquiditydiscount | 2024:25% |
| Price-to-salesratio | 2024:4.3 | |||
| Otherpayables | 42,398,775 | Listedcompanycomparisonmethod | Liquiditydiscount | 2024:35% |
/
5.ContinuousLevel3fairvaluemeasurementitems,reconciliationinformationbetween
beginningandendingbookvalue,andsensitivityanalysisofunobservableparameters
√Applicable□NotApplicable2024
| Beginningbalance | Transferredout | Totalgainorlossduringtheperiod | Newlyadded | Endingbalance | Assetsheldatyear-end | ||
| Level3 | Recognizedinprofitorloss | Recognizedinothercomprehensiveincome | Level3 | Changesinunrealizedgainsorlossesrecognizedinprofitorlossduringtheperiod | |||
Tradingfinancialassets
| Tradingfinancialassets | 1,500,000 | 1,500,000 | - | - | - | |
| Othernon-currentfinancialassets | 5,774,109 | - | - | - | 6,319,041 | 12,093,150 |
| Otherequityinstrumentinvestments | 37,177,723 | 1,300,000 | - | - | - | 35,877,723 |
Total
| Total | 44,451,832 | 2,800,000- | - | 6,319,041 | 47,970,873 |
Otherpayables
| Otherpayables | 42,398,775 | - | - | - | - | 42,398,775 |
2023
| Beginningbalance | Transferredout | Totalgainorlossduringtheperiod | Newlyadded | Endingbalance | Assetsheldatyear-end | ||
| Level3 | Recognizedinprofitorloss | Recognizedinothercomprehensiveincome | Level3 | Changesinunrealizedgainsorlossesrecognizedinprofitorlossduring | |||
/
theperiodTradingfinancialassets
| Tradingfinancialassets | 3,000,000 | - | -1,500,000 | - | - | 1,500,000 | -1,500,000 |
| Othernon-currentfinancialassets | 5,774,109 | - | - | - | - | 5,774,109 | - |
| Otherequityinstrumentinvestments | 35,997,723 | - | - | - | 1,180,000 | 37,177,723 | - |
Total
| Total | 44,771,832 | - | -1,500,000 | - | 1,180,000 | 44,451,832 | -1,500,000 |
Otherpayables
| Otherpayables | 42,398,775 | - | - | - | - | 42,398,775 | - |
6.Continuousfairvaluemeasurementitems,reasonsfortransfersbetweenlevelsduringthe
period,andpolicyfordeterminingthetimingoftransfers
□Applicable√NotApplicable
7.Changesinvaluationtechniquesduringtheperiodandreasonsforchanges
□Applicable√NotApplicable
8.Fairvaluesituationoffinancialassetsandfinancialliabilitiesnotmeasuredatfairvalue
□Applicable√NotApplicable
9.Other
□Applicable√NotApplicableXIV.Relatedpartiesandrelatedpartytransactions
1.Informationabouttheparentcompanyoftheenterprise
√Applicable□NotApplicable
Unit:TenthousandyuanYuanCurrency:RMB
| Parentcompanyname | Placeofregistration | Businessnature | RegisteredCapital | Parentcompany'sshareholdingratiointheenterprise(%) | Parentcompany'svotingrightsratiointheenterprise(%) |
| PharmaceuticalGroup | Hunan,China | Investmentmanagement | RMB104.2626million | 26.12% | 27.90% |
Explanationoftheparentcompanysituation
/
NoneTheultimatecontrollingpartiesoftheenterpriseareXieZilongandChenXiulanOtherExplanations:
TheCompany'slargestshareholderisPharmaceuticalGroup,andtheactualcontrollersareXieZilongandChenXiulan.ChenXiulanpersonallyholdsadirectequityratioandvotingrightsratioof1.78%intheCompany.Therefore,PharmaceuticalGroupandChenXiulanjointlyholdatotalequityratioandvotingrightsratioof27.90%intheCompany.
2.InformationaboutsubsidiariesoftheenterpriseDetailsoftheenterprise'ssubsidiariescanbefoundinthenotes
√Applicable□NotApplicableSubsidiariesdetailscanbefoundinNoteX(1).
3.InformationaboutjointventuresandassociatesoftheCompanyDetailsoftheCompany'ssignificantjointventuresorassociatescanbefoundinthenotes
□Applicable√NotApplicableOtherjointventuresorassociatesthathadrelatedpartytransactionswiththeCompanyduringtheperiod,orhadbalancesarisingfrompriorperiodrelatedpartytransactionswiththeCompany,areasfollows:
√Applicable□NotApplicable
| Nameofjointventureorassociate | RelationshipwiththeCompany |
| HunanPharmaceuticalGroupCo.,Ltd. | TheCompany'sassociate |
| BeijingTongRenTangHunanPharmaceuticalCo.,Ltd. | TheCompany'sassociate |
OtherExplanations:
□Applicable√NotApplicable
4.Informationaboutotherrelatedparties
√Applicable□NotApplicable
| Nameofotherrelatedparty | RelationshipofotherrelatedpartywiththeCompany |
| HunanMingyuanBeeIndustryCo.,Ltd.(hereinafterreferredtoas"MingyuanBeeIndustry") | ControlledbytheCompany'sChairman |
| HunanWholesalePharmaceuticalTechnologyCo.,Ltd.(hereinafterreferredtoas"WholesalePharmaceutical") | EnterprisewheretheclosefamilymembersoftheCompany'sChairmanserveasdirectors,supervisors,orseniorexecutivesofotherenterprises |
| Women&Children'sHospitalofHunanCo.,Ltd.(hereinafterreferredtoas"Women&Children'sHospital") | ControlledbytheCompany'sChairman |
| InnovationPartnerProgram(hereinafterreferredtoas"InnovationPartner") | ControlledbytheCompany'sdirectors,supervisors,andseniorexecutives |
| HunanXieZilongPhotographyMuseumCo.,Ltd.(hereinafterreferredtoas"XieZilongPhotographyMuseum") | ControlledbytheCompany'sChairman |
| HunanInfluenceFoundation | ControlledbyclosefamilymembersoftheCompany'sChairman |
| ZhejiangWecomePharmaceuticalCompanyLimited(hereinafterreferredtoas"ZhejiangWecome") | EnterprisewheretheCompany'sdirectors,supervisors,orseniorexecutivesserveasdirectors,supervisors,orseniorexecutivesofotherenterprises |
| HunanJiusenRitongTradingCo.,Ltd.(hereinafterreferredtoas"JiusenRitong") | EnterprisewherefamilymembersoftheCompany'sdirectors,supervisors,orseniorexecutivesserveasdirectors,supervisors,orseniorexecutivesofother |
/
| enterprises | |
| GuangzhouXinchengInformationTechnologyCo.,Ltd.(hereinafterreferredtoas"GuangzhouXincheng") | EnterprisewheretheCompany'sdirectors,supervisors,orseniorexecutivesserveasdirectors,supervisors,orseniorexecutivesofotherenterprises |
| YabaoPharmaceuticalGroupCo.,Ltd.(hereinafterreferredtoas"YabaoPharmaceutical") | EnterprisewheretheCompany'sdirectors,supervisors,orseniorexecutivesserveasdirectors,supervisors,orseniorexecutivesofotherenterprises |
| RealcanPharmaceuticalGroupCo.,Ltd.(hereinafterreferredtoas"RealcanPharmaceutical") | EnterprisewheretheCompany'sdirectors,supervisors,orseniorexecutivesserveasdirectors,supervisors,orseniorexecutivesofotherenterprises |
| ShanxiZhendongPharmaceuticalCo.,Ltd.(hereinafterreferredtoas"ShanxiZhendongPharmaceutical") | EnterprisewheretheCompany'sdirectors,supervisors,orseniorexecutivesserveasdirectors,supervisors,orseniorexecutivesofotherenterprises |
| ShandongKeyuanPharmaceuticalCo.,Ltd.(hereinafterreferredtoas"ShandongKeyuanPharmaceutical") | EnterprisewheretheCompany'sdirectors,supervisors,orseniorexecutivesserveasdirectors,supervisors,orseniorexecutivesofotherenterprises |
| ShanghaiBaiyangPharmaceuticalCo.,Ltd.(hereinafterreferredtoas"ShanghaiBaiyangPharmaceutical") | EnterprisewheretheCompany'sdirectors,supervisors,orseniorexecutivesserveasdirectors,supervisors,orseniorexecutivesofotherenterprises |
OtherExplanations:
None
5.Relatedpartytransaction
(1).Relatedpartytransactionsinvolvingpurchaseandsaleofgoods,provisionandreceiptofservicesTableofpurchasinggoods/receivingservices
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Relatedparty | Contentofrelatedpartytransaction | Amountincurredduringtheperiod | Approvedtransactionlimit(ifapplicable) | Whethertransactionlimitexceeded(ifapplicable) | Amountincurredinthepreviousperiod |
| HunanPharmaceuticalGroupCo.,Ltd. | Purchaseofgoods | 102,100,435 | 109,995,551 | ||
| MingyuanBeeIndustry | Purchaseofgoods | 15,576,184 | 27,113,375 | ||
| WholesalePharmaceutical | Purchaseofgoods | 7,638,453 | 14,475,791 | ||
| ZhejiangWecome | Purchaseofgoods | - | 10,213,114 | ||
| JiusenRitong | Purchaseofgoods | 4,462,686 | 7,576,240 | ||
| BeijingTongRenTangHunanPharmaceuticalCo.,Ltd. | Purchaseofgoods | 19,045,985 | - | ||
| YabaoPharmaceutical | Purchaseofgoods | 30,381,888 | - | ||
| RealcanPharmaceutical | Purchaseofgoods | 6,011,279 | - | ||
| XieZilongPhotographyMuseum | Purchaseofgoods | 1,395,482 | - | ||
| ShanxiZhendongPharmaceutical | Purchaseofgoods | 7,894,350 | - |
/
| ShandongKeyuanPharmaceutical | Purchaseofgoods | 2,285,186 | - | |
| ShanghaiBaiyangPharmaceutical | Purchaseofgoods | 60,166 | - | |
| Total | 196,852,094 | 169,374,071 |
Tableofsellinggoods/providingservices
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Relatedparty | Contentofrelatedpartytransaction | Amountincurredduringtheperiod | Amountincurredinthepreviousperiod |
| Women&Children'sHospital | Saleofgoods | 57,682,217 | 55,667,187 |
| WholesalePharmaceutical | Saleofgoods | 16,425,998 | 39,379,556 |
| HunanPharmaceuticalGroupCo.,Ltd. | Saleofgoods | 19,070,575 | 3,418,924 |
| MingyuanBeeIndustry | Saleofgoods | 5,565 | 45,541 |
| ZhejiangWecome | Saleofgoods | 3,919,816 | 6,536,493 |
| BeijingTongRenTangHunanPharmaceuticalCo.,Ltd. | Saleofgoods | 35,290,037 | - |
| YabaoPharmaceutical | Saleofgoods | 202,195 | - |
| Total | 132,596,403 | 105,047,701 |
Explanationofrelatedpartytransactionsinvolvingpurchaseandsaleofgoods,provisionandreceiptofservices
√Applicable□NotApplicableDuringtheyear,theGroupconductedtransactionsofgoodsandserviceswithrelatedpartiesatagreedprices.
(2).Relatedpartyentrustedmanagement/contractingandentrustedmanagement/outsourcing
situationTableoftheCompany'sentrustedmanagement/contractingsituation:
□Applicable√NotApplicableExplanationofrelatedpartycustody/contractingsituation
□Applicable√NotApplicableTableoftheCompany'sentrustedmanagement/outsourcingsituation
□Applicable√NotApplicableExplanationofrelatedpartymanagement/outsourcingsituation
□Applicable√NotApplicable
(3).RelatedpartyleasingTheCompanyaslessor:
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Lesseename | Typeofleasedasset | Leaseincomerecognizedduringtheperiod | Leaseincomerecognizedinthepreviousperiod |
| PharmaceuticalGroup | Houseleasing | - | 1,629,057 |
| WholesalePharmaceutical | Houseleasing | 8,697,496 | 6,846,813 |
/
TheCompanyaslessee:
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| LessorName | Typeofleasedasset | Rentalexpensesforshort-termleasesandlow-valueassetleasestreatedwithsimplification(ifapplicable) | Variableleasepaymentsnotincludedinthemeasurementofleaseliabilities(ifapplicable) | Rentpaid | Interestexpenseincurredonleaseliabilities | Increaseinright-of-useassets | |||||
| Amountincurredduringtheperiod | Amountincurredinthepreviousperiod | Amountincurredduringtheperiod | Amountincurredinthepreviousperiod | Amountincurredduringtheperiod | Amountincurredinthepreviousperiod | Amountincurredduringtheperiod | Amountincurredinthepreviousperiod | Amountincurredduringtheperiod | Amountincurredinthepreviousperiod | ||
| Women&Children'sHospital(Note1) | Houseleasing | 192,723 | 183,545 | ||||||||
Explanationofrelatedpartyleasingsituation
√Applicable□NotApplicableNote1:TheGroupleasesbuildingsfromtherelatedpartyWomen&Children'sHospital.Thebookvalueandchangesofthecorrespondingright-of-useassetsandleaseliabilitiesareasfollows:
| Right-of-useassets | Leaseliabilities |
January01,2024
| January01,2024 | 239,818 | 235,482 |
| Depreciationexpense | 151,858 | - |
| Interestexpense | - | 5,243 |
| Payment | - | 192,723 |
December31,2024
| December31,2024 | 87,960 | 48,002 |
/
(4).RelatedpartyguaranteeTheCompanyasguarantor
□Applicable√NotApplicableTheCompanyasguaranteedparty
□Applicable√NotApplicableExplanationofrelatedpartyguarantee
□Applicable√NotApplicable
(5).Borrowingstoandfromrelatedparties
□Applicable√NotApplicable
(6).Relatedpartyassettransfer,debtrestructuring
□Applicable√NotApplicable
(7).Remunerationofkeymanagementpersonnel
√Applicable□NotApplicable
Unit:TenthousandyuanYuanCurrency:RMB
| Item | Amountincurredduringtheperiod | Amountincurredinthepreviousperiod |
| Remunerationofkeymanagementpersonnel | 1,410 | 1,593 |
(8).Otherrelatedpartytransactions
√Applicable□NotApplicable
Unit:YuanCurrency:
RMB
| Item | Contentofrelatedpartytransaction | Amountincurredduringtheperiod | Amountincurredinthepreviousperiod |
| HunanInfluenceFoundation | Donationexpenditure | 700,000 | - |
6.Situationofoutstandingreceivablesandpayableswithrelatedparties,etc.
(1).Receivablesitems
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| NameofProject | Relatedparty | Endingbalance | Beginningbalance | ||
| Bookbalance | Baddebtprovision | Bookbalance | Baddebtprovision | ||
| Accountsreceivable | Women&Children'sHospital | 90,913,397 | 90,913 | 57,490,726 | 57,588 |
| Accountsreceivable | WholesalePharmaceutical | 752,522 | 6,020 | 1,394,503 | 21,426 |
| Accountsreceivable | ZhejiangWecome | 34,435 | - | 969,046 | 7,752 |
| Accountsreceivable | MingyuanBeeIndustry | - | - | 18,578 | 149 |
| Accounts | BeijingTong | 2,999,440 | 23,996 | - | - |
/
| receivable | RenTangHunanPharmaceuticalCo.,Ltd. | ||||
| Notesreceivable | WholesalePharmaceutical | - | - | 4,006,266 | - |
| Notesreceivable | HunanPharmaceuticalGroupCo.,Ltd. | - | - | 300,000 | - |
| Receivablesfinancing | WholesalePharmaceutical | - | - | 476,000 | - |
| Receivablesfinancing | ZhejiangWecome | - | - | 764,802 | - |
| Receivablesfinancing | HunanPharmaceuticalGroupCo.,Ltd. | 11,875 | - | 307,681 | - |
| Prepayments | BeijingTongRenTangHunanPharmaceuticalCo.,Ltd. | 2,062,444 | - | - | - |
| Prepayments | YabaoPharmaceutical | 28,800 | - | - | - |
(2).Payablesitems
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| NameofProject | Relatedparty | Endingbookbalance | Beginningbookbalance |
| Accountspayable | HunanPharmaceuticalGroupCo.,Ltd. | 17,305,517 | 18,719,639 |
| Accountspayable | MingyuanBeeIndustry | 7,640,914 | 22,924,873 |
| Accountspayable | WholesalePharmaceutical | 1,216,487 | 4,203,710 |
| Accountspayable | ZhejiangWecome | 717,374 | 3,347,186 |
| Accountspayable | JiusenRitong | 335,635 | 2,491,969 |
| Accountspayable | ShanxiZhendongPharmaceutical | 7,323,684 | - |
| Accountspayable | RealcanPharmaceutical | 794,847 | - |
| Accountspayable | YabaoPharmaceutical | 560,136 | - |
| Accountspayable | ShandongKeyuanPharmaceutical | 1,462,165 | - |
| Advancesreceived | WholesalePharmaceutical | 880,381 | 897,989 |
| Contractliabilities | MingyuanBeeIndustry | - | 5,196 |
| Contractliabilities | ZhejiangWecome | - | 7,706 |
| Contractliabilities | JiusenRitong | 11,016 | 21,400 |
| Contractliabilities | Women&Children'sHospital | 3,219 | - |
/
| Otherpayables | InnovationPartner | 42,398,775 | 42,398,775 |
| Otherpayables | WholesalePharmaceutical | 770,400 | 770,400 |
| Otherpayables | ZhejiangWecome | 30,000 | 102,768 |
| Non-currentliabilitiesduewithinoneyear | Women&Children'sHospital | 48,002 | 187,480 |
| Leaseliabilities | Women&Children'sHospital | - | 48,002 |
(3).Otheritems
□Applicable√NotApplicable
7.Relatedpartycommitments
□Applicable√NotApplicable
8.Other
□Applicable√NotApplicableXV.Share-basedpayment
1.Variousequityinstruments
√Applicable□NotApplicable
Quantityunit:shareAmountunit:YuanCurrency:RMB
| Categoryofgrantee | Grantedduringtheperiod | Unlockedduringtheperiod | Lapsedduringtheperiod | |||
| Quantity | Amount | Quantity | Amount | Quantity | Amount | |
ManagementPersonnel
| ManagementPersonnel | - | - | 1,641,873 | 27,446,128 | 946,761 | 13,493,229 |
| Total | - | - | 1,641,873 | 27,446,128 | 946,761 | 13,493,229 |
Outstandingstockoptionsorotherequityinstrumentsatperiod-end
√Applicable□NotApplicable
| Categoryofgrantee | Outstandingstockoptionsatperiod-end | |
| Rangeofexerciseprice | Remainingcontractterm | |
| ManagementPersonnel | RMB16.78/share | 9months(40%) |
| ManagementPersonnel | RMB16.28/share | 7months(50%) |
OtherExplanationsNone
2.Situationofequity-settledshare-basedpayments
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Methodfordeterminingthefairvalueofequityinstrumentsonthegrantdate | Fairvalueofemployeestockownershipplansharesadoptstheclosingpriceonthegrantdate |
| Significantparametersforthefairvalueofequity | Closingpriceofthestockonthegrantdate |
/
| instrumentsonthegrantdate | |
| Basisfordeterminingthenumberofexercisableequityinstruments | Bestestimateofthenumberofexercisableinstrumentsatyear-end |
| Reasonsforsignificantdifferencesbetweencurrentperiodestimateandpreviousperiodestimate | None |
| Cumulativeamountofequity-settledshare-basedpaymentsincludedincapitalreserves | 125,185,124 |
OtherExplanations:
None
3.Situationofcash-settledshare-basedpayments
□Applicable√NotApplicable
4.Share-basedpaymentexpenseduringtheperiod
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Categoryofgrantee | Equity-settledshare-basedpaymentexpense |
| ManagementPersonnel | -1,901,800 |
Total
| Total | -1,901,800 |
OtherExplanationsNone
5.Situationofmodificationorterminationofshare-basedpayments
□Applicable√NotApplicable
6.Other
□Applicable√NotApplicableXVI.Commitmentsandcontingencies
1.Significantcommitments
√Applicable□NotApplicableNatureandamountofsignificantexternalcommitmentsexistingatthebalancesheetdate
| 2024 | 2023 |
Signedbutnotprovidedfor
| Signedbutnotprovidedfor | ||
| Capitalcommitments | 1,584,735 | 3,645,000 |
| Investmentcommitments | 5,052,820 | 400,000 |
6,637,555
| 6,637,555 | 4,045,000 |
2.Contingencies
(1).Significantcontingenciesexistingatthebalancesheetdate
□Applicable√NotApplicable
/
(2).IftheCompanyhasnosignificantcontingenciestodisclose,itshouldalsobestated:
□Applicable√NotApplicable
3.Other
□Applicable√NotApplicableXVII.EventsaftertheBalanceSheetDate
1.Significantnon-adjustingevents
□Applicable√NotApplicable
2.Profitdistribution
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Proposedprofitordividenddistribution | 60,807,649.04 |
| Profitordividenddeclaredandapprovedfordistribution |
3.Salesreturns
□Applicable√NotApplicable
4.Explanationofothereventsafterthebalancesheetdate
□Applicable√NotApplicableXVIII.Othersignificantmatters
1.Correctionofpriorperiodaccountingerrors
(1).Retrospectiverestatementmethod
□Applicable√NotApplicable
(2).Prospectiveapplicationmethod
□Applicable√NotApplicable
2.Significantdebtrestructuring
□Applicable√NotApplicable
3.Assetswap
(1).Non-monetaryassetexchange
□Applicable√NotApplicable
(2).Otherassetswaps
□Applicable√NotApplicable
/
4.Annuityplan
□Applicable√NotApplicable
5.Discontinuedoperations
□Applicable√NotApplicable
6.Segmentinformation
(1).Basisfordeterminationandaccountingpoliciesofreportablesegments
√Applicable□NotApplicableFormanagementpurposes,theGroupdividesbusinessunitsbasedonproductsandservices.Becausevariousbusinessesrequiredifferenttechnologiesandmarketstrategies,theGroupmanagestheproductionandoperatingactivitiesofeachreportablesegmentindependently,primarilyusingoperatingincomeandoperatingcosttoevaluateitsoperatingresultsandperformance.TheGroupcurrentlyhasthreereportablesegments:Retailbusiness,Wholesalebusiness,andOthersegments,where:
-Retailsegmentisresponsibleforengagingincommodityretailbusiness-Wholesalesegmentisresponsibleforengagingincommoditywholesalebusiness-OthersegmentisresponsibleforengaginginpharmaceuticalmanufacturingbusinessandothersTheGroupusesoperatingincomeandoperatingcostforregularmanagementanalysisanddoesnotreportormanageassetsandliabilitiesbysegment.Segmentperformanceisevaluatedbasedonreportedsegmentprofit.ThisindicatorisconsistentwiththeGroup'sprofitbeforetax.Totalsegmentprofitiscalculatedassegmentoperatingincomelesssegmentoperatingcosts,taxesandsurcharges,andsellingexpenses.Transferpricingbetweenoperatingsegmentsismainlydeterminedbyreferencetothecostofpurchasedinventory.TheGroup'scustomersarerelativelydispersed,andthereisnosinglecustomerwhosetransactionamountwiththeGroupexceeds10%.
(2).Financialinformationofreportablesegments
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Retailsegment | Wholesalesegment | Othersegment | Unallocatedamounts | Inter-segmentelimination | Total |
| Operatingincome | 19,106,710,524 | 11,879,585,530 | 450,495,344 | -9,079,181,203 | 22,357,610,195 | |
| Ofwhich:Externaltransactionrevenue | 19,106,710,524 | 3,104,570,127 | 146,329,544 | 22,357,610,195 | ||
| Inter-segmenttransactionrevenue | 8,775,015,403 | 304,165,800 | -9,079,181,203 | |||
| Operatingcost | -12,515,795,743 | -10,844,669,336 | -407,816,550 | 8,825,949,174 | -14,942,332,455 | |
| Taxesandsurcharges | -50,646,186 | -27,971,551 | -2,285,252 | -80,902,989 | ||
| Sellingexpenses | -4,697,148,639 | -245,926,738 | -4,360,508 | -4,947,435,885 |
/
| Administrativeexpenses | -1,257,665,102 | -1,257,665,102 | ||||
| R&Dexpenses | -2,013,597 | -2,013,597 | ||||
| Financialexpenses | -173,025,944 | -173,025,944 | ||||
| Otherincome | 78,365,349 | 78,365,349 | ||||
| Investmentincome | 2,728,107 | 2,728,107 | ||||
| Creditimpairmentlosses | -6,022,024 | -6,022,024 | ||||
| Gainsorlossesfromchangesinfairvalue | ||||||
| Assetimpairmentloss | -111,202,534 | -111,202,534 | ||||
| Gainsorlossesondisposalofassets | -4,530,258 | -4,530,258 | ||||
| Profitbeforetax | 1,843,119,956 | 761,017,905 | 36,033,034 | -1,470,967,382 | -253,232,029 | 915,971,484 |
| Incometaxexpense | -230,853,330 | -230,853,330 | ||||
| Netprofit | 685,118,154 | 685,118,154 |
(3).IftheCompanyhasnoreportablesegments,orcannotdisclosethetotalassetsandtotal
liabilitiesofeachreportablesegment,thereasonshouldbeexplained
□Applicable√NotApplicable
(4).OtherExplanations
√Applicable□NotApplicableExternaltransactionrevenue
| 2024 | 2023 |
Saleofgoods
| Saleofgoods | 21,795,041,563 | 21,918,510,901 |
| Renderingofservices | 486,543,209 | 446,047,730 |
Total
| Total | 22,281,584,772 | 22,364,558,631 |
GeographicalinformationTheGroup'sgeographicalsegmentsarerelativelyconcentrated.In2024,100%ofexternaltransactionrevenueandnon-currentassetswereattributabletoMainlandChina(2023:100%).
7.Othersignificanttransactionsandmattersaffectinginvestordecision-making
□Applicable√NotApplicable
8.Other
□Applicable√NotApplicable
/
XIX.Notestomainitemsoftheparentcompanyfinancialstatements
1.Accountsreceivable
(1).Disclosurebyaging
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Aging | Endingbookbalance | Beginningbookbalance |
| Within1year | ||
| Ofwhich:Sub-itemswithin1year | ||
| Within1year | 517,557,251 | 467,295,649 |
Subtotalwithin1year
| Subtotalwithin1year | 517,557,251 | 467,295,649 |
| 1-2year(s) | 2,850,183 | 1,441,573 |
| 2-3years | 147,401 | 199,238 |
| Over3years | 144,059 | - |
| 3-4years | ||
| 4-5years | ||
| Over5years |
Total
| Total | 520,698,894 | 468,936,460 |
(2).Disclosurebybaddebtprovisionmethodclassification
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Bookbalance | Baddebtprovision | Bookvalue | Bookbalance | Baddebtprovision | Bookvalue | |||||
| Amount | Proportion(%) | Amount | Provisionratio(%) | Amount | Proportion(%) | Amount | Provisionratio(%) | |||
| Baddebtprovisionmadeindividually | ||||||||||
| Where: | ||||||||||
Baddebtprovisionmadebyportfolio
| Baddebtprovisionmadebyportfolio | 520,698,894 | 100 | 4,972,207 | 0.95 | 515,726,687 | 468,936,460 | 100 | 4,252,875 | 0.91 | 464,683,585 |
| Where: | ||||||||||
| Portfolioofcreditriskcharacte | 520,698,894 | 100 | 4,972,207 | 0.95 | 515,726,687 | 468,936,460 | 100 | 4,252,875 | 0.91 | 464,683,585 |
/
ristic
Total
| Total | 520,698,894 | / | 4,972,207 | / | 515,726,687 | 468,936,460 | / | 4,252,875 | / | 464,683,585 |
Baddebtprovisionmadeindividually:
□Applicable√NotApplicableBaddebtprovisionmadebyportfolio:
√Applicable□NotApplicablePortfolioprovisionitem:Creditriskcharacteristicportfolio
Unit:YuanCurrency:RMB
| Name | Endingbalance | ||
| Accountsreceivable | Baddebtprovision | Provisionratio(%) | |
| Medicalinsurancereceivablesportfolio | 472,555,032 | 4,456,773 | 0.94 |
| Enterprisetradereceivables | 10,295,435 | 83,482 | 0.81 |
| Other | 37,848,427 | 431,952 | 1.14 |
| Total | 520,698,894 | 4,972,207 | 0.95 |
Explanationofbaddebtprovisionmadebyportfolio:
√Applicable□NotApplicableForaccountsreceivable,theCompanymeasuresthecreditlossprovisionbasedonlifetimeECL.WhendeterminingtheECLforaccountsreceivable,theCompanyconsidershistoricalactualimpairmentsituationsandconsidersforecastsofcurrentconditionsandfutureeconomicconditions.Itdividesaccountsreceivableintothreeportfolios:medicalinsurancereceivables,enterprisetradereceivables,andothers,providingbaddebtprovisionsbasedoncreditriskcharacteristicportfolios.BaddebtprovisionmadeusingthegeneralmodelofECL
□Applicable√NotApplicableExplanationofsignificantchangesinthebookbalanceofaccountsreceivablewithchangesinlossprovisionduringtheperiod:
□Applicable√NotApplicable
(3).Baddebtprovision
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Category | Beginningbalance | Changeamountduringtheperiod | Endingbalance | |||
| Provision | Recoveryorreversal | Write-offorcancellation | OtherChanges | |||
| Baddebtprovisionforaccountsreceivable | 4,252,875 | 719,332 | - | - | 4,972,207 | |
Total
| Total | 4,252,875 | 719,332 | - | - | - | 4,972,207 |
Ofwhich,significantrecoveryorreversalamountofbaddebtprovisionduringtheperiod:
□Applicable√NotApplicable
/
(4).Actualwrite-offofaccountsreceivableduringtheperiod
□Applicable√NotApplicableOfwhich,significantwrite-offsituationofaccountsreceivable
□Applicable√NotApplicableExplanationofaccountsreceivablewrite-off:
□Applicable√NotApplicable
(5).Situationofaccountsreceivableandcontractassetsforthetopfivedebtorsbyendingbalance
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Companyname | Endingbalanceofaccountsreceivable | Endingbalanceofcontractassets | Endingbalanceofaccountsreceivableandcontractassets | Proportionoftotalendingbalanceofaccountsreceivableandcontractassets(%) | Endingbalanceofbaddebtprovision |
| Totalaccountsreceivableforthetopfivedebtorsbybalance | 277,540,150 | 277,540,150 | 53.30 | 1,206,238 |
Total
| Total | 277,540,150 | 277,540,150 | 53.30 | 1,206,238 |
OtherExplanations:
NoneOtherExplanations:
□Applicable√NotApplicable
2.OtherreceivablesPresentationbyitem
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance |
| Interestreceivable | ||
| Dividendsreceivable | 8,198,830 | 63,198,830 |
| Otherreceivables | 5,001,500,047 | 5,483,079,977 |
| Total | 5,009,698,877 | 5,546,278,807 |
OtherExplanations:
□Applicable√NotApplicableInterestreceivable
(1).Classificationofinterestreceivable
□Applicable√NotApplicable
/
(2).Significantoverdueinterest
□Applicable√NotApplicable
(3).Disclosurebybaddebtprovisionmethodclassification
□Applicable√NotApplicableBaddebtprovisionmadeindividually:
□Applicable√NotApplicableExplanationofbaddebtprovisionmadeindividually:
□Applicable√NotApplicableBaddebtprovisionmadebyportfolio:
□Applicable√NotApplicable
(4).BaddebtprovisionmadeusingthegeneralmodelofECL
□Applicable√NotApplicableBasisforstageclassificationandbaddebtprovisionratioExplanationofsignificantchangesinthebookbalanceofinterestreceivablewithchangesinlossprovisionduringtheperiod:
□Applicable√NotApplicable
(5).Baddebtprovision
□Applicable√NotApplicableOfwhich,significantrecoveryorreversalamountofbaddebtprovisionduringtheperiod:
□Applicable√NotApplicableOtherExplanations:
None
(6).Actualwrite-offofinterestreceivableduringtheperiod
□Applicable√NotApplicableOfwhich,significantwrite-offofinterestreceivable
□Applicable√NotApplicableWrite-offexplanation:
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicableDividendsreceivable
(1).Dividendsreceivable
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item(orinvestee) | Endingbalance | Beginningbalance |
/
| Dividendsreceivable | 8,198,830 | 63,198,830 |
| Total | 8,198,830 | 63,198,830 |
(2).Significantdividendsreceivableagedover1year
□Applicable√NotApplicable
(3).Disclosurebybaddebtprovisionmethodclassification
□Applicable√NotApplicableBaddebtprovisionmadeindividually:
□Applicable√NotApplicableExplanationofbaddebtprovisionmadeindividually:
□Applicable√NotApplicableBaddebtprovisionmadebyportfolio:
□Applicable√NotApplicable
(4).BaddebtprovisionmadeusingthegeneralmodelofECL
□Applicable√NotApplicableBasisforstageclassificationandbaddebtprovisionratioExplanationofsignificantchangesinthebookbalanceofdividendsreceivablewithchangesinlossprovisionduringtheperiod:
□Applicable√NotApplicable
(5).Baddebtprovision
□Applicable√NotApplicableOfwhich,significantrecoveryorreversalamountofbaddebtprovisionduringtheperiod:
□Applicable√NotApplicableOtherExplanations:
None
(6).Actualwrite-offofdividendsreceivableduringtheperiod
□Applicable√NotApplicableOfwhich,significantwrite-offofdividendsreceivable
□Applicable√NotApplicableWrite-offexplanation:
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicableOtherreceivables
(1).Disclosurebyaging
√Applicable□NotApplicable
/
Unit:YuanCurrency:RMB
| Aging | Endingbookbalance | Beginningbookbalance |
| Within1year | ||
| Ofwhich:Sub-itemswithin1year | ||
| 1,656,894,293 | 2,762,993,901 | |
Subtotalwithin1year
| Subtotalwithin1year | 1,656,894,293 | 2,762,993,901 |
| 1-2year(s) | 1,032,486,174 | 2,109,111,973 |
| 2-3years | 1,777,707,890 | 429,697,881 |
| Over3years | 537,395,067 | 184,874,790 |
| Total | 5,004,483,424 | 5,486,678,545 |
(2).Classificationbynatureoffunds
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Natureoffunds | Endingbookbalance | Beginningbookbalance |
| Receivablesfromsubsidiaries | 4,930,294,806 | 5,421,609,775 |
| Receivablesfromthirdparties | 13,361,136 | 11,065,599 |
| Electronicwallet | 20,246,097 | 24,301,795 |
| Deposits | 1,804,676 | 1,753,299 |
| Advances | 9,321,954 | 6,111,429 |
| Storepettycash | 9,434,740 | 8,201,017 |
| Employeeadvances | 9,809,632 | 8,344,105 |
| Other | 10,210,383 | 5,291,526 |
| Total | 5,004,483,424 | 5,486,678,545 |
(3).Baddebtprovision
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Baddebtprovision | Stage1 | Stage2 | Stage3 | Total |
ECLforthenext12months
| ECLforthenext12months | LifetimeECL(notcredit-impaired) | LifetimeECL(credit-impaired) | ||
| BalanceasofJanuary1,2024 | 2,903,318 | 695,250 | 3,598,568 | |
| BalanceasofJanuary1,2024duringthisperiod | 2,903,318 | 695,250 | 3,598,568 | |
| Provisionduringtheperiod | 1,402,451 | 1,402,451 | ||
| Reversalduringtheperiod | -2,002,642 | -2,002,642 | ||
| Write-offduringtheperiod | -15,000 | -15,000 | ||
| BalanceasofDecember31,2024 | 2,288,127 | 695,250 | 2,983,377 |
BasisforstageclassificationandbaddebtprovisionratioExplanationofsignificantchangesinthebookbalanceofotherreceivableswithchangesinlossprovisionduringtheperiod:
□Applicable√NotApplicable
/
Amountofbaddebtprovisionmadeduringtheperiodandbasisforassessingsignificantincreaseincreditriskoffinancialinstruments:
□Applicable√NotApplicable
(4).Baddebtprovision
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Category | Beginningbalance | Changeamountduringtheperiod | Endingbalance | |||
| Provision | Recoveryorreversal | Write-offorcancellation | OtherChanges | |||
| Otherreceivables | 3,598,568 | 1,402,451 | -2,002,642 | -15,000 | - | 2,983,377 |
| Total | 3,598,568 | 1,402,451 | -2,002,642 | -15,000 | - | 2,983,377 |
Ofwhich,significantreversalorrecoveryamountofbaddebtprovisionduringtheperiod:
□Applicable√NotApplicableOtherExplanations:
None
(5).Actualwrite-offofotherreceivablesduringtheperiod
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Write-offamount |
| Actualwrite-offofotherreceivables | 15,000 |
Ofwhich,significantwrite-offofotherreceivables:
□Applicable√NotApplicableExplanationofotherreceivableswrite-off:
□Applicable√NotApplicable
(6).Situationofotherreceivablesforthetopfivedebtorsbyendingbalance
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Companyname | Endingbalance | Proportionoftotalendingbalanceofotherreceivables(%) | Natureoffunds | Aging | BaddebtprovisionEndingbalance |
| CompanyA | 2,833,164,916 | 56.65 | HoldingSubsidiaries | Withinthreeyearsandoverthreeyears | |
| CompanyB | 389,657,978 | 7.79 | HoldingSubsidiaries | Withinthreeyears | |
| CompanyC | 363,078,988 | 7.26 | HoldingSubsidiaries | Withinthreeyearsandoverthreeyears | |
| CompanyD | 343,253,648 | 6.86 | HoldingSubsidiaries | Withinthreeyearsandoverthreeyears | |
| CompanyE | 321,949,666 | 6.44 | Holding | Within |
/
| Subsidiaries | threeyearsandoverthreeyears | |||
| Total | 4,251,105,196 | 85.00 | / | / |
(7).Presentedunderotherreceivablesduetocentralizedfundmanagement
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicable
3.Long-termequityinvestments
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Bookbalance | Impairmentprovision | Bookvalue | Bookbalance | Impairmentprovision | Bookvalue | |
| Investmentinsubsidiaries | 6,238,948,099 | 1,995,854 | 6,236,952,245 | 6,223,041,099 | 1,995,854 | 6,221,045,245 |
| Investmentinassociatesandjointventures | 72,140,491 | 72,140,491 | 67,821,191 | 67,821,191 | ||
| Total | 6,311,088,590 | 1,995,854 | 6,309,092,736 | 6,290,862,290 | 1,995,854 | 6,288,866,436 |
(1).Investmentinsubsidiaries
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Investee | Beginningbalance(bookvalue) | Beginningbalanceofimpairmentprovision | Increase/decreaseduringtheperiod | Endingbalance(bookvalue) | Endingbalanceofimpairmentprovision | |||
| Additionalinvestment | Reductionininvestment | Impairmentprovisionmade | Other | |||||
| LBXPharmacyChain(Zhejiang)Co.,Ltd. | 52,376,383 | - | 52,376,383 | - | ||||
| GuangxiCompany | 285,444,127 | - | 285,444,127 | - | ||||
| LBXPharmacyChain(Tianjin)Co.,Ltd. | 166,915,787 | - | 166,915,787 | - | ||||
| ChangzhouWanrenCompany | 88,400,000 | - | 88,400,000 | - | ||||
| ForworldMedicine | 90,000,000 | - | 90,000,000 | - | ||||
/
| Logistics(Hunan)Co.,Ltd. | ||||||
| AnhuiBaixingyuan | 313,459,205 | - | 313,459,205 | - | ||
| LanzhouHuirentang | 587,752,000 | - | 587,752,000 | - | ||
| YangzhouBaixinyuan | 344,870,000 | - | 344,870,000 | - | ||
| JiangsuBaijiahui | 142,537,076 | - | 142,537,076 | - | ||
| TongliaoZeqiang | 271,370,000 | - | 271,370,000 | - | ||
| ZhenjiangHuakang | 110,416,308 | - | 110,416,308 | - | ||
| Longtaiyuan | 176,364,223 | - | 176,364,223 | - | ||
| NantongPuze | 117,300,000 | - | 117,300,000 | - | ||
| Linjiayi | 51,000,000 | - | 51,000,000 | - | ||
| JiangsuHaipeng | 79,750,000 | - | 79,750,000 | - | ||
| LinyiRende | 68,340,000 | - | 68,340,000 | - | ||
| Sanpintan | 43,750,000 | - | 43,750,000 | - | ||
| ShanxiBaihui | 110,925,000 | - | 110,925,000 | - | ||
| LBXPharmacyChain(Hengyang)Co.,Ltd. | 32,321,000 | 15,876,000 | 48,197,000 | - | ||
| ForworldMedicineLogistics(Jiangsu)Co.,Ltd. | 100,000,000 | - | 100,000,000 | - | ||
| YaoshengtangChineseMedicineTechnology | 55,000,000 | - | 55,000,000 | - | ||
| HunanBaixin | 74,537,749 | - | 74,537,749 | - | ||
| YinchuanXincheng | 4,850,000 | 31,000 | 4,881,000 | - | ||
| ChifengLBX | 680,000,000 | - | 680,000,000 | - | ||
| HainanLBXMedicalHealthCo.,Ltd. | 2,000,000 | - | 2,000,000 | - | ||
| LBXHuairen | 1,820,001,784 | - | 1,820,001,784 | - | ||
| HunanLingganYaodianCulturalCreativityCo.,Ltd. | 100,000 | - | 100,000 | - | ||
| ShandongLBXChuntianPharmacyChainCo.,Ltd. | 29,583,000 | - | 29,583,000 | - | ||
| Other | 321,681,603 | -1,995,854 | - | 321,681,603 | -1,995,854 |
/
| Total | 6,221,045,245 | -1,995,854 | 15,876,000 | 6,236,952,245 | -1,995,854 |
(2).Investmentinassociatesandjointventures
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| InvestmentUnit | BeginningBalance | Increase/decreaseduringtheperiod | EndingBalance | Endingbalanceofimpairmentprovision | |||||||
| Additionalinvestment | Reductionininvestment | Investmentgain/lossrecognizedunderequitymethod | Othercomprehensiveincomeadjustment | Otherequitychanges | Declaredcashdividendsorprofits | Impairmentprovisionmade | Other | ||||
| I.Jointventures | |||||||||||
Subtotal
| Subtotal | ||||||
| II.Associates | ||||||
| HunanPharmaceuticalGroupCo.,Ltd. | 67,821,191 | 4,319,300 | 72,140,491 | |||
Subtotal
| Subtotal | 67,821,191 | 4,319,300 | 72,140,491 | ||
| Total | 67,821,191 | 4,319,300 | 72,140,491 |
(3).Impairmenttestforlong-termequityinvestments
□Applicable√NotApplicableOtherExplanations:
None
4.Operatingincomeandoperatingcost
(1).Detailsofoperatingincomeandoperatingcost
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Amountincurredduringtheperiod | Amountincurredinthepreviousperiod | ||
| Revenue | Cost | Revenue | Cost | |
/
| Mainbusiness | 4,422,432,720 | 2,949,335,505 | 4,371,512,543 | 2,968,801,655 |
| Otherbusiness | 56,035,930 | 14,430,797 | 68,441,734 | 14,540,633 |
| Total | 4,478,468,650 | 2,963,766,302 | 4,439,954,277 | 2,983,342,288 |
(2).Breakdownofoperatingincomeandoperatingcost
□Applicable√NotApplicableOtherExplanations:
□Applicable√NotApplicable
(3).Descriptionofperformanceobligation
□Applicable√NotApplicable
(4).Explanationofallocationtoremainingperformanceobligations
□Applicable√NotApplicable
(5).Significantcontractmodificationsorsignificanttransactionpriceadjustments
□Applicable√NotApplicableOtherExplanations:
None
5.Investmentincome
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Amountincurredduringtheperiod | Amountincurredinthepreviousperiod |
| Incomefromlong-termequityinvestmentsaccountedforusingthecostmethod | 220,585,426 | 591,649,253 |
| Incomefromlong-termequityinvestmentsaccountedforusingtheequitymethod | 4,319,300 | 3,766,073 |
| Investmentincomefromdisposaloflong-termequityinvestments | 1,095,882 | |
| Investmentincomefromtradingfinancialassetsduringtheholdingperiod | 1,206,496 | 1,317,089 |
| Dividendincomefromotherequityinstrumentinvestmentsduringtheholdingperiod | ||
| Interestincomefromdebtinvestmentsduringtheholdingperiod | 4,812,500 | |
| Interestincomefromotherdebtinvestmentsduringtheholdingperiod | ||
| Investmentincomefromdisposaloftradingfinancialassets | ||
| Investmentincomefromdisposalofotherequityinstrumentinvestments | ||
| Investmentincomefromdisposalofdebtinvestments |
/
| Investmentincomefromdisposalofotherdebtinvestments | ||
| Debtrestructuringincome | ||
| Incomefromfundborrowing | 3,240,383 | 4,712,641 |
Total
| Total | 230,447,487 | 606,257,556 |
OtherExplanations:
None
6.Other
□Applicable√NotApplicableXX.Supplementaryinformation
1.Detailsofnon-recurringgainsandlossesduringtheperiod
√Applicable□NotApplicable
Unit:Yuan:RMB
| Item | Amount | Explanation |
| Gainsorlossesfromdisposalofnon-currentassets,includingthewrite-offportionofassetimpairmentprovisionsalreadyrecognized | -4,530,258 | |
| Governmentgrantsrecognizedincurrentprofitorloss,excludingthosecloselyrelatedtotheCompany'snormalbusinessoperations,complyingwithnationalpolicyregulations,enjoyedaccordingtoestablishedstandards,andhavingacontinuousimpactontheCompany'sprofitorloss | 31,143,302 | |
| Gainsorlossesfromchangesinfairvalueoffinancialassetsandliabilitiesheldbynon-financialenterprises,andgainsorlossesfromdisposaloffinancialassetsandliabilities,excludingeffectivehedgingactivitiesrelatedtotheCompany'snormalbusinessoperations | 1,206,496 | |
| Feeschargedfortheoccupationoffundstonon-financialenterprisesrecognizedincurrentprofitorloss | - | |
| Gainsorlossesfromentrustingotherstoinvestormanageassets | - | |
| Gainsorlossesfromexternalentrustedloans | ||
| Assetlossesarisingfromforcemajeurefactors,suchasnaturaldisasters | ||
| Reversalofimpairmentprovisionsforreceivablestestedindividuallyforimpairment | 253,000 | |
| Gainsarisingfromtheinvestmentcostofacquiringsubsidiaries,associates,andjointventuresbeinglessthanthefairvalueoftheidentifiablenetassetsoftheinvesteeatthetimeofacquisition | ||
| Currentnetprofitorlossofsubsidiariesfromthebeginningoftheperiodtothemergerdatearisingfrombusinesscombinationsinvolvingenterprisesundercommoncontrol | ||
| Gainsorlossesfromnon-monetaryasset |
/
| exchanges | |
| Gainsorlossesfromdebtrestructuring | |
| One-offexpensesincurredduetothediscontinuationofrelatedbusinessactivities,suchasemployeeplacementexpenses | |
| One-offimpactoncurrentprofitorlossduetoadjustmentsintax,accounting,andotherlawsandregulations | |
| Share-basedpaymentexpensesrecognizedone-offduetocancellationormodificationofequityincentiveplans | |
| Forcash-settledshare-basedpayments,gainsorlossesarisingfromchangesinthefairvalueofemployeebenefitspayableafterthevestingdate | |
| Gainsorlossesarisingfromchangesinfairvalueofinvestmentpropertiessubsequentlymeasuredusingthefairvaluemodel | |
| Gainsarisingfromtransactionswithobviouslyunfairtransactionprices | |
| GainsorlossesarisingfromcontingenteventsunrelatedtotheCompany'snormalbusinessoperations | |
| Custodyfeeincomefromentrustedoperations | |
| Othernon-operatingincomeandexpensesotherthantheitemslistedabove | 2,398,621 |
| Otherprofitorlossitemsmeetingthedefinitionofnon-recurringgainsandlosses | -1,309,915 |
| Less:Incometaximpact | 4,978,234 |
| Impactonminorityinterests(aftertax) | 1,394,025 |
| Total | 22,788,987 |
ReasonsshouldbeprovidediftheCompanyidentifiesitemsnotlistedintheExplanatoryAnnouncementNo.1onInformationDisclosurebyCompaniesOfferingSecuritiestothePublic-Non-recurringGainsandLossesasnon-recurringgainsandlossesitemswithsignificantamounts,ordefinesitemslistedintheannouncementasrecurringgainsandlossesitems.
√Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | Amountinvolved | Reason |
VATreduction/exemptionforsmall-scaletaxpayers
| VATreduction/exemptionforsmall-scaletaxpayers | 46,542,302 | Closelyrelatedtonormalbusinessoperations |
OtherExplanations:
□Applicable√NotApplicable
2.ReturnonnetassetsandEPS
√Applicable□NotApplicable
| Profitforthereportingperiod | WeightedaverageROE(%) | EPS | |
| BasicEPS | DilutedEPS | ||
| NetprofitattributabletoordinaryshareholdersoftheCompany | 7.84 | 0.68 | 0.68 |
/
| NetprofitattributabletoordinaryshareholdersoftheCompanyafterdeductingnon-recurringgainsandlosses | 7.60 | 0.65 | 0.65 |
3.DifferencesinAccountingDataunderDomesticandForeignAccountingStandards
□Applicable√NotApplicable
4.Other
□Applicable√NotApplicable
Chairman:XieZilongDateofapprovalforsubmissionbytheBoardofDirectors:April29,2025RevisionInformation
□Applicable√NotApplicable