Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Important Notice
Ⅰ The Board of Directors (the “Board”), the Board of Supervisors and directors,
supervisors and senior management of the Company hereby warrant the truthfulness,
accuracy and completeness of the contents of the interim report (the “Report”), and that
there are no false representations, misleading statements or material omissions contained
in the Report, and severally and jointly accept responsibility.
Ⅱ All the directors of the Company attended the Board meeting.
Ⅲ The interim report of the Company is unaudited.
Ⅳ Mr. Zhu Baoguo (朱保国), the person-in-charge of the Company, Mr. Qiu Qingfeng
(邱庆丰), the person-in-charge of the Company's accounting work, and Ms. Guo Chenlu
(郭琛璐), the person-in-charge of the accounting department (the head of the accounting
department), declare that they hereby warrant the truthfulness, accuracy and
completeness of the financial statements contained in the Report.
Ⅴ Profit distribution plan or plan for conversion of capital reserve to share capital
approved by the Board during the Reporting Period
Not applicable
VI Risk declaration for the forward-looking statements
√Applicable □N/A
The Report contains forward-looking statements which involve the future plans, development
strategies, etc. of the Company, yet do not constitute substantive undertakings of the Company to
investors. Investors should exercise caution prior to making investment decisions.
VII Whether there is non-operating use of funds by the controlling shareholder and their
related parties
No
VIII Whether there is a violation of the prescribed decision-making procedures to provide
external guarantees
No
IX Whether more than half of directors cannot warrant the truthfulness, accuracy and
completeness of the Report disclosed by the Company
No
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
X Significant risk warnings
There is no exceptionally significant risk that will have a material impact on the production
and operation of the Company during the Reporting Period. In this Report, the Company has
elaborated on the risks and countermeasures that the Company may face in the course of production
and operation, including industry policy risk, market risk, risk of safety and environmental
protection, risk in price and supply of raw materials and R&D risk. For more information, please
refer to “Potential risks” section in Chapter 3 Management Discussion and Analysis.
XI Others
□Applicable √N/A
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Table of Contents
The Financial Statements signed and sealed by the person-in-charge of
the Company, the person-in-charge of the Company's accounting work
and the person-in-charge of the accounting department (the head of the
List of documents accounting department)
available for inspection The original copies of all documents and announcements of the
Company which have been disclosed to the public on the website
designated by CSRC (China Securities Regulatory Commission) during
the Reporting Period
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Financial Highlights
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Chapter 1 Definitions
In this Report, unless the context otherwise requires, the following expressions shall have the
following meanings:
Definitions of common terms
CSRC Refers to China Securities Regulatory Commission
SSE Refers to Shanghai Stock Exchange
Baiyeyuan or the Shenzhen Baiyeyuan Investment Co., Ltd. * (深圳市百
Refers to
Controlling Shareholder 业源投资有限公司)
Company, the Company, Joincare Pharmaceutical Group Industry Co., Ltd.* (健
Refers to
Group or the Group 康元药业集团股份有限公司)
COPD Refers to Chronic Obstructive Pulmonary Disease
HAP Refers to Hospital-Acquired Pneumonia
VAP Refers to Ventilator-Associated Pneumonia
BD Refers to Business Development
GMP Refers to Good Manufacturing Practice
GSP Refers to Good Supply Practice
DTC Refers to Direct-to-Consumers
IND Refers to Investigational New Drug Application
NDA Refers to New Drug Application
International Council for Harmonisation of Technical
ICH Refers to
Requirements for Pharmaceuticals for Human Use
PIC/S Refers to Pharmaceutical Inspection Co-operation Scheme
Livzon Pharmaceutical Group Inc.*(丽珠医药集团股
Livzon Group Refers to
份有限公司)
Shenzhen Haibin Pharmaceutical Co., Ltd.* (深圳市海
Haibin Pharma Refers to
滨制药有限公司)
Joincare Haibin Pharmaceutical Co., Ltd.* (健康元海
Joincare Haibin Refers to
滨药业有限公司)
Xinxiang Haibin Pharmaceutical Co., Ltd. * (新乡海滨
Xinxiang Haibin Refers to
药业有限公司)
Shenzhen Taitai Pharmaceutical Co., Ltd. * (深圳太太
Taitai Pharmaceutical Refers to
药业有限公司)
Jiaozuo Joincare Bio Technological Co., Ltd.*（焦作
Jiaozuo Joincare Refers to
健康元生物制品有限公司）
Topsino Refers to Topsino Industries Limited * (天诚实业有限公司)
Shanghai Frontier Health Pharmaceutical Technology
Shanghai Frontier Refers to
Co., Ltd. *(上海方予健康医药科技有限公司)
Health Pharmaceuticals (China) Limited* (健康药业
Health China Refers to
(中国)有限公司)
Livzon MABPharm Inc. * (珠海市丽珠单抗生物技术
Livzon MAB Refers to
有限公司)
Zhuhai Livzon Diagnostics Inc. * ( 珠海丽珠试剂股份
Livzon Diagnostics Refers to
有限公司)
Livzon Group Fuzhou Fuxing Pharmaceutical Co.,
Fuzhou Fuxing Refers to
Ltd.*(丽珠集团福州福兴医药有限公司)
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Livzon Group Xinbeijiang Pharmaceutical
Livzon Xinbeijiang Refers to Manufacturing Inc.*(丽珠集团新北江制药股份有限
公司)
Livzon Group (Ningxia) Pharmaceutical Manufacturing
Ningxia Pharma Refers to
Co., Ltd.* ( 丽珠集团(宁夏)制药有限公司)
Gutian Fuxing Pharmaceutical Co., Ltd. * ( 古田福兴
Gutian Fuxing Refers to
医药有限公司)
Zhuhai FTZ Livzon Hecheng Pharmaceutical
Livzon Hecheng Refers to Manufacturing Co., Ltd. * ( 珠海保税区丽珠合成制
药有限公司)
Livzon Group Limin Pharmaceutical Manufacturing
Livzon Limin Refers to
Factory *(丽珠集团利民制药厂)
Livzon Pharmaceutical Livzon Group Livzon Pharmaceutical Factory * (丽珠
Refers to
Factory 集团丽珠制药厂)
Jiaozuo Livzon Hecheng Pharmaceutical
Jiaozuo Hecheng Refers to Manufacturing Co., Ltd.* ( 焦作丽珠合成制药有限公
司)
Shanghai Livzon Pharmaceutical Manufacturing Co.,
Shanghai Livzon Refers to
Ltd. *( 上海丽珠制药有限公司)
Sichuan Guangda Pharmaceutical Manufacturing Co.,
Sichuan Guangda Refers to
Ltd. *( 四川光大制药有限公司)
Jiaozuo Jinguan Jiahua Electric Power Co., Ltd. *( 焦
Jinguan Electric Power Refers to
作金冠嘉华电力有限公司)
Zhuhai Livzon Biotechnology Co., Ltd.*( 珠海市丽珠
LivzonBio Refers to
生物医药科技有限公司)
Grant Thornton Zhitong Certified Public Accountants
Grant Thornton Refers to
LLP
Reporting Period Refers to From 1 January 2025 to 30 June 2025
End of the Reporting
Refers to 30 June 2025
Period
Currency or unit Refers to RMB unless otherwise speci?ed
*For identification purpose only
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Chapter 2 Company Profile and Major Financial Indicators
I Company profile
Chinese name of the Company 健康元药业集团股份有限公司
Abbreviation of the Chinese name 健康元
English name of the Company Joincare Pharmaceutical Group Industry Co., Ltd.
Abbreviation of the English name Joincare
Legal representative of the Company Zhu Baoguo（朱保国）
II Contact persons and contact details
Board Secretary Representative of Securities Affairs
Name Zhu Yifan ( 朱一帆 ) Li Hongtao (李洪涛), Luo Xiao (罗逍)
Joincare Pharmaceutical Group
Joincare Pharmaceutical Group Building,
Building, No. 17, Langshan Road,
Address No. 17, Langshan Road, North District, Hi-
North District, Hi-tech Zone, Nanshan
tech Zone, Nanshan District, Shenzhen
District, Shenzhen
Telephone 0755-86252656, 0755-86252388 0755-86252656, 0755-86252388
Fax 0755-86252165 0755-86252165
lihongtao@joincare.com
E-mail zhuyifan@joincare.com
luoxiao@joincare.com
III Introduction of the Company's basic information
Joincare Pharmaceutical Group Building, No. 17, Langshan Road, North District,
Registered address
Hi-tech Zone, Nanshan District, Shenzhen
Registered at B5, Hengfeng Industrial City, Hezhou Community, Huangtian
Village, Xin’an Town, Bao’an County on 18 December 1992
Changed its registered address to 4-5/F, Dongpeng Building, Shangmeilin
Industrial Area, Futian District, Shenzhen on 25 May 1994
Changed its registered address to 24/F, Block B, Fujian Building, Caitian
South Road, Futian District, Shenzhen on 4 July 1995
Changed its registered address to 23/F, Diwang Building, Shun Hing Square,
No. 333, Shennan East Road, Shenzhen on 20 June 1997
Historical changes in Changed its registered address to Taitai Pharmaceutical Industrial Building,
registered address the 5th Industrial Area, Nanshan District, Shenzhen on 22 September 2000
Changed its registered address to 23/F, Diwang Building, Shun Hing Square,
No. 5002, Shennan East Road, Luohu District, Shenzhen on 4 June 2003
Changed its registered address to Joincare Pharmaceutical Group Building,
No. 17, Langshan Road, North District, Hi-tech Zone, Nanshan District,
Shenzhen on 29 January 2008
Changed its registered address to Joincare Pharmaceutical Group Building,
No. 17, Langshan Road, North District, Hi-tech Zone, Nanshan District,
Shenzhen on 27 November 2012
Joincare Pharmaceutical Group Building, No. 17, Langshan Road, North District,
Office address
Hi-tech Zone, Nanshan District, Shenzhen
Postal code of Office
address
Website http://www.joincare.com
E-mail joincare@joincare.com
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
IV Introduction of changes in information disclosure and places for inspection
Name of designated newspapers
China Securities Journal, Securities Times, Securities Daily, and
for information disclosure by the
Shanghai Securities News
Company
Website for publication of the
http://www.sse.com.cn
interim report
Place for inspection of the
Office address of the Company
interim report of the Company
V Company Stock Profile
Stock abbreviation
Class of stock Listed on Stock Abbreviation Stock code
prior to change
Shanghai Stock
A Share 健康元 600380 太太药业, S健康元
Exchange
SIX Swiss Joincare Pharmaceutical
GDR JCARE /
Exchange Group Industry Co., Ltd.
VI Other relevant information
□Applicable √N/A
VII Principal accounting data and financial indicators of the Company
(I) Principal accounting data
Unit: Yuan Currency: RMB
Increase/decrease for
Reporting Period the Reporting Period
Same Period of
Principal accounting data (From January to as compared to the
Last Year
June) same period last year
(%)
Revenues 7,898,328,250.41 8,234,634,099.45 -4.08
Total profit 2,072,742,025.46 1,982,029,350.87 4.58
Net profit attributable to
Shareholders of the listed 784,939,913.34 776,424,466.87 1.10
company
Net profit attributable to
Shareholders of the listed
company after deducting the
extraordinary gain or loss
Net cash flow from
operating activities
Increase/decrease as
at the end of the
End of the Reporting End of the Last
Reporting Period as
Period Year
compared to the end
of last year (%)
Net assets attributable to
Shareholders of the listed 14,645,400,560.24 14,534,719,589.34 0.76
company
Total assets 35,552,215,282.00 35,718,129,456.13 -0.46
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
(II) Principal Financial Indicators
Increase/decrease
Reporting for the Reporting
Period Same Period Period as
Principal Financial Indicators
(From January of Last Year compared to the
to June) same period last
year (%)
Basic earnings per share (RMB/share) 0.43 0.42 2.38
Diluted earnings per share (RMB/share) 0.43 0.42 2.38
Basic earnings per share after deducting
the extraordinary gain or loss 0.42 0.41 2.44
(RMB/share)
Decreased by
Weighted average return on net assets
(%)
points
Weighted average return on net assets Decreased by
after deducting the extraordinary gain or 5.28 5.39 0.11 percentage
loss (%) points
Description of principal accounting data and financial indicators of the Company
□Applicable √N/A
VIII Differences in accounting data under domestic and foreign accounting standards
□Applicable √N/A
IX Items and amounts of extraordinary gains and losses
√Applicable □N/A
Unit Yuan Currency: RMB
Items of Extraordinary Gains and Losses Amounts Notes (If applicable)
Gain or loss on disposal of non-current assets
Gains from disposal of non-
(including the reversal of previously -2,579,460.77
current assets
recognized asset impairment provisions).
Government grants recognized in profit or
loss for the current period (excluding
government grants that are closely related to Government grants through
the business of the Company and are 68,439,040.16 the profit and loss for the
provided in fixed amount or quantity Period
continuously according to the applicable
policies and standards of the country)
Excluding effective hedging activities related Gains and losses arising
to the company's ordinary operating business, from changes in fair value
this refers to gains and losses arising from of financial assets/liabilities
changes in the fair value of financial assets held for trading, and
-7,751,339.88
and financial liabilities held by non-financial investment gains from
enterprises, as well as gains and losses from holding and disposal of
the disposal of financial assets and financial financial assets/liabilities
liabilities. held for trading
Other non-operating income
Other non-operating income and expenditure
-7,062,692.26 and non-operating expenses
apart from the above items
apart from the above items
Effect of the above items on
Less: Income tax effect 11,889,356.58
income tax
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
The portion of the above
Effect of minority interests (after tax) 24,029,394.63 items to which minority
shareholders are entitled
Total 15,126,796.04
For the items not listed in the “Explanatory Announcement No.1 for Public Company Information
Disclosures-Extraordinary Gains or Losses” that the company identifies as non-recurring gains and losses,
especially those with significant amounts, as well as the extraordinary gain or loss items as illustrated in
the “Explanatory Announcement No.1 for Public Company Information Disclosures-Extraordinary Gains
or Losses” which has been defined as its recurring gain or loss items, the reasons for such classification
should be explained.
□Applicable √N/A
X Companies with equity incentive plans or employee stock ownership plans may choose to
disclose net profit after deducting the impact of share-based payments.
□Applicable √N/A
XI Others
□Applicable √N/A
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Chapter 3 Management Discussion and Analysis
I Description of the industry in which the Company operates and principal businesses of the
Company during the Reporting Period
(I) Principal businesses and products of the Company
The Company is primarily engaged in the R&D, production and sales of pharmaceutical products and
health care products. The business scope of the Company covers chemical pharmaceuticals, biologics,
chemical active pharmaceutical ingredients (APIs) and intermediates, traditional Chinese medicine (TCM),
diagnostic reagents and equipment, health care products, etc. The enriched product series and mix provide
larger market and growth opportunities for the Company. Main products of the Company are as follows:
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
(II) Business model of the Company
As a fully integrated pharmaceutical group encompassing research and development, manufacturing,
sales, and services, the Company has, through years of development, established a comprehensive end-to-
end system covering the entire value chain. Main business models of the Company are as follows:
The Company adopts a multi-pronged R&D model that integrates independent innovation, external
licensing, and collaborative development. In terms of in-house innovation, the Company has established
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
a multi-tiered R&D system covering a wide range of areas including chemical formulations and
biopharmaceuticals. Based on its proprietary technology platforms, the Company has developed a clearly
defined R&D pipeline focused on key therapeutic areas such as respiratory diseases and tumor
immunology. In terms of collaborative innovation, the Company actively engages in domestic and
international scientific partnerships through commissioned or joint development. It also pursues
technology transfer and in-licensing of strategic new technologies and products to facilitate industrial
transformation, strengthen its position in core therapeutic areas, and expand into emerging markets.
The Company exercises strict control over procurement efficiency, quality, and cost, and has
established long-term, stable partnerships with multiple suppliers. Each manufacturing subsidiary
procures raw and auxiliary materials, as well as packaging materials, in accordance with its production
schedule. The Company has implemented stringent quality standards and procurement policies, requiring
all subsidiaries to conduct procurement in compliance with GMP standards. It has entered into long-term
strategic partnerships with bulk material suppliers, ensuring a balance between quality assurance and cost
control. An internal evaluation system and pricing database have been established to monitor market
dynamics in real time. The Company practices a procurement approach based on both quality and price
comparisons to ensure procurement transparency and efficiency.
The Company organizes production based on market demand. The sales department conducts market
research and formulates sales plans. Production quantities and specifications are then determined by taking
into account inventory levels and production capacity. Procurement is arranged in accordance with the
production plan and raw material availability, and all plans are subject to management review and approval
before execution. The Company strictly adheres to GMP requirements and has established a
comprehensive quality management system, including the implementation of a Qualified Person (QP)
system. A rigorous Quality Assurance (QA) framework has been put in place to ensure compliance with
national standards and alignment with international certifications. Regular GMP self-inspections, internal
and external ISO 9001 audits, and third-party audits are conducted to ensure continuous improvement.
The Company applies internationally advanced GMP management practices, with robust quality control
across supplier selection, production processes, product release, and post-market surveillance—ensuring
the efficiency and integrity of the entire quality system.
(1) Drug formulation products
The Company’s Chemical pharmaceuticals, Biologics, and traditional Chinese medicine
formulations are primarily sold to end customers such as hospitals, clinics, and retail pharmacies. In line
with common practices in the pharmaceutical industry, the Company primarily conducts sales through
pharmaceutical distribution enterprises. Distributors are selected and centrally managed based on criteria
such as distribution capabilities, market familiarity, financial strength, credit history, and operational scale.
All selected partners must hold valid pharmaceutical distribution licenses and certifications of compliance
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
with Good Supply Practice (GSP) standards. The typical sales process is as follows: end customers place
purchase orders with distribution enterprises, which then submit orders to the Company based on their
inventory levels, distribution agreements, and contractual terms. The Company delivers products to the
distributors and recognizes revenue accordingly.
(2) APIs and intermediates
The Company’s API products are primarily supplied to large-scale manufacturing enterprises. The
Marketing and Sales Department holds market analysis meetings every one to two weeks to assess price
trends based on current sales performance. Product pricing is determined through a comprehensive
evaluation of market dynamics, production costs, and inventory levels, and is implemented upon approval
by the management team. In terms of sales strategy, the Company primarily adopts a direct sales model in
the domestic market, supplemented by distributor sales. For international markets, direct sales remain the
main approach, while distributor partnerships are employed in higher-risk regions to mitigate potential
operational challenges.
(3) Diagnostic reagents and equipment
The Company’s diagnostic reagents and equipment include both self-manufactured and imported
products. End customers primarily consist of hospitals, Centers for Disease Control and Prevention
(CDCs), and public health authorities. These products are marketed through a combination of direct sales
and distribution via pharmaceutical circulation enterprises.
(4) Health care products
The Company adheres to a user-centric, brand-driven growth model and has established a new brand
marketing system alongside a comprehensive omni-channel sales network.
Online, the Company operates DTC (Direct-to-Consumer) sales primarily through flagship stores on
platforms such as Douyin, Tmall, and JD.com, enabling direct engagement with end users.
Offline, in the retail pharmacy channel, the Company leverages its commercial partners’ distribution
networks and terminal coverage. It currently collaborates with 83 first-tier commercial distributors and
nearly 4,000 key account (KA) pharmacy chains, reaching a total of 400,000 end-user outlets.
In the new retail channel, the Company distributes products to supermarkets and convenience stores
through 38 distributors and 4 directly managed accounts (Walmart, Sam’s Club, Sinopec Easy Joy and
Zhongwan Petroleum). Our products have entered national supermarket chains such as Sam’s Club,
Walmart, Rainbow, RT-Mart, Yonghui, CR Vanguard, and Ole, as well as national convenience store
chains including Lawson, FamilyMart, 7-Eleven, and Easy Joy, covering more than 6,600 end-user outlets.
(III) Analysis of industry development
In the first half of 2025, driven by both policy and market forces, China’s pharmaceutical innovation
sector underwent multi-dimensional and in-depth structural changes, with innovative drug development
entering a period of accelerated growth in both quality and efficiency. At the policy level, the issuance of
the Several Measures to Support the High-Quality Development of Innovative Drugs has provided strong
support, injecting systemic momentum into the sector through initiatives such as guiding R&D with
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
medical insurance data, focusing national science and technology programs on key areas, and improving
a diversified payment system.
depth. From January to May 2025, the National Medical Products Administration approved more than 20
Class 1 innovative drugs, a record high for the same period in the past five years. These drugs cover
multiple therapeutic areas including oncology, metabolic diseases, and autoimmune diseases, marking a
transition of China’s innovative drug R&D from single-point breakthroughs to multi-field collaborative
output.
competitiveness. In the first half of the year, the total value of overseas licensing deals exceeded USD 66
billion, hitting a historical high. This growth is reflected not only in the scale of transactions, but also in
the diversification of cooperation models and breakthroughs in technology exports. Chinese
pharmaceutical companies have established a global R&D and commercialisation network through
licensing, joint R&D, equity cooperation, and other multi-layered arrangements, forming a deeply
collaborative innovation ecosystem with multinational pharmaceutical companies, and further enhancing
their influence in the global pharmaceutical innovation landscape.
more scientific and efficient. The value transformation of real-world data in innovative drugs has
accelerated significantly. By integrating efficacy, safety, and usage pattern data from clinical settings,
these studies not only precisely validate the clinical value of innovative drugs, but also effectively shorten
the R&D cycle, driving efficient translation from laboratory to clinic and serving as a core lever for
improving R&D quality and efficiency.
Deepened medical insurance reform has achieved notable breakthroughs: the latest catalogue includes 38
“global FIC” innovative drugs, while the commercial health insurance innovative drug catalogue has
expanded in parallel. Pilot measures such as price confidentiality mechanisms linked with medical
insurance, and special case-by-case payment negotiations, have built a more flexible payment ecosystem,
providing a solid foundation for accessibility and sustainable commercialisation of innovative drugs.
Collectively, these trends confirm that China is accelerating its transformation from a major
pharmaceutical producer to a powerhouse in pharmaceutical innovation. Domestic innovative drugs have
shifted from following to, in some cases, leading, playing an increasingly pivotal role in reshaping the
global pharmaceutical industry landscape.
(IV) Industry status of the Company
Thanks to years of development, the Company has become an integrated pharmaceutical enterprise
covering multiple areas including chemical pharmaceuticals, chemical APIs and intermediates, traditional
Chinese medicine, diagnostic reagents and equipment as well as health care products. Chemical drug
formulation products are the largest revenue generator of the Company, among which drugs for
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
gastroenterology and gonadotropic hormones are traditional competitive products of the Company, with
key products securing long-term leading positions in national drug formulation market segments.
The Company, leveraging its robust R&D capabilities, ranked Top 50 in “China's comprehensive
strength in drug R&D in 2025”.
(V) Performance drivers in the Reporting Period
During the reporting period, notwithstanding changes in the market environment and the continued
intensification of industry competition, the Company’s overall performance remained on a steady growth
trajectory, fully demonstrating its strong operational resilience and risk resistance, and benefiting from the
active implementation of the Company’s core strategies across all business segments.
volume-based procurement, market competition further intensified, resulting in a decline in revenues for
this segment. In response, the Company resolutely implemented its “innovation-driven” strategy,
regarding this as an opportunity to deepen its transformation towards innovation, with a focus on clinical
needs and the technological frontier. Efforts were made to enhance innovation capabilities, break through
homogenised competition, and accumulate stronger momentum for achieving breakthrough development
in the field of innovation in the future.
individual products and intensified market competition, the segment maintained overall stable
performance, underpinned by the Company’s deep strategic presence in the APIs sector and prudent
operations. Building upon this foundation, the Company continued to advance its internationalisation
strategy, actively promoting capacity expansion both domestically and overseas, steadily increasing its
market share and penetration in the global APIs market, and laying a solid foundation for the segment’s
long-term development.
the same period of the previous year, it achieved a growth rate of 35% during the reporting period, fully
reflecting its exceptional market expansion capabilities and broad development prospects.
Explanation of newly added significant non-principal businesses during the reporting period
□ Applicable √ Not applicable
II Discussion and analysis of business conditions
（1）Steady Overall Performance with Synergistic Momentum Across Core Segments
During the Reporting Period, the Company maintained a steady growth trajectory, with its core
business segments working in synergy and demonstrating strong resilience amid market fluctuations.
Livzon Group, as our foundation of business and development, continued to deliver stable performance,
supported by its mature product portfolio and long-established channel advantages, thereby providing a
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
solid underpinning for the Company’s overall operations. Livzon MAB’s operational improvements
continued to take effect, with streamlined business operations and cost-efficiency initiatives narrowing
losses. The impact of losses on net profit attributable to the parent narrowed by RMB62 million year-on-
year, further consolidating its development foundation and providing robust assurance for the stability of
the Company’s performance.
In the chemical pharmaceuticals segment, sales in the respiratory therapeutic area experienced a
decline, primarily due to the ongoing impact of volume-based procurement policies and intensified market
competition. In response, the Company actively implemented countermeasures: on the one hand, by
expanding the market penetration of Tobramycin Inhalation Solution, which recorded a year-on-year sales
increase of 112% in the first half, demonstrating strong growth momentum; on the other hand, by
accelerating innovative drug R&D and advancing product portfolio optimization, thereby accumulating
long-term potential to enhance core competitiveness.
Meanwhile, the health care products segment delivered an outstanding performance. Leveraging
precise market positioning and effective marketing strategies, it achieved a further 35% increase in sales
on a high base from last year, becoming a key driver of performance and highlighting the positive effects
of a diversified business portfolio.
The API segment also maintained stable operations, with core products sustaining strong
competitiveness. Prices of the key product 7-ACA remained at a favorable level, while Meropenem APIs,
after experiencing earlier market volatility, stabilized and began to recover. By deepening cooperation
with strategic customers, optimizing capacity allocation and supply chain management, and actively
expanding overseas markets along with advancing multiple API registration filings, the Company further
consolidated its leading market position and built momentum for a rebound in performance.
(2) Multiple Breakthroughs in R&D Innovation with Visible Pipeline Achievements Across
Therapeutic Areas
During the Reporting Period, the Company achieved multiple breakthroughs in R&D innovation,
with pipeline development across therapeutic areas further enhanced and results progressively
materializing.
In the respiratory therapeutic area, R&D advanced smoothly with continuous deepening of
innovative efforts. To date, the Company has established a forward-looking portfolio of more than ten
Category I innovative drugs, particularly building a comprehensive target coverage network in anti-
inflammatory therapies for COPD, thereby forming a differentiated competitive advantage. Among them,
marapetsavir capsules for influenza treatment have entered the new drug application stage for production,
while the pediatric formulation, Pixavir Marboxil dry suspension, obtained IND approval and is advancing
steadily through Phase I clinical study. The layered pipeline strategy of these two formulations is expected
to address influenza treatment needs across all age groups. In chronic respiratory diseases, the Phase II
trial of TSLP monoclonal antibody is progressing steadily as scheduled and remains among the leading
domestic studies; moreover, the world’s first-in-class PREP inhibitor successfully completed Phase I
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
studies and is advancing into Phase II studies. The advancement of these innovative pipelines is expected
to offer patients with respiratory diseases broader treatment options.
Other therapeutic areas also recorded positive progress:
• Autoimmune diseases: The recombinant anti-human IL-17A/F humanized monoclonal antibody
injection basically completed a Phase III clinical study in moderate-to-severe psoriasis, with head-to-head
results demonstrating superiority over Secukinumab.
• Metabolism: The small nucleic acid drug LZHN2408 for the treatment of gout received clinical
trial approval and initiated Phase I study; Semaglutide Injection for diabetes indication is under regulatory
review for market launch approval, while its obesity indication has progressed into the late stage of Phase
III trials.
• Psychiatry and Neurology: Aripiprazole microspheres for injection was approved for launching,
becoming the world’s first long-acting sustained-release microsphere formulation for schizophrenia,
providing a new clinical treatment option. Paliperidone palmitate injection and aripiprazole
microcrystalline injection, both long-acting microsuspension products, were submitted for launching
approval. Meanwhile, NS-041 tablets for epilepsy entered Phase II clinical study, gradually forming a
Psychiatry & Neurology product cluster and strengthening the market foundation in this field.
• Assisted reproduction: Progesterone injection was approved for market launch, while the
launching application for Recombinant Human Follitropin Alfa Solution for Injection is progressing in an
orderly manner, further completing the full-chain assisted reproduction solution and providing patients
with more comprehensive therapeutic support.
• Gastroenterology: JP-1366 tablets completed Phase III clinical trial and have been submitted for
production (market launch) approval, while its injection is currently advancing to Phase I clinical trials.,
consolidating the Company’s strategic positioning in this area.
• Pain management: The non-opioid innovative NAV 1.8 inhibitor completed Phase I trials and
is advancing into Phase II studies. Designed to avoid the addictive risks of traditional opioids, this novel
mechanism offers a safer clinical option for pain treatment and carries significant clinical value.
• Cardiovascular and cerebrovascular diseases: The anticoagulant H001 capsule completed
patient enrollment in its Phase II clinical trials.
(3) Accelerated Internationalization with a Global Industrial Footprint Taking Shape
In terms of overseas capacity expansion, the Company’s first overseas API plant has officially
commenced construction in Jakarta, Indonesia. Leveraging local geographical advantages and industrial
resources, the plant will focus on producing differentiated APIs in compliance with international standards,
further strengthening the Company’s global supply chain system, enhancing its supply responsiveness to
Southeast Asian and global markets, and laying a solid foundation for the globalization of its API business.
Significant progress has also been made in the internationalization of finished dosage forms. The
Joincare Haibin manufacturing site successfully passed GMP inspections conducted by drug regulatory
authorities in the Philippines and Malaysia. In particular, the site completed a compliance inspection under
the latest PIC/S standards, creating favorable conditions for product entry into the Malaysian market.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Through the mutual recognition mechanism of international regulatory frameworks, the Company has
effectively reduced registration costs and shortened approval timelines for entering multiple overseas
markets.
In terms of market presence, registration activities for multiple products in the Philippines, Malaysia,
the European Union, and other regions are proceeding as planned. The Company’s subsidiary in the
Philippines has obtained a local FDA operating license, providing critical support for the expansion of
sales in Southeast Asia. Its Dutch subsidiary has successfully obtained both manufacturing and import
licenses, marking the establishment of the Company’s overseas operational system in Europe and serving
as a strategic foothold for entering the high-end EU market. At the same time, the Company is pursuing
the acquisition of Imexpharm Corporation in Vietnam, aiming to strengthen its distribution network and
market penetration in Southeast Asia. Relevant matters are actively progressing, and the Company will
continue to advance its globalization strategy in a steady manner, creating favorable conditions for the
implementation of its long-term strategic objectives.
In the second half of 2025, the major tasks in various business segments of the Company are set out
as follows:
(1) R&D Center
R&D R&D innovation is the core driving force of the Company’s development. The Company will
continue to deepen the R&D of innovative drugs, focusing on its core strengths in the respiratory, anti-
infective, gastroenterology, assisted reproduction, and psychiatry fields, so as to consolidate its leading
position in the industry and build a differentiated pipeline mix. First, the Company will concentrate
resources on key products and accelerate the R&D and marketing progress of core projects such as Pixavir
Marboxil, TSLP monoclonal antibody, NAV1.8 inhibitor, PREP inhibitor, and PDE4 inhibitor. Second,
the Company will promote the deep integration of AI into the entire R&D process, from multi-omics data
mining in target discovery, molecular structure optimisation in compound design, to intelligent patient
recruitment and data monitoring in clinical trials, further advancing the application of CADD and AIDD
technologies to achieve simultaneous improvements in R&D efficiency and innovation quality.Third, the
Company will adhere to a “self-development + BD” dual-track strategy, strengthening its independent
R&D capabilities while broadening innovation sources through strategic cooperation, technology
introduction, and project acquisition to improve pipeline layout; at the same time, it will accelerate the
overseas registration of key products, build a global commercialisation network, and promote the
realisation of the international value of its innovation achievements.
(2) Production Center
Adhere to production, The Company is continuing to advance the transformation and upgrading of
its intelligent manufacturing, focusing on optimising the entire production chain and implementing
systematic measures to strengthen its development foundation. In terms of standardisation and intelligent
construction, the Company has established a comprehensive standard system covering the entire process
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
from raw material procurement and production processing to finished product inspection, while
simultaneously upgrading intelligent production equipment and production lines. This enables automation,
precision, and traceability in production, providing a solid safeguard for product quality stability.With
respect to safety and quality control, the Company strictly implements the production safety responsibility
system, enhances employee safety awareness through strengthened training, and continuously improves
its quality management system, thereby safeguarding safety and quality across all dimensions.To further
enhance efficiency and cost advantages, on the one hand, the Company optimises production processes
and improves equipment utilisation to reduce costs and increase efficiency; on the other hand, it applies
AI data analytics to build a production operation platform, enabling real-time collection of key data such
as equipment operation and energy consumption, and uses intelligent algorithms to optimise scheduling,
thereby effectively improving production and operational efficiency. In addition, adhering to the concept
of green and sustainable development, the Company continuously improves its environmental protection
standards, monitors environmental information, and implements energy-saving and emission-reduction
measures. The Company also actively promotes international certification of its products to ensure that
export products strictly comply with international standards such as ICH and PIC/S, thereby laying a solid
foundation for smooth entry into the global market.
(3) Sales Center
In the prescription drug marketing sector, the Company will place optimisation of product structure
at the core and systematically advance a series of active measures to fully tap market potential. The most
critical of these is the promotion of the marketing and sales of Pixavir Marboxil. As the Company’s first
patented innovative drug in recent years, marpatisavir will, on the one hand, be promoted through
intensified publicity and multi-channel communication of its product value, and on the other hand, through
the active exploration of out-of-hospital sales channels to precisely meet market demand during the
influenza season, striving to achieve a breakthrough in the market. At the same time, refined operations
will be carried out separately by product line. The innovative drug segment will focus on academic-driven
promotion and deep clinical penetration to continuously enhance professional influence; the generic drug
segment will focus on channel penetration and coverage of primary markets, accelerating the
transformation to “precision operations.” In addition, the Company will deepen the empowerment of AI
technology across the entire sales process, relying on intelligent management systems to strengthen
dynamic business monitoring, customer relationship management, and market trend analysis, thereby
providing precise data support for decision-making. Adhering to a patient-centred approach, the Company
will promote digital construction across multiple scenarios such as chronic disease management and
primary healthcare, building an integrated diagnosis-and-treatment and full-course disease management
data loop, continuously improving disease management efficiency and effectively increasing patient
benefits.
In the marketing and promotion of APIs and intermediates, the Company anchors industry
opportunities with a global perspective, expanding development space through coordinated efforts in
international and domestic markets. In the international market, strategic cooperation will serve as the core
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
link, with continued deepening of the scope and depth of cooperation with global core customers. Through
precise customer development and refined relationship management, the Company will continuously
expand its high-quality customer base, while fully demonstrating its core strengths and brand
accumulation in technology R&D and quality control, jointly building a long-term, stable, and mutually
beneficial collaborative ecosystem with strategic partners. Leveraging close cooperation with world-class
enterprises, the Company’s brand reputation in the global market will continue to improve; at the same
time, close attention will be paid to exchange rate fluctuations and market changes, with timely
adjustments to sales strategies to ensure the steady advancement of international business. Meanwhile,
domestic market expansion will also progress steadily. The Company will closely monitor industry
development trends, actively seize opportunities arising from national policies, and proactively explore
new business breakthroughs. By developing new customers and new markets to increase coverage, while
continuously optimising cost control and product quality, the Company will lay a solid foundation for
stable profitability and long-term development.
In the marketing of health care products and OTC drugs, the Company will focus on “brand upgrading
and enhancement of user value” to stimulate growth momentum from multiple dimensions. 1)It will
expand business growth by linking online and offline channels to penetrate the brand into consumers'
minds: offline, by advancing organisational structure reform to inject new vitality into market expansion;
online, by developing diversified channels and deepening digital marketing, leveraging sales events at
consumption peaks to drive product sales, while expanding cooperation with key opinion leaders (KOLs)
to break through existing circles, optimising the internal business loop, and introducing brand
livestreaming and influencer livestreaming to accelerate the establishment of an all-domain traffic matrix.
offline chain enterprises, constructing a sell-through system, adopting innovative means to facilitate
product circulation, strengthening professional capability building, and enhancing brand exposure and
sales performance through co-branding initiatives.3) User operations will be focused on to consolidate the
business foundation: improving user experience, building a service system to enhance user stickiness, and
concurrently optimising core business processes, advancing organisational restructuring, and enhancing
talent capabilities to safeguard strategy implementation and drive sustainable business growth
(4) Functions and strategies
The key priorities in the Company’s functional areas acre as follows: First, to continuously improve
and enhance the corporate governance system, establishing systematic management in internal control,
risk management, and compliance, and comprehensively advancing lean management to achieve cost
reduction and efficiency enhancement. Second, to further strengthen talent and system development,
adhering to the parallel implementation of the OKR and KPI target management systems, with quarterly
dynamic tracking and adjustment, and ensuring interdepartmental collaboration in supporting R&D,
production, and sales.Third, to deepen the empowerment of AI technology, actively applying AI tools to
optimise various workflows in functional areas, enhance organisational operational efficiency and
management precision, and comprehensively improve organisational effectiveness through technology-
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
driven initiatives. Fourth, to promote corporate culture development, optimise the working environment
and facilities, strengthen cultural promotion and implementation, and enhance corporate cohesion and
unity. Fifth, to solidly fulfil corporate social responsibility, taking ESG system development as the entry
point, improving the full-dimensional indicator system for environmental management, social
responsibility, and corporate governance, and implementing social responsibility practices through green
operations, public welfare projects, and employee volunteer services. The ESG philosophy will be deeply
integrated with business development, enhancing overall competitiveness through responsible corporate
conduct, with the ultimate goal of delivering long-term returns to shareholders and contributing
sustainable value to society, thereby achieving high-quality development.
Material changes in business conditions of the Company during the Reporting Period and matters
occurred during the Reporting Period that had and are expected to have significant impacts on
business conditions of the Company
□Applicable √N/A
III Analysis of core competitive strengths during the Reporting Period
√Applicable □N/A
As a long-term value creator in the healthcare and pharmaceutical industry, Joincare has
demonstrated strong resilience and sustainable growth. Since the strategic integration with Livzon Group
in 2002, the Company has maintained a compound annual revenue growth rate of 15.4% over 22 years,
navigating through multiple industry cycles and macro challenges such as the global financial crisis, the
COVID-19 pandemic, and volume-based procurement reform. This resilience is rooted in the
management’s keen foresight into industry transformations and unwavering strategic discipline.
Accurate strategic foresight has been one of Joincare’s key advantages. In 2013, anticipating the
immense potential of the respiratory disease market driven by an aging population, the Company made a
decisive move to enter the field. After six years of dedicated research and development, Joincare overcame
significant technological barriers in high-end inhalation formulations. Following the market launch of its
first product in 2019, sales of respiratory products grew 22-fold over four years, firmly establishing
Joincare as a pioneer and leader in China’s respiratory sector.
Thanks to its forward-looking strategy, Joincare has established strong competitive advantages in
fields such as respiratory, gastroenterology, and assisted reproduction.
In the respiratory field, Joincare has taken a first-mover advantage with an early and diverse product
portfolio, having successfully launched 10 products. The company has broken the long-standing monopoly
of multinational pharmaceutical companies and established itself in the top tier of market share. In addition,
by closely aligning with clinical needs, Joincare has built a pipeline of over 10 Class 1 innovative drug
candidates, laying a solid foundation for long-term growth.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
In the gastroenterology field, Ilaprazole, as a domestically developed innovative PPI, has stood out
in the market with its remarkable efficacy advantages, securing a leading position. The company's in-
development Potassium Ion Competitive Acid Blocker (P-CAB) product holds strong growth potential,
laying a solid foundation for technological advancement and market expansion in this area.
In the assisted reproduction field, the company has established a comprehensive product portfolio,
with its flagship products maintaining a leading position in their respective sub-markets for consecutive
years. Leveraging the strengths of its microsphere formulation technology platform, the company has
strategically planned for long-acting formulations, and its pipeline projects are progressing steadily,
providing strong support for sustained development in this field.
Artificial intelligence (AI) is another core strategic focus. Joincare is deploying AI to empower
pharmaceutical innovation, achieving full-chain digital transformation across four key areas: R&D,
production and quality control, precision marketing, and functional management—further solidifying its
competitive advantages. In R&D, the Company utilizes world-class AI models such as DeepSeek to build
an intelligent R&D system covering key phases from disease target identification and drug discovery to
pharmaceutical research, clinical trials, and post-marketing surveillance, injecting powerful momentum
into new drug development.
Organizational execution is the key enabler of Joincare’s strategic implementation. The Company
has built a young, dynamic, and highly capable management team covering core functions across R&D,
manufacturing, sales, and marketing. Joincare places a strong emphasis on organizational synergy and has
established efficient communication and collaboration mechanisms. These systems foster close
coordination and seamless integration among departments, breaking down information silos, minimizing
communication losses, and significantly improving the scientific rigor of decision-making and the
effectiveness of execution—thus laying a solid organizational foundation for the realization of strategic
goals.
From 2022 to 2024, a critical phase of transformation, Joincare achieved a major leap forward across
several therapeutic areas, particularly in respiratory, pain management, gastrointestinal, and
neuropsychiatric fields by successfully transitioning from a generic-drug-focused model to one centered
on innovative drug development. By leveraging sharp market insight and precise identification of industry
trends and unmet needs, and building upon strong R&D capabilities, the Company rapidly established an
innovative pipeline of over 20 drug candidates targeting key indications such as asthma, chronic
obstructive pulmonary disease (COPD), depression, and gout.
This rapid strategic pivot from generics to innovation and its efficient execution reflect Joincare’s
outstanding organizational capabilities. Through highly coordinated teamwork and precise resource
allocation, the Company has successfully developed a wide-reaching innovative drug pipeline, driving
innovation-led growth and steadily advancing toward higher strategic goals.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
In an increasingly competitive healthcare market, Joincare has remained deeply focused on building
brand equity. With forward-looking strategic vision and strong execution, the Company has cultivated a
unique and powerful brand ecosystem.
Taita (太太) and Eagle's(鹰牌), two national brands under Joincare with more than 30 years of
heritage, represent the Company’s strong brand foundation. Leveraging these well-established brands, the
Company has advanced a dual-engine strategy of quality heritage + digital innovation. From 2023 to 2024,
refined and professional digital operations provided strong momentum for the sustained and rapid growth
of the health supplement business.
In the API segment, Joincare and its subsidiary Livzon Group have deeply integrated advanced
intelligent manufacturing systems across their production bases in Zhuhai, Jiaozuo, and other locations.
This enables precise digital and automated control over the entire production process. Through stringent
quality assurance, the Company has earned the trust of global pharmaceutical giants such as Pfizer, Eli
Lilly, and Teva, establishing long-term and stable partnerships. Today, Joincare’s high-quality and reliable
API products are exported to over 60 countries and regions worldwide, positioning the Company as a
benchmark of Intelligent Manufacturing in China in the high-end API sector and a model of innovation
and quality leadership in the industry.
In the prescription drug segment, the Company is actively advancing its digital marketing strategy
by building a user-centered digital ecosystem. Through its professional platform Respiratory Experts’
View, Joincare collaborates with leading medical experts to share academic insights and strengthen
communication with physicians and patients. This initiative has significantly enhanced the
professionalism and credibility of the brand. Meanwhile, by harnessing big data analytics and AI
technologies, the Company accurately identifies market demand and user preferences, formulates targeted
strategies, and has successfully established an efficient “physician–patient–company” service loop. As a
result, Joincare’s brand awareness and reputation continue to rank among the industry leaders.
Commercial Excellence
Over the past 30 years, Joincare has built a fully integrated value chain centered around research and
development, manufacturing, and commercialization—forming a robust competitive edge and
demonstrating remarkable resilience and integrated capabilities.
In R&D, the Company has developed advanced technology platforms through years of dedication to
innovative drugs and high-barrier complex formulations. These platforms empower the Company to
overcome technical challenges in drug development and manufacturing. In particular, Joincare has
achieved multiple national “firsts” in complex formulation technologies—such as China’s first and only
inhaled antibiotic (Tobramycin Inhalation Solution) and the country’s first approved generic of Salmeterol
Xinafoate-Fluticasone Propionate Powder for Inhalation. These technological achievements have laid a
strong foundation for driving forward the Company’s innovation strategy.
In manufacturing, Joincare has established 18 modern production bases across China, enabling
optimal allocation of manufacturing resources. Among them, Joincare Haibin has become one of the
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
world’s leading inhalation manufacturing sites. Equipped with cutting-edge technologies such as KUKA
robotics and highly automated production lines, the facility has significantly improved production
efficiency and reduced safety risks. In 2024, the Company further expanded its global footprint by
investing in its first overseas facility in Jakarta, Indonesia—strengthening its international supply chain
capabilities. Going forward, the Jakarta plant will serve as a strategic hub to drive partnerships in
peripheral regions and expand into high-end markets in Europe and the U.S., enhancing the Company’s
global competitiveness and brand influence.
In commercialization, Joincare possesses world-class capabilities. Its sales network spans all
provinces in China and reaches over 80 countries and regions globally. The Company places strong
emphasis on academic-driven marketing and has built a specialized commercial team to support refined,
targeted market expansion. It also leverages digital tools to support market education and brand building,
forming a diversified and robust marketing system. With a well-established distribution network, broad
end-user coverage, advanced digital marketing capabilities, and strong brand recognition, Joincare is well-
positioned to achieve rapid product sales post-approval and effectively transform R&D outcomes into
commercial success.
IV Overview of business operations during the Reporting Period
(I) Analysis of principal businesses
Unit: Yuan Currency: RMB
Amount in the current Amount in the same
Item Change (%)
period period of last year
Revenues 7,898,328,250.41 8,234,634,099.45 -4.08
Operating costs 2,985,132,575.95 3,021,125,884.33 -1.19
Selling expenses 2,016,794,488.84 2,096,637,821.45 -3.81
Administrative expenses 421,890,723.11 445,024,332.82 -5.20
Financial expenses -221,703,311.54 -123,728,966.13 N/A
R&D expenses 611,153,068.61 714,729,729.75 -14.49
Net cash flow from operating
activities
Net cash flow from investing
-641,473,685.58 -481,671,263.33 N/A
activities
Net cash flow from financing
-1,608,668,997.81 -1,375,832,567.57 N/A
activities
Reasons for changes in financial expenses: Mainly due to an increase in deposit interest income and
a decrease in borrowing interest expenses during the Period.
Reasons for changes in net cash flow from investing activities: Mainly due to the increase in
structured deposits during the Period.
period
□Applicable √N/A
Principal businesses by industry, product and region
Unit: Yuan Currency: RMB
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Principal business by industry
Gross YoY YoY
YoY change in
profit change in change in
By industry Revenues Operating costs gross profit
margin revenues operating
margin
(%) (%) costs (%)
Pharmaceutical
Decreased by 1.09
manufacturing 7,830,218,720.39 2,934,347,562.81 62.53 -4.20 -1.34
percentage points
industry
Principal business by product
Gross YoY YoY
YoY change in
profit change in change in
Revenues Operating costs gross profit
margin revenues operating
margin
(%) (%) costs (%)
Chemical Decreased by 1.65
pharmaceuticals percentage points
Chemical APIs and Decreased by 0.34
intermediates percentage points
Decreased by 1.69
TCM products 811,989,019.94 216,941,469.41 73.28 4.29 11.31
percentage points
Diagnostic reagents Decreased by 8.33
and equipment percentage points
Health care Increased by 7.55
products percentage points
Increased by
Biologics 94,818,856.99 44,399,451.25 53.17 8.31 -27.46 23.09 percentage
points
Principal business by region
Gross YoY YoY
YoY change in
profit change in change in
By region Revenues Operating costs gross profit
margin revenues operating
margin
(%) (%) costs (%)
Decreased by 0.24
Domestic 6,349,632,796.55 2,042,425,170.47 67.83 -7.54 -6.84
percentage points
Decreased by 0.38
Overseas 1,480,585,923.84 891,922,392.34 39.76 13.36 14.08
percentage points
(1) Table for investment in R&D
Unit: Yuan Currency: RMB
Expensed investment in R&D during the Period 586,393,307.54
Capitalized investment in R&D during the Period 83,891,305.81
Total investment in R&D 670,284,613.35
Total amount of investment in R&D as a percentage of revenues (%) 8.49
(2) Description
As of the date of this report, the Company has established a diversified product portfolio in its core
therapeutic areas of respiratory, gastrointestinal, and psychiatry/neurology diseases, and has gradually
expanded and strengthened its presence in pain management, cardiovascular and cerebrovascular diseases,
and metabolic disorders. The progress of the key products is as follows:
R&D Stages
Project Name Indications Phase Phase Phase NDA
Preclinical
I II III Submitted
Pixavir Marboxil
Influenza A & B √
Capsules
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Pixavir Marboxil Dry
Influenza A & B √
Suspension
TSLP mAb COPD √
IL-4R mAb COPD √
PREP Inhibitor COPD √
MABA Inhalation
COPD √
Solution
GSNOR Inhibitor Asthma √
PDE4 Inhibitor Asthma, COPD √
Next-generation ICS Asthma, COPD √
β-lactamase Inhibitor HAP/VAP √
Innovative
HAP/VAP √
polymyxin
R&D Stages
Therapeutic Phase
Project Name Indications Phase Phase NDA/ANDA/BLA
Area Preclinical III /
I II Submitted
BE
JP-1366 Reflux
√
Tablets esophagitis
Gastroenterology
JP-1366 for Peptic ulcer
√
Injection hemorrhage
Meloxicam
Pain relief/
Nanocrystal √
Pain Analgesia
Injection
Management
Nav 1.8
Acute pain √
Inhibitor
Aripiprazole
Microspheres Schizophrenia Launched
Psychiatry and
for Injection
Neurology
NS-041 Epilepsy √
Tablets Depression √
Invasive
Anti-infection SG1001Tablets fungal √
infections
Prevention of
VTE after
Cardiovascular H001 Capsules major √
orthopedic
surgery
Type 2
√
Semaglutide diabetes
Injection Weight
Metabolism √
management
Hyperuricemia
LZHN2408 √
and gout
Recombinant Moderate-to-
Anti-human severe √
lL-17A/F psoriasis
Autoimmune Humanized
Monoclonal Ankylosing
√
Antibody spondylitis
injection
Quadrivalent For the
Vaccines Recombinant prevention of √
Protein influenza
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
R&D Stages
Therapeutic Phase
Project Name Indications Phase Phase NDA/ANDA/BLA
Area Preclinical III /
I II Submitted
BE
Influenza
Vaccine
(II) Description of material changes in profits arising from non-principal businesses
√Applicable □N/A
Unit: Yuan Currency: RMB
Proportion of Sustainable or
Item Amount Explanations
total profits not
Mainly due to changes in gains or
Investment income 39,541,912.86 1.91% No
losses of the associates.
Mainly due to fluctuations in the
market value of securities
Gains from changes
-6,699,818.51 -0.32% investments held and changes in No
in fair value
forward foreign exchange
contracts.
Impairment losses Mainly due to expected credit
-7,332,423.75 -0.35% No
of credits losses on accounts receivable.
Impairment loss of Mainly due to the provision for
-14,814,061.48 -0.71% No
assets diminution in value of inventories.
Mainly due to the transfer of
Non-operating payables no longer required to be
income paid and income from scrap
disposal.
Non-operating
expenses
Mainly due to government
Other income 85,396,777.46 4.12% Yes
subsidies received.
(III) Analysis of assets and liabilities
√Applicable □N/A
Unit: Yuan Currency: RMB
Change in
Ending Ending the ending
amount of amount of amount of
Ending amount Ending amount
Item the period to last year the period Explanations
of the period of last year
the total to the total to that of
assets (%) assets (%) last year
(%)
Financial Mainly due to the addition of
assets held 490,624,181.31 1.38 89,363,055.07 0.25 449.02 structured deposits during the
for trading period.
Non-current
Mainly due to the transfer of
assets due
within one
maturing within one year.
year
Mainly due to the transfer of
cash management products
Other non-
current assets
non-current assets due within
one year.
Financial Mainly due to changes in
liabilities held forward foreign exchange
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
for trading contracts.
Mainly due to recognition of
revenue for certain advance
Contract
liabilities
the revenue recognition
criteria during the period.
Employee Mainly due to the payment of
benefits 321,316,195.93 0.90 473,571,305.45 1.33 -32.15 prior year’s year-end
payable performance bonuses.
Dividends Mainly due to dividends
payable declared but not yet paid.
Non-current Mainly due to the
liabilities due reclassification of long-term
within one borrowings maturing within
year one year.
Mainly due to recognition of
revenue for certain advance
payments received that met
Other current
liabilities
criteria during the period,
with corresponding output tax
transferred.
Mainly due to the cancellation
of repurchased shares,
Capital reserve 1,111,064,590.24 3.13 1,654,383,491.41 4.63 -32.84
resulting in an offset to the
capital reserve.
Treasury Mainly due to the cancellation
- - 328,221,279.42 0.92 -100.00
shares of all repurchased shares.
Mainly due to changes in
exchange differences on
Other
translation of foreign currency
comprehensive -86,345,717.80 -0.24 -41,177,547.42 -0.12 N/A
financial statements arising
income
from exchange rate
fluctuations.
√Applicable □N/A
(1) Asset size
Among them: Overseas assets were 56.58(Unit: 100 million, Currency: RMB), representing 15.92% of
the total assets.
(2) Statement on high proportion of overseas assets
□Applicable √N/A
√Applicable □N/A
Carrying value at the
Item Cause for restriction
end of the period
Other monetary funds 10,356,971.52 Margin for guarantee businesses, such as letters of guarantee
Notes receivable 773,308,187.19 Notes pool business and pledge of notes receivable
Total 783,665,158.71
□Applicable √N/A
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
（IV）Analysis of investment
√Applicable □N/A
During the Reporting Period, the Company carried out strategic investments according to development
plans and schedules as follows:
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
(1) Major equity investments
√Applicable □N/A
Unit: yuan Currency: RMB
Whether the
target is In the Item on the
Source
primarily Investment Investment Percentage of Consolidation financial Partner (if
Name of investee Principal business of
engaged in method amount shareholding scope of the statement (if applicable)
funds
investment Company or not applicable)
business
JOINCARE
PHARMA
Capital Own
SINGAPORE Investments Yes 2,229,160.00 100.00% Yes N/A N/A
increase funds
HOLDINGS PTE.
LTD.
R&D, production and
sales of pharmaceutical
products; pharmaceutical
Capital Own Livzon
LivzonBio technology development, No 1,000,000,000.00 53.41% Yes N/A
increase funds Group
technical services,
technology transfer,
technical consulting
Total / / / 1,002,229,160.00 / / / / /
(Continued)
Expected
Investment period Status as of balance Impact of gain or loss for Litigation Disclosure date Disclosure index
Name of investee return
(if any) sheet date the period involved or not (if any) (if any)
(if any)
JOINCARE
PHARMA
Capital contribution
SINGAPORE Long term -39,696.42 No
completed
HOLDINGS PTE.
LTD.
Capital contribution See note 1 for
LivzonBio Long term -52,844,646.36 No See note 1 for details
not completed details
Total / / -52,884,342.78 / / /
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Note 1: For details, please refer to the Announcement on the Capital Increase of the Holding Sub-Subsidiary – LivzonBio (Lin 2025-019) disclosed by the Company
on 8 April 2025.
(2) Major non-equity investment
□Applicable√N/A
(3) Financial assets measured at fair value
√Applicable □N/A
Unit: Yuan Currency: RMB
Amount of
Gain or loss on Accumulated
Amount at the Impairment Amount of disposal /
change in fair change in fair Amount at the end
Type of assets beginning of the provision for purchase during redemption Other change
value for the value included in of the period
period the period the period during the
period equity
period
Shares 129,588,427.30 -16,458,768.85 4,317,880.38 - - - - 117,447,538.83
Funds 513,064,520.58 9,815.15 -4,902,681.08 - 407,603.40 422,631.43 - 508,156,626.62
Derivatives 299,668.02 490,378.70 - - - - -1,082.90 788,963.82
Others 472,959,182.32 220,784.14 -2,182,515.14 - 2,667,000,000.00 2,235,000,000.00 - 902,997,451.32
Total 1,115,911,798.22 -15,737,790.86 -2,767,315.84 - 2,667,407,603.40 2,235,422,631.43 -1,082.90 1,529,390,580.59
Information on investment in securities
√Applicable □N/A
Unit: Yuan Currency: RMB
Amount
Amount
Carrying Gain or loss on Accumulated of Carrying
Initial of Profit or
Type of Securities Securities Source amount at the change in fair change in fair disposal amount at the Accounting
investment purchase loss for the
securities code abbreviation of fund beginning of the value for the value included during end of the item
cost during the period
period period in equity the period
period
period
Financial
Kunlun Own
Share 00135 4,243,647.64 7,778,736.00 -847,916.00 - - - 151,700.00 6,930,820.00 assets held
Energy funds
for trading
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Financial
Penghua Own
Fund 206001 150,000.00 987,629.66 9,815.15 - - - - 997,444.81 assets held
Fund funds
for trading
Financial
Huadong Own
Share 000963 39,851.86 11,404,575.20 1,898,565.12 - - - 191,174.96 13,303,140.32 assets held
Medicine funds
for trading
Beam Financial
Own
Share BEAM(US) Therapeutics, 31,117,151.47 53,810,638.53 -17,509,417.97 - - - - 36,301,220.56 assets held
funds
Inc. for trading
Elicio Other equity
Own
Share ELTX(US) Therapeutics, 35,363,302.05 4,853,421.34 - 2,633,450.38 - - - 7,486,871.72 instruments
funds
Inc. investment
Carisma Other equity
Own
Share CARM(US) Therapeutics, 38,807,266.00 2,168,737.48 - -111,837.54 - - - 2,056,899.94 instruments
funds
Inc. investment
Other equity
Luzhu Own
Share 02480 30,000,000.00 49,572,318.75 - 1,796,267.54 - - - 51,368,586.29 instruments
Biotech-B funds
investment
Total / / 139,721,219.02 130,576,056.96 -16,448,953.70 4,317,880.38 - - 342,874.96 118,444,983.64 /
Statement of investments in securities
□Applicable √N/A
Information on investment in private equity fund
√Applicable □N/A
The Company had no new private equity funds invested during the reporting period. As at the end of the reporting period, the book balance of private equity funds
invested by the Company amounted to approximately RMB507 million.
Information on investment in derivatives
√Applicable □N/A
(1) Derivative investments for hedging purposes during the reporting period.
√Applicable □N/A
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Unit: 10,000 Yuan Currency: RMB
Percentage of
Carrying Gain or loss on Accumulated Amount of Amount of Carrying
Initial investment amount to
amount at the change in fair change in fair purchase disposal amount at the
Type of derivatives investment investment the net assets of the
beginning of value for the value included in during the during the end of the
amount Company at the end
the period period equity period period period
of the period(%)
Forward foreign exchange
(sell/short)
Total 92,592.04 -874.69 952.84 - 56,108.01 45,442.87 78.04 0.003
Explanation as to whether there has
been a material change in the accounting
policy and accounting principles for the
No material change
Company’s derivatives during the
Reporting Period as compared with the
previous reporting period
Explanation of actual gain or loss during
The gain/loss realized during the Reporting Period was RMB -4.1927 million.
the Reporting Period
The company's foreign exchange derivative transactions are conducted around the actual foreign exchange receipts and payments of the company.
Explanation of hedging effect Adhering to the principle of exchange rate neutrality and based on specific operational activities, the company aims to mitigate adverse effects caused
by significant exchange rate fluctuations and avoid foreign exchange market risks.
Source of funds for derivatives
Own funds
investment
To effectively manage the uncertainty of exchange rate fluctuations on assets denominated in foreign currency of the Company, foreign exchange
forward contracts and other financial derivatives are employed to lock relevant exchange rates for the purpose of hedging. The Company has formulated
the Management System for Financial Derivatives Trading (《金融衍生品交易业务管理制度》) in relation to the operation and control of foreign
exchange derivatives: 1. Market risk: As changes in the domestic and international economic situation may cause significant fluctuations in exchange
Risk analysis of derivatives position rates, the forward foreign exchange trading business faces certain market risks. However, for the unilateral forward exchange settlement or purchase
held during the Reporting Period and business, the Company has effectively reduced the risks arising from exchange rate fluctuations by studying and judging the foreign exchange rate
explanation of control measures trends and defining the settlement or sale price through contracts. Control measures: The foreign exchange derivatives trading business shall follow the
(including but not limited to market risk, Company's prudent and sound risk management principles, without carrying out speculative trading. The Company and its subsidiaries will strengthen
liquidity risk, credit risk, operational the research and analysis of exchange rate, pay close attention to changes in the international and domestic market environment in real time, and duly
risk, legal risk, etc.) adjust the operation strategy in conjunction with the market situation, so as to avoid the risks arising from exchange rate fluctuations to the maximum
extent. 2. Internal control risk: In view of the strong professionalism and high complexity of forward foreign exchange settlement and sale transactions,
internal control risk will be incurred if relevant business personnel fail to timely and fully understand the information on derivatives and fail to carry
out the operation procedures as required when they conduct the business. Control measures: The Company has formulated relevant systems to control
transaction risks by clearly stipulating the basic principles, approval authority, transaction management, internal operation procedures, risk control and
information disclosure of foreign exchange derivatives transactions.3. Performance risk: The closedown of a cooperative bank during the contract period
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
may make the Company unable to perform the original foreign exchange contract at the contract price. When selecting cooperative banks to carry out
foreign exchange derivatives trading business, the Company will choose large banks with strong strength and sound operation to avoid the default risk
caused by their bankruptcy. Control measures: The Company and its subsidiaries will only conduct foreign exchange derivatives business with legally
qualified banks and other financial institutions, and will prudently review the terms and conditions of contracts entered into with qualified financial
institutions to prevent any legal risk.
In order to manage the uncertainty risk caused by price fluctuations of bulk commodities on the purchase cost of raw materials of the Company, financial
derivatives such as commodity futures contracts are employed to hedge raw materials. The Company has formulated the Internal Control System for
Commodity Futures Hedging Business (《商品期货套期保值业务内部控制制度》) to standardize the management and risk control of commodity
futures derivatives: 1. Market risk: the uncertainty of price changes of bulk commodities has led to greater market risk in futures business. Control
measures: The Company’s futures hedging business shall not carry out speculative trading, the operation principle of prudence and conservation shall
be observed, the number of hedging transactions shall be strictly limited, such that it does not exceed the actual number of spot transactions, and the
futures position shall not exceed the spot volume for hedging purpose. 2. Operational risk: operational risk arises from imperfect internal process,
improper operation, system failure and other factors. Control measures: The Company has formulated the corresponding management system, clearly
defined the division of responsibilities and approval process, and established an improved supervisory mechanism, so as to effectively reduce operational
risk through risk control of business process, decision-making process and transaction process. 3. Legal risk: The Company’s commodity futures hedging
business is subject to applicable laws and regulations, and shall clearly stipulate the relationship of rights and obligations with financial institutions.
Control measures: In addition to strengthening the knowledge of laws and regulations and market rules in the Company’s responsible department, the
Company’s legal department shall also strictly review various business contracts, agreements and other documents, specify the rights and obligations,
and strengthen compliance inspection, so as to ensure that the Company’s investment and operation in derivatives have met the requirements of
applicable laws and regulations as well as the Company’s internal systems.
Change in market price or fair value of
the derivatives invested during the
Reporting Period, the specific method, The losses arising from change in fair value of the forward foreign exchange contracts, option contracts and commodity futures contracts during the
related assumptions and parameters used Reporting Period were RMB9.5284 million.
in the analysis of the fair value of
derivatives shall be disclosed
Litigation involved (if applicable) Not applicable
Disclosure date of the announcement in
relation to the approval of investment in 7 April 2025
derivatives by the Board (if any)
Disclosure date of the announcement in
relation to the approval of investment in
Not applicable
derivatives by the general meeting of
shareholders (if any)
(2). Derivative investments for speculative purposes during the reporting period.
□Applicable √N/A
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
(V)Sale of major assets and equity
□Applicable √N/A
(VI) Analysis of major controlled companies and invested companies affecting 10% or more to the
Company’s net profit
√Applicable □N/A
Unit: 10,000 Yuan
Registered Operating
Company Type Main products and services Total assets Net assets Revenues Net profit
capital profit
R&D, production and sale of oral
liquids, tablets (hormone-
containing), aerosols (including
Taitai hormone-containing aerosols),
Subsidiary 10,000 51,620.09 43,092.95 9,925.88 2,167.64 2,114.03
Pharmaceutical inhalation formulations (solution for
inhalation) (hormone-containing),
nasal sprays (hormone- containing),
and dietary supplements
Powders for injection (including
penicillin-containing powders),
tablets, hard capsules, APIs, sterile
APIs, inhalation formulations
Haibin Pharma Subsidiary 70,000 191,132.52 138,630.73 42,555.48 4,042.91 3,537.21
(solution for inhalation), powders
for inhalation, pharmaceutical
excipients, R&D technical services,
and testing technical services
Manufacturing and sale of
pharmaceutical intermediates and
Xinxiang
Subsidiary APIs (excluding proprietary Chinese 17,000 64,919.11 41,487.03 24,908.43 1,904.06 1,612.13
Haibin
medicine or TCM decoction pieces)
(excluding hazardous chemicals)
R&D, production, storage,
transportation and sale of chemical
APIs (including intermediates) and
Joincare Haibin Subsidiary pharmaceuticals. Import and export 50,000 124,035.25 115,466.04 16,573.64 2,315.53 2,135.39
business and domestic trading
(excluding State controlled or
franchised goods)
Production and sale of self-produced
Health China Subsidiary dietary supplements, TCM HKD7,317 24,563.78 14,118.71 13,233.98 2,709.67 1,892.91
decoction pieces, and drug products
R&D of new pharmaceutical
products, medical devices, and
Shanghai pharmaceutical APIs, etc. and
Subsidiary 5,000 25,108.72 22,184.17 10,164.29 6,020.62 5,256.22
Frontier provision of relevant technical
consulting, technical services and
technology transfer
R&D, production and sale of
pharmaceuticals, chemical APIs,
Jiaozuo
Subsidiary biological APIs, pharmaceutical 76,000 227,269.47 174,359.83 77,472.19 21,768.39 17,959.84
Joincare
intermediates, and biological
products
Topsino Subsidiary Investment and trading HKD89,693 253,154.32 200,024.39 0.00 20,226.08 19,683.07
Drug R&D, production,
Livzon Group Subsidiary 90,410.04 2,417,287.00 1,492,418.84 627,191.26 183,351.83 155,122.12
manufacturing and sale
Notes: 1. The companies listed above are companies where the Company directly or indirectly held 100% equity interest, except for Livzon Group
and Shanghai Frontier; financial data thereof are data of individual accounting statements and that attributed toparent companies; as there are
transactions between subsidiaries or between a subsidiary and the Company, data of individual financial statements are not separately analyzed.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Acquisition and disposal of subsidiaries during the Reporting Period
□ Applicable √ Not applicable
Other information
□ Applicable √ Not applicable
(VII) Structured entities controlled by the Company
□ Applicable √N/A
V.Other matters for disclosure
(I) Potential risks
√Applicable □N/A
As a vital component of the national economy, the pharmaceutical industry is closely tied to
government policies and regulations. China is continuously deepening its reform of the healthcare system,
with relevant policy and regulatory frameworks undergoing further revision and improvement. Key
developments—such as the implementation and adjustment of the national reimbursement drug list,
refinement of volume-based procurement mechanisms, enhanced support for innovative drugs and clinical
trials, and intensified industry-wide compliance inspections—are expected to have a profound impact on
the future development of the pharmaceutical sector. These changes also affect the Company’s R&D,
manufacturing, and commercial operations to varying degrees.
In addition, external policy factors such as geopolitical dynamics and macroeconomic policies may
also exert influence on the operational landscape of pharmaceutical enterprises.
Response measures: The Company will pay close attention to industry dynamics and reforms, cope
with major changes in policies of the pharmaceutical industry through early planning, transformation and
compliance, and further establish and improve its compliant operation mechanism and system. Meanwhile,
the Company actively engages in the access to the national reimbursement drug list and negotiation, and
continue to increase the coverage of hospitals and sales, to realize the objective of “price for quantity”,
so as to reduce the impact of price adjustment on the Company’s steady growth. Moreover, the volume-
based drug procurement is becoming a regular practice. In response to the potential impact of national
volume-based procurement on the Company’s performance, Joincare remains committed to strengthening
innovation by continuously developing high-value-added innovative drugs that address urgent clinical
needs. The Company will further explore and cultivate existing products with strong market potential and
technological barriers, while actively advancing post-marketing re-evaluation and consistency evaluation
of key products. By continuously optimizing its product portfolio and proactively exploring international
markets, the Company strives to enhance its core competitiveness and ensure stable and sustainable
business growth.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
With advancement of supply-side structural reform in the pharmaceutical manufacturing industry and
two invoice policy in circulation domain, pharmaceutical market structure is deeply changed. With the
gradual standardization and centralization of the market, competition in the pharmaceutical industry
becomes increasingly fierce. Affected by increasingly stricter drug regulation, policy-based drug price
reduction, price cutting during bidding, medical insurance premium control, and minimum procurement
commitment of the pharmaceutical industry in current stage, bid winning price of drugs will be further
lowered, competition among enterprises in the industry will be intensified, and price war will occur
frequently, thus the Company will be at the risk of drug price reduction.
Response measures: The Company will establish a more reasonable market system through strict
compliance operation so as to maintain its dominant position and core competitive strengths, and ensure
that it can achieve sustainable and steady development and improve its profitability by reinforcing
marketing. Meanwhile, the Company will offset the impact of product price reduction by means of price
supplement based on quantity, and optimize technical process and reduce production costs through internal
exploration and transformation. Moreover, the Company will speed up the R&D and marketing of new
products, spread risks of the Company while expanding the range of existing products in segment markets,
improve sales and form new profit growth drivers by increasing product varieties in the future.
The Company is an integrated pharmaceutical manufacturing enterprise. During production, it
implements relevant chemical synthesis process and uses a large number of acid and alkali and other
chemical components, which are inflammable, explosive, toxic, irritant and corrosive, and have hidden
hazards of fire, explosion and poisoning, posing certain risks to the production and operation of the
Company. As environmental protection policies and regulations have been constantly issued in recent
years, environmental protection standards have become more stringent, and the state has strengthened its
control over pollutants, risks of environmental protection of the Company are increasing.
Response measures: The Company has always obeyed the safety work concept of “Putting People
First” and the guideline of “Safety First, Precaution Crucial and Comprehensive Treatment”. It will
strengthen the construction of safe production infrastructure and ensure a sound environment for safe
production of the Company through regular internal audit of safety and environment systems as well as
employee safety education and training. The Company will carry out discharge after treatment and
reaching standards in accordance with environmental protection provisions, actively accept supervision
and inspection of environmental protection authorities, and try to reduce emission and increase
expenditures in environmental protection by improving production process and promptly updating
environmental protection technology.
There is a larger fluctuation in the supply price of some raw materials of the Company due to changes
in material prices, especially the materials of traditional Chinese medicine, causing greater volatility or
rise in production costs of the Company. Meanwhile, the quantity and category of raw material suppliers
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
of the Company are various, thus quality of final products of the Company will be directly affected by the
selection of raw material suppliers and the guarantee and control of quality of raw materials.
Response measures: In terms of selection of suppliers, the Company will conduct an open tendering
and bidding based on the principle of selecting qualified suppliers, strengthen audit of suppliers, and
eliminate the adulteration of adverse suppliers. The Quality Assurance Department and Supply
Department of the Company will directly conduct process control of products provided by suppliers of
key raw materials and carry out quality inspection and control of final products
The quality of pharmaceutical products is directly linked to public health and safety. Regulatory
authorities have placed increasingly stringent requirements on manufacturing quality, placing significant
responsibility on pharmaceutical manufacturers. Given that drug production involves numerous stages—
including raw material supply, manufacturing processes, process controls, equipment management,
production environment, transportation, warehousing, and testing—quality control must be integrated
across the entire product lifecycle.
Response measures: The Company enforces rigorous quality control standards and continues to
strengthen its long-term quality assurance mechanisms and comprehensive quality management system.
It ensures close coordination among R&D, production, and quality management departments, supported
by digital systems and end-to-end optimization of Standard Operating Procedures (SOPs). By enhancing
the quality management framework and reinforcing engineering controls and risk management in new
product processes, the Company aims to improve operational quality and ensure product integrity. In
parallel, it continues to implement performance excellence models, introduce advanced international
quality concepts and methodologies, and promote the adoption of quality management tools—further
aligning its quality systems with global standards.
New drug R&D is characterized by high investment, high risk, and long development cycles. In recent
years, the government has frequently introduced policies related to pharmaceutical innovation, with
increasingly stringent requirements for the review and approval of new drug applications. These
developments bring certain risks to the Company’s R&D efforts.
In addition, post-approval commercialization of new drugs is subject to the influence of national
regulations, industry policies, market conditions, and competitive intensity. These factors may result in
revenues falling short of expectations after product launch, thereby exposing the Company to product
development risk.
Response measures: The Company remains focused on innovative drug development, with a strong
emphasis on addressing unmet clinical needs. It will continue to invest in innovation as a long-term
strategic priority. Moving forward, the Company will further strengthen its R&D innovation system,
attract and develop high-caliber talent, and actively engage in collaboration and licensing of overseas
innovative drugs. It will also enhance market research and product evaluation, standardize project
initiation procedures, and improve risk control mechanisms—channeling resources toward the
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
breakthrough development of core products. A comprehensive R&D project risk management system will
be established to support full-cycle risk assessment and monitoring. This enables timely adjustment of
R&D strategies to reduce development risks. At the same time, the Company closely monitors emerging
technology trends, actively explores cutting-edge research areas, and strategically plans relevant R&D
projects in advance to maintain its technological competitiveness. Moreover, by leveraging the Group’s
strength in APIs, the Company will also strengthen API–formulation integration to ensure long-term,
sustainable development.
(II) Other matters for disclosure
□Applicable √N/A
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Chapter 4 Corporate Governance, Environmental and Social
I Changes in directors, supervisors and senior management of the Company
√Applicable □N/A
Name Position Change
Huo Jing Independent Director Resigned
Shen Xiaoxu Independent Director Appointed
Description of changes in directors, supervisors and senior management of the Company
√Applicable □N/A
On April 7, 2025, the Board of Directors of the Company received a written resignation letter from
Ms. Huo Jing, an Independent Director. As Ms. Huo had served as an Independent Director of the
Company for six years, and pursuant to the Measures for the Administration of Independent Directors of
Listed Companies, under which the consecutive term of an Independent Director could not exceed six
years, she applied to resign from her position as Independent Director of the Company as well as from her
positions on the Board’s special committees and other related posts.
On April 7, 2025, the Company convened the eighth meeting of the ninth session of the Board of
Directors, at which it considered and approved the Proposal on the Nomination of Ms. Shen Xiaoxu as an
Independent Director Candidate of the Company. Upon qualification review by the Nomination
Committee of the Board, the Board agreed to nominate Ms. Shen Xiaoxu as a candidate for Independent
Director of the ninth session of the Board of Directors, with a term commencing from the date of approval
by the general meeting of shareholders until the expiry of the ninth session of the Board. This proposal
was approved at the 2024 annual general meeting of shareholders held by the Company on June 6, 2025.
II Profit distribution plan and plan for conversion of capital reserve into share capital
Profit distribution plan and plan for conversion of capital reserve into share capital proposed for
the first six months of 2025
Distribution or conversion or not No
Number of bonus shares to be distributed for every ten shares (share) N/A
Amount to be distributed for every ten shares (RMB) (tax inclusive) N/A
Number of shares to be converted into share capital for every ten shares (share) N/A
Description of profit distribution plan and plan for conversion of capital reserve into share capital
N/A
III Equity incentive scheme, employee share ownership scheme or other employee incentives of the
Company and their effect
(I) Matters related to equity incentive scheme have been disclosed in the Ad Hoc Announcements
with no progress or change in subsequent implementation
√Applicable □N/A
Overview Query index
For details, please refer to the Indicative
Announcement on the Expiry of Phase I Share
The first phase of the Phase I Share Ownership Scheme of Ownership Scheme of Medium to Long-term
Medium to Long-term Business Partners expired on August 3, 2025. Business Partners Six Months After Its Term
Duration (Lin 2025-007) disclosed by the
Company on February 6, 2025.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
On April 24, 2025, the Company convened the ninth meeting
of the ninth session of Board of Directors and the eighth meeting of
the ninth session of Supervisory Committee, at which it considered
For details, please refer to the
and approved the Proposal on the Cancellation of the Remaining
Announcement on the Cancellation of the
Remaining Stock Options under the 2022 Share
Company’s performance for 2024 did not meet the performance
Options Incentive Scheme (Lin 2025-035)
assessment requirements at the Company level, a total of 16.314
disclosed by the Company on April 25, 2025,
million stock options, comprising the third exercise period portion
and the Announcement on the Completion of the
of the initial grant to all incentive participants and the second
Cancellation of the Remaining Stock Options
exercise period portion of the reserved grant, were cancelled. The
under the 2022 Share Options Incentive Scheme
interested directors abstained from voting on the relevant proposal,
(Lin 2025-039) disclosed on May 7, 2025.
and the Supervisory Committee issued its review opinion on the
cancellation. The cancellation of the aforesaid 16.314 million stock
options was completed on May 6, 2025.
For details, please refer to the Indicative
Announcement on the Expiration of the Lock-up
The lock-up period for the Phase II Share Ownership Scheme Period of Phase II Share Ownership Scheme of
of Medium to Long-term Business Partners expired on June 7, 2025. Medium to Long-term Business Partners (Lin
(II) Incentives not disclosed in the Ad Hoc Announcements or with subsequent progress
Equity incentives
□Applicable √N/A
Others
□Applicable √N/A
Employee share ownership scheme
□Applicable √N/A
Other incentive program
□Applicable √N/A
IV Environmental information of listed companies and their key subsidiaries that are included in
the list of enterprises subject to mandatory environmental information disclosure in
accordance with the law
√Applicable □N/A
Number of enterprises included in the
List of Enterprises Subject to
Mandatory Disclosure of
Environmental Information
Index for Accessing the Mandatory Environmental Information Disclosure
No. Enterprise Name
Report
Guangdong Provincial Department of Ecology and Environment Public Website
Guangdong Provincial Department of Ecology and Environment Public Website
Henan Enterprise Environmental Information Disclosure System
Henan Enterprise Environmental Information Disclosure System
A001P
Livzon Pharmaceutical Guangdong Provincial Department of Ecology and Environment Public Website
Factory （https://www-
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
app.gdeei.cn/gdeepub/front/dal/report/list?entName=%E4%B8%BD%E7%8F%A
%8D%AF%E5%8E%82&reportType=&areaCode=440400&entType=&reportDa
teStartStr=&reportDateEndStr=）
Guangdong Provincial Department of Ecology and Environment Public Website
（https://www-
app.gdeei.cn/gdeepub/front/dal/report/list?entName=%E4%B8%BD%E7%8F%A
StartStr=&reportDateEndStr=）
Guangdong Provincial Department of Ecology and Environment Public Website
（https://www-
EndStr=）
Guangdong Provincial Department of Ecology and Environment Public Website
（https://www-
app.gdeei.cn/gdeepub/front/dal/report/list?entName=%E7%8F%A0%E6%B5%B
%90%88%E6%88%90%E5%88%B6%E8%8D%AF%E6%9C%89%E9%99%90
%E5%85%AC%E5%8F%B8&reportType=&areaCode=440400&entType=&rep
ortDateStartStr=&reportDateEndStr=
Guangdong Provincial Department of Ecology and Environment Public Website
（https://www-
app.gdeei.cn/gdeepub/front/dal/report/list?entName=%E4%B8%BD%E7%8F%A
%E5%85%AC%E5%8F%B8&reportType=&areaCode=441800&entType=&rep
ortDateStartStr=&reportDateEndStr=
Henan Enterprise Environmental Information Disclosure System
Shanghai Enterprise Environmental Information Disclosure System
（https://e2.sthj.sh.gov.cn:8081/jsp/view/hjpl/index.jsp）
Ningxia Enterprise Environmental Information Disclosure System
（https://222.75.41.50:10958）
Fujian Enterprise Environmental Information Disclosure System（Beta
Version）（http://220.160.52.213:10053/idp-province/#/home）
Other Notes
□Applicable √N/A
V Consolidation and expansion of achievements in poverty alleviation and rural revitalization
√Applicable □N/A
To promote the sustainable development of the rural economy, the Company has fully implemented
the important instructions of the CPC Central Committee and the General Secretary and formulated and
implemented the "Astragalus Root （黄芪）Industry Revitalization" plan. Adopting the "Company +
Base" and "Company + Professional Cooperative" models, the Company has established self-built and co-
built astragalus root planting bases, driving local astragalus root cultivation and processing and developing
a regional specialty astragalus root industry based on local conditions. This initiative supports the
construction of an ecological traditional Chinese medicine (TCM) base, aiming to establish a long-term
pillar industry for prosperity and explore new pathways for rural economic development through the
featured astragalus root industry.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
The "Astragalus Root Industry Revitalization" plan has been ongoing since 2017. Datong Livzon
Qiyuan Medicine Co., Ltd.（大同丽珠芪源药材有限公司） (“Datong Livzon”), a subsidiary of the
Company, has established self-built and co-built astragalus root planting bases covering over 20,000 mu
in Hunyuan County, Tianzhen County, and Yanggao County of Datong City, Shanxi Province, as well as
Zizhou County and Suide County in Yulin City, Shaanxi Province. Datong Livzon provides regular on-
site technical guidance and GAP training for base managers and major planters and conducts practical
training on the traceability of TCM materials. Currently, all bases have been incorporated into the
Company’s TCM GAP production management traceability system, allowing shared traceability resources
within the Company. In accordance with the national GAP requirements for Chinese medicinal materials,
in the first half of 2025, the Company established a self-owned Astragalus GAP cultivation base of 680
mu in Tianzhen County, Datong City, Shanxi Province.
Project
To support rural revitalization and the consolidation and expansion of achievements in poverty
alleviation, and to actively respond to the national policies on rural revitalization and common prosperity,
Joincare Group has continued to implement the “Inclusive Chronic Disease Prevention and Control Public
Welfare Project” (普惠慢病防治公益项目), leveraging its industrial advantages to deliver tangible health
benefits to grassroots communities. The program focuses on common chronic diseases, including
hypertension, hyperlipidemia, and cardiovascular and cerebrovascular diseases, and has donated treatment
medications worth millions of RMB to remote areas, including Pravastatin Capsules (普伐他汀钠胶囊),
Amlodipine Besylate Capsules (苯磺酸氨氯地平胶囊), Valsartan Capsules (缬沙坦胶囊), Isosorbide
Bononitrate Tablets (单硝酸异山梨酯片) and Bismuth Potassium Citrate Tablets（枸橼酸铋钾片）.
These medications effectively help alleviate the economic burden of long-term medication for low-income
families and address chronic disease medication challenges, while also raising awareness of chronic
disease prevention and health management. This initiative effectively prevents “poverty caused by illness”
or “returning to poverty due to illness”, thereby contributing to the local rural revitalization efforts.
Since late 2018, with the support of local government agencies and relevant authorities at all levels,
the "Inclusive Chronic Disease Prevention and Control Public Welfare Project" has been successfully
carried out in Chaotian District of Guangyuan City, Songpan County of Aba Tibetan and Qiang
Autonomous Prefecture, Jinkouhe District of Leshan City, Jiange County, and Pingwu County in Sichuan
Province; Hunyuan County, Guangling County, and Lingqiu County in Datong City, Shanxi Province;
Dongxiang County, Tianzhu County, Linze County, Shandan County, Huining County, and Sunan County
in Gansu Province; Xianghai National Nature Reserve in Jilin Province; Macun District of Jiaozuo City
in Henan Province; Huangshan District of Huangshan City in Anhui Province; Suining County in Hunan
Province; Fenyi County in Jiangxi Province; Jiangshan City in Zhejiang Province; Chayu County, Bomi
County, and Gaize County in Tibet Autonomous Region; Kashgar City in Xinjiang Uygur Autonomous
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Region; Balinzuo Banner and Tuoketuo County in Inner Mongolia; Ziyuan County in Guangxi Zhuang
Autonomous Region; and Rongjiang County in Guizhou Province.
As of the end of the reporting period, the Company had entered into a total of 32 agreements under
the “Inclusive Chronic Disease Prevention and Control Public Welfare Project” (including 28 agreements
covering remote areas in need of assistance), spanning 10 provinces and 4 autonomous regions nationwide,
benefiting 31,002 low-income patients with chronic diseases.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Chapter 5 Major Events
I Fulfillment of undertakings
(I) Undertakings fulfilled during the Reporting Period or not yet fulfilled as of the Reporting
Period by the parties to the commitment such as de facto controllers, shareholders, related parties,
acquirers of the Company and the Company
√Applicable □N/A
Specific
Next plan
Whether reasons
Whether should be
commit for
there is a stated in
Commitment Commitment Commitment Time of Time limit of ment is failure in
Subject time limit case of
background type content commitment commitment strictly timely
for failure in
fulfilled fulfillmen
fulfillment timely
in time t shall be
fulfillment
given
Settlement of Please see
horizontal Baiyeyuan Note 1 for No Long-term Yes - -
Commitment competition details
related to Baiyeyuan, de
initial public Settlement of facto controllers Please see
offering horizontal and persons acting- Note 2 for No Long-term Yes - -
competition in concert, and the details
Company
The date of
completion of
remedial
Please see
The Company and 8 March measures in
Others Note 3 for Yes Yes - -
de facto controllers 2016 connection with
details
the non-public
offering of
Livzon Group
The date of
Commitment completion of
related to Please see remedial
Baiyeyuan and the
seasoned Others Note 4 for 11 May 2017 Yes measures in Yes - -
de facto controller
offerings details connection with
rights issue of
Joincare
From the
date of
Please see proceeds for The date of
Others The Company Note 5 for issuance of Yes completion of Yes - -
details the Rights use of proceeds
issue in
place.
Other
commitments
made to the Please see
minority Others The Company Note 6 for No Long-term Yes - -
shareholders details
of the
company
Note 1: Shenzhen Baiyeyuan Investment Co., Ltd., the controlling shareholder of the Company, undertook that it
would not be directly or indirectly engaged in or cause subsidiaries and branches under its control to be engaged in any
business or activity constituting horizontal competition with the Company after the founding of the Company, including but
not limited to the research, production and sales of any products that were the same as or similar to products under research,
production and sales of the Company, and was willing to undertake compensation responsibility for economic losses to the
Company arising from violation of the said commitment.
Note 2: Whereas the domestically listed foreign shares of Livzon Group, a controlled subsidiary of the Company,
sought listing on the Main Board of the Stock Exchange of Hong Kong Limited, in order to fully ensure smooth completion
of the said event and in compliance with relevant requirements of the Stock Exchange of Hong Kong Limited, the controlling
shareholders, de facto controller of the Company and the Company entered into relevant undertakings with Livzon Group
as follows: 1. The controlling shareholders, de facto controller and persons acting-in-concert of the Company, the Company
and its controlled subsidiaries except for Livzon Group did not or would not be, directly or indirectly, engaged in any
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
business that constituted competitive relation or potential competitive relation with drug research, development, production
and sale businesses (“Restricted Businesses”) of Livzon Group from time to time. For the avoidance of doubt, the scope of
Restricted Businesses did not cover products that were researched, developed, manufactured and sold on the date of relevant
letter of undertaking by the controlling shareholders and de facto controller of the Company, the Company and its controlled
subsidiaries except for Livzon Group; 2. If any new business opportunity was found to constitute competitive relation with
Restricted Businesses, the controlling shareholders, de facto controllers and persons acting-in-concert of the Company, the
Company and its controlling subsidiaries except for Livzon Group would inform Livzon Group in written form immediately
and firstly provide Livzon Group with the business opportunity in accordance with reasonable and fair terms and conditions.
If Livzon Group gave up the business opportunity, the controlling shareholders and de facto controllers of the Company,
the Company and its controlled subsidiaries except for Livzon Group may accept the business opportunity in accordance
with the terms and conditions that were not superior to those offered to Livzon Group; 3. If assets and businesses that
directly or indirectly constituted competitive relation and potential competitive relation with Restricted Businesses were
intended to be transferred, sold, leased, licensed to use or otherwise transferred or allowed to use (these Sales and Transfers),
the controlling shareholders and de facto controllers of the Company, the Company and its controlled subsidiaries except
for Livzon Group would provide the right of first refusal for Livzon Group under the same condition. If Livzon Group gave
up the right of first refusal, the controlling shareholders, de facto controllers and persons acting-in-concert of the Company,
the Company and its controlled subsidiaries except for Livzon Group would carry out these Sales and Transfers to a third
party in accordance with main terms that were not superior to those offered to Livzon Group; 4. The controlling shareholders,
de facto controllers and persons acting-in-concert of the Company, the Company and its controlled subsidiaries except for
Livzon Group would not be engaged in or involved in any business that might damage the interests of Livzon Group and
other shareholders through the relation with shareholders of Livzon Group or the identity of shareholders of Livzon Group;
controlled subsidiaries except for Livzon Group would not or cause its contact persons (except for Livzon Group) to directly
or indirectly: (1) induce or attempt to induce any director, senior management or consultant of any member of Livzon Group
to terminate his/her employment with or to be an employee or consultant of Livzon Group at any time (whichever is
applicable), no matter if relevant acts of the person were against the Employment Contract or Consultancy Agreement (if
applicable); (2) Within three years after any person terminated to be the director, senior management or consultant of any
member of Livzon Group, employ the person who had or might have any confidentiality information or business secret in
relation to Restricted Businesses (except for the director, senior management or consultant of the Company and/or its
controlling subsidiaries except for Livzon Group on the date of issuance of relevant letter of undertaking); (3) Recruit or
lobby any person carrying out business in any member of Livzon Group, accept orders, or carry out business separately,
through any other person or as any person, firm, or manager, advisor, consultant, employee, agent or shareholder of any
company (competitor of any member of Livzon Group), or lobby or persuade the person making transaction with Livzon
Group or negotiating with Livzon Group on Restricted Businesses to terminate its transaction with Livzon Group or reduce
its normal business volume with Livzon Group, or ask for more favorable transaction terms to any member of Livzon Group.
controlled subsidiaries except for Livzon Group further undertook that: (1) They would allow and cause relevant contact
persons (except for Livzon Group) to allow independent directors of Livzon Group to review if the Company and its
controlled subsidiaries except for Livzon Group obeyed the Letter of Undertaking at least once a year; (2) They would
provide all the data required for annual review and implementation of the Letter of Undertaking for independent directors
of Livzon Group; (3) They would allow Livzon Group to disclose the decision on whether the controlling shareholders and
de facto controllers of the Company, the Company and its controlled subsidiaries except for Livzon Group obeyed and
implemented the Letter of Undertaking reviewed by independent directors of Livzon Group through the annual report or
announcement; (4) The controlling shareholders, de facto controllers and persons acting-in-concert of the Company, the
Company (and its controlled subsidiaries except for Livzon Group) would provide Livzon Group with the Letter of
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Confirmation in relation to compliance with clauses of the Letter of Undertaking every year so as to be included in the
annual report of Livzon Group. 7. The controlling shareholders, de facto controllers and persons acting-in-concert of the
Company, and the Company promise that they would bear corresponding legal responsibility and consequence arising from
violation of any clause by the Company (or the Company's controlled subsidiaries except for Livzon Group or its contact
persons), starting from the date of issuance of relevant letter of undertaking. 8. The said undertakings would terminate in
case of the following circumstances (whichever is earlier): (1) The controlling shareholders, de facto controllers and persons
acting-in-concert of the Company, the Company and any of its controlled subsidiaries were not the controlling
shareholders of Livzon Group anymore; (2) Livzon Group terminated the listing of its shares on the Hong Kong Stock
Exchange and other overseas stock exchanges (except that shares of Livzon Group stopped to be traded temporarily for any
reason).
Note 3: Do not interfere in the operation and management activities of Livzon Group or encroach on the interests of
Livzon Group.
Note 4: Pursuant to the Guiding Opinions on Matters Relating to the Dilution of Current Returns as a Result of Initial
Public Offering, Refinancing and Major Asset Restructuring (Announcement of CSRC [2015] No. 31), the company shall
undertake to adopt specific remedial measures relating to dilution of current returns as a result of the company's initial
public offering, refinancing of the listed company, or major asset restructuring and shall fulfill such undertaking. Pursuant
to relevant provisions of CSRC, Zhu Baoguo, the de facto controller of Shenzhen Baiyeyuan Investment Co., Ltd., a
controlling shareholder:1. Do not intervene in the operation and management activities or encroach on the interests of the
company; 2. If CSRC issued other new regulatory provisions on the remedial measures in relation to returns and the relevant
undertakings and the aforesaid undertakings did not conform to such provisions from the date of issuance of the undertaking
to the completion of IPO share allotment, the Company/the de facto controller would undertake to issue a supplemental
undertaking in accordance with the latest provisions of CSRC; 3. The Company/the de facto controller undertook to
practically take the remedial measures in relation to returns formulated by the company and fulfill the undertaking
concerning the remedial measures. In case of violation of the undertaking, causing losses to the company or investors, the
Company/the de facto controller was willing to assume compensation responsibilities to the company or investors in
accordance with law. In case of violation of the said undertakings or rejection to fulfill the said undertakings, as one of the
liability subjects relating to the remedial measures concerning returns, it was agreed that relevant punishment shall be
imposed on or relevant management measures shall be taken against the Company/the de facto controller by CSRC, the
SSE and other securities regulators in accordance with relevant provisions and rules set or issued by them.
Note 5: After the proceeds for issuance of allotment were in place, the Company would use them according to the
disclosure in the announcement, and carry out the policies, including deposit in special account, approval by specially-
assigned person, and special use of special funds in accordance with management measures for proceeds of the Company.
The Board of the Company would regularly check the progress of projects invested with proceeds, issue a special report on
deposit and use of proceeds, engage an accounting firm during the annual audit to issue a verification report on deposit and
use of proceeds, would be supervised by regulators and sponsors at any time, and would not make major investment, asset
purchase or similar financial investment through proceeds in disguise.
Note 6: (1) While transferring tradable shares subject to selling restrictions held by the company in Livzon Group,
the company shall strictly obey relevant provisions of Guidelines of Listed Companies on Transfer of Stock Shares Subject
to Selling Restrictions ([2008] No. 15); (2) If the Company had shares subject to selling restrictions held by it in Livzon
Group that were planned to be sold through the bid trading system of Shenzhen Stock Exchange and reduced more than 5%
shares within six months from the first share reduction, the Company would pass the Announcement on Sales disclosed by
Livzon Group within two trading days before the first share reduction.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
II Non-operating use of funds by the controlling shareholder and their related parties during the
reporting period
□Applicable √N/A
III Information on Illegal guarantees
□Applicable √N/A
IV Audit of interim report
□Applicable √N/A
V Information on changes and handling of matters related to non-standard audit opinions in the
annual report for the previous year
□Applicable √N/A
VI Matters related to bankruptcy reorganization
□Applicable √N/A
VII Material Litigation and Arbitration Matters
□During the Reporting Period, the Company had material litigation and arbitration matters.
√ During the Reporting Period, the Company did not have any material litigation or arbitration matters.
VIII Information on punishment and rectification of the listed company and its directors,
supervisors, senior management, controlling shareholders, and de facto controllers due to
violations of laws and regulations
□Applicable √N/A
IX Integrity of the Company and its controlling shareholders and de facto controllers during
the Reporting Period
□Applicable √N/A
X Substantial related transactions
(I) Related transactions in the ordinary course of business
√Applicable □N/A
Overview Query index
Pursuant to the “Resolution on Related Transactions in
the Ordinary Course of Business of the Controlling
Subsidiaries of Jiaozuo Joincare and Jinguan Electric Power”
considered and approved at the 8th Meeting of the 9th Session
of the Board on 7 April 2025, Jiaozuo Joincare intended to See the Announcement on Resolutions
purchase no more than RMB300 million (inclusive) of steam Considered and Approved at the 8th Meeting of
and power from Jinguan Electric Power in 2025 so as to satisfy the 9th Session of the Board of Joincare
the demands of Jiaozuo Joincare for steam and power in the Pharmaceutical Group Industry Co., Ltd. (Lin
process of production and operation. The proposal has been 2025-017) and the Announcement on the
considered and approved at the special meeting of the Connected Transactions in the Ordinary Course
independent directors of the Company, on which the of Jiaozuo Joincare and Jinguan Electric Power
Supervisory Committee of the Company has also expressed its (Lin 2025-023) disclosed by the Company on 8
relevant audit opinion. April 2025 for details.
Both parties referred to the market price to fix a price of
the said related transactions. During the Reporting Period, the
actual amount of the said related transactions was
RMB132.1285 million.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
subsequent implementation
□Applicable √N/A
□Applicable √N/A
(II) Related transactions relating to assets or equity acquisition and sale
□Applicable √N/A
subsequent implementation
□Applicable √N/A
□Applicable √N/A
Reporting Period shall be disclosed
□Applicable √N/A
(III) Substantial related transactions of joint outbound investment
□Applicable √N/A
subsequent implementation
□Applicable √N/A
□Applicable √N/A
(IV) Credits and debts with related parties
□Applicable √N/A
subsequent implementation
□Applicable √N/A
√Applicable □N/A
Unit：Yuan Currency：RMB
Provision of funds for the listed company by related
Provision of funds for related party
Relationship party
Related party with related Balance at the Balance at the Balance at the Balance at the
Amount Amount
party beginning of end of the beginning of the end of the
changed changed
the period period period period
Guangdong Blue Treasure
Pharmaceutical Co., Ltd. Others 6,511,310.14 -1,005,891.91 5,505,418.23 2,568,000.00 -1,353,600.00 1,214,400.00
(广东蓝宝制药有限公司)
Zhuhai Sanmed Gene
Diagnostics Ltd. (珠海市圣 Others 53,978.00 -53,978.00 0.00
美基因检测科技有限公司)
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Zhuhai Sanmed Biotech Inc.
(珠海圣美生物诊断技术有 Others 219,824.98 200,090.14 419,915.12
限公司)
Feellife Health Inc. (深圳来 Associated
福士雾化医学有限公司) company
Jiaozuo Jinguan Jiahua
Associated
Electric Power Co., Ltd. (焦 15,799,796.87 -15,799,796.87 0.00 0.00 26,399,467.58 26,399,467.58
company
作金冠嘉华电力有限公司)
Beijing Shuobai
Pharmaceutical Technology
Others 0.00 325,880.00 325,880.00
Co., Ltd. (北京硕佰医药科
技有限责任公司)
Zhongshan Renhe Health
Products Co., Ltd. (中山市 Others 469,895.78 0.00 469,895.78
仁和保健品有限公司)
Sichuan Healthy Deer
Hospital Management Co.,
Ltd. and its subsidiaries (四 Others 68,563.91 -68,563.91 0.00
川健康阿鹿医院管理有限
公司及其子公司)
Total 24,219,115.31 -16,415,913.03 7,803,202.28 2,636,563.91 24,977,303.67 27,613,867.58
Reason for occurrence of credits and debts
During the Reporting Period, the Company had normal operating fund transactions with related parties
with related parties
Effect of credits and debts with related
The said credits and debts with related parties are operating fund transactions; there was no non-
parties on the operating results and
operating use of funds of the Company by shareholders and related parties
financial position of the Company
(V) Financial businesses among the Company, related financial companies, financial companies
controlled by the Company, and related parties
□Applicable √N/A
(VI) Other substantial related transactions
□Applicable √N/A
(VII) Others
□Applicable √N/A
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
XI Material contracts and their enforcement
□Applicable √N/A
√Applicable □N/A
Unit：10,000 Yuan Currency：RMB
External guarantees of the Company (excluding guarantees to its subsidiaries)
Relationship Date of Whether
Guarantee Start Guaranteed for
between the Secured Amount of guarantee (date Guarantee Guarantee Fulfilled Overdue Overdue there's a
Guarantor date Guarantee a related party Relationship
Guarantor and the party guarantee of signature of Start date type or not or no amount counter-
Maturity date or not
listed company agreement) guarantee
Jinguan Joint
Headquarter of the Associated
Joincare Electric 1,100.00 2024/7/25 2024/7/25 2025/7/25 liability No No 0 Yes Yes
Company company
Power guarantee
Jinguan Joint
Headquarter of the Associated
Joincare Electric 3,000.00 2024/8/8 2024/8/8 2025/8/8 liability No No 0 Yes Yes
Company company
Power guarantee
Jinguan Joint
Headquarter of the Associated
Joincare Electric 800.00 2024/8/22 2024/8/22 2025/8/17 liability No No 0 Yes Yes
Company company
Power guarantee
Jinguan Joint
Headquarter of the Associated
Joincare Electric 1,700.00 2024/8/22 2024/8/22 2025/8/22 liability No No 0 Yes Yes
Company company
Power guarantee
Jinguan Joint
Headquarter of the Associated
Joincare Electric 1,400.00 2024/9/6 2024/9/6 2025/9/6 liability No No 0 Yes Yes
Company company
Power guarantee
Jinguan Joint
Headquarter of the Associated
Joincare Electric 4,000.00 2024/9/27 2024/9/27 2025/9/26 liability No No 0 Yes Yes
Company company
Power guarantee
Jinguan Joint
Headquarter of the Associated
Joincare Electric 1,700.00 2024/9/29 2024/9/29 2025/9/19 liability No No 0 Yes Yes
Company company
Power guarantee
Jinguan Joint
Headquarter of the Associated
Joincare Electric 4,800.00 2024/10/16 2024/10/16 2025/10/15 liability No No 0 Yes Yes
Company company
Power guarantee
Jinguan Joint
Headquarter of the Associated
Joincare Electric 4,600.00 2024/10/21 2024/10/21 2025/10/20 liability No No 0 Yes Yes
Company company
Power guarantee
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Jinguan Joint
Headquarter of the Associated
Joincare Electric 2,300.00 2024/10/25 2024/10/25 2025/10/25 liability No No 0 Yes Yes
Company company
Power guarantee
Jinguan Joint
Headquarter of the Associated
Joincare Electric 1,500.00 2024/10/25 2024/10/25 2025/10/25 liability No No 0 Yes Yes
Company company
Power guarantee
Jinguan Joint
Headquarter of the Associated
Joincare Electric 500.00 2024/11/1 2024/11/1 2025/11/1 liability No No 0 Yes Yes
Company company
Power guarantee
Jinguan Joint
Headquarter of the Associated
Joincare Electric 800.00 2024/11/25 2024/11/25 2025/11/25 liability No No 0 Yes Yes
Company company
Power guarantee
Jinguan Joint
Headquarter of the Associated
Joincare Electric 1,200.00 2024/12/6 2024/12/6 2025/11/30 liability No No 0 Yes Yes
Company company
Power guarantee
Jinguan Joint
Headquarter of the Associated
Joincare Electric 1,800.00 2024/12/17 2024/12/17 2025/12/16 liability No No 0 Yes Yes
Company company
Power guarantee
Jinguan Joint
Headquarter of the Associated
Joincare Electric 6,000.00 2025/1/24 2025/1/24 2025/12/31 liability No No 0 Yes Yes
Company company
Power guarantee
Jinguan Joint
Headquarter of the Associated
Joincare Electric 4,000.00 2025/3/14 2025/3/14 2025/12/31 liability No No 0 Yes Yes
Company company
Power guarantee
Jinguan Joint
Headquarter of the Associated
Joincare Electric 394.09 2025/6/30 2025/6/30 2025/12/26 liability No No 0 Yes Yes
Company company
Power guarantee
Total guaranteed amount occurred during the Reporting Period (excluding guarantees to subsidiaries) 10,394.09
Total guaranteed amount as of the end of the Reporting Period (A) (excluding guarantees to
subsidiaries)
Guarantee provided by the Company and its subsidiaries to subsidiaries
Total amount of guarantees to subsidiaries during the Reporting Period 93,859.21
Total amount of guarantees to subsidiaries as of the end of the Reporting Period (B) 233,996.99
Total guaranteed amount of the Company (including guarantees to subsidiaries)
Total guaranteed amount (A+B) 275,591.08
Percentage of total guaranteed amount in the Company's net assets (%) 11.71
In which:
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Amount of guarantees provided to shareholders, de facto controllers and their related parties
(C)
Amount of debt guarantee directly or indirectly provided to a guaranteed party with an asset-
liability ratio exceeding 70% (D)
Portion of total guaranteed amount exceeding 50% of net assets (E) 0.00
Total guaranteed amount of the above three items (C+D+E) 136,634.74
Statement on the contingent joint liability that might be assumed in connection with
N/A
outstanding guarantee
The above connected guarantees are detailed in Note XII5(4) to the Financial Statements of this
Statement on guarantees
report.
□Applicable √N/A
XII Progress of Proceeds Usage
√Applicable □N/A
(I) Overall Usage of Proceeds
√Applicable □N/A
Unit: 10,000 Yuan
Including: Cumulative
Total Total Progress investment
Total
amount of investment of progress of
committed Total Percentage
proceeds amount of cumulative proceeds
Net amount of investment of investment of Total
from proceeds investment from over- Investment
Sources Total proceeds after proceeds amount of investment amount of
Paid-in time over- from over- as at the allotment as amount
of amount of deducting stated in the proceeds as amount in proceeds
of proceeds allotment allotment end of the at the end of during the
proceeds proceeds issuance prospectus or at the end of the year with change
as at the Reporting the year (8)
expenses (1) offering （3）= the Reporting (%) (9) = of usage
end of the Period (%) Reporting
memorandum （1）- Period (4) (8)/(1)
Reporting (6) = Period
（2） （2） Period (4)/(1) （%）(7)＝
（5） (5)/(3)
Others 2018/10/16 171,599.38 166,974.02 166,974.02 0.00 171,655.28 0.00 102.80 N/A 4,865.02 2.91 76,974.02
Others 2022/9/26 USD9,204 USD8,930.00 USD8,930.00 USD0.00 USD250.64 USD0.00 2.81 N/A USD1.14 0.01 0.00
Other Notes
□Applicable √N/A
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
(II) Details of Investment Projects with Proceeds
√Applicable □N/A
√Applicable □N/A
Unit: 10,000 Yuan
Progress of
Whether it is a Total cumulative
Whether investment investment
committed Date when
involving Total amount of amount of as at the end
investment Investment the project
Sources of Nature of any proceeds of the
Name of project project stated in amount during proceeds as at reaches
proceeds project change in commitments Reporting
the prospectus the year the end of the intended
investmen for project (1) Period
or offering Reporting usable state
t direction （%）
memorandum Period（2）
(3)＝(2)/(1)
Yes, the
Zhuhai Health Industry Base Construction Production and project
Others Yes - - - - Terminated
Project construction has been
canceled
Haibin Pharma Pingshan Pharmaceutical Production and December
Others Yes No 89,610.87 0.00 89,610.87 100.00
Industrialization Base Project construction 2023
Yes, this
Haibin Pharma Pingshan Pharmaceutical Production and December
Others No is a new 15,239.17 0.00 15,239.17 100.00
Industrialization Base Expansion Project construction 2024
project
Yes, this
January
Others New products R&D project R&D No is a new 60,644.11Note#2 4,865.02 65,325.37 107.72
project
Yes, this
January
Others Information Platform Construction Project Others No is a new 1,479.87 0.00 1,479.87 100.00
project
Others Global R&D and Industrialization Plan R&D Yes No USD 6,251.00 0.00 USD244.36 3.91 N/A
Construction of global product sales and Production and
Others Yes No USD 893.00 0.00 USD3.62 0.41 N/A
after-sales network and service system construction
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Replenishment of working capital and other Operation
Others Yes No USD 1,786.00 USD1.14 USD2.66 0.15 N/A
general corporate purposes management
（Continued）
Whether the Specific reasons Benefits Whether there was any
Whether the Benefits or R&D
investment progress why investment generated significant change in the Surplus
Name of project project has been achievements achieved in
was in line with the progress fell short during the feasibility of project? If Balance
completed the project
planned progress of scheduled plan year so, please describe details.
Zhuhai Health Industry Base
Yes Yes N/A Yes Note #1
Construction Project
Haibin Pharma Pingshan
Pharmaceutical Industrialization Base Yes Yes N/A The related respiratory No
Project formulation products have
Haibin Pharma Pingshan already entered production
Pharmaceutical Industrialization Base Yes Yes N/A and sales. No
Expansion Project
New products R&D project No Yes N/A No
Information Platform Construction
Yes Yes N/A No
Project
Global R&D and Industrialization
No Yes N/A No
Plan
Construction of global product sales
and after-sales network and service No Yes N/A No
system
Replenishment of working capital and
No Yesc N/A No
other general corporate purposes
Note 1:
At the 8th Board of Directors Meeting (8th Session) held on January 24, 2022, and the First Extraordinary General Meeting of 2022 held on February 11, 2022, the company resolved to
reallocate the unused raised funds of RMB 735.88 million from the Zhuhai Healthcare Industry Base Construction Project, along with interest income and cash management gains (based on
actual past and future occurrences), to the following projects: New Products R&D Project, Haibin Pharma Pingshan Pharmaceutical Industrialization Base Expansion Project and Information
Platform Construction Project. The feasibility of the Zhuhai Healthcare Industry Base Construction Project and its external environment underwent significant changes, as detailed below:
(1) Project Delays
The company completed its public offering in October 2018. Regarding the Zhuhai Healthcare Industry Base Construction Project, the company disclosed in its 2018 annual report, H1 2019
report, and 2019 annual report on the storage and use of raised funds that the project site was not ready for construction due to the incomplete municipal infrastructure (three utilities and one
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
leveling – roads, water, electricity, and site leveling). As a result, the project could not commence. Furthermore, at the 22nd Meeting of the 7th Board of Directors on April 9, 2020, and the 2019
Annual General Meeting on May 29, 2020, the company approved a postponement of the project commencement date. Similarly, at the 44th Meeting of the 7th Board of Directors on March 29,
not meet the conditions for construction.
(2) Changes in Market Environment and Project Feasibility
Due to market changes, the company adjusted its product development strategy, resulting in changes to the project’s feasibility. The Zhuhai Healthcare Industry Base Construction Project
was originally planned for the production of health care products, OTC drugs, and a small amount of food products. Among these, health care products were the primary investment focus,
accounting for an estimated 70% of projected revenue once the project reached full capacity. The company originally planned to expand production capacity for existing products and add new
product lines through this project, aiming for rapid growth in the health care products and OTC drug sectors. However, in recent years, market competition in the domestic health supplement
industry has intensified, with many foreign brands entering the Chinese market and capturing a significant market share. While the health care products market continued to grow, competition
became increasingly fierce. Additionally, due to regulatory constraints such as national medical insurance policies, health supplement sales in pharmacies declined. Although the OTC drug
market maintained steady growth, its contribution to this project was relatively small. From 2018 to the first half of 2021, the company's total revenue from health care supplements and OTC
drugs was RMB 327 million, RMB 300 million, RMB 327 million, and RMB 160 million, respectively, showing an overall stable development trend. However, health care products sales
exhibited a downward trend, while OTC drug sales saw slight growth. Based on market conditions and the company's business development in these sectors, a reassessment determined that
continuing the investment project as originally planned would not yield favorable economic returns.
(3) Reallocation of Products and Production Facilities
Some products originally planned for production at the Zhuhai Healthcare Industry Base have been transferred to other locations, some will continue at existing facilities or through
outsourcing, while others have been discontinued. The termination of the original project will not have a significant adverse impact on the company. Over the past three years, the health care
products and OTC drug business has remained stable. The respiratory drugs originally planned for production at this base, including Budesonide Inhalation Aerosol, Ipratropium Bromide Aerosol,
Budesonide Suspension, and Compound Ipratropium Bromide Solution, were transferred in February 2019 to another investment project, Haibin Pharma Pingshan Pharmaceutical
Industrialization Base.
The planned OTC drugs such as Dexamethasone Tablets and Dysmenorrhea Oral Liquid, as well as health care products such as Taita Oral Liquid, Jing Xin Oral Liquid, Sugar-Free
American Ginseng Tea, American Ginseng Lozenges, and American Ginseng Beverage, will continue production at existing facilities. A few products, such as Probiotic Powder (a food product),
will be outsourced for production. The planned production of Coenzyme Q10 Soft Capsules, Rhaponticum Total Sterol Capsules (pharmaceuticals), and Shenqi Oral Liquid, Dampness-Removing
and Spleen-Tonifying Drink (health supplements and food products), has been discontinued.
Based on the company’s operational performance over the past three years, a reasonable forecast indicates that existing production facilities are sufficient to sustain the development of its
health supplement and OTC drug business.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Note 2: On September 10, 2024, the company convened its 3rd meeting of the 9th Board of Directors and approved the proposal "Regarding the Transfer of Land Use Rights and Buildings
by a Wholly Owned Subsidiary, Involving the Transfer of a Raised Fund Investment Project."
The proposal approved the transfer by the company’s wholly owned subsidiary, Joincare Pharmaceutical (China) Co., Ltd., of the state-owned construction land use rights for a plot located
south of Hubin Road and east of Binhe Road in Sanzao Town, Jinwan District, Zhuhai, with a total area of 94,538 ㎡, along with all above-ground buildings under construction and other
attachments, to Zhuhai Yangyi Biopharmaceutical Co., Ltd. for a total price of RMB 79.52 million (tax included).
The transferred asset pertains to the Zhuhai Healthcare Industry Base Construction Project, a fundraising investment project from the company’s equity offering. Since a total of RMB 33.86
million in raised funds had been invested in this project, RMB 33.86 million from the transaction proceeds will be reallocated to the New Products R&D Project. Following this adjustment, the
planned investment amount for the New Products R&D Project will be increased from RMB 545.88 million to RMB 579.74 million.
On December 30, 2024, the company convened its 7th meeting of the 9th Session of Board of Directors and approved the proposal "Regarding the Completion of Certain Fundraising
Investment Projects and the Reallocation of Surplus Raised Funds to Other Investment Projects."
The proposal approved the completion and closure of the Haibin Pharma Pingshan Pharmaceutical Industrialization Base Expansion Project and the Information Platform Construction
Project, both fundraising investment projects from the equity offering. It also approved the reallocation of the remaining funds from these projects, along with surplus funds from the previously
completed Haibin Pharma Pingshan Pharmaceutical Industrialization Base Project, totaling RMB 26.70 million plus interest, to the New Products R&D Project.
Following this adjustment, the planned investment amount for the New Products R&D Project increased from RMB 579.7402 million to RMB 606.4411 million.
□Applicable √N/A
(III) Changes in or termination of investment of proceeds during the Reporting Period
□Applicable √N/A
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
(IV) Other information on the usage of proceeds during the Reporting Period
√Applicable □N/A
Pursuant to the Proposal on Replacing Self-raised Funds Previously Invested in Projects with
Proceeds considered and approved at the 3rd Meeting of the 7th Session of the Board on 29 October
self-raised funds previously invested in projects. The replacement with proceeds did not exceed six
months from the date of payment of such proceeds, which complied with relevant laws and
regulations, and did not affect the normal progress of the projects invested with the proceeds. There
was no disguised change in the investment direction of proceeds, nor would it harm the interests of
shareholders. Minsheng Securities Co., Ltd., the sponsor of the Company, has issued the Opinions
on the Verification of Replacing Self-raised Funds Previously Invested in Projects with Proceeds
by Joincare Pharmaceutical Group Industry Co., Ltd.
The companies implementing such projects have completed the replacement of self-raised
funds previously invested in projects of RMB215.3282 million with the proceeds in December 2018.
□Applicable √N/A
□Applicable √N/A
√Applicable □N/A
(1) Information on using bank acceptance bills to pay for projects invested with proceeds
Pursuant to the Proposal on the Payment of Projects Invested with Proceeds with Bank
Acceptance Bills and the Equal Replacement with Proceeds considered and approved at the 25th
Meeting of the 7th Session of the Board on 7 May 2020, it was agreed that during the
implementation of projects invested with proceeds, the Company could use bank acceptance bills
(or endorsed transfer) to pay for the amount relating to projects invested with the proceeds and could
transfer an equal amount of capital from the special account of proceeds to replenish working capital.
For details, please refer to the “Announcement on the Payment of Projects Invested with Proceeds
with Bank Acceptance Bills and the Equal Replacement with Proceeds of Joincare Pharmaceutical
Group Industry Co., Ltd.” (Lin 2020-054).
As at 30 June 2025, the Company’s cumulative amount of bank acceptance bills used to pay
for projects invested with the proceeds was RMB210.9554 million, and the cumulative amount for
the equal replacement with the proceeds was RMB210.9554million.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
(2) Using letters of credit to pay for projects invested with proceeds and equal
replacement with proceeds
Pursuant to the Proposal on the Payment of Projects Invested with Proceeds with Letters of
Credit and the Equal Replacement with Proceeds considered and approved at the 39th Meeting of
the 8th Session of the Board on 25 April 2024, it was agreed that during the implementation of
projects invested with proceeds, the Company could use letters of credit to pay for the amount
relating to projects invested with proceeds and could regularly replace it by transferring an equal
amount of capital from the special account of proceeds to the Company's general account. For details,
please refer to the “Announcement on the Using letters of credit to pay for projects invested with
proceeds and equal replacement with proceeds of Joincare Pharmaceutical Group Industry Co., Ltd.”
(Lin 2024-040).
As at 30 June 2025, the Company’s cumulative amount of letters of credit used to pay for
projects invested with the proceeds was RMB23.8145 million, and the cumulative amount for equal
replacement with the proceeds was RMB23.8145 million.
(3) Use of Surplus Proceeds from the Offering
On December 30, 2024, the Company convened the seventh meeting of the ninth session of
the Board of Directors, at which it considered and approved the Proposal on the Completion of
Certain Proceeds-funded Projects and the Use of Surplus Proceeds for Other Proceeds-funded
Projects. It was agreed that the rights issue proceeds-funded projects — Haibin Pharma Pingshan
Pharmaceutical Industrialization Base Expansion Project and the Informatization Platform
Construction Project — be concluded, and that the surplus proceeds from the above projects,
together with the surplus proceeds from the previously concluded Haibin Pharma Pingshan
Pharmaceutical Industrialization Base Project, totaling RMB 26.7009 million and the accrued
interest thereon (the exact amount based on the actual amount after bank interest settlement on the
date of transfer), be transferred to the New Product R&D Project. For details, please refer to the
Announcement of Joincare Pharmaceutical Group Industry Co., Ltd. on the Completion of Certain
Proceeds-funded Projects and the Use of Surplus Proceeds for Other Proceeds-funded Projects (Lin
(4) Change in the Use of Proceeds for Proceeds-funded Projects
On September 10, 2024, the company convened its 10th meeting of the 9th Board of Directors
and approved the proposal "Regarding the Transfer of Land Use Rights and Buildings by a Wholly
Owned Subsidiary, Involving the Transfer of a Raised Fund Investment Project."
The proposal approved the transfer by the company’s wholly owned subsidiary, Joincare
Pharmaceutical (China) Co., Ltd., of the state-owned construction land use rights for a plot located
south of Hubin Road and east of Binhe Road in Sanzao Town, Jinwan District, Zhuhai, with a total
area of 94,538 ㎡, along with all above-ground buildings under construction and other attachments,
to Zhuhai Yangyi Biopharmaceutical Co., Ltd. for a total price of RMB 79.52 million (tax included).
The transferred asset pertains to the Zhuhai Healthcare Industry Base Construction Project, a
fundraising investment project from the company’s equity offering. Since a total of RMB33.8629
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
million in raised funds had been invested in this project, RMB33.8629 million from the transaction
proceeds will be reallocated to the New Products R&D Project.
As of the end of the reporting period, pursuant to the disposal agreement, the Company had
recovered the full amount of RMB33.8629 million.
Assurance of the Storage and Use of Proceeds
□Applicable √N/A
Explanation of Irregularities Identified During the Verification
□Applicable √N/A
Proceeds or Misappropriation of Proceeds
□Applicable √N/A
XIII Other significant matters
√Applicable □N/A
(1) Share Repurchase through Secondary Market
On 2 September 2024 and 23 September 2024, the Company convened the second meeting of
the ninth session of the Board of Directors and the fourth extraordinary general meeting of
shareholders in 2024, respectively, at which the proposals, including the Share Repurchase Plan via
Centralised Bidding Transactions, were considered and approved. It was resolved to repurchase the
Company’s shares via centralised bidding transactions using self-owned or self-raised funds. The
repurchased shares will be used for the purpose of reducing the registered capital.
The total repurchase amount shall not be less than RMB 300 million (inclusive) and not more
than RMB500 million (inclusive), at a repurchase price of no more than RMB 15.40 per share
(inclusive). The repurchase period shall run from 23 September 2024 to 22 September 2025. For
further details, please refer to the Share Repurchase Plan via Centralised Bidding Transactions of
Joincare Pharmaceutical Group Industry Co., Ltd. (Lin 2024-085) and the Share Repurchase Report
of Joincare Pharmaceutical Group Industry Co., Ltd. via Centralised Bidding Transactions (Lin
On 26 November 2024, the Company, through centralised bidding transactions, had
cumulatively repurchased 19,208,347 shares, representing 1.02% of the Company’s total share
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
capital of 1,874,200,420 shares. For details, please refer to the Announcement on the Repurchase of
Shares Reaching 1% of the Total Share Capital and Progress of the Repurchase by Joincare
Pharmaceutical Group Industry Co., Ltd. (Lin 2024-123).
On 14 January 2025, the Company had cumulatively repurchased 38,116,614 shares through
centralised bidding transactions, representing 2.03% of the Company’s total share capital of
Reaching 2% of the Total Share Capital and Progress of the Repurchase by Joincare
Pharmaceutical Group Industry Co., Ltd. (Lin 2025-004).
As of 6 March 2025, the Company had cumulatively repurchased 44,747,034 shares through
centralised bidding transactions, representing 2.39% of the Company’s total share capital of
fees). The repurchase was thereby completed. For details, please refer to the Announcement on the
Results of Share Repurchase and Changes in Shareholding Structure by Joincare Pharmaceutical
Group Industry Co., Ltd. (Lin 2025-013).
Upon the Company’s application, the above repurchased shares were cancelled on 10 March
Following the cancellation, the Company’s total share capital was reduced from 1,874,200,420
shares to 1,829,453,386 shares.
(2) Acquisition of Equity Interests in Vietnam’s IMP by Controlled Subsidiary Livzon
Group
On 22 May 2025, LIAN SGP HOLDING PTE. LTD. (“LIAN SGP”), an overseas wholly-
owned subsidiary of Livzon Pharmaceutical Group Inc. (“Livzon Group”), a controlled subsidiary
of the Company, entered into a Framework Agreement (the “Agreement”) with SK Investment Vina
III Pte. Ltd. (“SK”), Sunrise Kim Investment Joint Stock Company (“Sunrise”), and KBA
Investment Joint Stock Company (“KBA”, together with SK and Sunrise, the “Sellers”). Pursuant
to the Agreement, LIAN SGP proposes to acquire 64.81% of the shares of Imexpharm Corporation
(“IMP” or the “Target Company”), a listed company in Vietnam, held in aggregate by the Sellers
(the “Transaction”). The equity purchase price for the Transaction is VND 5,730,815,426,000
(equivalent to approximately RMB 1.587 billion, based on the central parity exchange rate on the
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
date of signing the Agreement), representing 10.92% of the net assets attributable to shareholders
of the Company as per the most recent audited financial statements.
The Transaction does not constitute a connected transaction, nor does it constitute a material
asset restructuring as defined under the Administrative Measures for Material Asset Restructuring
of Listed Companies. On 22 May 2025, the Company convened the tenth meeting of the ninth
session of the Board of Directors, at which the Proposal on the Proposed Acquisition of Shares in
Vietnam’s IMP by the controlled subsidiary Livzon Group was considered and approved. Pursuant
to the Shanghai Stock Exchange Listing Rules and other relevant provisions, this matter falls within
the approval authority of the Board of Directors and does not require submission to the general
meeting of shareholders for approval. The implementation of the Transaction remains subject to the
fulfilment of the conditions precedent stipulated in the Agreement and the completion of relevant
approval procedures in the jurisdiction of the Target Company in respect of the acquisition.
The Transaction involves only the acquisition of equity and does not involve personnel
resettlement, land lease, debt restructuring or other matters. Upon completion of the Transaction,
IMP will become a controlled subsidiary of the Company and be included in the scope of the
Company’s consolidated financial statements.
The implementation of the acquisition is subject to filings or approvals from all competent
authorities in accordance with the law, and therefore the Transaction remains subject to uncertainties
in relation to policies and approvals. As the equity interest in the Target Company to be acquired is
located overseas, there are certain differences in regional culture and management practices
compared with the Company. Should mutual understanding of corporate culture and complementary
integration of resources fail to be achieved effectively after completion of the Transaction, certain
risks may arise in respect of the Company’s operations, management, and business integration.
For details of the Transaction, please refer to the Announcement on the Proposed Acquisition
of Shares in Vietnam’s IMP by the controlled subsidiary Livzon Group (Lin 2025-044) published
by the Company on the website of the Shanghai Stock Exchange on 23 May 2025.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Chapter 6 Changes in Equity and Shareholders
I Changes in Share Capital
(I) Table of changes in shares
Unit: shares
Before the current change Increase/decrease (+, -) due to the current change After the current change
Conversion
Issuance Issuance
Percentage of capital Percentage
Number of new of bonus Others Subtotal Number
(%) reserve to (%)
shares shares
share capital
I. Shares subject to
selling restrictions
state government
state-owned entities
other domestic
holders
Of which: Shares
held by domestic
non-state-owned
entities
Shares held
by domestic natural
persons
foreign holders
Including: Shares
held by foreign
entities
Shares held
by foreign natural
persons
II. Shares without
selling restrictions
denominated in 1,874,200,420 100 0 0 0 -44,747,034 -44,747,034 1,829,453,386 100
Renminbi
listed foreign shares
foreign shares
III. Total number of
shares
√Applicable □N/A
On 2 September 2024, the Company convened the 2nd Meeting of the 9th session of the Board
of Directors, at which it reviewed and approved the Proposal on the Share Repurchase Plan by Way
of Centralised Bidding and other related proposals. It was resolved to use the Company’s own funds
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
or self-raised funds to repurchase shares by way of centralised bidding, with the repurchased shares
to be used for reducing the registered capital.
The total repurchase amount shall be not less than RMB 300 million (inclusive) and not more
than RMB 500 million (inclusive), at a repurchase price of no more than RMB 15.40 per share
(inclusive). The repurchase period shall run from 23 September 2024 to 22 September 2025. For
details, please refer to the Share Repurchase Plan by Way of Centralised Bidding of Joincare
Pharmaceutical Group Industry Co., Ltd. (Lin 2024-085) and the Share Repurchase Report of
Joincare Pharmaceutical Group Industry Co., Ltd. by Way of Centralised Bidding (Lin 2024-096).
The above proposals were approved at the Company’s Fourth Extraordinary General Meeting
of Shareholders in 2024, convened on 23 September 2024.
On 6 March 2025, the Company completed the above share repurchase. Through centralised
bidding transactions, the Company had cumulatively repurchased 44,747,034 shares, with the
highest purchase price being RMB 11.90 per share, the lowest purchase price being RMB 10.57 per
share, and the average repurchase price being RMB 11.17 per share, for a total consideration of
RMB 499.9836 million (inclusive of transaction fees). The repurchased shares were cancelled in
full on 10 March 2025.
indicators from the Reporting Period to the date of disclosure of the interim report (if any)
□ Applicable √N/A
regulators
□ Applicable √N/A
(II) Changes in shares with selling restrictions
□ Applicable √N/A
II Shareholders
(I) Total number of shareholders:
Total number of ordinary shareholders at the end of the Reporting Period 76,255
Total number of shareholders of preferred shares with resumed voting
Not applicable
rights at the end of the Reporting Period
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
(II) Shareholdings of the Top 10 shareholders and the Top 10 shareholders of tradable shares
(or shareholders without selling restrictions) at the End of the Reporting Period
Unit: shares
Shareholdings of the Top 10 shareholders
（excluding shares lent through refinancing business）
Number of Pledge, mark or lock-up
Change Number of
shares held
Name of shareholder during the shares held at Percentage Nature of
with Share
(Full name) reporting the end of the (%) Number Shareholder
selling status
period Period
restrictions
Domestic
Shenzhen Baiyeyuan non-state
Investment Co., Ltd. * owned
entity
Hong Kong Securities Clearing
Company Limited
Foreign
Might Seasons Limited 0 35,929,699 1.96 0 Unknown
entity
Agriculture Bank of China
Limited-CSI 500 Exchange
Traded Index Securities
Investment Fund
Rui Life Insurance Co., Ltd. -
Own fund
Domestic
Zhang Yongliang 8,998,400 12,028,400 0.66 0 Unknown Natural
Person
Bank of Shanghai Co., Ltd.－
Yinhua CSI Innovative Drug
Industry Trading Open-end -2,521,176 10,308,020 0.56 0 Unknown Unknown
Index Securities Investment
Fund
Joincare Pharmaceutical Group
Industry Co., Ltd.-the Third
Phase Ownership Scheme under
Medium to Long-term Business
Partner Share Ownership
Scheme
CPIC Fund -China Pacific Life
Insurance Co., Ltd. -with-profit
insurance-CPIC Fund China
-1,231,500 8,068,500 0.44 0 Unknown Unknown
Pacific Life Equity Relative
Income (Guaranteed Dividend)
single assets management plan
Domestic
Yan Yongxing 130,400 6,890,800 0.38 0 Unknown Natural
Person
Shareholdings of the Top 10 shareholders without selling restrictions
（excluding shares lent through refinancing business）
Number of tradable shares held Class and number of shares
Name of shareholder
without selling restrictions Class Number
Ordinary shares
Shenzhen Baiyeyuan Investment Co., Ltd. * 895,653,653 denominated in 895,653,653
Renminbi
Ordinary shares
Hong Kong Securities Clearing Company
Limited
Renminbi
Ordinary shares
Might Seasons Limited 35,929,699 denominated in 35,929,699
Renminbi
Agriculture Bank of China Limited-CSI 500 Ordinary shares
Exchange Traded Index Securities Investment 16,274,684 denominated in 16,274,684
Fund Renminbi
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Ordinary shares
Rui Life Insurance Co., Ltd. -Own fund 12,982,618 denominated in 12,982,618
Renminbi
Ordinary shares
Zhang Yongliang 12,028,400 denominated in 12,028,400
Renminbi
Bank of Shanghai Co., Ltd.－Yinhua CSI Ordinary shares
Innovative Drug Industry Trading Open-end 10,308,020 denominated in 10,308,020
Index Securities Investment Fund Renminbi
Joincare Pharmaceutical Group Industry Co.,
Ordinary shares
Ltd.-the Third Phase Ownership Scheme under
Medium to Long-term Business Partner Share
Renminbi
Ownership Scheme
CPIC Fund -China Pacific Life Insurance Co.,
Ltd. -with-profit insurance-CPIC Fund China Ordinary shares
Pacific Life Equity Relative Income 8,068,500 denominated in 8,068,500
(Guaranteed Dividend) single assets Renminbi
management plan
Ordinary shares
Yan Yongxing 6,890,800 denominated in 6,890,800
Renminbi
Notes on the special repurchase account among
Not applicable
the top 10 shareholders
Description of the above shareholders involved
in entrustment/entrusted voting right and waiver Not applicable
of voting right
There was no connection or acting-in-concert relationship between Shenzhen Baiyeyuan
Description of connection or acting-in-concert Investment Co., Ltd., a controlling shareholder of the Company, and other shareholders;
relationship of the above shareholders whether there is connection or acting-in-concert relationship among other shareholders is
unknown
Description of holders of preferred shares with
resumed voting rights and number of preferred Not applicable
shares
Participation of shareholders holding over 5%, the top 10 shareholders, and the top 10 shareholders
without selling restriction in securities lending transactions of refinancing business
□Applicable √N/A
Changes in the top 10 shareholders and the top 10 shareholders without selling restriction due to
securities lending/returning transactions of refinancing business compared to the previous period
□ Applicable √N/A
Number of shares held by the Top 10 shareholders with selling restrictions and selling restrictions
□ Applicable √N/A
(III) Strategic investors or general legal persons who became Top 10 shareholders through
placement of new shares
□ Applicable √N/A
III Information on directors, supervisors, and senior management
(I) Changes in shareholdings of current directors, supervisors, and senior management and
those who resigned during the Reporting Period
□ Applicable √N/A
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Description of other information
□ Applicable √N/A
(II) Equity incentive granted to directors, supervisors, and senior management during the
Reporting Period
√Applicable □N/A
Unit: 10,000 shares
Number of Number of
Number of Number of Number of
share newly granted
exercisable exercised share
options share options
Name Title options during options during options held
held at the during the
the Reporting the Reporting at the end of
beginning Reporting
Period Period the period
of the year Period
Lin Nanqi Director 24 0 0 0 0
Qiu Qingfeng Director 18 0 0 0 0
Zhang Senior
Leiming executive
Senior
Du Yanmei 12 0 0 0 0
executive
Senior
Tang Tingke 6 0 0 0 0
executive
Senior
Zhu Yifan 7 0 0 0 0
executive
Total / 80.50 0 0 0 0
(III) Others
□ Applicable √N/A
IV Changes in controlling shareholders or de facto controllers
□ Applicable √N/A
V. Information on Preferred Shares
□ Applicable √N/A
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Chapter 7 Information on Bonds
I Enterprise bonds, corporate bonds, and non-financial enterprise debt financing instruments
□ Applicable √N/A
II Information on convertible corporate bonds
□ Applicable √N/A
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Chapter 8 Financial statements
I. Auditor's report
□Applicable √N/A
II. Financial statements
Consolidated Balance Sheet
Prepared by: Joincare Pharmaceutical Group Industry Co., Ltd.
Unit: Yuan Currency: RMB
Item Note 30 June 2025 31 December 2024
Current assets:
Cash and bank balances V.1 14,486,328,294.55 14,851,977,121.94
Financial assets held for trading V.2 490,624,181.31 89,363,055.07
Notes receivable V.3 1,644,458,811.36 1,951,213,189.48
Accounts receivable V.4 2,886,227,493.74 2,429,891,052.01
Receivables financing
Prepayments V.5 256,617,690.36 241,379,213.79
Other receivables V.6 61,778,202.56 51,166,649.86
Including: Interest receivables
Dividend receivables 146,732.76
Inventories V.7 2,320,707,668.36 2,621,343,117.50
Contract assets
Assets held-for-sale V.8 54,046,737.68 54,029,237.68
Non-current assets due within one year V.9 1,068,421,283.81 556,410,803.22
Other current assets V.10 121,667,668.49 159,087,536.76
Total current assets 23,390,878,032.22 23,005,860,977.31
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment V.11 1,476,173,277.79 1,446,298,598.46
Other equity instrument investments V.12 1,038,766,399.28 1,026,548,743.15
Other non-current financial assets
Investment properties V.13 15,696,887.85 16,117,329.57
Fixed assets V.14 5,506,577,329.64 5,689,216,337.13
Construction in progress V.15 582,667,379.81 531,063,771.79
Productive biological assets
Oil & gas assets
Right-of-use assets V.16 42,760,499.91 38,626,733.57
Intangible assets V.17 741,243,814.38 687,430,720.95
Development cost V.18 446,125,520.18 362,703,730.11
Goodwill V.19 636,339,503.82 636,339,503.82
Long-term prepaid expenses V.20 295,705,771.54 319,396,628.88
Deferred tax assets V.21 762,906,657.86 685,468,536.85
Other non-current assets V.22 616,374,207.72 1,273,057,844.54
Total non-current assets 12,161,337,249.78 12,712,268,478.82
Total assets 35,552,215,282.00 35,718,129,456.13
Current liabilities:
Short-term loans V.24 2,130,000,000.00 2,455,000,000.00
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Financial liabilities held for trading V.25 8,581.94 9,046,554.29
Notes payable V.26 1,210,521,011.10 1,384,943,947.17
Accounts payable V.27 741,306,014.68 765,512,193.23
Receipts in advance
Contract liabilities V.28 97,959,931.37 142,395,539.21
Employee benefits payable V.29 321,316,195.93 473,571,305.45
Taxes payable V.30 279,656,691.03 263,380,339.80
Other payables V.31 3,771,013,187.90 3,369,115,240.67
Including: Interest payables
Dividend payables 345,350,501.55 9,890,041.38
Liabilities held-for-sale
Non-current liabilities due within one
V.32 539,276,416.15 395,975,991.36
year
Other current liabilities V.33 6,492,734.60 11,841,940.51
Total current liabilities 9,097,550,764.70 9,270,783,051.69
Non-current liabilities:
Long-term loans V.34 2,285,563,489.02 2,424,635,112.37
Bonds payable
Lease liabilities V.35 21,132,611.94 19,975,819.77
Long-term payables
Long-term payroll payable
Estimated liabilities
Deferred income V.36 339,400,325.35 334,970,008.52
Deferred tax liabilities V.21 271,953,381.12 267,622,684.50
Other non-current liabilities
Total non-current liabilities 2,918,049,807.43 3,047,203,625.16
Total liabilities 12,015,600,572.13 12,317,986,676.85
Owner’s equity (or shareholder’s equity)
Share capital V.37 1,829,453,386.00 1,874,200,420.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve V.38 1,111,064,590.24 1,654,383,491.41
Less: Treasury shares V.39 328,221,279.42
Other comprehensive income V.40 -86,345,717.80 -41,177,547.42
Special reserve
Surplus reserve V.41 883,841,583.49 883,841,583.49
Undistributed profits V.42 10,907,386,718.31 10,491,692,921.28
Total shareholders' equity attributable to
the parent
Minority shareholder's equity 8,891,214,149.63 8,865,423,189.94
Total owner’s equity (or shareholder’s
equity)
Total liabilities and shareholders'
equity (or shareholder's equity)
Person-in-charge of the Person-in-charge of the Person-in-charge of the
Company: Zhu Baoguo Company’s accounting work: accounting department:
Qiu Qingfeng Guo Chenlu
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Balance Sheet of the Parent Company
Prepared by: Joincare Pharmaceutical Group Industry Co., Ltd.
Unit: Yuan Currency: RMB
Item Note 30 June 2025 31 December 2024
Current assets:
Cash and bank balances 1,511,481,342.75 1,267,163,186.68
Financial assets held for trading 202,254,509.60
Notes receivable 104,016,458.86 213,110,653.41
Accounts receivable 169,423,707.68 215,995,326.60
Receivable financing
Prepayments 66,609,308.45 65,226,966.95
Other receivables 682,143,565.47 755,355,599.84
Including: Interest receivables
Dividends receivable 519,999,500.00 594,999,500.00
Inventories 26,357,843.97 34,044,292.45
Contract assets
Assets held-for-sale
Non-current assets due within one
year
Other current assets 10,906,264.55 11,341,915.46
Total current assets 3,412,104,722.77 3,118,648,744.61
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment 3,747,805,740.06 3,747,384,860.50
Other equity instrument investment 167,844,859.45 158,225,331.61
Other non-current financial assets
Investment properties 6,191,475.43 6,191,475.43
Fixed assets 47,462,900.14 47,695,790.65
Construction in progress 127,433.63
Productive biological assets
Oil & gas assets
Right-of-use assets 6,693,076.58 8,127,307.28
Intangible assets 116,204,789.25 129,284,991.36
Development cost 148,409,406.71 136,566,953.79
Goodwill
Long-term prepaid expenses 8,394,423.13 8,663,059.49
Deferred income tax assets 178,753,034.27 146,255,469.13
Other non-current assets 159,128,985.03 460,886,298.45
Total non-current assets 4,586,888,690.05 4,849,408,971.32
Total assets 7,998,993,412.82 7,968,057,715.93
Current liabilities:
Short-term loans
Financial liabilities held for trading
Notes payable 17,700,000.00 64,552,011.15
Accounts payable 346,372,305.63 213,679,014.84
Receipts in advance
Contract liabilities 22,395,115.46 9,570,903.72
Employee benefits payable 20,550,537.33 42,594,091.98
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Taxes payable 7,775,742.31 7,446,940.04
Other payables 671,793,194.88 481,244,332.71
Including: Interest payables
Dividends payable 186,759,946.60
Liabilities held-for-sale
Non-current liabilities due within
one year
Other current liabilities 2,866,905.09 1,199,757.57
Total current liabilities 1,426,272,494.18 1,058,011,207.36
Non-current liabilities:
Long-term loans 917,940,000.00 871,400,000.00
Bonds payable
Lease liabilities 4,003,261.58 5,437,140.90
Long-term payables
Long-term payroll payable
Estimated liabilities
Deferred income 7,017,294.77 7,708,740.65
Deferred tax liabilities 3,816,753.40 3,887,593.60
Other non-current liabilities
Total non-current liabilities 932,777,309.75 888,433,475.15
Total liabilities 2,359,049,803.93 1,946,444,682.51
Owner’s equity (or shareholder’s equity):
Share capital 1,829,453,386.00 1,874,200,420.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 588,564,080.96 1,043,800,614.52
Less: Treasury shares 328,221,279.42
Other comprehensive income -3,684,876.93 888,524.41
Special reserve
Surplus reserve 795,239,635.11 795,239,635.11
Undistributed profits 2,430,371,383.75 2,635,705,118.80
Total owner’s equity (or
shareholder’s equity)
Total liabilities and owner’s equity
(or shareholder’s equity)
Person-in-charge of the Person-in-charge of the Person-in-charge of the
Company: Company’s accounting work: accounting department:
Zhu Baoguo Qiu Qingfeng Guo Chenlu
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Consolidated Income Statement
January to June, 2025
Prepared by: Joincare Pharmaceutical Group Industry Co., Ltd.
Unit: Yuan Currency: RMB
Item Note First half of 2025 First half of 2024
I. Total Revenues V.43 7,898,328,250.41 8,234,634,099.45
Including: Operating revenues 7,898,328,250.41 8,234,634,099.45
II. Total operating costs 5,912,767,808.69 6,247,787,990.98
Including: Operating costs V.43 2,985,132,575.95 3,021,125,884.33
Operating tax and surcharges V.44 99,500,263.72 93,999,188.76
Selling expenses V.45 2,016,794,488.84 2,096,637,821.45
Administrative expenses V.46 421,890,723.11 445,024,332.82
R&D expenses V.47 611,153,068.61 714,729,729.75
Financial expenses V.48 -221,703,311.54 -123,728,966.13
Including: Interest expenses 45,725,827.28 72,457,072.68
Interest income 246,070,795.96 187,438,919.12
Add: Other income V.49 85,396,777.46 70,438,830.56
Investment income("-" for loss） V.50 39,541,912.86 35,345,305.87
Including: Income from investments
in associates and joint ventures
Gains from derecognition of financial
assets at amortized cost
Gains from net exposure of
hedging("-" for loss）
Gains from changes in fair value("-"
V.51 -6,699,818.51 -19,576,467.55
for loss）
Losses of credit impairment ("-" for
V.52 -7,332,423.75 -3,873,446.70
loss）
Impairment loss of assets ("-" for
V.53 -14,814,061.48 -82,185,254.98
loss）
Gains from disposal of assets("-" for
V.54 -149,723.72 -76,440.36
loss）
III. Operating profit("-" for loss） 2,081,503,104.58 1,986,918,635.31
Add: Non-operating income V.55 5,194,263.72 4,941,102.08
Less: Non-operating expenses V.56 13,955,342.84 9,830,386.52
IV. Total profit("-" for loss） 2,072,742,025.46 1,982,029,350.87
Less: Income tax expenses V.57 309,027,226.55 285,813,843.86
V. Net profit("-" for net loss） 1,763,714,798.91 1,696,215,507.01
(I) Classified by continuity of operations：
operations（"-" for net loss）
operations（"-" for net loss）
(II) Classified by attribution to ownership：
shareholders of the parent（"-" for 784,939,913.34 776,424,466.87
net loss）
interests（"-" for net loss）
VI. Other comprehensive income,
-80,044,653.36 -29,097,306.90
net of tax
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
(I) Other comprehensive income
attributable to shareholders of the -48,523,609.49 -23,675,110.79
parent, net of tax
reclassified into profit or loss -783,183.68 -35,799,853.32
subsequently
(1) Changes in remeasurement of
defined benefit plan
(2) Other comprehensive income that
cannot be reclassified into profit or
loss under the equity method
(3) Changes in fair value of
investments in other equity -783,183.68 -35,799,853.32
instruments
(4) Changes in fair value of the
Company's own credit risks
will be reclassified into profit or loss -47,740,425.81 12,124,742.53
subsequently
(1) Other comprehensive income that
can be reclassified into profit or loss 1,130.90 39,671.05
under the equity method
(2) Changes in fair value of other
debt investments
(3) Amount of financial assets
reclassified into other comprehensive
income
(4) Provision for credit impairment of
other debt investments
(5) Reserve for cash flow hedges
(6) Exchange differences on
translation of financial statements -47,741,556.71 12,085,071.48
denominated in foreign currencies
(7) Others
(II) Other comprehensive income
attributable to minority shareholders, -31,521,043.87 -5,422,196.11
net of tax
VII. Total comprehensive income 1,683,670,145.55 1,667,118,200.11
(I) Total comprehensive income
attributable to owners of the parent 736,416,303.85 752,749,356.08
company
(II) Total comprehensive income
attributable to minority shareholders
Ⅷ. Earnings per share
(I) Basic earnings per share
(RMB/share)
(II) Diluted earnings per share
(RMB/share)
Person-in-charge of the Person-in-charge of the Person-in-charge of the
Company: Company’s accounting work: accounting department:
Zhu Baoguo Qiu Qingfeng Guo Chenlu
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Income Statement of the Parent Company
January to June, 2025
Prepared by: Joincare Pharmaceutical Group Industry Co., Ltd.
Unit: Yuan Currency: RMB
Item Note First half of 2025 First half of 2024
I. Total Revenues 594,513,807.68 973,915,823.86
Less: Operating costs 392,987,910.77 576,175,343.32
Operating tax and surcharges 4,239,505.51 7,406,570.41
Selling expenses 186,461,694.92 297,686,805.43
Administrative expenses 59,998,897.84 51,085,332.63
R&D expenses 97,827,723.36 147,404,985.50
Financial expenses -9,479,509.07 -28,612,165.69
Including: Interest expenses 13,820,881.41 23,108,693.32
Interest income 26,456,877.18 47,714,262.11
Add: Other income 1,720,782.25 1,024,961.91
Investment income("-" for loss） 264,579,370.62 322,471,744.99
Including: Income from investments in
associates and joint ventures
Gains from derecognition of financial
assets at amortized cost
Gains from net exposure of hedging("-"
for loss）
Gains from changes in fair value("-" for
loss）
Losses of credit impairment ("-" for loss） 142,751.15 723,705.70
Impairment loss of assets ("-" for loss） -13,220,847.32
Gains from disposal of assets("-" for
loss）
II. Operating profit ("-" for loss） 129,174,997.97 233,768,517.54
Add: Non-operating income 2,049.94 16,931.59
Less: Non-operating expenses 237,402.27 2,041,518.75
III. Total profit ("-" for loss） 128,939,645.64 231,743,930.38
Less: Income tax expenses -31,617,296.51 -18,712,223.83
IV. Net profit("-" for net loss） 160,556,942.15 250,456,154.21
(I) Net profit from continuing operations
（"-" for net loss）
(II) Net profit from discontinued
operations（"-" for net loss）
V. Other comprehensive income, net of
-4,573,401.34 -2,948,462.10
tax
(I) Other comprehensive income not
reclassified into profit or loss -4,573,401.34 -2,948,462.10
subsequently
benefit plan
cannot be reclassified into profit or loss
under the equity method
-4,573,401.34 -2,948,462.10
other equity instruments
own credit risks
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
(II)Other comprehensive income that will
be reclassified into profit or loss
subsequently
reclassified into profit or loss under the
equity method
investments
into other comprehensive income
debt investments
financial statements denominated in
foreign currencies
VI.Total comprehensive income 155,983,540.81 247,507,692.11
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
Person-in-charge of the Person-in-charge of the Person-in-charge of the
Company: Company’s accounting work: accounting department:
Zhu Baoguo Qiu Qingfeng Guo Chenlu
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Consolidated Cash Flow Statement
January to June, 2025
Prepared by: Joincare Pharmaceutical Group Industry Co., Ltd.
Unit: Yuan Currency: RMB
Item Note First half of 2025 First half of 2024
I. Cash flows from operating activities：
Cash received from sales of goods or
rendering of services
Tax refund received 82,817,164.75 72,459,734.72
Other cash received relating to operating
V.58 342,047,113.20 325,370,440.46
activities
Sub-total of cash inflows 8,790,765,626.08 9,028,663,852.50
Cash paid for goods and services 2,272,460,058.12 2,502,345,117.25
Cash paid to and on behalf of employees 1,464,238,914.58 1,420,206,600.87
Payments of all types of taxes 950,093,694.06 1,074,560,743.25
Other cash paid relating to operating
V.58 2,177,616,301.22 2,294,251,618.88
activities
Sub-total of cash outflows 6,864,408,967.98 7,291,364,080.25
Net cash flows from operating activities 1,926,356,658.10 1,737,299,772.25
II. Cash flows from investing activities：
Cash received from disposal of
investments
Cash received from returns on investments 14,255,709.03 6,997,674.74
Net cash received from disposal of fixed
assets, intangible assets and other long- 30,429,573.00 421,623.00
term assets
Net cash received from disposal of
subsidiaries and other business units
Other cash received relating to investing
V.58 75,249.03
activities
Sub-total of cash inflows from investing
activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 488,268,022.92 534,425,720.03
assets
Cash paid to acquire investments 3,436,309,986.72 668,660,272.66
Net cash paid for acquisition of
subsidiaries and other business units
Other cash paid relating to investing
V.58 4,517,299.69 931,044.37
activities
Sub-total of cash outflows in investing
activities
Net cash flows from investing activities -641,473,685.58 -481,671,263.33
III. Cash flows from financing activities ：
Cash received from capital contribution 3,350,000.00 253,821,632.83
Including: Cash received from investment
by minority interests of subsidiaries
Cash received from borrowings 1,942,140,000.00 1,984,343,152.42
Other cash received related to financing
V.58 1,040,757.54
activities
Subtotal of cash inflow from financing
activities
Cash repayments of amounts borrowed 2,264,521,809.00 2,902,045,056.78
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Cash payments for interest expenses and
distribution of dividends or profits
Including: Dividend paid to minority
interests of subsidiaries
Other cash payments relating to financing
V.58 590,694,203.10 153,731,977.05
activities
Sub-total of cash outflows in financing
activities
Net cash flows from financing activities -1,608,668,997.81 -1,375,832,567.57
IV. Effect of foreign exchange rate
-42,888,330.00 19,345,926.07
changes on cash and cash equivalents
V. Net increase in cash and cash
-366,674,355.29 -100,858,132.58
equivalents
Add: Opening balance of cash and cash
equivalents
VI. Closing balance of cash and cash
equivalents
Person-in-charge of the Person-in-charge of the Person-in-charge of the
Company: Company’s accounting work: accounting department:
Zhu Baoguo Qiu Qingfeng Guo Chenlu
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Cash Flow Statement of Parent Company
January to June, 2025
Prepared by: Joincare Pharmaceutical Group Industry Co., Ltd.
Unit: Yuan Currency: RMB
Item Note First half of 2025 First half of 2024
I. Cash flows from operating activities：
Cash received from sales of goods or
rendering of services
Tax refund received
Other cash received relating to
operating activities
Sub-total of cash inflows 895,093,849.45 4,648,864,913.34
Cash paid for goods and services 379,250,549.67 676,503,773.85
Cash paid to and on behalf of
employees
Payments of all types of taxes 25,449,069.12 88,151,311.60
Other cash paid relating to operating
activities
Sub-total of cash outflows 774,385,852.80 4,621,898,432.66
Net cash flows from operating
activities
II. Cash flows from investing activities：
Cash received from disposal of
investments
Cash received from returns on
investments
Net cash received from disposal of
fixed assets, intangible assets and 224,898.53 22,890.00
other long-term assets
Net cash received from disposal of
subsidiaries and other business units
Other cash received relating to
investing activities
Sub-total of cash inflows from
investing activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 11,365,298.15 62,639,667.27
assets
Cash paid to acquire investments 382,000,000 350,199,497.71
Net cash paid for acquisition of
subsidiaries and other business units
Other cash paid relating to investing
activities
Sub-total of cash outflows in
investing activities
Net cash flows from investing
activities
III. Cash flows from financing activities ：
Cash received from capital
contribution
Cash received from borrowings 152,000,000.00
Other cash received related to
financing activities
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Subtotal of cash inflow from
financing activities
Cash repayments of amounts
borrowed
Cash payments for interest expenses
and distribution of dividends or 192,732,461.20 184,858,834.62
profits
Other cash payments relating to
financing activities
Sub-total of cash outflows in
financing activities
Net cash flows from financing
-220,243,552.46 -888,690,266.26
activities
IV. Effect of foreign exchange rate
changes on cash and cash -2,913,521.17 4,173,480.17
equivalents
V. Net increase in cash and cash
equivalents
Add: Opening balance of cash and
cash equivalents
VI. Closing balance of cash and
cash equivalents
Person-in-charge of the Person-in-charge of the Person-in-charge of the
Company: Company’s accounting work: accounting department:
Zhu Baoguo Qiu Qingfeng Guo Chenlu
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Consolidated Statement of Changes in Owner's Equity
January to June, 2025
Prepared by: Joincare Pharmaceutical Group Industry Co., Ltd.
Unit: Yuan Currency: RMB
First half of 2025
Owner's equity attributable to the parent company
Item Total
Other equity instruments Other General Minority
Less: Treasury Special Undistributed shareholders'
Share capital Preferre Perpetual Capital reserve comprehensive Surplus reserve risk Subtotal interests
Others shares reserve profits equity
d share bonds income reserve
I. Balance at
the end of 1,874,200,420.00 1,654,383,491.41 328,221,279.42 -41,177,547.42 883,841,583.49 10,491,692,921.28 14,534,719,589.34 8,865,423,189.94 23,400,142,779.28
previous year
Add: Change
of accounting
policies
Correction to
errors of the
previous
period
Others
II. Balance in
beginning of 1,874,200,420.00 1,654,383,491.41 328,221,279.42 -41,177,547.42 883,841,583.49 10,491,692,921.28 14,534,719,589.34 8,865,423,189.94 23,400,142,779.28
year
III. Increase
and decrease
of the period -44,747,034.00 -543,318,901.17 -328,221,279.42 -45,168,170.38 415,693,797.03 110,680,970.90 25,790,959.69 136,471,930.59
(“-” for
decrease)
(I) Total
comprehensiv -48,523,609.49 784,939,913.34 736,416,303.85 947,253,841.70 1,683,670,145.55
e income
(II). Capital
contribution
or reduction -44,747,034.00 -455,236,533.56 -328,221,279.42 -171,762,288.14 -343,739,509.13 -515,501,797.27
from
shareholders
contribution
-44,747,034.00 -455,236,533.56 171,762,288.14 -671,745,855.70 3,350,000.00 -668,395,855.70
from
shareholders
invested by
other equity
instrument
holders
share-based
payment
included in
owner's equity
(III). Profit
-365,890,677.20 -365,890,677.20 -626,443,245.00 -992,333,922.20
distribution
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
surplus
reserve
general risk
provision
distributed to
-365,890,677.20 -365,890,677.20 -626,443,245.00 -992,333,922.20
owners (or
shareholders)
(IV).Internal
carrying
forward of
owner's equity
reserve
transferred to
increase
capital (or
share capital)
reserve
transferred to
increase
capital (or
share capital)
reserve
compensating
losses
earnings
carried over
from changes
in the defined
benefit plan
earnings
carried over
from other
comprehensiv
e income
(V).Special
reserve
the current
year
utilized in the
current period
(VI). Others -88,082,367.61 -88,082,367.61 52,516,081.64 -35,566,285.97
IV. Balance
at end of 1,829,453,386.00 1,111,064,590.24 -86,345,717.80 883,841,583.49 10,907,386,718.31 14,645,400,560.24 8,891,214,149.63 23,536,614,709.87
period
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
First half of 2024
Owner's equity attributable to the parent company
Item Other equity instruments Speci Minority
Less: Other General Total shareholders'
al Undistributed shareholder's
Share capital Preferred Perpetual Capital reserve Treasur comprehensive Surplus reserve risk Subtotal equity
Others reser profits equity
shares bonds y shares income reserve
ve
I. Balance at
the end of 1,865,523,807.00 1,601,720,087.71 -12,246,131.22 859,046,203.77 9,441,857,956.80 13,755,901,924.06 8,883,628,566.58 22,639,530,490.64
previous year
Add: Change
of accounting
policies
Correction to
errors of the
previous
period
Others
II. Balance in
beginning of 1,865,523,807.00 1,601,720,087.71 -12,246,131.22 859,046,203.77 9,441,857,956.80 13,755,901,924.06 8,883,628,566.58 22,639,530,490.64
year
III. Increase
and decrease
of the period 8,495,530.00 132,349,711.59 -23,010,659.92 438,406,460.40 556,241,042.07 -82,144,397.88 474,096,644.19
(“-” for
decrease)
(I).Total
comprehensive -23,675,110.79 776,424,466.87 752,749,356.08 914,368,844.03 1,667,118,200.11
income
(II)Capital
contribution or
reduction from
shareholders
contribution
from
shareholders
invested by
other equity
instrument
holders
share-based
payment -9,947,999.77 -9,947,999.77 -9,947,999.77
included in
owner's equity
(III).Profit
-337,353,555.60 -337,353,555.60 -1,002,321,005.27 -1,339,674,560.87
distribution
surplus reserve
general risk
provision
distributed to
-337,353,555.60 -337,353,555.60 -1,002,321,005.27 -1,339,674,560.87
owners (or
shareholders)
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
(IV).Internal
carrying
forward of
owner's equity
reserve
transferred to
increase
capital (or
share capital)
reserve
transferred to
increase
capital (or
share capital)
reserve
compensating
losses
earnings
carried over
from changes
in the defined
benefit plan
earnings
carried over
from other
comprehensive
income
(V). Special
reserve
the current
year
utilized in the
current period
(VI). Others 56,832,679.56 56,832,679.56 -120,401,254.50 -63,568,574.94
IV. Balance
at end of 1,874,019,337.00 1,734,069,799.30 -35,256,791.14 859,046,203.77 9,880,264,417.20 14,312,142,966.13 8,801,484,168.70 23,113,627,134.83
period
Person-in-charge of the Company: Person-in-charge of the Company’s accounting work: Person-in-charge of the accounting department:
Zhu Baoguo Qiu Qingfeng Guo Chenlu
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Statement of Changes in Owner's Equity of the Parent Company
January to June, 2025
Prepared by: Joincare Pharmaceutical Group Industry Co., Ltd.
Unit: Yuan Currency: RMB
First half of 2025
Other equity instruments
Other
Item Less: Treasury Special Undistributed Total shareholders'
Share capital Preferred Perpetual Capital reserve comprehensive Surplus reserve
Others shares reserve profits equity
share bonds income
I. Balance at the end of previous year 1,874,200,420.00 1,043,800,614.52 328,221,279.42 888,524.41 795,239,635.11 2,635,705,118.80 6,021,613,033.42
Add: Change of accounting policies
Correction to errors of the previous period
Others
II. Balance in beginning of year 1,874,200,420.00 1,043,800,614.52 328,221,279.42 888,524.41 795,239,635.11 2,635,705,118.80 6,021,613,033.42
III. Increase and decrease of the period (“-” for
-44,747,034.00 -455,236,533.56 -328,221,279.42 -4,573,401.34 -205,333,735.05 -381,669,424.53
decrease)
(I). Total comprehensive income -4,573,401.34 160,556,942.15 155,983,540.81
(II) Capital contribution or reduction from
-44,747,034.00 -455,236,533.56 -328,221,279.42 -171,762,288.14
shareholders
holders
owner's equity
(III). Profit distribution -365,890,677.20 -365,890,677.20
(IV). Internal carrying forward of owner's equity
(or share capital)
(or share capital)
the defined benefit plan
comprehensive income
(V). Special reserve
(VI). Others
IV. Balance at end of period 1,829,453,386.00 588,564,080.96 -3,684,876.93 795,239,635.11 2,430,371,383.75 5,639,943,608.89
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
First half of 2024
Other equity instruments Other
Item Less: Treasury Special Undistributed Total shareholders'
Share capital Preferred Perpetual Capital reserve comprehensive Surplus reserve
Others shares reserve profits equity
share bonds income
I. Balance at the end of previous year 1,865,523,807.00 972,063,254.79 4,379,477.64 770,444,255.39 2,749,900,256.87 6,362,311,051.69
Add: Change of accounting policies
Correction to errors of the previous period
Others
II. Opening balance of the current year 1,865,523,807.00 972,063,254.79 4,379,477.64 770,444,255.39 2,749,900,256.87 6,362,311,051.69
III. Increase and decrease of the period (“-”
for decrease)
(I). Total comprehensive income -2,948,462.10 250,456,154.21 247,507,692.11
(II). Capital contribution or reduction from
shareholders
holders
owner's equity
(III). Profit distribution -337,353,555.60 -337,353,555.60
-337,353,555.60 -337,353,555.60
shareholders)
(IV). Internal carrying forward of owner's equity
(or share capital)
(or share capital)
in the defined benefit plan
comprehensive income
(V).Special reserve
Others 52,177.59 52,177.59
IV. Balance at end of year 1,874,019,337.00 1,061,885,099.80 1,431,015.54 770,444,255.39 2,663,002,855.48 6,370,782,563.21
Person-in-charge of the Company: Person-in-charge of the Company’s accounting work: Person-in-charge of the accounting department:
Zhu Baoguo Qiu Qingfeng Guo Chenlu
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Joincare Pharmaceutical Group Industry Co., Ltd
Notes to the financial statements
（All amounts in RMB Yuan unless otherwise stated）
I Company Profile
√Applicable □N/A
Joincare Pharmaceutical Group Industry Co., Ltd., formerly known as Shenzhen Aimier Food
Co., Ltd. (深圳爱迷尔食品有限公司), was a Sino-foreign joint venture officially established on
On 24 November 1999, the Company was reorganized as a joint stock limited company.
On 6 February 2001, the Company was approved by the China Securities Regulatory
Commission to issue domestically listed shares (A shares) to the public. On 8 June 2001, shares of
the Company were listed and traded on Shanghai Stock Exchange.
As of 30 June 2025, the total share capital of the Company was RMB1,829,453,386 and the
total number of shares of the Company was 1,829,453,386. The controlling shareholder of the
Company is Shenzhen Baiyeyuan Investment Co., Ltd. (深圳市百业源投资有限公司), and the
ultimate controlling party is Zhu Baoguo (朱保国).
The company is registered and headquartered in Joincare Pharmaceutical Group Building, No.
The Company is engaged in the integrated pharmaceutical industry.
The Company and its subsidiaries primarily engaged in the R&D, production and sale of
pharmaceutical products and healthcare products, which covered drug preparation products, active
pharmaceutical ingredients (“APIs”) and intermediates, diagnostic reagents and equipment as well
as healthcare products.
The financial statements and notes to the financial statements of the Company were approved
at the 12th Meeting of the 9th Session of the Board on 22 August 2025.
II Basis of Preparation for the Financial Statements
The Company's financial statements have been prepared on the going-concern basis.
√Applicable □N/A
The financial statements have been prepared in accordance with the Accounting Standards for
Business Enterprises issued by the Ministry of Finance and its application guidance, interpretations
and the other related provisions (collectively, the “Accounting Standards for Business Enterprises”).
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
In addition, the Company also discloses relevant financial information in accordance with the
Information Disclosure and Presentation Rules for Companies Offering Securities to the Public No.
Regulatory Commission.
The financial statements have been prepared on the going-concern basis.
The Company's accounting is measured on an accrual basis. Except for certain financial
instruments, the financial statements are generally measured at historical cost. Non-current assets
held for sale are stated at the lower of fair value less estimated selling costs and their original
carrying amount if they qualify as held for sale. In case of asset impairment, the Company shall
make provisions for impairment in accordance with applicable provisions.
III Significant Accounting Policies and Accounting Estimates
Specific accounting policies and accounting estimate tips:
√Applicable □N/A
The Company has determined the conditions for capitalising research and development
expenses and its revenue recognition policy based on its own production and operational
characteristics. Details of accounting policies are set out in Note III.22 and Note III.29.
The financial statements comply with the Accounting Standards for Business Enterprises,
which gave a true and complete view of the consolidated and the Company's financial positions as
at 30 June 2025, and the consolidated and the Company’s operating results and the consolidated and
the Company’s cash flows and other relevant information for the 6 months period ending 30 June
The fiscal year of the Company is from 1 January to 31 December in each calendar year.
√Applicable □N/A
The Company’s operating cycle is 12 months.
The functional currency of the Company and its domestic subsidiaries is Renminbi (“RMB”).
Overseas subsidiaries of the Company usually recognise Hong Kong Dollar, Macanese Pataca,
Indonesian Rupiah, Singapore Dollar, Euro, Philippine Peso, and US Dollar as their functional
currencies according to the primary economic environment of which these subsidiaries operate. The
Company prepares its financial statements in RMB.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Item Materiality criteria
Material receivables subject to provision for Individual debtor accounts for more than 5% of all types of
bad debt individually receivables and the amount exceeds RMB 50 million
Individual write-off amount accounts for more than 5% of all types of
Material receivables write-off in the period
receivables and the amount exceeds RMB 50 million
Budget investment amount for a single project account for more than
Material construction in progress 5‰ of consolidated total assets and the amount exceeds RMB 100
million
Individual contract liability aged over one year accounts for more
Material contract liabilities aged over one
than 10% of consolidated total liabilities and the amount exceeds
year
RMB 50 million
Individual accounts payable/other payable aged over one year
Material accounts payable and other
accounts for more than 10% of total accounts payables/other payables
payables aged over one year
and the amount exceeds RMB 50 million
One or both of the subsidiary's total assets, operating income, net
Material non-wholly owned subsidiaries profit (or absolute value of loss) accounts for more than 10% of the
corresponding items in the consolidated financial statements
Closing balance of a single project accounts for more than 10% of the
Material capitalized research and
closing balance of development expenditures and the amount exceeds
development projects
RMB 100 million
Single investment activity accounts for more than 10% of the total
Material investment activities cash inflows or outflows related to investment activities received or
paid and the amount exceeds RMB 100 million
Carrying amount of long-term equity investments in a single investee
accounts for more than 3% of the total consolidated net assets and the
Material joint ventures or associates amount exceeds RMB 500 million, or investment profits and losses
under the equity method of long-term equity investment accounts for
more than 10% of the consolidated net profit
control and business combinations involving enterprises not under common control
√Applicable □N/A
(1). Business combinations involving enterprises under common control
For the business combination involving entities under common control, the assets acquired and
liabilities assumed are measured based on their carrying amounts in the consolidated financial
statements of the ultimate controlling party as at the combination date. The difference between the
carrying amount of the consideration paid for the combination and the net assets acquired is adjusted
against share premium in the capital reserve, with any excess adjusted against retained earnings.
Business combination involving enterprises under common control and achieved in a number
of transactions
In the separate financial statements, the initial investment cost will be recognised at the
carrying amount of the Company's share in the combined party's net assets in the consolidated
financial statements of the ultimate controlling party on the date of combination. The difference
between the initial investment cost and the sum of the carrying amount of the investment held and
the carrying amount of consideration paid for the combination at the combination date is adjusted
against share premium in the capital reserve, with any excess adjusted against retained earnings.
In the consolidated financial statements, the assets acquired and liabilities assumed are
measured based on their carrying amounts in the consolidated financial statements of the ultimate
controlling party as at the combination date. The difference between sum of the carrying amount of
the investment held and the carrying amount of the consideration paid for the combination and the
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
carrying amount of the net assets acquired is adjusted against share premium in the capital reserve,
with any excess adjusted against retained earnings. For long-term equity investment held before the
control over the combined party is obtained, profit or loss, other comprehensive income and other
changes to equity interest attributable to the owners recognised from the later of the acquisition of
the original equity interest and the date when the combed party and the combined party are placed
under common control until the date of combination shall be offset against retained profit at the
beginning of the period of the comparative financial statements or profit or loss of the period
respectively.
(2). Business combinations involving enterprises not under common control
For the business combinations involving enterprises not under common control, the
combination cost shall be the fair value of the assets transferred, liabilities incurred or assumed, and
equity securities issued by the acquirer for acquisition of control in the acquiree on the acquisition
date. The assets, liabilities and contingent liabilities acquired or assumed on the date of acquisition
are recognised at fair value.
Where the combination cost exceeds the fair value of the acquiree's identifiable net assets in
the business combination, the difference is recognised as goodwill and is subsequently measured at
cost less accumulated impairment provisions. Where the combination cost is less than the fair value
of the acquiree's identifiable net assets in the business combination, the difference shall be included
in profit or loss for the period after review.
Business combination involving enterprises not under common control and achieved in a
number of transactions
In the separate financial statements, the initial cost of the investment is the sum of the carrying
amount of the acquiree's equity investment held before the acquisition date and the additional
investment cost on the acquisition date. In respect of the equity investment held prior to the
acquisition date, other comprehensive income will not be recognised using equity method on the
acquisition date, and such investment will be accounted for on the same accounting treatment as
direct disposal of relevant asset or liability by the investee at the time of disposal. Shareholder's
equity recognised due to the changes of other shareholder's equity other than the changes of net loss
and profit, other comprehensive income and profit distribution shall be transferred to profit or loss
for current period when disposed. If the equity investment held prior to the acquisition date is
measured at fair value, the cumulative changes in fair value recognised in other comprehensive
income shall be transferred to retained earnings when accounted for using cost method.
In the consolidated financial statements, the combination cost is the sum of consideration paid
on the acquisition date and fair value of the acquiree's equity held prior to the acquisition date. The
equity of the acquirees held before the acquisition date is re-measured at the fair value of the equity
on the acquisition date and the differences between the fair value and the carrying amount are
recognised in the income for the current period; in respect of any other comprehensive income
attributable to the equity interest in the acquiree held prior to the acquisition date and any changes
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
of other shareholder's equity shall be transferred to investment profit or loss for current period on
the acquisition date, except for the other comprehensive income arising from changes in net
liabilities or net assets of defined benefit plans remeasured by investees and other comprehensive
income related to non-derivative equity instrument investments designated at fair value through
other comprehensive income.
(3). Transaction fees attribution during the combination
The intermediary and other relevant administrative expenses such as audit, legal and valuation
advisory for business combinations is recognised in profit or loss when incurred. Transaction costs
of equity or debt securities issued as the considerations of business combination are included in the
initial recognition amounts.
√Applicable □N/A
(1) Basis in determination of control
The scope of consolidated financial statements is determined based on control. Control means
the Company has exposures or rights to variable returns from its involvement with the investee and
the ability to affect those returns through power over such investee. When changes in relevant facts
and circumstances lead to alterations in the elements involved in the definition of control, the
Company will conduct a reassessment.
In assessing whether to include structured entities within the consolidation scope, the company
integrates all facts and circumstances, including evaluating the purpose and design of the structured
entity, identifying the types of variable returns, and assessing whether it bears some or all of the
variability of returns by participating in its related activities, to determine if control over the
structured entity exists.
(2) Method for preparation of the consolidated financial statements
The consolidated financial statements are based on the financial statements of the Company
and its subsidiaries, and are prepared by the Company in accordance with other relevant information.
In preparing the consolidation financial statements, the Company and its subsidiaries are required
to apply consistent accounting policy and accounting period, intra-group transactions and balances
shall be offset.
A subsidiary or a business acquired through a business combination involving entities under
common control in the reporting period shall be included in the scope of the consolidation of the
Company from the date when it is under control of the ultimate controlling party, and then its
operating results and cash flows will be included in the consolidated income statement and the
consolidated cash flow statement, respectively.
For a subsidiary or a business acquired through a business combination involving entities not
under common control in the reporting period, its income, expenses and profits are included in the
consolidated income statement, and its cash flows are included in the consolidated cash flow
statement from the acquisition date to the end of the reporting date.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
The shareholders' equity of the subsidiaries that are not attributable to the Company shall be
presented under shareholders' equity in the consolidated balance sheet as minority interests. The
portion of net profit or loss of subsidiaries for the period attributable to minority interest is presented
in the consolidated income statement under the “profit or loss of minority interest”. When the
amount of loss attributable to the minority shareholders of a subsidiary exceeds the minority
shareholders' portion of the opening balance of owners' equity of the subsidiary, the excess amount
shall be allocated against minority interest.
(3) Purchase of the minority stake in the subsidiary
The difference between the long-term equity investments costs acquired by the purchase of
minority interests and the share of the net assets that the subsidiaries have to continue to calculate
from the date of purchase or the date of consolidation in proportion to the new shareholding ratio,
and the difference between the disposal of the equity investment without losing control over its
subsidiary and the disposal of the long-term equity investment corresponding to the share of the net
assets of the subsidiaries from the date of purchase or the date of consolidation, shall be adjusted to
the capital reserve (or share premium) , if the capital reserve is not sufficient, any excess will be
adjusted to retained earnings.
(4) Treatment of loss of control of subsidiaries
Where the Company loses its control over the original subsidiary due to the disposal of some
equity investment or other reasons, the remaining equity is re-measured at its fair value on the date
when the Company loses its control. The difference between the sum of the consideration acquired
due to the disposal of the equity and the fair value of the remaining equity, and the Company's share
in the sum of carrying value of net assets of the original subsidiary and goodwill calculated on an
ongoing basis from the acquisition date based on the original shareholding proportion is recognised
in the investment income for the current period when the control is lost.
Other comprehensive income related to equity investments in the original subsidiary should be
accounted for using the same basis as the direct disposal of related assets or liabilities of the original
subsidiary upon loss of control. Any equity changes related to the original subsidiary under the
equity method of accounting should be transferred to the profit or loss for the current period when
control ceases.
(5) Treatment of disposal through several transactions until the loss of control of
subsidiaries
Where the Company disposes of the equity interests in the subsidiary through several
transactions until it loses control, and the transaction terms, conditions and economic effects satisfy
one or several of the following circumstances, such several transactions shall be deemed as a basket
of transactions in accounting treatment:
① Such transactions are entered into simultaneously or upon the consideration of the mutual
impacts;
② No complete commercial result will be realised without such transactions as a whole;
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
③ The occurrence of one transaction depends on the occurrence of at least another transaction;
④ The result of an individual transaction is not economical, but it would be economical after
taken into account of other transactions in the series.
In the separate financial statements, where the Company disposes of the equity investment in
the subsidiary through several transactions until the loss of control, and such transactions are not
regarded as “a basket of transactions”, the carrying amount of the long-term equity investment
involving each disposal will be carried forward, with the difference between the disposal price and
the carrying amount of the long-term equity investment involving the disposal being accounted into
the investment income for the current period; where the transactions constitute “a basket of
transactions”, the difference between the consideration of each disposal and the carrying amount of
the long-term equity investment involving the disposal before the loss of the control, is recognised
as the other comprehensive income and will be carried forward to the profit or loss for the current
period when the control is lost.
In the consolidated financial statements, where the Company disposes of the equity investment
in the subsidiary through several transactions until the loss of control, the measurement of the
remaining equity interest and the accounting treatment of the losses and gains of the disposal will
be made with reference to the “Treatment of loss of control of subsidiaries” as described above. For
the difference between the consideration of each disposal before the loss of the control and the
carrying amount of the Company's share in the net assets involving the disposal of such subsidiary
calculated on an on-going basis from the acquisition date, the treatment will be made as follows:
① In case the transactions are “a basket of transactions”, such difference is recognised as the
other comprehensive income and will be carried forward to the profit or loss for the current period
when the control is lost.
② In case the transactions are not “a basket of transactions”, such difference is accounted into
the capital reserve (or share premium) as equity, and shall not be carried forward to the profit or
loss for the current period when the control is lost.
√Applicable □N/A
A joint arrangement is an arrangement jointly controlled by two or more parties. The
Company's joint arrangement is classified into the joint operation and the joint venture.
(1) Joint operation
A joint operation is a joint arrangement whereby the Company have rights and obligations to
the relevant assets and liabilities.
The Company recognises the following items in relation to its interest in a joint operation, and
makes corresponding accounting treatment in accordance with relevant accounting standards:
A. The solely-held assets, and the share of any assets held jointly;
B. The solely-assumed liabilities, and its share of any liabilities incurred jointly;
C. Its revenue from the sale of its share of the output arising from the joint operation;
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
D. Its share of the revenue from the sale of the output by the joint operation;
E. The solely-incurred expenses, including its share of any expenses incurred jointly.
(2) Joint ventures
A joint venture is a joint arrangement whereby the Company only entitled to the net assets of
the arrangements.
The Company's investment in joint ventures is accounted for using the equity method
according to the rules of the long-term equity investment.
Cash and cash equivalents of the Company include cash on hand, bank deposits readily
available for payment and those investments held by the Company that are short-term (normally
due in three months since the acquisition date), highly liquid, readily convertible into known
amounts of cash and subject to an insignificant risk of change in value.
√Applicable □N/A
(1) Foreign currency transactions
Foreign currency transactions incurred by the Company are translated to the functional
currency at the spot exchange rates on the date of the transactions upon initial recognition.
Monetary items denominated in foreign currencies are translated to functional currency at the
spot exchange rate on the balance sheet date. Exchange differences arising from the differences
between the spot exchange rate prevailing at the balance sheet date and those spot rates used on
initial recognition or at the previous balance sheet date are recognised in profit or loss for the current
period; non-monetary items denominated in foreign currencies that are measured at historical cost
are translated using the spot exchange rate on the transaction date. Non-monetary items
denominated in foreign currencies that are measured at fair value are translated using the spot
exchange rate on the date the fair value is determined; The resulting exchange differences between
the amounts in functional currency upon translation and in original functional currency are
recognised in profit or loss or other comprehensive income for the current period based on the nature
of non-monetary items.
(2) Translation of financial statements in foreign currency
At the balance sheet date, when translating the foreign currency financial statements of
overseas subsidiaries, the assets and liabilities in the balance sheet are translated at the spot exchange
rate at the balance sheet date; all items except for “Retained earnings” of the shareholders' equity
are translated at the spot exchange rate on the transaction date.
The revenue and expenses in profit or loss are translated at the spot exchange rate on the
transaction date.
All items in the statement of cash flows are translated at the spot exchange rate on the
transaction date. The effect of exchange difference on cash is adjusted and separately presented as
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
“Effect of changes in foreign exchange rates on cash and cash equivalents” in the cash flow
statement.
The exchange differences arising from translation of the financial statements are presented as
the “other comprehensive income” in the shareholders' equity of the balance sheet.
When the Company disposes of the overseas operation and loses control, the differences arising
from the translation of the financial statements in foreign currency that have been presented under
the shareholders' equity in the balance sheet and involving such overseas operation are carried
forward to the profit or loss for the current period in whole or in the proportion of the disposal of
the overseas operation.
√Applicable □N/A
Financial instruments are contracts creating financial assets of a party and financial liabilities
or equity instruments of other parties.
(1) Recognition and De-recognition of financial instruments
A financial asset or financial liability is recognised when the Company becomes one of the
parties under a financial instrument contract.
The financial assets will be derecognised if any of the following conditions is satisfied:
① The contractual right to receive the cash flow of the financial assets is terminated;
② The financial assets have been transferred and the transferred financial asset satisfies the
following conditions of derecognition.
If the current obligation of a financial liability (or a part thereof) has been discharged, the
financial liability (or that part of the financial liability) will be derecognised. When the Company
(as the debtor) and the lender have signed an agreement which uses a new financial liability to
replace the existing financial liability, and the contract terms of the new financial liability are
substantially different with the original financial liability, the original financial liability shall be de-
recognised, and the new financial liability shall be recognised at the same time.
The regular transactions of the financial assets are recognised and derecognised at the
transaction date.
(2) Classification and measurement of financial assets
The Company classifies financial assets into three categories: financial assets at amortised cost;
financial assets at fair value through other comprehensive income; and financial assets at fair value
through profit or loss based on the business model for managing financial assets and their
contractual cash flow characteristics upon initial recognition.
Financial assets are initially recognized at fair value. For financial assets at fair value through
profit or loss, transaction costs are directly recognized in the profit or loss for the current period.
For other categories of financial assets, transaction costs are included in the initial recognition
amount. Accounts receivable arising from the sale of products or services, which do not include or
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
consider a significant financing component, are initially recognized at the expected amount to be
received.
Financial assets at amortised cost
The Company shall classify financial assets that meet the following conditions and are not
designated as financial assets at fair value through profit or loss for the current period as financial
assets measured at amortised cost:
• The Company's business model for managing the financial assets is to collect contractual
cash flow;
• The terms of the financial asset contract stipulate that the cash flow generated on a specific
date is only the payment for principal and interest accrued on the outstanding principal.
After initial recognition, these financial assets are measured at amortised cost using the
effective interest method. Gains or losses arising from financial assets which are measured at
amortised cost and not part of any hedging relationship is included in the profit and loss of the
current period upon de-recognition, amortisation using the effective interest method, or impairments
recognition.
Financial assets at fair value through other comprehensive income
The Company shall classify financial assets that meet the following conditions and are not
designated as financial assets measured at fair value through profit or loss for the current period as
financial assets measured at fair value through other comprehensive income
• The Company's business model for managing the financial assets is both to collect
contractual cash flows and to sell the financial assets;
• The terms of the financial asset contract stipulate that the cash flow generated on a specific
date is only the payment for principal and interest accrued on the outstanding principal
After initial recognition, these financial assets are subsequently measured at fair value. Interest,
impairment losses or gains and exchange losses and gains calculated using the effective interest
method are recognised in profit or loss for the current period, while other gains or losses are
recognised in other comprehensive income. The cumulative profit or loss previously included in
other comprehensive income will be transferred to the profit or loss for the current period upon
derecognition of the financial assets.
Financial assets at fair value through profit or loss for the current period
In addition to the above financial assets which are measured at amortised cost or at fair value
a through other comprehensive income, the Company classifies all other financial assets as financial
assets measured at fair value through profit or loss for the current period. When initial recognition,
in order to eliminate or significantly reduce accounting mismatches, the Company irrevocably
designates some financial assets that should have been measured at amortised cost or at fair value
through other comprehensive income as financial assets at fair value through profit or loss for the
current period.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
After initial recognition, these financial assets are subsequently measured at fair value, and the
profits or losses (including interest and dividend income) generated from which are recognised in
profit or loss for the current period, unless the financial assets are part of the hedging relationship.
However, with respect to non-trading equity instrument investments, the Company may
irrevocably designate them as financial assets measured at fair value through other comprehensive
income at initial recognition. The designation is made on the basis of individual investment, and the
relevant investment conforms to the definition of equity instruments from the issuer's point of view.
After initial confirmation, financial assets are subsequently measured at fair value. Dividend
income that meets the requirements is recognised in profit and loss, and other gains or losses and
changes in fair value are recognised in other comprehensive gains. When derecognised, the
accumulated gains or losses previously recognised in other comprehensive gains are transferred
from other comprehensive gains to retained earnings.
The business model of managing financial assets refers to how the Company manages financial
assets to generate cash flow. The business model decides whether the source of cash flow of
financial assets managed by the Company is to collect contract cash flow, sell financial assets or
both of them. Based on objective facts and the specific business objectives of financial assets
management decided by key managers, the Company determines the business model of financial
assets management.
The Company evaluates the characteristics of the contract cash flow of financial assets to
determine whether the contract cash flow generated by the relevant financial assets on a specific
date is only to pay principal and interest based on the amount of unpaid principal. Among them,
principal refers to the fair value of financial assets at the time of initial confirmation; interest
includes the consideration of time value of money, credit risk related to the amount of unpaid
principal in a specific period, and other basic borrowing risks, costs and profits. In addition, the
Company evaluates the terms and conditions of the contracts that may lead to changes in the time
distribution or amount of cash flow in financial asset contracts to determine whether they meet the
requirements of the above contract cash flow's characteristics.
Only when the Company changes its business model of managing financial assets, all the
financial assets affected shall be reclassified on the first day of the first reporting period after the
business model changes, otherwise, financial assets shall not be reclassified after initial
confirmation.
(3) Classification and measurement of financial liabilities
On initial recognition, the Company's financial liabilities are classified into financial liabilities
at fair value through profit or loss and financial liabilities at amortised cost. For financial liabilities
not classified as financial liabilities at fair value through profit or loss, the relevant transaction costs
are included in the initially recognised amount.
Financial liabilities at fair value through profit or loss
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Financial liabilities at fair value through profit or loss include financial liabilities held for
trading and financial liabilities designated at fair value through profit or loss upon initial recognition.
Such financial liabilities are subsequently measured at fair value, all gains and losses arising from
changes in fair value and dividend and interest expense relative to the financial liabilities are
recognised in profit or loss for the current period.
Financial liabilities at amortised cost
Other financial liabilities are subsequently measured at amortised cost using the effective
interest method; gains and losses arising from derecognition or amortisation is recognised in profit
or loss for the current period.
Distinction between financial liabilities and equity instruments
The financial liability is the liability that meets one of following criteria:
① Contractual obligation to deliver cash or other financial instruments to another entity.
② Under potential adverse condition, contractual obligation to exchange financial assets or
financial liabilities with other parties.
③ A contract that will or may be settled in the entity's own equity instruments and is a non-
derivative for which the entity is or may be obliged to deliver a variable number of the entity's own
equity instruments.
④ A derivative that will or may be settled other than by the exchange of a fixed amount of
cash or another financial asset for a fixed number of the entity's own equity instruments.
An equity instrument is any contract that evidences a residual interest in the assets of an entity
after deducting all of its liabilities.
If the Company cannot unconditionally avoid fulfilling a contractual obligation by delivering
cash or other financial assets, the contractual obligation meets the definition of financial liability.
If a financial instrument must or are able to be settled by the Company's own equity instrument,
the Company should consider whether the Company's equity instrument as the settlement instrument
is a substitute of cash or other financial assets or the residual interest in the assets of the Company
after deducting all of its liabilities. If the former, the tool is the Company's financial liability; if the
latter, the tool is the equity instrument of the Company.
(4) Derivative financial instruments and embedded derivatives
The Company's derivative financial instruments include forward foreign exchange contracts,
and are initially measured at fair value on the date of the derivative contract signed and are
subsequently measured at fair value. A derivative with positive fair value shall be recognised as an
asset, otherwise that with negative fair value shall be recognised as a liability. Any profit or loss
arising from changes of fair value and not compliance with the accounting provision of hedge shall
be recognised as profit or loss for current period.
For the hybrid instrument which includes embedded derivatives, where the host contract is a
financial asset, requirements in relation to the classification of financial assets shall apply to the
hybrid instrument as a whole. Where the host contract is not a financial asset, and the hybrid
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
instrument is not measured at fair value and its changes are included in the profit and loss for the
current period for accounting purposes, there is no close relation between the embedded derivatives
and the host contract in terms of economic features and risks, and the instrument that has the same
condition with the embedded derivatives and exists independently meets the definition of
derivatives, the embedded derivatives shall be separated from the hybrid instrument and treated as
a separate derivative financial instrument. If it is unable to separately measure the embedded
derivatives upon acquisition or on the subsequent balance sheet date, the hybrid instrument shall be
entirely designated as the financial assets or financial liabilities measured at fair value and whose
movements are included in the profit and loss of the current period.
(5) Fair value of the financial instrument
The methods for determining the fair value of the financial assets or financial liabilities are set
out in Note III.12.
(6) Impairment of financial assets
The following items are subject to impairment accounting and recognition of loss allowances
based on expected credit losses:
A. Financial assets measured at amortised cost;
B. Receivables and debt instrument investments that are measured at fair value through other
comprehensive income;
C. Contract assets as defined in the Accounting Standard for Business Enterprises No. 14 –
Revenue;
D. Lease receivables;
E. Financial guarantee contracts, except for those carried at fair value through profit or loss,
those which the transfer of financial assets does not satisfy the derecognition condition or those
formed as a result of continued involvement of the transferred financial assets.
Measurement of expected credit loss (ECLs)
The ECL is a weighted average of credit losses on financial instruments weighted at the risk
of default. Credit loss is the difference between all receivable contractual cash flows according to
the contract and all cash flows expected to be received by the Company discounted to present value
at the original effective interest rate, i.e. the present value of all cash shortfalls.
The Company takes into account reasonable and valid information on past events, current
conditions and forecasts of future economic conditions, with the risk of default as the weight, to
calculate the probabilistic weighted amount of the present value of the difference between the cash
flow receivable from contract and the expected cash flow to be received and recognise the expected
credit loss.
The Company respectively measures the expected credit losses of financial instruments by
different stages. If the credit risk of the financial instrument does not increase significantly since the
initial recognition, it would be classified in Stage 1, the Company would measure loss allowance
according to the future 12-month expected credit losses. If the credit risk of a financial instrument
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
has significantly increased since the initial recognition but not yet credit-impaired, it would be
classified in Stage 2, the Company would measure loss allowance according to the lifetime expected
credit losses of that instrument. If the financial instrument has credit-impaired since the initial
recognition, it would be classified in Stage 3, and the Company would measure loss allowance
according to the lifetime expected credit losses of that instrument.
For financial instruments with lower credit risk on the balance sheet date, the Company
assumes that its credit risk has not increased significantly since the initial recognition, and measures
loss allowance according to the 12-month expected credit losses.
Lifetime ECLs are the ECLs that result from all possible default event over the expected life
of a financial instrument. Future 12-month ECLs are the portion of ECL that results from default
events on a financial instrument that are possible within the 12 months after the balance sheet date
(or the expected life of the instrument, if it is less than 12 months).
The maximum period considered when estimating ECLs is the maximum contractual period
over which the Company is exposed to credit risk (including the option to renew).
For the financial instruments classified in Stage 1 and Stage 2 and those with lower credit risk,
the Company would measure the interest income by the book balance (that is, without deduction for
credit allowance) and the effective interest rate. For financial instruments classified in Stage 3, the
Company would measure the interest income by the amortised cost (that is, book balance less
impairment allowance) and the effective interest rate.
For accounts receivable such as notes receivable, trade receivables, receivables financing, other
receivables, contract assets, etc., if the credit risk characteristics of a particular customer
significantly differ from those of other customers in the portfolio, or if there is a significant change
in the credit risk characteristics of that customer, the Company individually provides for credit loss
for that receivable. Apart from individually providing for credit loss for specific receivables, the
Company divides receivables into portfolios based on credit risk characteristics and calculates credit
losses on a portfolio basis.
Notes receivable, trade receivables and contract assets
For notes receivable, trade receivables and contract assets, regardless whether it has significant
financing components or not, the Company has always measured its loss allowance at an amount
equal to lifetime expected credit losses.
If the expected credit losses of one individual financial asset cannot be estimated at a
reasonable cost, the Company classifies notes receivable and trade receivables into portfolios based
on credit risk characteristics, and measures expected credit losses on portfolios basis to determine
portfolios by the following basis:
A. Notes receivable
? Bills receivable portfolio 1: Bank acceptance bills
? Bills receivable portfolio 2: Commercial acceptance bills
B. Accounts receivables
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
? Accounts receivables portfolio 1: Amount due from domestic customers
? Accounts receivables portfolio 2: Amount due from overseas customers
? Accounts receivables portfolio 3: Receivables of consolidated companies
Contract assets
? Contract assets portfolio: Sale of products
For notes receivable or contract assets classified as portfolio, the Company measures expected
credit losses based on the risk exposures of default and lifetime expected credit losses rate with
reference to the historical credit loss experience, current situation and forecasts of future economic
conditions.
For accounts receivables classified as portfolio, the Company measures expected credit losses
through preparing a table of concordance between the aging of trade receivables and lifetime
expected credit losses rate with reference to the historical credit loss experience, current situation
and forecasts of future economic conditions.
Other receivables
The Company classifies other receivables into certain portfolios based on credit risk
characteristics, and measures expected credit losses on portfolios basis to determine portfolios by
the following basis:
• Other receivables portfolio 1: Receivables of export tax refund
• Other receivables portfolio 2: Receivables of deposits under guarantee and security
deposits and lease expenses
• Other receivables portfolio 3: Other receivables
• Other receivables portfolio 4: Receivables of consolidated companies
For other receivables classified as portfolio, the Company measures expected credit losses
based on the risk exposures of default and future 12-month or lifetime expected credit losses rate.
For other receivables categorized by aging, the aging is calculated from the date of recognition.
Long-term receivables
The Company's long-term receivables include finance lease receivables and equity transfer
receivables.
The Company classifies finance lease receivables and equity transfer receivables into certain
portfolios based on credit risk characteristics, and measures expected credit losses on portfolios
basis to determine portfolios by the following basis:
A. Finance lease receivables
• Portfolio of finance lease receivables: other receivables
B. Other long-term receivables
• Portfolio of other long-term receivables: equity transfer receivables
For finance lease receivables and equity transfer receivables, the Company measures expected
credit losses based on the risk exposures of default and lifetime expected credit losses rate with
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
reference to the historical credit loss experience, current situation and forecasts of future economic
conditions.
For other receivables and long-term receivables other than finance lease receivables and equity
transfer receivables that are classified as portfolio, the Company measures expected credit losses
based on the risk exposures of default and future 12-month or lifetime expected credit losses rate.
Debt investments and other debt investments
For debt investments and other debt investments, the Company measures expected credit losses
based on the nature of investments, counterparties and various types of risk exposures and the risk
exposures of default and future 12-month or lifetime expected credit losses rate.
Assessment of significant increase in credit risk
By comparing the risk of default of financial instruments occurring on the balance sheet date and
on the initial recognition date, the Company determines the relative changes in risk of default over
the expected life of financial instruments and assesses whether the credit risk of financial
instruments have increased significantly since the initial recognition.
When determine whether credit risks have significantly increased since the initial recognition, the
Company considers information that is reasonable and supportable, including forward-looking
information that is available without undue cost or effort. The information considered by the
Company includes:
• Failure to make payments of principal or interest on debtors' contractually due dates;
• An actual or expected significant deterioration in a financial instrument's external or internal
credit rating (if any);
• An actual or expected significant deterioration in the operating results of debtors;
• Existing or forecast changes in the technological, market, economic or legal environment that
have significant adverse effect on the debtors' abilities to repay to the Company.
Depending on the nature of the financial instruments, the Company assesses whether credit risks
have significantly increased on either an individual financial instrument basis or a collective
financial instrument basis. When the assessment is performed on a collective financial instrument
basis, the Company can classify the financial instruments based on the shared credit risk
characteristics, such as past due information and credit risk ratings.
The Company determines that the credit risk on a financial instrument has increased significantly
if it is more than 30 days past due.
Credit-impaired financial assets
The Company assesses whether financial assets at amortised cost and debt investments
measured at fair value through other comprehensive income are credit-impaired at balance sheet
date. A financial asset is 'credit-impaired' when one or more events that have an adverse impact on
the estimated future cash flows of the financial asset have occurred. Evidence that a financial asset
is credit-impaired includes the following observable information:
• Significant financial difficulty of the issuer or debtor;
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
• A breach of contract by debtor, such as a default or delinquency in interest or principal
payments;
• For economic or contractual reasons relating to the borrower's financial difficulty, the
Company having granted to the borrower a concession that would not otherwise consider;
• It is probable that the borrower will enter bankruptcy or other financial reorganization;
• The disappearance of an active market for that financial asset because of financial
difficulties.
Presentation of allowance for ECL
The Company re-measures the ECLs on each balance sheet date to reflect changes in the
financial instruments' credit risk since initial recognition, and the increase or reversal of the loss
provision resulted therefrom is recognised as an impairment gain or loss in profit or loss. For
financial assets measured at amortised cost, the loss provision is offset against their carrying
amounts in the balance sheet. For debt investments at FVOCI, the Company recognises the loss
provision in other comprehensive income and does not deduct the carrying amount of the financial
assets.
Write-off
The gross carrying amount of a financial asset is written off (either partially or in full) to the
extent that there is no realistic prospect of recovery. A write-off constitutes a derecognition event.
This is generally the case the Company determines that the debtor does not have assets or sources
of income that could generate sufficient cash flows to repay the amounts subject to the write-off.
However, financial assets that are written off could still be subject to enforcement activities in order
to comply with the Company's procedures for recovery of amounts due.
Subsequent recoveries of an asset that was previously written off are recognised as a reversal
of impairment in profit or loss in the period in which the recovery occurs.
(7) Transfer of financial assets
Transfer of financial assets refers to the transfer or delivery of financial assets to the other party
(the transferee) other than the issuer of financial assets.
The Company derecognises a financial asset only if it transfers substantially all the risks and
rewards of ownership of the financial asset to the transferee; the Company should not derecognise
a financial asset if it retains substantially all the risks and rewards of ownership of the financial asset.
The Company neither transfers nor retains substantially all the risks and rewards of ownership,
shows as the following circumstances: if the Company has forgone control over the financial assets,
derecognise the financial assets and verify the assets and liabilities; if the Company retains its
control of the financial asset, the financial asset is recognised to the extent of its continuing
involvement in the transferred financial asset and recognise an associated liability is recognised.
(8) Offsetting financial assets and financial liabilities
When the Company has the legal right to offset recognised financial assets and financial
liabilities, and the legal right can be executed at present, and the Company has a plan to settle the
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
financial assets and financial liabilities at the same time or at net amount, the financial assets and
financial liabilities can be presented on the balance sheet after offsetting. Except for the above
circumstances, financial assets and financial liabilities cannot be offset and shall be presented
separately on the balance sheet.
The fair value is defined as the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the measurement date.
The Company measures the relevant assets or liability at fair value supposing the orderly
transaction of asset selling or liability transferring incurring in a principal market of relevant assets
or liabilities. In the absence of a principal market for the asset or liability, the Company assumes
that the transaction takes place at the most advantageous market of relevant asset or liability. A
principal market (or the most advantageous market) is the transaction market that the Company can
enter into at measurement date. The Company implements the hypothesis used by the market
participants to realise the maximum economic benefit in assets or liabilities pricing.
If there exists an active market for the financial assets or financial liabilities, the Company uses
the quotation on the active market as its fair value. For those in the absence of active market, the
Company uses valuation technique to recognise its fair value. However, under limited circumstances,
the Company may use all information about the results and operation of the investee obtained after
the date of initial recognition to determine whether cost represents fair value. Cost may represent
the best estimate of fair value of the relevant financial asset within the scope of distribution, and
such cost represents the appropriate estimate of fair value within the scope of distribution.
For non-financial assets measured at fair value, the Company should consider the capacity of
the market participants to put the assets into optimal use thus generating the economic benefit, or
the capacity to sell assets to other market participants who can put the assets into optimal use and
generate economic benefit.
The Company implements the valuation technique suitable for the current condition and
supported by enough available data and other information, gives priority in use of relevant
observable inputs, only the observable inputs cannot be obtained or impracticable before using
unobservable inputs.
For the assets and liabilities measured or disclosed at fair value on financial statements, fair
value hierarchies are categorized into three levels as the lowest level input that is significant to the
entire fair value measurement: Level 1: inputs are quoted prices (unadjusted) in active markets for
identical assets and liabilities. Level 2: inputs are inputs other than quoted prices included within
Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: inputs are
unobservable inputs for the asset or liability.
At each balance sheet date, the Company re-evaluates the assets and liabilities recognised to
be measured at fair value on the financial statements to make sure whether conversion occurs
between fair value hierarchies.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
√Applicable □N/A
(1) Classification of inventories
The Company's inventories include raw materials, packaging materials, finished goods, Work-
in-progress and semi-finished products, low-value consumables, subcontracting materials,
merchandise goods, consumable biological assets and issued goods.
(2) Method of costing
The method of costing of the Company's inventories: Cost of finished goods are measured at
planned cost, and material cost differences are carried forward at the end of the period to adjust
planned cost to actual cost; other inventories are measured at actual cost on acquisition and raw
materials received are accounted for by the weighted-average method; low-value consumables and
packaging materials are amortised in full upon the use.
(3) Determination basis and provision method for decline in value of inventories
On the balance sheet date, the inventories are calculated at the lower of cost and the net
realisable value. When its net realizable value is lower than its cost, a provision for inventory
impairment is made
The net realizable value is the estimated selling price of inventory minus the estimated costs to
complete, estimated selling expenses, and related taxes. In determining the net realizable value of
inventory, reliable evidence is used as a basis, while also considering the purpose of holding the
inventory and the impact of subsequent events after the balance sheet date.
Provision for inventory impairment is made on an item-by-item basis. For inventory with large
quantities and low unit prices, inventory impairment is provided based on inventory categories. For
inventory related to product lines produced and sold in the same region, with similar or identical
final uses or purposes, and difficult to measure separately from other items, inventory impairment
is combined.
On the balance sheet date, if the factors that previously impaired the value of inventory have
disappeared, the provision for inventory impairment is reversed within the originally provided
amount.
(4) Inventory system
The Company maintains a perpetual inventory system.
(5) Amortisation methods of consumables
Low-value consumables and packaging materials of the Company are amortised in full when
used.
√Applicable □N/A
(1) Recognition and accounting treatment of non-current assets or the disposal group
held for sale
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Non-current assets and disposal groups are classified as held for sale if the Company recovers
its book value mainly by selling (including the exchange of nonmonetary assets with commercial
substance) rather than continuing to use it.
The aforesaid non-current assets do not include investment property measured with the basis
of fair value; the biological assets measured with the basis of fair value less selling costs; the assets
formed by employee benefits; financial assets and the right arising from deferred income tax assets
and insurance contracts.
A disposal group is a group of assets to be disposed through sale or other means as a whole in
a single transaction, and liabilities directly associated with those assets that will be transferred in
the transaction. In certain circumstance, disposal groups include the goodwill obtained through
business combination.
Non-current assets and disposal groups that meet the following conditions are classified as held
for sale: according to the practice of disposing of this type of assets or disposal groups in a similar
transaction, a non-current asset or disposal group is available for immediate sale at its present
condition; the sale is likely to occur, that is, a decision has been made on a sale plan and a determined
purchase commitment is made, and the sale is expected to be completed within one year. Where the
loss of control over the subsidiaries is due to the sales of investment in subsidiaries, no matter
whether the Company retains part of the equity investment after selling or not, the investment in
subsidiaries shall be classified as held for sale in the separate financial statements when it satisfies
the conditions for category of held for sale; all assets and liabilities of subsidiaries shall be classified
as held for sale in the consolidated financial statements.
The difference between carrying amount of non-current assets or disposal groups classified as
held for sale and the net amount of fair value less selling costs shall be recognised as impairment
loss on assets upon initial measurement or when such noncurrent assets or disposal groups are
remeasured at the balance sheet date. For the amount of impairment loss on assets recognised in
disposal groups, the carrying amount of disposal groups' goodwill shall be offset against first, and
then offset against the carrying amount of non-current assets according to the proportion of carrying
amount of the individual non-current assets in the disposal groups.
If on a subsequent balance sheet date, the net amount of the fair value of a held-for-sale disposal
group less its selling costs increases, the amount reduced previously shall be recovered, and reversed
in the asset impairment loss recognised on the noncurrent asset which is applicable to the
measurement requirements of Held-For-Sale Standards after the non-current asset is classified into
held-for-sale category. The reversed amount is credited to current profit or loss. The carrying value
of goodwill which has been offset cannot be reversed.
No depreciation or amortisation is provided for the non-current assets in the held-for-sale and
the assets in the disposal group held for sale. The interest on the liabilities and other costs in the
disposal group held for sale is recognised continuously. As far as all or part of investment in the
associates and joint ventures is concerned, for the part classified into the held-for-sale category, the
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
accounting with equity method shall be stopped, while the remaining part (which is not classified
into the held for- sale category) shall still be accounted for using the equity method. When the
Company loses the significant influence on the associates and joint venture due to the sale, the use
of equity method shall be ceased.
When certain non-current asset or disposal group classified into the held-for-sale category no
longer meets the classification criteria for held-for-sale category, the Company shall stop classifying
it into the held-for-sale category and measure it according to the lower of the following two amounts:
① The carrying amount of the asset of disposal group before it was classified into the held-
for-sale category after being adjusted with the depreciation, amortisation or impairment that could
have been be recognised if it was not classified into the held-for-sale category;
② The recoverable amount.
(2) Determination of discontinued operation
Discontinued operation refers to the component meeting one of the following conditions that
has been disposed of by the Company or classified by the Company into the held-for-sale type and
can be identified separately:
① The component represents an independent principal business or a separate principal
business place.
② The component is a part of the related plan for the contemplated disposal of an independent
principal business or a separate principal business place.
③ The component is a subsidiary acquired exclusively for the purpose of resale.
(3) Presentation
The Company presents the non-current assets held for sale and the assets in the disposal group
held for sale under “assets classified as held for sale”, and the liabilities in the disposal group held
for sale under “liabilities classified as held for sale” in the balance sheet.
The Company presents the profit and loss for continuing operation and profit and loss for
discontinued operation in the income statement, respectively. The impairment loss and reversal
amount and disposal profit and loss of the non-current assets held for sale or disposal group not
meeting the definition of discontinued operation will be presented as the profit and loss of
continuing operation. The operating profit and loss (such as impairment loss and reversal amount)
and disposal profit and loss of the discontinued operation will be presented as the profit and loss of
the discontinued operation.
The disposal group proposed for retirement rather than sale and meeting the condition about
the relevant component in the definition of the discontinued operation will be presented as
discontinued operation from the date of retirement.
For the discontinued operation reported in the current period, the information formerly
presented as profit and loss of continuing operation will be presented as the profit and loss of
discontinued operation for the comparable accounting period in the financial statement of the current
period. If the discontinued operation no longer meets the classification criteria for held for- sale
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
category, the information formerly presented as profit and loss of discontinued operation will be
presented as the profit and loss of continuing operation for the comparable accounting period in the
financial statement of the current period.
√Applicable □N/A
The long-term equity investment includes the equity investment in the subsidiary, joint
ventures and associates. The investee over which the Company has significant influence is the
associates of the Company.
(1) Determination of initial investment cost
The long-term equity investment resulting from corporate merger: For the long-term equity
investment resulting from merger of companies under the same control, the carrying amount of the
ownership equity of the merged party obtained on the merger date presented in the consolidated
financial statement of the final controlling party will be used as the investment cost. For the long-
term equity investment resulting from merger of companies under different controls, the merger
cost will be used as the investment cost of the long-term equity investment.
The long-term equity investment obtained by other means: For the long-term equity investment
obtained by paying cash, the actually paid purchase price will be used as the initial investment cost.
For the long term equity investment obtained by issuing equity securities, the fair value of the issued
equity securities will be used as the initial investment cost.
(2) Subsequent measurement and recognition method of profit or loss
The investment in subsidiary will be accounted for using cost method, unless the investment
meets the criteria of held-for-sale category. The investment in associates and joint venture will be
accounted with equity method.
For the long-term equity investment accounted for using cost method, except for the price
actually paid upon the investment or the cash dividend or profit in the consideration that has been
declared but not released, the cash dividend or profit declared and distributed by the investee is
recognised as the investment income and recorded into the profit and loss for the current period.
For the long-term equity investment accounted for using equity method, the investment cost of
the long-term equity investment shall not be adjusted if the initial investment cost of the long-term
equity investment is higher than the Company's share in the fair value of the identifiable net value
of the investee at the time of investment; if the initial investment cost of the long-term equity
investment is lower than the Company's share in the fair value of the identifiable net value of the
investee at the time of investment, the carrying amount of the long-term equity investment will be
adjusted, with the difference recorded into the profit and loss for the current period of investment.
When accounted for using the equity method, return on investment and other comprehensive
income are recognised according to the share in the investee's realised net profit or loss and other
comprehensive income respectively, and the carrying amount of the long-term equity investment is
adjusted. The carrying amount of the long-term equity investment will be deducted according to the
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
profit distribution declared by the investee or cash dividend attributable to the Company. The
carrying amount of long term equity investment will be adjusted for changes to equity interest
attributable to the owners of the investee other than net profit or loss, other comprehensive income
and profit distribution, and recorded into capital reserve (other capital reserve). The Company's
share of the net profit or loss of the investees will be recognised after adjustment of the net profit of
the investees according to the accounting policy and accounting period of the Company on the basis
of fair value of all identifiable assets of the investee on acquisition.
If the Company is able to exert significant influence or implement joint control (which does
not constitute control) on the investee through additional investment or other reason, the sum of the
fair value of the original equity plus the additional investment cost will be used as the initial
investment cost, which will be accounted for with equity method, on the conversion date. If the
original equity has been classified as non-trading equity instrument investments measured at fair
value through other comprehensive income, the related accumulated change of fair value originally
recorded into other comprehensive income will be transferred into the retained earnings when
accounted for using equity method.
If an entity loses joint control or has no significant influence over investees due to the
elimination of parts of the equity investment, the surplus equity after disposal shall be recognised
in accordance with “Accounting Standards for Business Enterprises No. 22 – Recognition and
Measurement of Financial Instruments”, and the difference between fair value and carrying amount
should be recognised as profit or loss for current period. Other comprehensive income of original
equity investment recognised under equity method shall be recognised in accordance with the same
foundation used by the investees when dispose the relevant assets or liabilities directly in the
termination of equity method. Other changes of owners' equity related to the original equity
investment shall be transferred into profit or loss for current period.
If an entity loses control over investees due to the elimination of parts of the equity investment,
the surplus owners' equity that is able to implement joint control or have significant influence over
investees shall be measured at equity method and are deemed to be recognised under equity method
since the acquisition date. The surplus owners' equity that are unable to implement joint control or
have no significant influence over investees shall be processed in accordance with “Accounting
Standards for Business Enterprises No. 22 – Recognition and Measurement of Financial
Instruments”, and the difference between fair value and carrying amount at the day of loss of control
shall be recognised as profit or loss for current period.
If the shareholding ratio of the Company is reduced due to the increase of capital of other
investors, and thus the control is lost, but the joint control or significant influence can be exerted on
the invested entity, the Company should recognise net asset according to the new shareholding ratio.
The difference between the original book value of the long-term equity investment corresponding
to the decrease in the shareholding ratio should be included in the current profit and loss; then,
according to the new shareholding ratio, the equity method is used to adjust the investment.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
The Company recognises the unrealised profit or loss of intra-transaction between the joint
ventures or associates that belongs to itself according to the proportion of the shares and recognises
the investment income or loss after offset. However, the loss arising from the unrealised intra-
transaction between the Company and investees, which belongs to the impairment loss of assets
transferred, cannot be offset.
(3) Basis of determining common control and significant influence on the investee
Joint control is the contractually agreed sharing of control over an arrangement under which
the decisions relating to any activity require the unanimous consent of the parties sharing control.
In determining whether there is a joint control, the first judge is to determine whether the relevant
arrangement is controlled collectively by all the parties involved or the group of the parties involved.
Secondly, and then determine whether the decisions related to the basic operating activities should
require the unanimous consent of the parties involved. If the parties involved or the group of the
parties involved must act consistently to determine the relevant arrangement, it is considered that
the parties involved or the group of the parties involved control the arrangement. If two or more
parties involve in the collectively control of certain arrangement, it shall not be considered as joint
control. Protection of rights shall not be considered in determining whether there is joint control.
Significant influence refers to the power to participate in the decision making process for
financial and operational policies of the investees without control or common control over the
formulation of such policies. When determining whether it has significant influence over the
investee, the influence of the voting shares of the investee held by the investor directly and indirectly
and the potential voting rights held by the investor and other parties which are exercisable in the
current period and converted to the equity of the investee, including the warrants, share options and
convertible bonds that are issued by the investee and can be converted in the current period, shall
be taken into account.
When the Company owns directly or indirectly through its subsidiaries more than 20%
(including 20%) but less than 50% of the voting shares of the investee, it is generally considered to
have significant influence over the investee, unless there is clear evidence that it cannot participate
in the production and operation decisions of the investee and does not have a significant influence
under such circumstances. When the Company owns less than 20% (excluding) of the voting shares
of the investee, it is generally not considered to have significant influence on the investee unless
there is clear evidence that it can participate in the production and operation decisions of the investee
and have significant influence under such circumstances.
(4) Held-for-sale equity investment
Refer to Note III. 14 for the relevant accounting treatment of the equity investment to joint
ventures or associates all or partially classified as assets held for sale.
The surplus equity investments that are not classified as assets held for sale shall be accounted
for using equity method.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
The equity investment to joint ventures or associates already classified as held for sale no
longer meets the conditions of assets held for sale shall be adjusted retroactively using equity
method from the date of being classified as assets held for sale.
(5) Impairment test and impairment provision
Refer to note III. 23 for investment to subsidiaries, associates and joint ventures and the
impairment provision of assets.
Investment properties are properties held to earn rental or capital appreciation or both. The
investment properties of the Company include land use rights that have already been leased out,
land use rights that are held for the purpose of sale after capital appreciation, buildings that have
already been leased out, etc.
Investment properties of the Company are measured initially at cost upon acquisition, and
subject to depreciation or amortisation in the relevant periods according to the relevant provisions
on fixed assets or intangible assets.
The Company adopts the cost model for subsequent measurement of the investment properties.
The method for asset impairment provision is set out in note III. 23.
The balance after the disposal income from the disposal, transfer, scrapping or destruction of
the investment properties deducts the book value and the relevant taxes shall be recorded into the
profit and loss for the current period.
(1) Conditions for recognition of fixed assets
√Applicable □N/A
The Company's fixed assets represent the tangible assets held by the Company using in the
production of goods, rendering of services, rent and for operation and administrative purposes with
useful life over one year.
The fixed asset can be recognised only when the economic benefit related to the fixed asset is
probable to flow into the company and the cost of the fixed asset can be reliably measured.
The Company's fixed assets are initially measured at the actual cost at the time of acquisition.
Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset
when it is probable that the related economic benefits will flow to the Company and the related cost
can be reliably measured. The daily repair costs of fixed assets that do not meet the recognition
criteria of subsequent expenditures of fixed assets are recorded in the profit or loss for the current
period or included in the cost of the relevant assets according to beneficiaries when incurred. The
carrying amount of the replaced part is derecognised.
(2) Method of depreciation
√Applicable □N/A
The Company adopts the straight-line method to provision for depreciation. Depreciation of
fixed assets begins when they reach the status of intended use, and ceases to be depreciated when
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
they are derecognized or classified as non-current assets held for sale. Without taking into account
the provision for impairment, the Company determines the annual depreciation rates of various
types of fixed assets according to the type of fixed assets, estimated useful life and estimated residual
value as follows:
Useful years
Category Annual depreciation Residual rate %
(year)
Properties and Buildings 20 4.5%-4.75% 5%-10%
Machine and equipment 10 9%-9.5% 5%-10%
Transportation equipment 5 18%-19% 5%-10%
Electric equipment and
others
Where, for the fixed assets for which depreciation provision is made, to determine the
depreciation rate, the accumulated amount of the fixed asset depreciation provision that has been
made shall be deducted.
(3) Refer to note III. 23 for the impairment testing and the impairment provision of fixed
assets.
(4) The Company reviews the useful life and estimated net residual value of fixed asset and
the depreciation method applied annually at each of the period end.
The useful lives of fixed asset are adjusted if their expected useful lives are different from the
original estimates; the estimated net residual values are adjusted if they are different from the
original estimates.
(5) Overhaul costs
The overhaul costs occurred in regular inspection of fare recognised in the cost of property,
plant and equipment if there is undoubted evidence to confirm that they meet the recognition
criteria of fixed assets, otherwise, the overhaul costs are recognised in profit or loss for the current
period. Property, plant and equipment are depreciated during the intervals of the regular overhaul.
√Applicable □N/A
Construction in progress is measured at actual cost. Actual cost comprises necessary project
expenditure incurred during construction, borrowing cost that are eligible for capitalisation and
other necessary cost incurred to bring the fixed assets ready for their intended use.
Basis for transferring construction in progress to fixed assets is as follows:
Category Basis for transferring construction in progress to fixed assets
(1) Main construction project and supporting works have been substantially completed.
(2) Construction works have met the predetermined design requirements, verified and
accepted by survey, design, construction, supervision, and other units.
(3) Approved by fire safety, land administration, and urban planning departments.
Buildings and structures
(4) If GMP certification is required, it must pass the GMP on-site inspection and receive a
GMP compliance notification.
(5) For construction projects that have reached the predetermined status of use but have not
yet undergone final settlement, fixed assets are transferred based on the estimated value
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
according to the actual project cost from the date of reaching the predetermined usable
state.
(1) The relevant equipment and other supporting facilities have been installed.
(2) The equipment has been debugged and can maintain normal and stable operation for a
period of time.
Production and
(3) The production equipment is capable of consistently producing qualified products for a
ancillary equipment
period of time (consideration may be given to product yield and design capacity ratio).
requiring installation
(4) The equipment has been verified and accepted by the asset management personnel and
and debugging
users.
(5) If GMP certification is required, it must pass the GMP on-site inspection and receive a
GMP compliance notification.
For provision for impairment of construction in progress, refer to note III. 23.
In the balance sheet, the ending balance of construction materials is presented under
“construction in progress”.
√Applicable □N/A
(1) Recognition principle of capitalisation of borrowing costs
For borrowing costs that are directly attributable to the acquisition, construction or production
of a qualifying asset, they shall be capitalised and included in the cost of related assets; other
borrowing costs are recognised as expenses and included in profit or loss when incurred.
Capitalisation of such borrowing costs can commence only when all of the following conditions are
satisfied:
① Expenditures for the asset incurred, capital expenditure includes the expenditure in the form
of cash payment, transfer of non-cash assets or the interest bearing liabilities for the purpose of
acquiring or constructing assets eligible for capitalisation;
② Borrowing costs incurred;
③ Activities relating to the acquisition, construction or production of the asset that are
necessary to prepare the asset for its intended use or sale have commenced.
(2) Capitalisation period of borrowing costs
Capitalisation of such borrowing costs ceases when the qualifying assets being acquired,
constructed or produced become ready for their intended use or sale. The borrowing cost incurred
after that is recognised as an expense in the period in which they are incurred and included in profit
or loss for the current period.
Capitalisation of borrowing costs is suspended during periods in which the acquisition,
construction or production of a qualifying asset is interrupted abnormally and when the interruption
is for a continuous period of more than 3 months; the borrowing costs in the normally interrupted
period continue to capitalise.
(3) Calculation of the capitalisation rate and amount of borrowing costs
The interest expense of the specific borrowings incurred at the current period, deducting any
interest income earned from depositing the unused specific borrowings in bank or the investment
income arising from temporary investment, shall be capitalised. The capitalisation rate of the general
borrowing is determined by applying the weighted average effective interest rate of general
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
borrowings, to the weighted average of the excess amount of cumulative expenditures on the asset
over the amount of specific borrowings.
During the capitalisation period, exchange differences on foreign currency special borrowings
shall be capitalised; exchange differences on foreign currency special borrowings shall be
recognised as current profits or losses.
√Applicable □N/A
(1) Determination of biological assets
Biological assets refer to assets comprising living animals and plants. No biological asset shall
be recognised unless it meets the conditions as follows simultaneously:
① An enterprise possesses or controls the biological asset as a result of past transaction or
event;
② The economic benefits or service potential concerning this biological asset are likely to
flow into the enterprise;
③ The cost of this biological asset can be measured reliably.
(2) Classification of biological assets
The Company’s biological assets are consumable biological assets which include traditional
Chinese medical herbal plant species.
The consumable biological assets refer to the biological assets held for sale, or biological assets
to be harvested as agricultural products in the future, consisting of growing traditional Chinese
medical herbal plant species. The consumable biological asset is initially measured at cost. The cost
of any consumable biological assets by way of self-planting, self-cultivating, self-breeding is the
necessary cost directly attributable to this asset prior to the harvest, consisting of borrowing costs
that meet the conditions of capitalisation. The subsequent expenses for the maintenance, protection
and cultivation of a consumable biological asset after the harvest shall be included in the current
profits or loss.
The cost of a consumable biological asset shall, at the time of harvest or sale, be carried over
at its book value by the weighted average method.
(3) Impairment of biological assets
If the net realisable value of the consumable biological assets is lower than their carrying
amount, provision of impairment loss is made and recognised in the profit or loss for the current
period as the excess of the carrying amount over the net realisable value. If the factors affecting the
impairment of consumable biological assets no longer exist, the amount of write-down shall be
resumed and shall be reversed from the original provision for the impairment loss before being
recognised in the profit or loss for the current period.
(1) Pricing methods, useful lives and impairment tests
√Applicable □N/A
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
An intangible asset is an identifiable non-monetary asset without physical substance owned or
controlled by the Company. An intangible asset is recognised only when all of the following
conditions are satisfied: It is probable that the economic benefits associated with the intangible
assets will flow to the enterprise; The cost of the intangible asset can be reliably measured.
Intangible assets are initially measured at actual cost.
The Company's intangible assets include land use rights, patents and proprietary technologies,
software, trademark rights, etc.
Intangible assets are initially measured at historical cost, and the Company shall make
judgement to determine the useful life of intangible assets upon acquisition. Intangible assets with
finite useful life are amortised in the profit or loss over the estimated useful life, using the method
that reflects the expected realisation of economic benefits associated with the asset, and if the
expected realisation cannot be reliably determined, it is amortised using the straight-line method.
Intangible assets with indefinite useful life are not amortised.
Amortisation of intangible assets with finite useful life is as follows:
Basis in determination
Category Useful life Amortisation method Note
of useful life
Land use rights 30 to 50 years Land use period Straight-line method
Patents and proprietary Shorter of estimated benefit period
technologies and patent validity period
Software 2 to 10 years Estimated benefit period Straight-line method
Shorter of estimated benefit period
Trademark rights 5 years Straight-line method
and trademark validity period
Others 10 years Estimated benefit period Straight-line method
The useful life for an intangible asset with a finite useful life and the method of amortisation
are reviewed at least once at the end of each financial year. If the useful life and amortisation method
for the intangible assets are different from the previous estimate, the change of amortisation is
recognised prospectively as the change of accounting estimate.
When the Company estimates an intangible asset can no longer bring future economic benefits
to the Company at the end of a period, the carrying amount in which should be reversed to profit or
loss for the current period.
Please refer to note III. 23 for the provision of impairment of intangible assets.
√Applicable □N/A
The research and development (R&D) expenses of our company consist of expenses directly
related to R&D activities, including salaries of R&D personnel, direct input costs, depreciation and
amortization of long-term assets, equipment debugging costs, amortization of intangible assets,
expenses for outsourcing research and development, clinical trial expenses, and other expenses.
Among these, the salaries of R&D personnel are allocated to R&D expenses based on project hours.
Equipment, production lines, and premises shared between R&D activities and other production
operations are allocated to R&D expenses based on the proportion of hourly usage or space usage.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Expenditures on an internal research and development project are classified into expenditures
on the research phase and expenditures on the development phase.
Expenditures on the research phase shall be recognised in profit or loss for the current period
when incurred.
Expenditures on the development phase will be capitalised only when all of the following
conditions are satisfied: it is technically feasible to complete the intangible asset so that it will be
available for use or sale; the Company intends to complete the intangible asset and use or sell it; it
can be demonstrated how the intangible asset will generate economic benefits, including proving
that the intangible assets or the products produced by it will have markets, or the intangible assets
for internal use will be useful; there are adequate technical, financial and other resources to complete
the development and the Company is able to use or sell the intangible assets; and expenditures on
the development phase attributable to the intangible assets can be reliably measured. The
development expenditures that do not satisfy the above conditions shall be recognised in profit or
loss for the current period.
Our research and development projects enter the development stage after meeting the above
conditions and forming the project through the technical and economic feasibility studies.
Capitalised expenditures on the development phase are shown as development expenditures on
the balance sheet and reclassified as intangible assets on the date the project meets the intended
purpose.
Capitalisation conditions for specific research and development projects are as follows:
① For research and development projects that are not required to obtain clinical approvals,
the period from the beginning of research and development to the pilot phase is treated as the
research phase, and all expenditures shall be recognised in profit or loss for the current period when
incurred; the period from the pilot phase to the obtaining of production approvals is treated as the
development phase, and all expenditures shall be recognised as development expenditures and
reclassified as intangible assets after the obtaining of production approvals.
② For research and development projects that require clinical approval, the period from the
beginning of research and development to the obtaining of clinical approval is treated as the research
phase, and all expenditures incurred shall be recognised in profit or loss for the current period when
incurred; the period from the obtaining of clinical approval to the obtaining of production approval
is treated as the development phase, and the expenditures shall be recognised as development
expenditures and reclassified as intangible assets after the obtaining of production approval.
③ Purchased technologies or formulas, etc., where the purchase price is recognised as
development expenses, require subsequent R&D to be accounted for in accordance with the
procedures outlined in points ① and ② above.
④ The Company reviews the latest research and development status of each project at the
end of each year and if the research and development project no longer qualifies for the development
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
stage, the corresponding development expenditure are recognised in profit or loss for the current
period.
⑤Where it is impossible to differentiate the expenditures on the research phase and the
expenditures on the development phase, all the research and development expenditures are
recognised in profit or loss for the current period.
√Applicable □N/A
The impairment of subsidiaries, associates and joint ventures in the long-term equity
investments, investment properties subsequently measured at cost, fixed assets, construction in
progress, right-of-use assets, intangible assets, etc. (Excluding inventories, deferred income tax
assets and financial assets) are determined as follows:
At the balance sheet date, the Company determines whether there may be evidence of
impairment, if there is any, the Company will estimate the recoverable amount for impairment, and
then test for impairment. For goodwill arising from a business combination, intangible assets with
indefinite useful life and the intangible assets that have not yet reached their intended use are tested
for impairment annually regardless of whether such evidence exists.
The recoverable amount of an asset is determined by the higher amount of fair value deducting
disposal costs and net present value of future cash flows expected from the assets. The Company
estimates the recoverable amount based on individual asset; for individual asset which is difficult
to estimate the recoverable amount, the recoverable amount of the asset group is determined based
on the asset group involving the asset. The identification of the asset group is based on whether the
cash flow generated from the asset group is independent of the major cash inflows from other assets
or asset groups.
When the asset or asset group’s recoverable amount is lower than its carrying amount, the
Company reduces its carrying amount to its recoverable amount, the reduced amount is included in
profit or loss, while the provision for impairment of assets is recognised.
In terms of impairment test of the goodwill, the carrying amount of the goodwill, arising from
business combination, shall be allocated to the related asset group in accordance with a reasonable
basis at acquisition date. Those that are difficult to be allocated to related assets shall be allocated
to related asset group. Related assets or assets group refer to those that can benefit from the synergies
of business combination and are not larger than the Company’s recognised reporting segment.
When there is an indication that the asset and asset group are prone to impair, the Company
should test for impairment for asset and asset group excluding goodwill and calculate the
recoverable amount and recognise the impairment loss accordingly. The Company should test for
impairment for asset or the asset group including goodwill and compare the asset or asset group’s
recoverable amount with its carrying amount, provision for impairment of assets shall be recognised
when the recoverable amount of assets is lower than its carrying amount.
Once impairment loss is recognised, it cannot be reversed in subsequent accounting periods.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
√Applicable □N/A
The Company’s long-term deferred expenses measured at cost actually incurred and evenly
amortised on straight-line basis over the expected beneficial period. For the long-term deferred
expense items that cannot benefit in subsequent accounting period, their amortised value is
recognised through profit or loss.
(1) The scope of employee compensation
Employee compensation are all forms of remuneration and compensation given by the
Company in exchange for service rendered by employees or the termination of employment.
Employee compensation includes short-term employee compensation, post-employment benefits,
termination benefits and other long-term employee benefits. Employee compensation includes
benefits provided to employees’ spouses, children, other dependants, survivors of the deceased
employees or to other beneficiaries.
According to liquidity, employment compensations are presented separately as “accrued
payroll” item and “long-term employment compensation payable” item in the balance sheet.
(2) Short-term employee compensation
During the accounting period in which the employees render the related services, wages,
bonuses, social security contributions (including medical insurance, injury insurance, maternity
insurance, etc.) and house funding are recognised as liability and included in the profit or loss for
the current period or related asset costs.
(3) Post-employment benefits
√Applicable □N/A
Post-employment benefit plans mainly include defined contribution plans. A defined
contribution plan refers to a post-employment benefit plan where the Company no longer bears
further payment obligations after depositing fixed costs into an independent fund. The Company is
only involved in defined contribution plans.
Defined contribution plans include basic pension insurance and unemployment insurance.
During the accounting period in which the employees provide services, the amount payable
calculated based on the defined contribution plan is recognized as a liability and is either recorded
in the profit or loss of the current period or included in the cost of related assets.
(4) Termination benefits
√Applicable □N/A
The liability of employee compensation arising from termination benefits is recognised and
included in profit or loss for the current period in the earlier date of the followings: The Company
cannot unilaterally withdraw the offer of termination benefits because of an employment
termination plan or a curtailment proposal; the Company recognises costs or expenses related to the
restructuring that involves the payment of termination benefits.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
For the implementation of the internal retirement plan for employees, the economic
compensation before the official retirement date is a termination benefit. The wage of and social
insurance contributions for the internally retired employee which would have incurred from the date
on which the employee cease rendering services to the Company to the scheduled retirement date
will be included in the profit or loss for the current period. Economic compensation after the official
retirement date (such as normal pension) should be treated as post-employment benefits
(5) Other long-term employee benefits
√Applicable □N/A
When other long-term employee benefits provided to the employees by the Company are
satisfied the conditions of a defined contribution plan, those benefits shall be accounted for in
accordance with the relevant provisions of the above defined contribution plans. When the benefits
are satisfied the conditions of a defined benefit plan, those benefits shall be accounted for in
accordance with the relevant provisions of the above defined benefit plans, except that the “change
in remeasurement of the net liability or net assets of the defined benefit plans” in the cost of the
related employee compensation shall be included in profit or loss for the current period or related
asset costs.
√Applicable □N/A
An obligation related to a contingency is recognised as a provision when all of the following
conditions are satisfied:
(1) The obligation is a present obligation of the Company;
(2) It is probable that an outflow of economic benefits will be required to settle the obligation;
(3) The amount of the obligation can be measured reliably.
Provisions are initially measured at the best estimate of the payment to settle the associated
obligations and consider the relevant risk, uncertainty and time value of money. If the impact of
time value of money is significant, the best estimate is determined as its present value of future cash
outflow. The Company reviews the carrying amount of provisions at the balance sheet date and
adjusts the carrying amount to reflect the best estimate.
If the expenses for clearing of provisions is fully or partially compensated by a third party, and
the compensated amount can be definitely received, it is recognised separately as asset. The
compensated amount recognised shall not be greater than the carrying amount of the liability
recognised.
√Applicable □N/A
(1) Category of share-based payment
Share-based payment of the Company is classified into equity-settled share-based payment and
cash-settled share-based payment.
(2) Determination of fair value of equity instrument
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
For options and other equity instruments granted by the Company with active market, the fair
value is determined at the active market quotations. For options and other equity instruments with
no active market, option pricing model shall be used to estimate the fair value of the equity
instruments. Factors as follows shall be taken into account using option pricing models: A. the
exercise price of the option; B. the validity period of the option; C. the current market price of the
share; D. the expected volatility of the share price; E. predicted dividend of the share; F.risk-free
rate of the option within the validity period.
(3) Recognition basis for the best estimate of exercisable equity instruments
On each balance sheet date during the pending period, the Company, based on the latest
subsequent information such as the latest update on the change in the number of entitled employees,
makes best estimate to adjust the expected number of equity instruments that can be exercised. As
at the exercise date, the final estimated number of exercisable equity instruments should equal the
actual number of exercisable equity instruments.
(4) Accounting treatment for implementation, amendment and termination of share-
based
Equity-settled share-based payment is measured at the fair value of the equity instruments
granted to employees. Instruments which are exercisable immediately upon the grant are included
in relevant costs or expenses at the fair value of equity instruments on the date of grant and capital
reserves are increased accordingly. If exercising is conditional upon completion of services in the
pending period or fulfillment of performance conditions, on each balance sheet date during the
pending period, based on the best estimate of the number of exercisable equity instruments, the
services received for the period are recognised as the costs or expenses and capital reserves at fair
value of the equity instruments as at the date of grant. After the exercise date, relevant costs or
expenses and total shareholders’ equity have been recognised and will not be adjusted.
Cash-settled share-based payments are measured at the fair value of the liabilities (share-based
or other equity instrument-based) assumed by the Company. Instruments which are exercisable
immediately upon the grant are included in relevant costs or expenses at the fair value of liabilities
assumed by the Company on the date of grant and liabilities are increased accordingly. If exercising
is conditional upon completion of services in the pending period or fulfillment of performance
conditions, on each balance sheet date during the pending period, based on the best estimate of the
exercisable situation, the services received for the period are recognised as the costs or expenses
and corresponding liabilities at fair value of the liabilities assumed by the Company. On each
balance sheet date before the relevant liabilities are settled and settlement date, the fair value of
liabilities is remeasured and the resulting changes are included in the profit and loss for the current
period.
When the Company modifies the share-based payment plan, and if such modification increases
the fair value of the equity instruments granted, the increase in services received will be recognised
accordingly following the increase in fair value of the equity instruments; if such modification
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
increases the number of equity instruments granted, the increase in fair value of the equity
instruments is recognised as a corresponding increase in services received. The increase in fair value
of the equity instruments refers to the difference in fair values on the date of modification before
and after the modification in respect of the equity instruments. If the modification reduces the total
fair value of the share-based payments or adopts any form that is unfavorable to employees to
modify the terms and conditions of the share-based payment plan, accounting treatment will be
continued to be conducted in respect of the services received and the modification will be deemed
to have never occurred, unless the Company had cancelled part or all of the equity instruments
granted.
During the pending period, if the equity instruments granted are cancelled (except for failure
to meet the non-market conditions of the exercising conditions), the Company will undertake an
accelerated exercising in respect of the cancelled equity instruments that have been granted, include
the remaining amount that shall be recognised during the pending period in the profit and loss for
the current period immediately and recognise capital reserve accordingly. Where employees or other
parties are permitted to choose to fulfill non-exercising conditions but have not fulfilled during the
pending period, the Company will treat the granted equity instruments as cancelled.
(5) Accounting treatment for share-based payment transactions involving the Company
and the shareholders or the actual controller of the Company
For share-based payment transactions involving the Company and the shareholders or the
actual controller of the Company, the settlement enterprise and the enterprise receiving services
(one under the Company while the other external to the Company) shall follow the requirements
below to conduct accounting treatment in the Company’s consolidated financial statements:
①For settlement enterprises settling through their own equity instruments, such share-based
payment transaction will be treated as equity-settled share-based payment; except for this, such
share-based payment transaction will be treated as cash-settled share-based payment.
Where a settlement enterprise is an investor of an enterprise receiving services, the fair value
of the equity instruments on the date of grant or the fair value of the liabilities that shall be assumed
are recognised as long-term equity investment in the enterprise receiving services, at the same time,
capital reserve (other capital reserve) or liabilities are recognised.
②Where an enterprise receiving services has no settlement obligations or grants its own equity
instruments to employees, such share-based payment transaction will be treated as equity-settled
share-based payment;
where an enterprise receiving services has settlement obligations and grants equity instruments
(other than its own) to employees, such share-based payment transaction will be treated as cash-
settled share-based payment.
For a share-based payment transaction occurring among enterprises under the Company where
the enterprise receiving services and the settlement enterprise are not the same enterprise, such
share-based payment transaction shall be recognised and measured in each of the respective
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
financial statements of the enterprise receiving services and the settlement enterprise by reference
to the above principles.
√Applicable □N/A
(1) Classification of financial liabilities and equity instruments
The Company classifies the financial instrument or its components as financial assets, financial
liabilities or equity instruments at the initial recognition based on the contract terms of the issued
financial instrument and the economic substance it reflects, instead of only in legal form, and
combine the definition of financial assets, financial liabilities and equity instruments.
(2) Accounting treatment of preferred shares, perpetual bonds and other financial
instruments
The financial instruments issued by the Company are initially recognised and measured in
accordance with the financial instrument standards; thereafter, interest or dividends are accrued or
distributed on each balance sheet date and processed in accordance with relevant specific accounting
standards for enterprises. That is, on the basis of the classification of the financial instrument issued,
the accounting treatment of interest expenses or dividend distributions of the instrument is
determined. For financial instruments classified as equity instruments, interest expenses or dividend
distributions are treated as profit distribution of the Company, and repurchases and cancellations
are treated as changes in equity; for financial instruments classified as financial liabilities, interest
expenses or dividend distributions are in principle treated according to borrowing costs, and gains
or losses arising from repurchase or redemption are credited to profit or loss for the current period.
The transaction costs such as charges and commissions incurred by the Company when issuing
financial instruments, if classified as debt instruments and measured at amortised cost, are included
in the initial measurement amount of the issued instrument; if classified as equity instruments, are
deducted from equity.
√Applicable □N/A
(1) General principle
The Company shall recognise revenue when the Company satisfies the performance obligation
of the contract, that is, the customer obtains control of relevant goods or services.
When the contract contains two or more performance obligations, on the effective date of the
contract, the Company allocates the transaction price to each performance obligation based on the
percentage of respective unit price of a good or service guaranteed by each performance obligation,
and the revenue is measured according to the transaction price allocated to each performance
obligation.
If one of the following conditions is fulfilled, the Company satisfies a performance obligation
over time; otherwise, it satisfies a performance obligation at a point in time:
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
① When the customer simultaneously receives and consumes the benefits provided by the
Company when the Company performs its obligations under the contract.
② When the customer is able to control the commodity in progress in the course of
performance by the Company under the contract.
③ The product produced by the Company under the contract is irreplaceable and the Company
has the right to payment for performance completed to date during the term of the contract.
For a performance obligation satisfied over time, the Company shall recognise revenue over
time by measuring the process towards complete satisfaction of the performance obligation. When
the progress of performance cannot be reasonably determined, if the costs incurred by the Company
are expected to be recoverable, the revenue will be recognised to the extent of the costs incurred
until the progress of performance can be reasonably determined.
For a performance obligation satisfied at a point in time, the Company shall recognise revenue
when the customer obtains control of relevant goods or services. When determining whether the
customer has obtained control of the goods and services, the Company will consider the following
indications:
① The Company has the current right to receive payment for the goods or services, which is
when the customers have the current payment obligations for the goods.
② The Company has transferred the legal title of the goods to the client, which is when the
client possesses the legal title of the goods.
③ The Company has transferred the physical possession of goods to the customer, which is
when the customer obtains physical possession of the goods.
④ The Company has transferred all of the substantial risks and rewards of ownership of the
goods to the customer, which is when the client obtains all of the substantial risks and rewards of
ownership of the goods to the customer.
⑤ When the customer has accepted the goods or services.
⑥ When other information indicates that the customer has obtained control of the goods.
A contract asset represents the Company’s right to consideration in exchange for goods or
services that it has transferred to a customer when that right is conditioned on factors other than
passage of time, for which the loss allowances for expected credit loss is recognised (see Note
III.12(6)). The Company shall present any unconditional (i.e. if only the passage of time is required)
rights to consideration separately as a receivable. A contract liability is the Company’s obligation
to transfer goods or services to a customer for which the Company has received consideration (or
the amount is due) from the customer.
The contract assets and liabilities under the same contract shall be shown on a net basis. If the
net amount stated in debit balance, it will be presented under the items of “Contract assets” or “Other
non-current assets” according to its mobility; If the net amount stated in credit balance, it will be
presented under the items of “Contract liabilities” or “Other non-current liabilities” according to its
mobility.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
(2) Specific method
The Company enters into sales contracts with customers. Revenue from sales is recognised
according to the invoiced amount upon the delivery of goods to the designated carrier or purchaser
according to the orders received from customers; revenue from export sales is recognised mainly by
adopting FOB mode according to custom declaration upon making declaration for goods and
completing the export procedures.
The Company offers consistent credit terms to all types of customers, with no significant
financing component involved.
The Company operates on a buyout sales model with distributors, and revenue recognition
under the distribution model is consistent with the direct sales model.
For sales with sales return provisions, revenue recognition is limited to the amount expected
not to result in significant returns based on the cumulative revenue recognized. The Company
recognizes liabilities based on the expected refund amount, while recognizing an asset for the
expected value of returned goods at the time of transfer, net of estimated costs (including the value
impairment of returned goods).
√Applicable □N/A
Contract costs are either the incremental costs of obtaining a contract with a customer or the
costs to fulfil a contract with a customer.
Incremental costs of obtaining a contract are those costs that the Company incurs to obtain a
contract with a customer that it would not have incurred if the contract had not been obtained e.g.
an incremental sales commission. The Company recognises as an asset the incremental costs of
obtaining a contract with a customer if it expects to recover those costs. Other costs of obtaining a
contract are expensed when incurred.
If the costs to fulfil a contract with a customer are not within the scope of inventories or other
accounting standards, the Company recognises an asset from the costs incurred to fulfil a contract
only if those costs meet all of the following criteria:
① The costs relate directly to an existing contract or to a specifically identifiable anticipated
contract, including direct labour, direct materials, allocations of overheads (or similar costs) , costs
that are explicitly chargeable to the customer and other costs that are incurred only because the
Company entered into the contract;
② The costs generate or enhance resources of the Company that will be used in satisfying (or
in continuing to satisfy) performance obligations in the future;
③ The costs are expected to be recovered.
Assets recognised for the incremental costs of obtaining a contract and assets recognised for
the costs to fulfil a contract (the “assets related to contract costs”) are amortised on a systematic
basis that is consistent with the transfer to the customer of the goods or services to which the assets
relate and recognised in profit or loss for the current period.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
The Company recognises an impairment loss in profit or loss to the extent that the carrying
amount of an asset related to contract costs exceeds:
① Remaining amount of consideration that the Company expects to receive in exchange for
the goods or services to which the asset relates;
② The cost estimated to be happened for the transfer of related goods or services.
The costs of contract performance recognised as assets, if the amortisation period is less than
one year or a normal operating cycle upon the initial recognition, are presented as “Inventories”
item, and if the amortisation period is more than one year or a normal operating cycle upon the
initial recognition, are presented as “Other non-current assets” item.
The contract obtaining costs recognised as assets, if the amortisation period is less than one
year or a normal operating cycle upon the initial recognition, are presented as “Other current assets”
item, and if the amortisation period is more than one year or a normal operating cycle upon the
initial recognition, are presented as “Other non-current assets” item.
√Applicable □N/A
A government grant shall be recognised only when the enterprise can comply with the
conditions attaching to the grant and the enterprise can receive the grant.
If a government grant is in the form of a transfer of a monetary asset, the item is measured at
the amount received. If a government grant is in the form of a transfer of a non-monetary asset, the
item is measured at fair value, when fair value is not reliably determinable, the item is measured at
a nominal amount of RMB1.
Government grant related to assets represents the government grant received for acquisition
and construction of long term assets, or forming long term assets in other ways. Except for these,
all are government grant related to income.
Regarding to the government grant not clearly defined in the official documents and can form
long term assets, the part of government grant which can be referred to the value of the assets is
classified as government grant related to assets and the remaining part is government grant related
to income. For the government grant that is difficult to distinguish, the entire government grant is
classified as government grant related to income.
The government grant related to assets is recognised as deferred income and would be
transferred to profit or loss in reasonable and systematic manner within the period of use of the
relevant assets. The government grant related to income which is used to compensate the relevant
costs or losses incurred should be recognised in the profit or loss for the current period; the
government grant related to income which is used to compensate the relevant costs or losses for the
subsequent period is recognised as deferred income and shall be recognised in profit or loss during
the relevant cost or loss confirmation period. Government grants measured in nominal terms are
directly included in the profit or loss for the current period. The Company has adopted a consistent
approach to the same or similar government grant business.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
The government grants related to daily activities are recognised as other gains in accordance
with the substance of economic business. Government grants that are not related to daily activities
are recognised as non-operating income and expenses.
If the recognised government grants need to be refunded, adjust the carrying amount of assets
when the carrying amount of assets is offset at the time of initial recognition; the balance of deferred
income is offset against the carrying amount of the balance of deferred income and the excess is
recognised in the profit or loss for the current period. Other circumstances, it is directly recognised
in the profit or loss for the current period.
√Applicable □N/A
Income tax comprises of current tax and deferred tax. Current tax and deferred tax are
recognized in profit or loss except to the extent that they relate to transactions or items recognized
directly in equity and goodwill arising from a business combination.
Temporary differences arising from the difference between the carrying amount of an asset or
liability and its tax base are recognized as deferred tax using the balance sheet liability method.
All the taxable temporary differences are recognized as deferred tax liabilities except for those
incurred in the following transactions:
(1) Initial recognition of goodwill or initial recognition of an asset or liability in a transaction
which is neither a business combination nor affects accounting profit or taxable profit (or deductible
loss) when the transaction occurs;
(2) The taxable temporary differences associated with investments in subsidiaries, associates
and joint ventures, and the Company is able to control the timing of the reversal of the temporary
difference and it is probable that the temporary difference will not reverse in the foreseeable future.
The Company recognizes a deferred tax asset for the carry forward of deductible temporary
differences, deductible losses and tax credits to subsequent periods, to the extent that it is probable
that future taxable profits will be available against which the deductible temporary differences,
deductible losses and tax credits can be utilized, except for those incurred in the following
transactions:
(1) The transaction is neither a business combination nor affects accounting profit or taxable
profit (or deductible loss) when the transaction occurs (Except for single transactions resulting in
equal temporary differences and deductible temporary differences arising from initially recognized
assets and liabilities);
(2) The deductible temporary differences associated with investments in subsidiaries,
associates and joint ventures, the corresponding deferred tax asset is recognized when both of the
following conditions are satisfied: it is probable that the temporary difference will reverse in the
foreseeable future and it is probable that taxable profits will be available in the future against which
the temporary difference can be utilized.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
At the balance sheet date, deferred tax assets and deferred tax liabilities are measured at the
tax rates that are expected to apply to the period when the asset is realized or the liability is settled,
and their tax effect is reflected.
At the balance sheet date, the Company reviews the carrying amount of a deferred tax asset. If
it is probable that sufficient taxable profits will not be available in future periods to allow the benefit
of the deferred tax asset to be utilized, the carrying amount of the deferred tax asset is reduced. Any
such reduction in amount is reversed when it becomes probable that sufficient taxable profits will
be available.
At the balance sheet date, deferred tax assets and deferred tax liabilities are presented as a net
amount after offsetting when they simultaneously meet the following conditions:
(1) The legal right exists for the tax-paying entity within the Company to settle current income
tax assets and current income tax liabilities on a net basis.
(2) Deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax
authority on the same tax-paying entity within the Company.
(1) Identification of leases
At the inception of a contract, the Company, as a lessee or lessor, assesses if the customer in a
contract has the right to obtain substantially all the economic benefits from use of the identified
assets and the right to direct the use of the identified assets in the period of use. The Company would
identify that a contract is a lease, or contains a lease if a party of the contract transfers the right to
control the use of one or more identified assets for a period of time in exchange for consideration.
(2) The Company as the lessee
At the inception of a lease, the Company recognises all its leases as the right-of-use assets and
lease liabilities, except for the short-term leases and the leases of low-value assets which are treated
with a simplified approach.
For the accounting policies on the right-of-use assets, please refer to Note III. 34.
Lease liabilities are initially measured based on the present value of outstanding lease payment
at the inception of a lease, discounted using the interest rate implicit in the lease or the incremental
borrowing rate. Lease payment include: fixed payments and in-substance fixed payments, less any
lease incentives (if there is a lease incentive) ; variable lease payment that are based on an index or
a rate; the exercise price of a purchase option if the lessee is reasonably certain to exercise that
option; payments of penalties for terminating the lease option, if the lease term reflects that the
lessee will exercise that option; and amounts expected to be payable under the guaranteed residual
value provided by the lessee. The Company shall subsequently calculate the interest expenses of
lease liabilities over the lease term at the fixed periodic interest rate, and include it into the profit or
loss for the current period. Variable lease payments not included in the measurement of lease
liabilities are charged to profit or loss in the period in which they actually arise.
Short-term lease
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Short-term lease refers to the lease that the lease term does not exceed 12 months from the
inception of a lease, and the lease that includes the option of purchase is not a short-term lease.
The Company recognises the amount of lease payments of short-term lease in the cost of the
related asset or the profit or loss for the current period, on a straight-line method over each period
of the lease term.
Leases of low-value assets
A low-value asset lease refers to a lease where the value of a single leased asset is below RMB
The Company recognised the lease payments for the leases of low-value assets in the relevant
asset cost or the profit or loss for the current period on a straight-line basis over each period of the
lease term.
Lease modification
When there is a lease modification and the following conditions are simultaneously met, the
Company accounts for the lease modification as a separate lease: ① the lease modification expands
the scope of the lease by adding the right to use one or more leased assets; ② the additional
consideration is equal to the separate price of the expanded scope of the lease as adjusted for the
circumstances of the contract.
If the lease modification is not accounted for as a separate lease, on the effective date of the
lease modification,the Company reallocates the consideration of the modified contract, re-
determines the lease term, and remeasures the lease liability based on the present value of the
modified lease payment calculated at the revised discount rate.
If the lease modification results in a reduction in the scope of the lease or a shortened lease
term, the Company reduces the carrying amount of the right-of-use assets accordingly, and includes
the gains or losses in relation to partial or complete termination of the lease in profit or loss for the
current period.
If other lease modifications result in the remeasurement of lease liabilities, the Company
adjusts the carrying amount of the right-of-use assets accordingly.
(3) The Company as the lessor
When the Company is the lessor, the lease that substantially transfers all the risks and rewards
related to the ownership of assets is recognised as a finance lease, and leases other than finance
leases are recognised as operating leases.
Finance leases
In a financial lease, the Company uses the net investment in leases as the carrying amount of
finance lease receivables at the inception of a lease. The net investment in leases is the sum of the
unguaranteed residual value and the present value of the outstanding lease payment at the inception
of a lease, discounted using the interest rate implicit in the lease. The Company, as the lessor,
calculates and recognises the interest income over each period of the lease term at a fixed periodic
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
interest rate. Variable lease payments not included in the measurement of the lease liability, which
are obtained by the Company as a lessor, are recognised in profit or loss as incurred.
The termination of recognition and impairment of financial lease receivables is accounted for
in accordance with the provisions of “Accounting Standards for Business Enterprises No. 22 –
Recognition and Measurement of Financial Instrument” and “Accounting Standards for Business
Enterprises No. 23 – Transfer of Financial Assets”.
Operating leases
For the rental of operating leases, the Company recognises it in the profit or loss for the current
period on a straight- line basis over each period of the lease term. The initial direct cost incurred in
connection with an operating lease shall be capitalised and amortised on the same basis for
recognition of rental income during the lease term, and shall be included in instalments in the profit
or loss for the current period. The variable lease payment, which is obtained in connection with an
operating lease and not included in the lease receivables, shall be included in the profit and loss for
the current period when they actually occur.
Lease modification
The Company accounts for a modification to an operating lease as a new lease from the
effective date of the modification, considering any receipts in advance or lease receivable relating
to the original lease as part of the lease receivable for the new lease.
When there is a modification to a finance lease and the following conditions are simultaneously
met, the Company accounts for the modification as a separate lease:①the modification expands the
scope of the lease by adding the right to use one or more leased assets;②the additional consideration
is equal to the separate price of the expanded scope of the lease as adjusted for the circumstances of
the contract.
If the modification to finance lease is not accounted for as a separate lease, the Company will
deal with the modified lease under the following circumstances:①If the modification takes effect
on the commencement date of the lease and the lease will be classified as an operating lease, the
Company will account for it as a new lease from the effective date of the lease modification, and
take the net lease investment before the effective date of the lease modification as the carrying
amount of the leased assets;②If the modification takes effect on the commencement date of the
lease and the lease will be classified as a finance lease, the Company will account for it in accordance
with the requirements on modifying or renegotiating a contract under the “Accounting Standards
for Business Enterprises No. 22 –Recognition and Measurement of Financial Instrument”.
√Applicable □N/A
(1) Recognition condition of right-of-use assets
The right-of-use assets of the Company are defined as the right of underlying assets in the lease
term for the Company as a lessee.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Right-of-use assets are initially measured at cost as at the commencement date of the lease,
which consists of: the amount of the initial measurement of the lease liability; any lease payments
made at or before the commencement date of the lease less any lease incentives received if any;
initial direct expenses incurred by the Company as a lessee; costs to be incurred by the Company as
a lessee in dismantling and removing a leased asset, restoring the site on which it is located or
restoring the leased assets to the condition required by the terms and conditions of the lease. The
Company as a lessee recognises and measures the costs of demolition and restoration according to
“Accounting Standards for Business Enterprises No.13 – Contingencies”, and subsequently adjusts
for any remeasurement of lease liability.
(2) Depreciation method of right-of-use assets
The Company calculates depreciation on a straight-line basis. Right-of-use assets in which the
Company as a lessee is reasonably certain to obtain ownership of the underlying leased assets at the
end of the lease term are depreciated over the remaining useful life. Otherwise, right-of-use assets
are depreciated over the shorter of the lease term and its remaining useful life.
(3) For methods of impairment testing and provision for impairment for right-of-use
assets, please refer to note III. 23.
Prior to cancellation or transfer of shares repurchased, the Company recognises all
expenditures arising from share repurchase as cost of treasury shares in the treasury share account.
Considerations and transaction fee incurred from the repurchase of shares shall lead to the
elimination of owners’ equity and does not recognise profit or loss when shares of the Company are
repurchased, transferred or cancelled.
The difference between the actual amount received and the carrying amount of the treasury
stock are recognised as capital reserve when the treasury stocks are transferred, if the capital reserve
is not sufficient to be offset, the excess amount shall be recognised to offset surplus reserve and
undistributed profit. When the treasury stocks are cancelled, the capital shall be eliminated
according to the number of shares and par value of cancellation shares, the difference between the
actual amount received and the carrying amount of the treasury stock are recognised as capital
reserve, if the capital reserve is not sufficient to be offset, the excess amount shall be recognised to
offset surplus reserve and undistributed profit.
√Applicable □N/A
Significant accounting estimates and critical assumptions adopted by the Company are
continually evaluated based on historical experience and other factors, including expectations of
future events that are believed to be reasonable. The significant accounting estimates and critical
assumptions that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next accounting year are set out below:
(1) Classification of financial assets
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Significant judgements involved in determining the classification of financial assets include
analysis of business mode and characteristics of the contractual cash flows.
Factors considered by the Company in determining the business model of financial assets
management for a group of financial assets include past experience on how financial asset’s
performance is evaluated and reported to key management personnel, how risks affecting the
performance of financial asset are assessed and managed and how managers of related businesses
are compensated.
When assessing whether the contractual cash flows of financial assets are consistent with basic
lending arrangement, the Company adopts the following significant judgements: whether the time
distribution or amounts of the principal within the duration may change due to early repayment and
other reasons; whether the interest includes only the time value of money, credit risk, other basic
lending risks and the consideration for cost and profit. For example, the amounts of early repayment
only reflect principal unpaid, the interest based on principal unpaid and reasonable compensation
paid for early termination of a contract.
(2) Measurement of ECL for accounts receivables
The Company calculates ECL of accounts receivables according to their exposure at default
and ECL rate, and determines ECL rate based on probability of default and loss given default. When
determining ECL rate, the Company adopts data like historical credit loss experience in combination
with current situation and forward-looking information to adjust historical data. When considering
forward-looking information, the Company uses indicators including the risk of economic downturn,
external market environment, technology environment and changes on customer situation. The
Company periodically monitors and reviews assumptions relevant to the measurement of ECL.
(3) Impairment of non-current assets other than financial assets (other than goodwill)
On the balance sheet date, the Company assesses whether there are indications of impairment
for non-current assets other than financial assets. For intangible assets that have not yet reached the
status of use, impairment testing is conducted when there are indications of impairment, in addition
to the annual impairment test. For non-current assets other than financial assets, impairment testing
is conducted when there are indications that their carrying amounts may not be recoverable.
Impairment is recognized when the carrying amount of an asset or asset group exceeds the higher
of its recoverable amount, which is the net amount of fair value less disposal costs and the present
value of estimated future cash flows. The net amount of fair value less disposal costs is determined
by reference to the selling price in similar assets in fair transactions or observable market prices,
minus incremental costs directly attributable to the asset disposal. In estimating the present value of
future cash flows, management estimates the expected future cash flows of the asset or asset group
and selects an appropriate discount rate to determine the present value of future cash flows.
(4) Impairment of goodwill
The Company evaluates whether goodwill is impaired at least once a year. This requires an
estimate of the value in use of the asset groups to which the goodwill is allocated. In estimating the
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
value in use, the Company needs to estimate the future cash flows generated from the asset groups
and also to choose an appropriate discount rate in order to calculate the present value of the future
cash flows.
(5) Development costs
Determining the amounts to be capitalised requires the management to make assumptions
regarding the expected future cash flows generated from the relevant assets, discount rates to be
applied and the expected period of benefits.
(6) Deferred tax assets
The deferred income tax assets will be recognised for all unused tax losses to the extent that it
is probable that there will be sufficient taxable profits against which the loss is utilised. This requires
the management to exert numerous judgments to estimate the timing and amount of the future
taxable profits so as to determine the amount of deferred income tax assets to be recognised with
reference to the tax planning strategy.
(7) Revenue recognition
As stated in note III. 28, the Company makes the following significant accounting judgements
and estimates in terms of revenue recognition: identifying customer contracts; estimating the
recoverability of the considerations that are entitled to be obtained by transferring goods to
customers; identifying the performance obligation in the contract; estimating the variable
consideration in the contract and cumulative revenue recognised where it is highly probable that a
significant reversal therein will not occur when the relevant uncertainty is resolved; assessing
whether there is a significant financing component in the contract; estimating the individual selling
price of the individual performance obligation in the contract, etc. The Company makes judgments
primarily based on historical experiences and works. Changes in these significant judgments and
estimates may have significant impacts on the operating income, operating costs, and profit or loss
of the current or subsequent periods.
(8) Determination of the fair value of unlisted equity investment
The fair value of unlisted equity investments represents the expected future cash flows
discounted at the prevailing discount rate of items with similar terms and risk characteristics. It
requires the Company to estimate the expected future cash flows and discount rates, and therefore
there is uncertainty. Under limited circumstances, if the information used to determine the fair value
is insufficient, or the possible estimated amount of fair value is widely distributed, and cost
represents the best estimate of the fair value within such scope, the cost may represent an appropriate
estimate of the fair value within such distribution scope.
accounting errors
(1) Changes in significant accounting policies
□Applicable √N/A
(2) Changes in significant accounting estimates
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
□Applicable √N/A
IV. Taxation
√Applicable □N/A
Tax category Basis of taxation Statutory tax rate
Value added tax Taxable revenue 3%, 6%, 13%
Urban maintenance and construction Turnover tax to be
tax paid
Turnover tax to be
Education surcharges 3%
paid
Turnover tax to be
Local education surcharge Note 1
paid
Turnover tax to be
Enterprise income tax Note 2
paid
Note 1: The Company and its subsidiaries that are incorporated in Shenzhen and Zhuhai shall pay
local education surcharges that are charged as 2% of the turnover tax payable. Other subsidiaries
shall pay local education surcharges according to the tax rate as specified at their places of
incorporation on the basis of turnover tax payable.
Note 2: The implementation of enterprise income tax rate is as follows:
Disclosure of taxpayers (if any) with different rates of enterprise income tax
√Applicable □N/A
Entity Income tax rate %
Hong Kong Health Pharmaceutical Industry Company Limited (香港健康药
业有限公司) , Livzon Pharmaceutical Biotechnology Co., Ltd. (丽珠医药生
物科技有限公司) , Lian (Hong Kong) Co., Ltd. (丽安香港有限公司) ,
Livzon Biologics Hong Kong Limited (丽珠生物科技香港有限公司)
Companhia de Macau Carason Limitada (澳门嘉安信有限公司) , Li Zhu where the taxable income is
MOP600,000 or more; for
(Macau) Limitada (丽珠(澳门) 有限公司) , Macau Livzon Traditional
those with taxable income
Chinese Medicine Modern Technology Co., Ltd. (澳门丽珠中药现代化科技
less than MOP600,000, they
有限公司) are exempted from income
taxes.)
The Company and Shenzhen Taitai Pharmaceutical Co., Ltd. (深圳太太药业
有限公司) (Taitai Pharmaceutical) , Shenzhen Haibin Pharmaceutical Co.,
Ltd. (深圳市海滨制药有限公司) (Haibin Pharma) , Xinxiang Haibin
Pharmaceutical Co., Ltd. (新乡海滨药业有限公司) (Xinxiang Haibin),
Jiaozuo Joincare Bio Technological Co., Ltd. (焦作健康元生物制品有限公
司) (Jiaozuo Joincare) , Shanghai Frontier Health Pharmaceutical Technology
Co., Ltd. (上海方予健康医药科技有限公司)(Shanghai Frontier) , Joincare
Haibin Pharmaceutical Co., Ltd. (健康元海滨药业有限公司) (Joincare
Haibin), Joincare Pharma Philippines Inc. ; Livzon Group and Livzon Group
Limin Pharmaceutical Factory (丽珠集团利民制药厂) , Livzon Group Livzon
Pharmaceutical Factory (丽珠集团丽珠制药厂) , Zhuhai FTZ Livzon
Hecheng Pharmaceutical Manufacturing Co., Ltd. (珠海保税区丽珠合成制药
有限公司) , Shanghai Livzon Pharmaceutical Manufacturing Co., Ltd. (上海
丽珠制药有限公司) , Livzon Group Xinbeijiang Pharmaceutical
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Entity Income tax rate %
Manufacturing Inc. (丽珠集团新北江制药股份有限公司) , Sichuan Guangda
Pharmaceutical Manufacturing Co., Ltd. (四川光大制药有限公司) , Zhuhai
Livzon Reagents Co., Ltd. (珠海丽珠试剂股份有限公司) , Livzon Group
Fuzhou Fuxing Pharmaceutical Co., Ltd. (丽珠集团福州福兴医药有限公
司) , Shanghai Livzon Biotechnology Co., Ltd. (上海丽珠生物科技有限公
司) , Livzon Group (Ningxia) Pharmaceutical Co., Ltd. (丽珠集团(宁夏) 制
药有限公司) , Zhuhai Lihe Medical Diagnostics Products Co., Ltd. (珠海丽禾
医疗诊断产品有限公司) , Zhuhai Livzon Traditional Chinese Medicine
Modernization Technology Co., Ltd. (珠海市丽珠中药现代化科技有限公
司) , Jiaozuo Livzon Hecheng Pharmaceutical Manufacturing Inc. (焦作丽珠
合成制药有限公司)
capital of less than MYR 2.5
million, the tax rate is 17%
on the first profit less than
LIVZON MALAYSIA SDN. BHD MYR 600,000; the registered
capital exceeds MYR 2.5
million or the profit exceeds
MYR 600,000, the tax rate is
JOINCARE PHARMA SINGAPORE HOLDINGS PTE. LTD., LIAN SGP 17
HOLDING PTE. LTD.
Joincare Pharma Netherlands B.V. 19
PT. LIVZON PHARMA INDONESIA 22
Livzon MAB Pharm (US) Inc. (丽珠单抗生物技术(美国) 有限公司) 21
Health Investment Holdings Ltd, Joincare Pharmaceutical Group Industry Co.,
Ltd. (BVI), Joincare Pharmaceutical Group Industry Co., Ltd. (CAYMAN
ISLANDS), Livzon International Ventures, Livzon International Ventures I,
Livzon International Ventures II, LIAN International Holding LTD
Other subsidiaries policies for small and micro-
profit enterprises
Note 3: Companies registered in the British Virgin Islands and the Cayman Islands are not subject
to enterprise income tax.
√Applicable □N/A
(1)Preferential value added tax
In accordance with the Announcement on Value Added Tax on Biological Products Sold by
Pharmaceutical Operation Enterprises issued by the State Administration of Taxation
(Announcement of State Administration of Taxation 2012 No. 20) and the Notice of the Ministry
of Finance, the General Administration of Customs, the State Administration of Taxation and the
State Drug Administration on the Value-Added Tax Policies for Anti-Cancer Drugs (Caishui [2018]
No. 47) , the biological products sold by the Company are subject to value added tax at 3% by the
simple approach.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
(2) Preferential enterprise income tax
The Company’s subsidiary, Joincare Haibin, has re-applied for the recognition as a high-tech
enterprise in this period. The Company and its subsidiary, Jiaozuo Joincare, have enjoyed the
preferential policies for high-tech enterprise income tax since 2022, for a period of three years. The
Company’s subsidiaries, Taitai Pharmaceutical, Haibin Pharma, Xinxiang Haibin, and Shanghai
Frontier, have enjoyed the preferential policies for high-tech enterprise income tax starting from
Livzon Group and its subsidiaries, Livzon Group Limin Pharmaceutical Manufacturing
Factory（丽珠集团利民制药厂）, Livzon Group Livzon Pharmaceutical Factory（丽珠集团丽珠
制药厂）, Zhuhai FTZ Livzon Hecheng Pharmaceutical Manufacturing Co., Ltd.（珠海保税区丽
珠合成制药有限公司）,Shanghai Livzon Pharmaceutical Manufacturing Co., Ltd.（上海丽珠制
药有限公司）, Sichuan Guangda Pharmaceutical Manufacturing Co., Ltd.（四川光大制药有限公
司）and Livzon Group Fuzhou Fuxing Pharmaceutical Co., Ltd.（丽珠集团福州福兴医药有限公
司 ） have been entitled to the preferential income tax policies for high and new technology
enterprises since 2023 for a valid period of three years; Livzon Group Xinbeijiang Pharmaceutical
Manufacturing Inc.（丽珠集团新北江制药股份有限公司）and Zhuhai Livzon Diagnostics Inc.
（珠海丽珠试剂股份有限公司）have re-applied for the recognition as a high-tech enterprise in
this period. Jiaozuo Livzon Hecheng Pharmaceutical Manufacturing Co., Ltd.（焦作丽珠合成制
药有限公司）and Shanghai Livzon Biotechnology Co., Ltd. （上海丽珠生物科技有限公司）
have been entitled to the preferential income tax policies for high and new technology enterprise
since 2024 for a valid period of three years; Livzon Group (Ningxia) Pharmaceutical Manufacturing
Co.,Ltd.（丽珠集团（宁夏）制药有限公司）was approved to enjoy the enterprise taxation preference
of the Encouraged Industries in Western China.
The above-mentioned companies are applying a 15% enterprise income tax rate for this period.
In accordance with Article 27 of the enterprise income tax Law of the People's Republic of
China and Article 86 of the Regulations for the Implementation of the enterprise income tax Law
of the People's Republic of China, the business of planting Chinese herbal medicines engaged by
the subsidiaries of the Livzon, Datong Livzon Qiyuan Medicine Co., Ltd. (大同丽珠芪源药材有
限公司) and Longxi Livzon Shenyuan Medicine Co., Ltd. (陇西丽珠参源药材有限公司) are
exempted from enterprise income tax.
According to the "Notice of the Ministry of Finance and the State Administration of Taxation
on the Preferential Policies for enterprise income tax in the Hengqin Guangdong-Macao Deep
Cooperation Zone" (Cai Shui [2022] No. 19), enterprise income tax is levied at a reduced rate of
Cooperation Zone. The Livzon Group’s subsidiaries, Zhuhai Lihe Medical Diagnostic Products Co.,
Ltd. ( 珠 海 丽 禾 医 疗 诊 断 产 品 有 限 公 司 ) and Zhuhai Livzon Chinese Medicine Modern
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Technology Co., Ltd. (珠海市丽珠中药现代化科技有限公司) meet the relevant conditions and
are subjected to 15% enterprise income tax rate for the current period.
According to the tax preferential policy for small and micro enterprises, until 31 December
subject to a 5% enterprise income tax rate.
According to Indonesia's tax policy for small and medium enterprises (SMEs), SMEs with
taxable income not exceeding 48 billion Indonesian Rupiah will be subject to an 11% enterprise
income tax rate.
According to the Philippines' tax preferential policy for micro, small, and medium enterprises,
enterprises with taxable revenue not exceeding 5 million Philippine pesos will be subject to a 15%
tax rate.
□Applicable √N/A
V. Notes to the items of consolidated financial statements
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at Beginning of the
Items Balance at End of the Period
Period
Cash on hand 455,778.12 370,795.14
Bank deposits 14,360,173,787.82 14,725,113,389.94
Other monetary funds 125,698,728.61 126,492,936.86
Total 14,486,328,294.55 14,851,977,121.94
Including: total overseas
deposits
Other descriptions:
①Other monetary funds are mainly deposits for investments, deposits for letter of credit and
bank acceptance bills.
② Restricted funds relating to issuing letters of credit and bank acceptance bills in other
monetary funds were deducted from cash and cash equivalents in the cash flow statement. Apart
from these restricted funds, there is no other charge, pledge or lock up on the cash at bank balance
that may limit its use, which is kept outside China and may have probable risks in its collection.
Below are the details of the use of restricted monetary funds:
Item 30 June 2025 31 December 2024
Deposits for bank acceptance bills 10,356,971.52 9,331,443.62
Total 10,356,971.52 9,331,443.62
√Applicable □N/A
（1）Classification
Unit: Yuan Currency: RMB
Balance at the Balance at the
Item
End of the Period Beginning of the Period
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Financial asset measured at fair
value through profit or loss
Including:
Funds 997,444.81 987,629.66
Structured deposits 432,302,591.80 15,081,807.66
Equity instrument investments 56,535,180.88 72,993,949.73
Derivative financial assets 788,963.82 299,668.02
Total 490,624,181.31 89,363,055.07
Other descriptions:
√Applicable □N/A
①The equity instruments investments and debt instruments investments held by the
Company at the end of the period, which are listed and traded on exchanges such as Shenzhen,
Hong Kong, and NASDAQ in the United States, have their fair value determined based on the
closing price of the last trading day of the reporting period.
② Derivative financial assets represent foreign currency forward contracts, futures contracts
and gains from unexpired contracts measured at fair value which were recognised as financial
assets as at the balance sheet date.
(2) No restrictive financial asset measured at fair value through profit or loss was included in
the closing balance.
(3) No hedging instruments in the closing balance and no hedging transactions have occurred
during the period.
(1) Classified presentation of notes receivable
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the Beginning of the
Category Balance at the End of the Period
Period
Bank acceptance bills 1,644,458,811.36 1,951,213,189.48
Total 1,644,458,811.36 1,951,213,189.48
(2) Notes receivable pledged at period end
√Applicable □N/A
Unit: Yuan Currency: RMB
Category Amount pledged at year end
Bank acceptance bills 773,308,187.19
Total 773,308,187.19
As at 30 June 2025, bank acceptance bills with carrying amount of RMB773,308,187.19 (31
December 2024: RMB805,827,262.43) have been used as pledge for opening of bills.
(3) Bills endorsed or discounted to other parties but not yet expired at balance sheet date
√Applicable □N/A
Unit: Yuan Currency: RMB
Derecognised amount at the Amount not derecognised at
Category
End of the Period the End of the Period
Bank acceptance bills not
yet mature but already 45,661,199.62 0.00
endorsed
Bank acceptance bills not
yet mature but already 0.00 0.00
discounted
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Total 45,661,199.62 0.00
In the current period, the Company discounted bank acceptance bills of RMB0.00 (previous year:
RMB 9,767,218.08);Factoring expenses incurred were RMB0.00 (previous year: RMB73,911.09).
(4) Disclosure by method of provision for bad debts
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Period Balance at the Beginning of the Period
Provision for bad Provision for bad
Book balance Book balance
Category debts debts
Carrying Carrying
Expected Expected
Ratio value Ratio value
Amount Amount credit loss Amount Amount credit loss
(%) (%)
rate (%) rate (%)
Provision
for bad
debts on 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
individual
item
Provision
for bad
debts on 1,644,458,811.36 100.00 0.00 0.00 1,644,458,811.36 1,951,213,189.48 100.00 0.00 0.00 1,951,213,189.48
portfolio
basis
Including:
Bank
acceptance 1,644,458,811.36 100.00 0.00 0.00 1,644,458,811.36 1,951,213,189.48 100.00 0.00 0.00 1,951,213,189.48
bills
Total 1,644,458,811.36 100.00 0.00 0.00 1,644,458,811.36 1,951,213,189.48 100.00 0.00 0.00 1,951,213,189.48
Provision for bad debts on individual item:
□Applicable √N/A
Provision for bad debt on a portfolio basis:
√Applicable □N/A
Provision for bad debts on portfolio basis: Bank acceptance bills
Balance at the End of the Period
Item Provision for bad Expected credit loss rate
Notes receivable
debts (%)
Within one
year
Total 1,644,458,811.36 0.00 0.00
Explanation of bad debt provision calculated by combination:
□Applicable √N/A
Provision for bad debts is made according to the general model of expected credit losses
□Applicable √N/A
Explanation of significant changes in the book balance of notes receivable for which there were
changes in loss provisions during the current period:
□Applicable √N/A
(5) Provision for bad debts
□Applicable √N/A
Significant recovery or reversal of bad debt provision for the current period:
□Applicable √N/A
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
(6) Actual write-off of notes receivable in the period
□Applicable √N/A
Other descriptions:
□Applicable √N/A
(1) Disclosed by aging
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the Beginning of the
Aging Balance at the End of the Period
Period
Within 1 year: 2,913,394,598.37 2,440,126,785.44
Over 5 years 20,483,959.08 19,981,423.56
Total 2,972,155,490.80 2,512,207,020.82
According to the credit policy of the Company, the Company usually grants a credit period
ranging from 30 to 90 days to customers.
(2) Disclosure by method of provision for bad debts
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Period Balance at the Beginning of the Period
Book balance Provision for bad debts Book balance Provision for bad debts
Category Expected Expected
Ratio credit Carrying value Ratio credit Carrying value
Amount Amount Amount Amount
(%) loss rate (%) loss rate
(%) (%)
Provision
for bad
debts on 21,590,973.02 0.73 17,915,262.68 82.98 3,675,710.34 33,793,283.02 1.35 26,456,879.68 78.29 7,336,403.34
individual
item
Including:
Receivables
from 21,590,973.02 0.73 17,915,262.68 82.98 3,675,710.34 33,793,283.02 1.35 26,456,879.68 78.29 7,336,403.34
domestic
customers
Receivables
from
overseas
customers
Provision
for bad
debts on 2,950,564,517.78 99.27 68,012,734.38 2.31 2,882,551,783.40 2,478,413,737.80 98.65 55,859,089.13 2.25 2,422,554,648.67
portfolio
basis
Including:
Receivables
from 2,197,038,943.03 73.92 55,519,798.23 2.53 2,141,519,144.80 1,897,562,319.42 75.53 47,863,899.59 2.52 1,849,698,419.83
domestic
customers
Receivables
from
overseas
customers
Total 2,972,155,490.80 100.00 85,927,997.06 2.89 2,886,227,493.74 2,512,207,020.82 100.00 82,315,968.81 3.28 2,429,891,052.01
Provision for bad debt on individual item:
√Applicable □N/A
Unit: Yuan Currency: RMB
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Closing balance
Book balance Provision for Expected Reason of provision
Name
bad debts credit loss
rate (%)
Purchase of Full amount is unlikely to be
goods recovered
Total 21,590,973.02 17,915,262.68 82.98 /
Descriptions of Provision for bad debt on individual item:
□Applicable √N/A
Provision for bad debts on portfolio basis:
√Applicable □N/A
Provision for bad debts on portfolio basis: Receivables from domestic customers
Unit: Yuan Currency: RMB
Closing balance
Ageing Account Provision for Expected credit
receivables bad debt loss rate (%)
Within 1 year: 2,160,717,412.21 31,755,493.71 1.47
years)
years)
years)
years)
Over 5 years 11,145,353.87 11,145,353.87 100.00
Total 2,197,038,943.03 55,519,798.23 2.53
Standards of provision for bad debts on portfolio basis and descriptions thereof:
□Applicable √N/A
Provision for bad debts on portfolio basis: Receivables from overseas customers
Unit: Yuan Currency: RMB
Closing balance
Ageing Account Provision for Expected credit
receivables bad debt loss rate (%)
Within 1 year: 752,677,186.16 11,899,064.14 1.58
years)
years)
Total 753,525,574.75 12,492,936.15 1.66
Standards of provision for bad debts on portfolio basis and descriptions thereof:
□Applicable √N/A
If the provision for bad debts is made in accordance with the general model of expected credit
losses, please refer to other receivables disclosure:
□Applicable √N/A
(3) Provision for bad debts
√Applicable □N/A
Unit: Yuan Currency: RMB
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Changes for the current period
Beginning Closing
Category Recovery Removal/write-
balance Provision Others balance
or reversal off
Provision
for bad debts
Total 82,315,968.81 5,216,270.63 0.00 1,604,242.38 0.00 85,927,997.06
At 30 June 2025 and 31 December 2024, the Company had no overdue but not impaired accounts
receivable.
Significant recovery or reversal of bad debt provision for the current period:
□Applicable √N/A
(4) Actual write-off of accounts receivable in this period
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Amount written-off
Accounts receivable actually written off 1,604,242.38
Significant accounts receivable that are written off:
□Applicable √N/A
Descriptions of write-off of accounts receivable:
□Applicable √N/A
(5)Accounts receivable due from the top five debtors
√Applicable □N/A
Unit: Yuan Currency: RMB
The proportion of
Ending
Ending the total ending
Ending Ending balances balance of
balance balance of
Unit balance of of accounts accounts the
of
name accounts receivable and allowance
contract receivable and
receivable contract assets for bad
assets contract assets
debts
（%）
Unit 1 135,192,706.91 0.00 135,192,706.91 4.55 2,641,906.79
Unit 2 84,393,523.97 0.00 84,393,523.97 2.84 843,935.24
Unit 3 52,348,532.31 0.00 52,348,532.31 1.76 523,485.32
Unit 4 44,558,526.98 0.00 44,558,526.98 1.50 922,495.51
Unit 5 38,763,880.04 0.00 38,763,880.04 1.30 1,251,862.45
Total 355,257,170.21 0.00 355,257,170.21 11.95 6,183,685.31
As of 30 June 2025, the total amount of the top five debtors in closing balance is
RMB355,257,170.21, accounting for 11.95% of the total amount of closing balance of accounts
receivable, and the corresponding closing balance of provision for bad debts is total
RMB6,183,685.31.
(6) Accounts receivable derecognized due to the transfer of financial assets in each reporting
period.
□Applicable √N/A
(7) Assets or liabilities formed by the continuing involvement of transferred accounts receivables
in each reporting period.
□Applicable √N/A
Other descriptions:
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
□Applicable √N/A
(1) Disclosure of prepayments by aging analysis
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Period Balance at the Beginning of the Period
Aging
Amount Ratio % Amount Ratio %
Within 1 year 239,307,677.47 93.25 228,324,008.00 94.59
Over 3 years 2,991,058.82 1.17 2,223,509.47 0.92
Total 256,617,690.36 100.00 241,379,213.79 100.00
(2) Prepayments due from the top five debtors
√Applicable □N/A
Proportion of the total balance of
Balance at the End of the
Unit name prepaid accounts at the end of the
Period
period (%)
Unit 1 18,000,000.00 7.01
Unit 2 10,422,514.04 4.06
Unit 3 7,001,060.00 2.73
Unit 4 6,327,600.80 2.47
Unit 5 6,050,000.00 2.36
Total 47,801,174.84 18.63
As of 30 June 2025, the total amount of the top five prepayments in closing balance is
RMB47,801,174.84, accounting for 18.63% of the total amount of closing balance of
prepayments.
Other descriptions:
□Applicable √N/A
Line items
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the Beginning of
Item Balance at the End of the Period
the Period
Dividends receivable 146,732.76 0.00
Other receivables 61,631,469.80 51,166,649.86
Total 61,778,202.56 51,166,649.86
Other descriptions:
□Applicable √N/A
Dividends receivable
(1) Dividends receivable
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the Beginning of the
Item Balance at the End of the Period
Period
Kunlun Energy Company Limited 146,732.76 0.00
Total 146,732.76 0.00
(2) Significant dividends receivable aged over 1 year.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
□Applicable √N/A
(3) Provision made for bad debts
□Applicable √N/A
Other receivables
(1) Disclosed by aging
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Balance at the
Aging
Period Beginning of the Period
Subtotal within 1 year 55,470,106.43 46,472,958.88
Over 5 years 30,605,884.29 31,625,799.16
Total 100,708,422.51 90,058,848.47
(2) Disclosure by nature
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the
Balance at the
Item Beginning of the
End of the Period
Period
Security deposits, deposits and rental fees 15,208,191.87 14,929,961.98
Reserved fund and advances 25,024,907.06 17,986,570.07
Related party balances 933,714.01 989,830.90
External entities balances 10,552,827.07 13,489,154.97
Tax refund on exports 14,786,187.12 12,746,669.03
Treasury bonds and security deposits 16,954,735.37 16,954,735.37
Others 17,247,860.01 12,961,926.15
Total 100,708,422.51 90,058,848.47
(3) Information of provision for bad debts
√Applicable □N/A
Unit: Yuan Currency: RMB
First stage Second stage Third stage
Expected credit Expected credit
Expected
Provision for bad loss for lifetime loss for lifetime
credit loss Total
debt (no credit (credit
within 12
impairment impairment has
months
occurred) occurred)
Beginning balance 0.00 11,712,648.79 27,179,549.82 38,892,198.61
Movement of
beginning balance
during the period
--transfer to second
stage
--transfer to third stage 0.00 0.00 0.00 0.00
--Reverse to second
stage
--Reverse to first stage 0.00 0.00 0.00 0.00
Provision for the year 0.00 2,116,153.12 0.00 2,116,153.12
Reversal in the year 0.00 0.00 0.00 0.00
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Transfer in the year 0.00 0.00 0.00 0.00
Write-off in the year 0.00 0.00 1,890,000.00 1,890,000.00
Other movement 0.00 -41,399.02 0.00 -41,399.02
Closing balance 0.00 13,787,402.89 25,289,549.82 39,076,952.71
Basis for division of each stage and bad debt provision ratio
At the End of the Period, there is no provision for bad debts on those in first stage:
At the End of the Period, provision for bad debts on those in second stage:
Expected credit
Provision for Carrying
Category Book balance loss rate for the Reason
bad debts amount
lifetime(%)
Provision for bad
debts on individual 0.00 0.00 0.00 0.00
item
Provision for bad
debts on portfolio 75,418,872.69 18.28 13,787,402.89 61,631,469.80
basis
Export tax
refund receivable
Security
deposits, deposits
and rental
receivable
Other receivables 45,424,493.70 19.00 8,628,508.22 36,795,985.48
Total 75,418,872.69 18.28 13,787,402.89 61,631,469.80
At the End of the Period, provision for bad debts on those in third stage:
Expected
credit loss rate Provision for Carrying
Category Book balance Reason
for the bad debts amount
lifetime(%)
Provision for bad
debts on individual 25,289,549.82 100.00 25,289,549.82 0.00
item
Likelihood of
Treasury bonds and recovery is
security deposits expected to be
low
Likelihood of
recovery is
Other receivables 8,334,814.45 100.00 8,334,814.45 0.00
expected to be
low
Total 25,289,549.82 100.00 25,289,549.82 0.00
As of 31 December 2024, information of provision for bad debts:
As of 31 December 2024, there is no provision for bad debts on those in first stage:
As of 31 December 2024, Provision for bad debts on those in second stage:
Expected credit
Provision for Carrying
Category Book balance loss rate for the Reason
bad debts amount
lifetime(%)
Provision for bad
debts on individual 0.00 0.00 0.00 0.00
item
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Expected credit
Provision for Carrying
Category Book balance loss rate for the Reason
bad debts amount
lifetime(%)
Provision for bad
debts on portfolio 62,879,298.65 18.63 11,712,648.79 51,166,649.86
basis
Export tax
refund receivable
Security
deposits, deposits
and rental
receivable
Other receivables 35,202,667.64 23.95 8,430,701.70 26,771,965.94
Total 62,879,298.65 18.63 11,712,648.79 51,166,649.86
As of 31 December 2024, Provision for bad debts on those in third stage:
Expected credit
Provision for Carrying
Category Book balance loss rate for the Reason
bad debts amount
lifetime(%)
Provision for
bad debts on 27,179,549.82 100.00 27,179,549.82 0.00
individual item
Likelihood of
Treasury bonds
recovery is
and security 16,954,735.37 100.00 16,954,735.37 0.00
expected to be
deposits
low
Likelihood of
Other recovery is
receivables expected to be
low
Total 27,179,549.82 100.00 27,179,549.82 0.00
Descriptions of the significant changes in the gross carrying amount of other receivables for which
the changes in loss allowance occur for the current period
□Applicable √N/A
Provision for bad debts in the current period and the basis for assessing whether the credit risk of
financial instruments has increased significantly:
□Applicable √N/A
(4) The situation of bad debt provision
□Applicable √N/A
Among them, the amount of reversal or recovery of bad debt provisions in this period is
significant:
□Applicable √N/A
(5) Actual written-off of other receivables in this period
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Amount written off
Other receivables actually written off 1,890,000.00
Significant other receivables that are written off:
□Applicable √N/A
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Descriptions of write-off of other receivables:
□Applicable √N/A
(6) Other receivables due from the top five debtors
√Applicable □N/A
Unit: Yuan Currency: RMB
Other Proportion to Provision for
receivables total other bad debts
Name of entity Nature Ageing
Closing receivables Closing
balance (%) balance
Treasury
Hua Xia Securities Co., Ltd. bonds and
(华夏证券股份有限公司) security
deposits
Export tax
Tax refund on exports 14,786,187.12 Within 1 year 14.68 373,383.52
refund
Guangzhou Galaxy Sunshine
Biological Products Co., Ltd.
(广州银河阳光生物制品有限 Loan 5,000,000.00 Over 5 years 4.96 5,000,000.00
公司)
Zhongnuo Kailin Within 1 year：
Pharmaceutical Development Security 2,390,000.00；
(Suzhou) Co., Ltd. (中诺凯琳 deposits and
Purchase of
医药发展(苏州) 有限公司) years：
goods
and its subsidiaries 800,000.00；
Qingdao Jieyunhang
International Logistics Co., Security
Ltd.（青岛捷运航国际物流 deposits
有限公司）
Total / 41,130,922.49 / 40.84 23,181,618.89
(7) Receivables involving government subsidies
□Applicable √N/A
(8). The company has no other accounts receivable that are derecognized due to the transfer of
financial assets.
(9). The company has no assets or liabilities formed from the transfer of other accounts receivable
while continuing to be involved.
(1) Inventories by category
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Period Balance at the Beginning of the Period
Provision for Provision for
Item Carrying Carrying
Book balance diminution Book balance diminution
amount amount
in value in value
Raw
materials
Packaging
materials
Work-in-
progress and
semi- 854,561,725.92 93,785,898.33 760,775,827.59 870,979,516.35 105,746,474.26 765,233,042.09
finished
products
Low-value
consumables
Finished
goods and 877,137,446.61 25,852,277.53 851,285,169.08 1,123,460,413.82 28,624,595.64 1,094,835,818.18
stock goods
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Sub-
contracting 896,801.89 0.00 896,801.89 1,734,123.93 0.00 1,734,123.93
materials
Consumptive
biological 20,761,725.00 0.00 20,761,725.00 17,112,905.05 0.00 17,112,905.05
assets
Issued goods 7,721,827.87 0.00 7,721,827.87 43,742,665.60 0.00 43,742,665.60
Total 2,503,956,026.60 183,248,358.24 2,320,707,668.36 2,825,238,277.63 203,895,160.13 2,621,343,117.50
(2) Provision for diminution in value of inventories and provision for diminution in value of
contract performance costs
√Applicable □N/A
Unit: Yuan Currency: RMB
Increase during the Decrease during the
Balance at the Balance at the
Period Period
Item Beginning End of the
Reversal or
of the Period Provision Others Others Period
written-off
Raw materials 25,605,062.73 2,199,265.52 0.00 3,437,366.63 0.00 24,366,961.62
Packaging
materials
Work-in-
progress and
semi-finished
products
Low-value
consumables
Finished goods
and stock goods
Total 203,895,160.13 14,804,425.35 0.00 35,451,227.24 0.00 183,248,358.24
Provision for decline in value of inventories (Continued)
Reason for reversal or
written-off of provision
Basis in determination of net recoverable
for decline in value of
Item amount/residual value and cost to be
inventories/ Provision for
incurred
impairment of contract
performance cost
Estimated selling price less estimated costs of Processing, sale of finished
Raw materials
completion, selling expenses and related taxes goods and discard
Packaging The estimated selling price less related taxes
Discard
materials Discard
Work-in-
progress and Estimated selling price less estimated costs of Processing of finished
semi-finished completion, selling expenses and related taxes goods and discard
products
Low-value
Estimated selling price less the related taxes Used or discard
consumables
Estimated selling price less the estimated
Finished goods Sale and discard
selling expenses and related taxes
(3) Descriptions at the End of the Period of inventories including capitalised amount of borrowing
costs
□Applicable √N/A
(4) Description of amortization amount of contract performance cost in the current period
□Applicable √N/A
Other descriptions:
□Applicable √N/A
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Balance at the End of the Period
Item Provision for
Book balance Carrying amount
impairment
Non-current assets held-for-
sale
Including: Construction in
progress
Intangible assets 28,584,202.00 0.00 28,584,202.00
Total 54,029,237.68 0.00 54,029,237.68
In September 2024, the company's Board of Directors reviewed and approved the proposal of
"Proposal on the Transfer of Land Use Rights and Associated Buildings by Wholly-owned
Subsidiary, Involving Fundraising Investment Project Transfer." The proposal approves the wholly-
owned subsidiary, Healthy China, to transfer its ownership of the state-owned land use rights located
on the south side of Hubin Road and the east side of Binhai Road, Sanzao Town, Jinwan District,
Zhuhai City, with a land area of 94,538 ㎡, along with all buildings, other attachments, and
construction in progress, to Zhuhai Yangyi Biopharmaceutical Co., Ltd. The transfer price is RMB
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of Balance at the Beginning
Item
the Period of the Period
Fixed deposits due within 1 year 1,068,421,283.81 556,410,803.22
Total 1,068,421,283.81 556,410,803.22
Significant debt investments and other debt investments at the end of the period:
□Applicable √N/A
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Balance at the Beginning
Item
Period of the Period
Input VAT pending deduction
/Input tax pending for 76,949,198.46 121,986,411.58
verification
Prepaid income tax 44,255,688.09 36,657,570.07
Others 462,781.94 443,555.11
Total 121,667,668.49 159,087,536.76
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
√Applicable □N/A
Unit: Yuan Currency: RMB
Movement in the year
Beginning
Closing balance
balance of Investment Adjustment in Announced
Investee 2024.12.31 Additions Changes Provision 2025.6.30 of provision for
provision for Decrease in income/loss other distribution of
in of other for Others impairment
impairment investment recognized under comprehensive cash dividend or
investment equity impairment
the equity method income profit
②Associates
Livzon Medical Electronic
Equipment (Plant) Co., Ltd.
(丽珠集团丽珠医用电子设备 1,200,000.00 1,200,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,200,000.00 1,200,000.00
有限公司)
Guangdong Blue Treasure
Pharmaceutical Co. Ltd. (广东 120,452,740.87 0.00 0.00 0.00 10,308,520.74 0.00 0.00 8,313,401.29 0.00 0.00 122,447,860.32 0.00
蓝宝制药有限公司)
Shenzhen City Youbao
Technology Co., Ltd. (深圳市 1,299,140.19 0.00 0.00 1,299,140.19 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
有宝科技有限公司)
AbCyte Therapeutics Inc. 11,543,155.66 0.00 0.00 0.00 -55,361.04 0.00 0.00 0.00 0.00 0.00 11,487,794.62 0.00
L&L Biopharma, Co. Ltd. (上
海健信生物医药科技有限公 13,815,403.19 0.00 0.00 0.00 -582,669.05 0.00 0.00 0.00 0.00 0.00 13,232,734.14 0.00
司)
Zhuhai Sanmed Biotech Inc.
(珠海圣美生物诊断技术有限 23,371,683.53 0.00 0.00 0.00 -10,586,967.53 0.00 0.00 0.00 0.00 0.00 12,784,716.00 0.00
公司)
Aetio Biotherapy, Inc. 14,985,614.41 0.00 0.00 0.00 -27,717.73 0.00 0.00 0.00 0.00 0.00 14,957,896.68 0.00
Hangzhou New Element
Pharmaceutical Co., Ltd.
(formerly known as Jiangsu
New Element Pharmaceutical
Technology Co., Ltd (杭州新 86,902,370.94 0.00 0.00 0.00 -5,269,649.64 2,410.36 0.00 0.00 0.00 0.00 81,635,131.66 0.00
元素药业有限公司(曾用名：
江苏新元素医药科技有限公
司)
Tianjin Tongrentang Group
Co., Ltd. (天津同仁堂集团股 749,294,204.58 0.00 0.00 0.00 37,317,539.31 0.00 0.00 0.00 0.00 0.00 786,611,743.89 0.00
份有限公司)
Infinite Intelligence
Pharmaceutical Co. Ltd. (北京 17,570,377.24 0.00 0.00 0.00 -83,379.60 0.00 0.00 0.00 0.00 0.00 17,486,997.64 0.00
英飞智药科技有限公司)
Shenzhen Kangti Biomedical
Technology Co., Ltd. (深圳康 10,219,022.71 0.00 0.00 0.00 31,607.40 0.00 8,712.25 0.00 0.00 0.00 10,259,342.36 0.00
体生物医药科技有限公司)
Jiaozuo Jinguan Jiahua
Electric Power Co., Ltd. (焦作 308,344,956.56 0.00 0.00 0.00 8,449,719.42 0.00 0.00 0.00 0.00 0.00 316,794,675.98 0.00
金冠嘉华电力有限公司)
Ningbo Ningrong Biomedical
Co., Ltd. (宁波宁融生物医药 27,499,631.47 0.00 0.00 0.00 -166,877.00 0.00 0.00 0.00 0.00 0.00 27,332,754.47 0.00
有限公司)
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Movement in the year
Beginning
Closing balance
balance of Investment Adjustment in Announced
Investee 2024.12.31 Additions Changes Provision 2025.6.30 of provision for
provision for Decrease in income/loss other distribution of
in of other for Others impairment
impairment investment recognized under comprehensive cash dividend or
investment equity impairment
the equity method income profit
Feellife Health Inc. (深圳来福
士雾化医学有限公司)
Jiangsu Baining Yingchuang
Medical Technology Co., Ltd.
(江苏百宁盈创医疗科技有限 31,960,440.67 0.00 0.00 0.00 1,093,606.87 0.00 0.00 0.00 0.00 0.00 33,054,047.54 0.00
公司)
Shanghai Sheo Pharmaceutical
Technology Co., Ltd. (上海偕 17,308,834.37 0.00 0.00 0.00 -324,008.77 0.00 0.00 0.00 0.00 0.00 16,984,825.60 0.00
怡医药科技有限公司)
Haisong Precision Parts
(Taicang) Co., Ltd. (海嵩精密 1,638,813.69 0.00 0.00 0.00 -43,069.90 0.00 0.00 0.00 0.00 0.00 1,595,743.79 0.00
零部件(太仓) 有限公司)
Subtotal 1,447,498,598.46 1,200,000.00 0.00 1,299,140.19 39,476,098.20 2,410.36 8,712.25 8,313,401.29 0.00 0.00 1,477,373,277.79 1,200,000.00
Movement in the year Closing
Beginning balance
balance of
Investee 2024.12.31 of provision for Additions Investment income/loss Adjustment in other Changes Announced 2025.6.30
Decrease in Provision for provision for
impairment in recognized under the comprehensive of other distribution of cash Others
investment impairment impairment
investment equity method income equity dividend or profit
①Subsidiaries
Zhongshan Renhe Health
Products Co., Ltd. (中山市仁 6,337,823.35 6,337,823.35 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6,337,823.35 6,337,823.35
和保健品有限公司)
Guangzhou Hiyeah Industry
Co., Ltd. (广州市喜悦实业有 1,949,893.45 1,949,893.45 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,949,893.45 1,949,893.45
限公司)
Subtotal 8,287,716.80 8,287,716.80 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8,287,716.80 8,287,716.80
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
（1）Other equity instruments investment
√Applicable □N/A
Increase and decrease changes in this period Reasons for
designating as
Gains
Losses Dividend Losses measured at
Gains included accumulated
included in income accumulated in fair value and
Decrease in other and recorded
Item 2024.12.31 Additional other 2025.06.30 recognized other with changes
in comprehensive Others in other
investment comprehensive in this comprehensive recorded in
investment income for this comprehensive
income for this period income other
period income
period comprehensive
income
Shanghai Yunfeng
Xinchuang Equity
Investment Center 54,973,447.09 5,205,974.88 49,767,472.21 - 3,940,528.23 Non-trading
(上海云锋新创股
权投资中心)
Shanghai JingYi
Investment Center
(上海经颐投资中 68,241,884.52 174,497.28 68,067,387.24 1,505,811.26 302,911.59 Non-trading
心)
Qianhai Equity
Investment Fund
(前海股权投资基 222,903,402.11 7,209,027.76 230,112,429.87 - 28,642,278.90 Non-trading
金)
Apricot Forest, Inc
(杏树林)
Chengdu Jinrui Jiye
Biotechnology Co.,
Ltd. (成都金瑞基 20,000,000.00 - - 20,000,000.00 - 0.00 Non-trading
业生物科技有限公
司)
Beijing Shuobai
Pharmaceutical
Technology Co.,
Ltd. (北京硕佰医 15,000,000.00 - - 15,000,000.00 - 0.00 Non-trading
药科技有限责任公
司)
Zhuhai China
Resources Bank
Co., Ltd. (珠海华润 228,006,000.00 - - 228,006,000.00 - 129,778,204.00 Non-trading
银行股份有限公
司)
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
GLOBAL
HEALTH 143,205,685.40 - 2,466,734.50 140,738,950.90 - 20,427,406.56 Non-trading
SCIENCE
Nextech V
Oncology S.C.S., 22,515,721.72 407,603.40 4,450,383.53 18,472,941.59 - 11,897,021.39 Non-trading
SICAV-SIF
Yizun
Biopharmaceutics
(Shanghai) Co.,
Ltd. (羿尊生物医 24,737,630.38 - - 24,737,630.38 - 2,694,052.73 Non-trading
药(上海) 有限公
司)
ELICIO
THERAPEUTICS, 4,853,421.34 2,633,450.38 7,486,871.72 - 27,876,430.33 Non-trading
INC.
CARISMA
THERAPEUTICS, 2,168,737.47 111,837.54 2,056,899.93 36,750,366.07 Non-trading
INC.
Beijing Luzhu
Biotechnology Co.,
Ltd. (北京绿竹生 49,572,318.75 1,796,267.54 51,368,586.29 - 16,026,439.71 Non-trading
物技术股份有限公
司)
Guangzhou Kentai
Biopharmaceutical
Technology Co.,
Ltd. (广州科恩泰 12,000,000.00 - - 12,000,000.00 - 0.00 Non-trading
生物医药科技有限
公司)
Huinuo
Biopharmaceutical
Technology
(Hangzhou) Co., 0.00 15,000,000.00 - - 15,000,000.00 - 0.00 Non-trading
Ltd.（辉诺生物医
药科技（杭州）有
限公司）
Others 74,596,094.37 422,631.43 721,979.04 73,451,483.90 - 54,286,015.48 Non-trading
Total 1,026,548,743.15 15,407,603.40 422,631.43 11,638,745.68 14,406,061.52 0.00 1,038,766,399.28 1,505,811.26 229,035,849.68 195,520,251.27 /
Since the above-mentioned project is an investment that the company plans to hold long-term for strategic purposes, the company has designated it as a financial asset
measured at fair value through other comprehensive income.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
(2) Explanation of the situation of termination of recognition in this period
Gains recognized in
Losses recognized in other
other comprehensive Reason of
Item comprehensive income for
income for the current derecognition
the current period
period
Shanghai Yunfeng Xinchuang Equity
Investment Center (上海云锋新创股 0.00 0.00 —
权投资中心)
Shanghai JingYi Investment Center (上
海经颐投资中心)
Qianhai Equity Investment Fund (前海
股权投资基金)
Apricot Forest, Inc (杏树林) 0.00 0.00 —
Chengdu Jinrui Jiye Biotechnology
Co., Ltd. (成都金瑞基业生物科技有 0.00 0.00 —
限公司)
Beijing Shuobai Pharmaceutical
Technology Co., Ltd. (北京硕佰医药 0.00 0.00 —
科技有限责任公司)
Huinuo Biopharmaceutical Technology
(Hangzhou) Co., Ltd.（辉诺生物医药 0.00 0.00 —
科技（杭州）有限公司）
Zhuhai China Resources Bank Co.,
Ltd. (珠海华润银行股份有限公司)
GLOBAL HEALTH SCIENCE 0.00 0.00 —
Nextech V Oncology S.C.S., SICAV-
SIF
Yizun Biopharmaceutics (Shanghai)
Co., Ltd. (羿尊生物医药(上海) 有限 0.00 0.00 —
公司)
ELICIO THERAPEUTICS, INC. 0.00 0.00 —
CARISMA THERAPEUTICS, INC. 0.00 0.00 —
Beijing Luzhu Biotechnology Co., Ltd.
(北京绿竹生物技术股份有限公司)
Guangzhou Kentai Biopharmaceutical
Technology Co., Ltd. (广州科恩泰生 0.00 0.00 —
物医药科技有限公司)
Recovery of partial
Others 0.00 7,151,648.63 investment
Total 0.00 7,151,648.63 --
Measurement of investment properties
(1) Investment properties measured at cost
Unit: Yuan Currency: RMB
Item Housing and buildings Total
I. Book value:
(1) Transfer of fixed assets 0.00 0.00
II. Accumulated depreciation and
amortisation
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
(1) Amortisation for the year 420,441.72 420,441.72
(2 Transfer of fixed assets 0.00 0.00
III. Provision for impairment
IV. Carrying amount
period
(2) Investment properties whose title certificate has not completed:
□Applicable √N/A
Line items
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Balance at the Beginning
Item
Period of the Year
Fixed assets 5,506,577,329.64 5,689,216,337.13
Fixed assets for disposal 0.00 0.00
Total 5,506,577,329.64 5,689,216,337.13
Fixed assets
(1) Details of fixed assets
√Applicable □N/A
Unit: Yuan Currency: RMB
Electronic
Housing and Machinery and
Item Motor vehicles equipment and Total
buildings equipment
others
I. Book value:
balance
(1) Purchase 8,969,809.12 36,862,295.68 2,658,221.04 25,715,198.09 74,205,523.93
(2)Transfer
from
construction in
progress
(1) Disposal or
scrap
(2) Others 0.00 0.00 242,715.33 6,017.15 248,732.48
balance
II.
Accumulated
depreciation
balance
(1) Provision 108,938,226.78 184,904,466.18 4,020,865.49 41,109,439.81 338,972,998.26
(1) Disposal or
scrap
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
(2) Others 0.00 0.00 228,804.29 0.00 228,804.29
balance
III. Provision
for impairment
balance
(1) Provision 0.00 0.00 0.00 9,636.13 9,636.13
(1) Disposal or
scrap
balance
IV. Carrying
amount
value at period 2,557,714,351.01 2,636,562,733.88 28,582,741.34 283,717,503.41 5,506,577,329.64
end
value at
beginning of
the period
(2) Fixed assets with temporary idle
√Applicable □N/A
Unit: Yuan Currency: RMB
Accumulated Provision for Carrying
Item Book value Note
depreciation impairment amount
Housing and
buildings
Machinery and
equipment
Electronic
equipment and 3,693,611.35 3,206,761.32 130,163.84 356,686.19
others
Total 186,472,473.42 128,210,035.59 40,058,802.04 18,203,635.79
(3) Fixed assets leased out under operating leases
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Carrying Amount
Housing and buildings 1,368,885.98
(4) Fixed assets without property certificate
√Applicable □N/A
Unit: Yuan Currency: RMB
Reason for pending certificate of
Item Carrying Amount
ownership
Housing and
buildings
Other descriptions
□Applicable √N/A
Disposal of fixed assets
□Applicable √N/A
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Line items
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Balance at the Beginning of the
Item
Period Period
Construction in
progress
Construction
materials
Total 582,667,379.81 531,063,771.79
Construction in progress
(1) Descriptions of construction in progress
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Period Balance at the Beginning of the Period
Item Provision for Provision for Net book
Book balance Net book value Book balance
impairment impairment value
Haibin Pharma Pingshang
New Factory (深圳海滨 217,046,458.89 13,576,290.39 203,470,168.50 197,467,459.58 13,576,290.39 183,891,169.19
坪山新厂)
Simei project (司美项目) 54,028,974.21 0.00 54,028,974.21 47,742,942.52 0.00 47,742,942.52
P03 Construction Project
of Livzon Group Livzon
Pharmaceutical Factory 57,909,448.31 0.00 57,909,448.31 41,750,648.05 0.00 41,750,648.05
(丽珠集团丽珠制药厂
P03 建设项目)
Jiaozuo new factory
relocation project (焦作新 64,192,340.65 0.00 64,192,340.65 55,831,987.95 0.00 55,831,987.95
厂迁建项目)
Construction Project of
Livzon Group Indonesia
Factory（丽珠集团印尼 18,288,794.63 0.00 18,288,794.63 0.00 0.00 0.00
工厂建设项目）
Others 190,596,464.40 5,850,810.89 184,745,653.51 207,233,039.98 5,850,810.89 201,382,229.09
Total 602,062,481.09 19,427,101.28 582,635,379.81 550,026,078.08 19,427,101.28 530,598,976.80
(2) Changes in significant construction in progress
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance
Balance at the
at the Transfer to Other
Project item Budget Increase End of the
Beginning fixed assets decrease
Period
of the Period
Haibin Pharma
Pingshang New
Factory (深圳海滨 1,436,107,400.00 197,467,459.58 19,866,398.85 287,399.54 0.00 197,467,459.58
坪山新厂)
Simei project (司美
项目)
P03 Construction
Project of Livzon
Group Livzon
Pharmaceutical 106,033,900.00 41,750,648.05 16,713,980.07 555,179.81 0.00 41,750,648.05
Factory (丽珠集团
丽珠制药厂 P03 建
设项目)
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Jiaozuo new factory
relocation project
(焦作新厂迁建项 184,261,900.00 55,831,987.95 8,360,352.70 0.00 0.00 55,831,987.95
目)
Construction Project
of Livzon Group
Indonesia Factory 191,000,000.00 0.00 18,288,794.63 0.00 0.00 0.00
（丽珠集团印尼工
厂建设项目）
Total 2,086,303,200.00 342,793,038.10 70,737,166.19 2,064,187.60 0.00 342,793,038.10
(Continued)
Proportion of Cumulative Interest Including:
cumulative amount of capitalisation interest Source
Project item Progress %
input to interest rate for the capitalised in of fund
budget % capitalised year (%) the year
Self-
Haibin Pharma Completion funding
Pingshang New Factory 89.91 of some 0.00 0.00 0.00 and
(深圳海滨坪山新厂) projects funds
raised
Simei project (司美项 Under Self-
目) construction funding
P03 Construction
Project of Livzon
Group Livzon Completion
Self-
Pharmaceutical Factory 55.14 of some 0.00 0.00 0.00
funding
(丽珠集团丽珠制药厂 projects
P03 建设项目)
Jiaozuo new factory Completion
relocation project (焦作 Self-
funding
新厂迁建项目) projects
Construction Project of
Livzon Group Completion
Indonesia Factory（丽 Self-
funding
珠集团印尼工厂建设 projects
项目）
Total 0.00 0.00 0.00 -
Other decrease is mainly transferred to long-term deferred expenses.
(3). Provision for impairment of construction in progress in the current period
□Applicable √N/A
(4). Impairment testing of construction in progress
□Applicable √N/A
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Housing and buildings Total
I. Book value:
(1) Leasing 18,261,380.89 18,261,380.89
II. Accumulated depreciation
(1) Provision 14,127,614.55 14,127,614.55
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
III. Provision for impairment
IV. Carrying amount
the period
Other descriptions:
In this period, the company recognized rental fees related to short-term leases and leases of
low-value assets amounting to RMB3.38 million.
(1) Details of intangible assets
√Applicable □N/A
Unit: Yuan Currency: RMB
Patent and
Land use Trademark
Item technical know- Software Others Total
rights rights
how
I. Book value
balance
(1) Purchase 91,793,833.79 11,468,648.34 4,725,486.86 0.00 0.00 107,987,968.99
(2) Internal
R&D
(1) Disposal 0.00 0.00 1,380,579.05 0.00 0.00 1,380,579.05
balance
II.
Accumulated
amortisation
balance
(1) Provision 4,583,339.58 44,958,448.57 3,972,754.83 235.86 660,096.72 54,174,875.56
(1) Disposal 0.00 0.00 1,380,579.05 0.00 0.00 1,380,579.05
balance
III. Provision
for
impairment
balance
(1)Provision 0.00 0.00 0.00 0.00 0.00 0.00
balance
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
IV. Carrying
amount
value at 370,259,371.44 344,165,426.44 23,172,561.00 2,869.41 3,643,586.09 741,243,814.38
period end
value at
beginning of
the period
The proportion of intangible assets created due to the internal R&D in the balance of
intangible assets at the End of the Period is 54.39%
(2) Intangible assets pending for certificates of ownership
√Applicable □N/A
Unit: Yuan Currency: RMB
Reasons for pending title
Item Carrying amount
certificate
Land use rights 19,478,694.50 Application in progress
Other descriptions
√Applicable □N/A
The land use rights represent the state-owned land use rights obtained by the Company in
accordance with PRC laws in China, and the term of grant will be 50 years commencing from the
date of obtaining the land use rights
Item 2024.12.31 Increase Decrease 2025.6.30
Development
costs
For details, please refer to Note VI. Research and Development Expenses
(1) Book value of goodwill
√Applicable □N/A
Unit: Yuan Currency: RMB
Decrease for the
Increase for the Period
Period
Balance at the Balance at
Name of investee or matter Formation
Beginning of the End of
from which goodwill arose by business
the Period Others Disposal Others the Period
combinatio
n
Shanghai Livzon Pharmaceutical
Manufacturing Co., Ltd. (上海丽珠 2,045,990.12 0.00 0.00 0.00 0.00 2,045,990.12
制药有限公司)
Zhuhai FTZ Livzon Hecheng
Pharmaceutical Manufacturing Co.,
Ltd. (珠海保税区丽珠合成制药有 3,492,752.58 0.00 0.00 0.00 0.00 3,492,752.58
限公司)
Sichuan Guangda Pharmaceutical
Manufacturing Co., Ltd. (四川光大 13,863,330.24 0.00 0.00 0.00 0.00 13,863,330.24
制药有限公司)
Livzon Group Xinbeijiang
Pharmaceutical Manufacturing Inc.
(丽珠集团新北江制药股份有限公 7,271,307.03 0.00 0.00 0.00 0.00 7,271,307.03
司)
Livzon Group Fuzhou Fuxing
Pharmaceutical Co., Ltd. (丽珠集团 46,926,155.25 0.00 0.00 0.00 0.00 46,926,155.25
福州福兴医药有限公司)
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Livzon Group Livzon
Pharmaceutical Factory (丽珠制药 47,912,269.66 0.00 0.00 0.00 0.00 47,912,269.66
厂)
Livzon Group 395,306,126.41 0.00 0.00 0.00 0.00 395,306,126.41
Shenzhen Haibin Pharmaceutical
Co., Ltd. (深圳市海滨制药有限公 91,878,068.72 0.00 0.00 0.00 0.00 91,878,068.72
司)
Joincare Daily-Use & Health Care
Co., Ltd. (健康元日用保健品有限 1,610,047.91 0.00 0.00 0.00 0.00 1,610,047.91
公司)
Shenzhen Taitai Pharmaceutical Co.,
Ltd. (深圳太太药业有限公司)
Health Pharmaceuticals (China)
Limited (健康药业(中国) 有限公 23,516,552.65 0.00 0.00 0.00 0.00 23,516,552.65
司)
Shenzhen Hiyeah Industry Co., Ltd
(深圳市喜悦实业有限公司)
Jiaozuo Joincare Bio Technological
Co., Ltd. (焦作健康元生物制品有 92,035.87 0.00 0.00 0.00 0.00 92,035.87
限公司)
Shanghai Zhongtuo Pharmaceutical
Technology Co., Ltd. (上海中拓医 21,870,805.09 0.00 0.00 0.00 0.00 21,870,805.09
药科技有限公司)
Total 662,420,858.76 0.00 0.00 0.00 0.00 662,420,858.76
(2) Provision for impairment of goodwill
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at Increase for the Decrease for the
the Period Period Balance at
Investee or matters
Beginning the End of
formed the goodwill
of the Provision Others Disposal Others the Period
Period
Livzon Group
Xinbeijiang
Pharmaceutical
Manufacturing Inc. (丽珠 7,271,307.03 0.00 0.00 0.00 0.00 7,271,307.03
集团新北江制药股份有
限公司)
Livzon Group Fuzhou
Fuxing Pharmaceutical
Co., Ltd. (丽珠集团福州 11,200,000.00 0.00 0.00 0.00 0.00 11,200,000.00
福兴医药有限公司)
Shenzhen Hiyeah
Industry Co., Ltd (深圳 6,000,000.00 0.00 0.00 0.00 0.00 6,000,000.00
市喜悦实业有限公司)
Joincare Daily-Use &
Health Care Co., Ltd. (健
康元日用保健品有限公
司)
Total 26,081,354.94 0.00 0.00 0.00 0.00 26,081,354.94
(3) Relevant information regarding the asset portfolio and set of asset portfolios to which the
goodwill belongs
□Applicable √N/A
Changes occur in the asset group or asset group combination
□Applicable √N/A
Other descriptions
√Applicable □N/A
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
On the balance sheet date, the Company conducts an impairment test on goodwill. When
estimating the recoverable amount of input costs, it uses an assets group related to goodwill to
estimate the present value of future cash flows.
The estimated future cash flow of asset groups is calculated according to the five-year financial
budget plan made by the management, the cash flows in the years beyond the five-year budget plan
remain stable.
Key assumptions of discounted future cash flow for goodwill impairment test are as follows:
For the Livzon Group and the asset group related to goodwill, the calculation of the present
value of the expected future cash flows used key assumptions, including a gross margin rate of
flows of 12.07%. These assumptions were determined by management based on historical data prior
to the budget period and forecasts of market developments.
For Shenzhen Haibin Pharmaceutical Co., Ltd. and the asset group related to goodwill, the
calculation of the present value of the expected future cash flows used key assumptions, including
a gross margin rate of 34.16% to 35.06%, an operating income growth rate of -0.54% to 2.75%, and
a discount rate for cash flows of 13.99%. These assumptions were determined by management based
on historical data prior to the budget period and forecasts of market developments.
For Livzon Group Livzon Pharmaceutical Factory and the asset group related to goodwill, the
calculation of the present value of the expected future cash flows used key assumptions, including
a gross margin rate of 84.97% to 86.32%, an operating income growth rate of -2.63% to 6.45%, and
a discount rate for cash flows of 14.71%. These assumptions were determined by management based
on historical data prior to the budget period and forecasts of market developments.
For Sichuan Guangda Pharmaceutical Manufacturing Co., Ltd. and the asset group related to
goodwill, the calculation of the present value of the expected future cash flows used key assumptions,
including a gross margin rate of 56.17% to 60.53%, an operating income growth rate of 0% to
management based on historical data prior to the budget period and forecasts of market
developments.
For Livzon Group Fuzhou Fuxing Pharmaceutical Co., Ltd. and the asset group related to
goodwill, the calculation of the present value of the expected future cash flows used key assumptions,
including a gross margin rate of 58.50% to 63.85%, an operating income growth rate of -2.02% to
management based on historical data prior to the budget period and forecasts of market
developments.
For Shanghai Zhongtuo Pharmaceutical Technology Co., Ltd. and the asset group related to
goodwill, the calculation of the present value of the expected future cash flows used key assumptions,
including a gross margin rate of 2.09% to 63.30%, an operating income growth rate of 0% to 450%,
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
and a discount rate for cash flows of 15.53%. These assumptions were determined by management
based on historical data prior to the budget period and forecasts of market developments.
Based on the testing, the company’s management expects that at the end of the reporting period,
no provision for impairment of goodwill will be required.
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the Balance at the
Other
Item Beginning of Increase Amortisation End of the
decrease
the Period Period
Renovation
costs of 30,697,804.67 624,971.17 2,401,591.57 0.00 28,921,184.27
offices
Renovation
costs of 207,127,752.69 9,949,635.03 23,065,527.95 0.00 194,011,859.77
plants
Others 81,571,071.52 11,279,809.72 20,078,153.74 0.00 72,772,727.50
Total 319,396,628.88 21,854,415.92 45,545,273.26 0.00 295,705,771.54
(1) Deferred tax assets before offsetting
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Period Balance at the Beginning of the Period
Item Deductible Deferred tax Deductible timing Deferred tax
timing differences assets differences assets
Provision for impairment
of assets
Deductible difference
arising from accrued 1,265,870,939.33 190,503,229.29 1,081,237,575.78 162,676,632.60
expenses
Deductible difference
arising from tax loss
Deferred income 323,171,790.40 48,475,768.56 319,424,690.91 47,913,703.64
Unrealised gains from
intra-company 409,651,802.20 62,042,140.97 582,247,811.23 81,697,884.59
transactions
Changes in fair value of
other equity instruments
Deductible differences
arising from equity 107,045,841.91 16,056,876.29 146,291,679.62 21,943,454.98
incentive expenses
Lease liabilities 42,373,910.05 6,366,511.59 39,778,647.46 5,977,222.22
Other deductible
temporary difference
Total 4,903,606,428.46 762,906,657.86 4,443,995,015.10 685,468,536.85
(2) Deferred tax liabilities before offsetting
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Period Balance at the Beginning of the Period
Item Taxable timing Deferred tax Taxable timing Deferred tax
difference liabilities difference liabilities
Changes in fair value
of financial assets held 14,146,881.73 2,139,031.66 12,583,829.07 1,925,721.93
for trading
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Accelerated
depreciation of fixed 1,279,210,401.53 193,099,316.36 1,264,973,405.97 190,963,767.03
assets
Changes in fair value
of other equity
instrument
investments
Unrealised gains from
intra-company 105,940,000.00 20,791,000.00 105,940,000.00 20,791,000.00
transactions
Right-of-use assets 42,760,499.93 6,424,500.08 38,626,733.57 5,804,435.14
Total 1,753,837,968.18 271,953,381.12 1,726,023,181.21 267,622,684.50
(3) Deferred income tax assets or liabilities listed as net amount after offset
□Applicable √N/A
(4) Details of unrecognized deferred tax assets
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Balance at the Beginning of
Item
Period the Period
Deductible temporary
difference
Deductible tax losses 3,624,295,239.20 3,993,110,992.36
Total 4,192,128,919.20 4,576,139,475.39
(5) Expiry of deductible tax losses in subsequent period
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the
Balance at the End
Year Beginning of the Note
of the Period
Period
Indefinite 153,545,370.73 139,119,527.51
Total 3,624,295,239.20 3,993,110,992.36
Other descriptions:
□Applicable √N/A
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Period Balance at the Beginning of the Period
Provision Provision
Item Carrying Carrying
Book Balance for Book Balance for
amount amount
impairment impairment
Term deposit
and interests
VAT carry
forward
Prepayment for
acquisition of
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
project and
equipment
Others 8,251,101.00 0.00 8,251,101.00 0.00 0.00 0.00
Total 616,374,207.72 0.00 616,374,207.72 1,273,057,844.54 0.00 1,273,057,844.54
End of the Period Beginning of the Period
Item Carrying Restricted Restricted Carrying Restricted Restricted
Book balance Book balance
amount types situations amount types situations
Deposits Deposits
for letter of for letter of
Other
credit and credit and
monetary 10,356,971.52 10,356,971.52 Frozen 9,331,443.62 9,331,443.62 Frozen
bank bank
funds
acceptance acceptance
bills bills
Acceptance Acceptance
bills and bills and
Notes
receivable
notes notes
receivable receivable
Total 783,665,158.71 783,665,158.71 815,158,706.05 815,158,706.05 /
(1) Short-term loans by category
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the Beginning of the
Item Balance at the End of the Period
Period
Unsecured loans 2,070,000,000.00 2,295,000,000.00
Guaranteed loans 60,000,000.00 100,000,000.00
Pledge loans 0.00 60,000,000.00
Total 2,130,000,000.00 2,455,000,000.00
(2) Overdue short-term loans
□Applicable √N/A
Other descriptions:
□Applicable √N/A
√Applicable □N/A
Unit: Yuan Currency: RMB
The specified
Balance at
Balance at the reasons and
the Beginning
Item End of the basis
of
Period
the Period
/
Financial liabilities held for trading 8,581.94 9,046,554.29
Including:
/
Derivative financial liabilities 8,581.94 9,046,554.29
Total 8,581.94 9,046,554.29 /
Other descriptions:
Derivative financial liabilities represent foreign currency forward contracts. The loss from
unexpired onerous contracts measured at fair value on balance sheet date was recognised as
financial liabilities held for trading.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the Beginning of the
Type Balance at the End of the Period
Period
Bank acceptance bills 1,210,521,011.10 1,384,943,947.17
Total 1,210,521,011.10 1,384,943,947.17
The total of bills payable due but not yet paid during the period is RMB 0.00.
(1) Presentations of accounts payable
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Balance at the Beginning of the
Item
Period Period
Within 1year 581,594,369.18 593,290,648.61
Over 1 year 159,711,645.50 172,221,544.62
Total 741,306,014.68 765,512,193.23
(2) Significant accounts payable aged over one year
□Applicable √N/A
Other descriptions:
√Applicable □N/A
(1) The aging of accounts payable is calculated from the date of entry.
(2) There are no significant accounts payable with an aging of more than 1 year at the end of the
period.
(1) Descriptions of contract liabilities
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Balance at the Beginning of the
Item
Period Period
Within 1 year 64,830,570.78 108,160,158.48
Over 1 year 33,129,360.59 34,235,380.73
Total 97,959,931.37 142,395,539.21
(2). Significant contract liabilities with an aging of more than 1 year
□Applicable √N/A
(3)Significant changes in the carrying amount during the Reporting Period and reasons therefor
□Applicable √N/A
Other descriptions:
√Applicable □N/A
The amount of revenue recognized in the current period that was included in the carrying amount
of contract liabilities at the end of the previous year is RMB 109,266,178.62.
(1) Descriptions of employee benefits payables
√Applicable □N/A
Unit: Yuan Currency: RMB
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Balance at the
Balance at the
Item Beginning of the Increase Decrease
End of the Period
Period
I. Short-term employee
benefits
II. Post-employment
benefits -Defined 982,138.87 102,810,217.83 103,731,032.07 61,324.63
contribution plans
III. Termination
benefits
Total 473,571,305.45 1,339,321,513.16 1,491,576,622.68 321,316,195.93
(2) Descriptions of Short-term employee benefits
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the
Increase for the Decrease for the Balance at the End
Item Beginning of the
Period Period of the Period
Period
Ⅰ Salaries, bonus
and allowances
Ⅱ Staff welfare 4,940,668.30 54,494,571.93 54,599,278.79 4,835,961.44
Ⅲ Social
insurances
Including: 1.
Medical insurance
insurance
insurance
Ⅳ Housing fund 1,426,156.18 38,353,417.01 38,362,209.85 1,417,363.34
Ⅴ Union funds
and staff 851,408.77 3,720,318.44 3,592,121.36 979,605.85
education
Ⅵ Stock
Ownership Plan 0.00 0.00 0.00 0.00
Special Fund
Total 472,002,916.58 1,224,597,131.33 1,375,345,176.61 321,254,871.30
(3) Defined contribution plans
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the Balance at the
Item Beginning of the Increase Decrease End of the
Period Period
Post-employment benefits 982,138.87 102,810,217.83 103,731,032.07 61,324.63
Including: 1. Basic pension
insurance
Total 982,138.87 102,810,217.83 103,731,032.07 61,324.63
Other descriptions:
√Applicable □N/A
The Company participates in pension insurance and unemployment insurance plans established
by the government in accordance with relevant requirements. According to the plans, the Company
makes contributions to these plans in accordance with relevant requirements of the local government.
Besides the above contributions, the Company no longer undertakes further payment obligation.
The corresponding cost is charged to the profit or loss for the current period or the cost of relevant
assets when it occurs.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Balance at the Beginning of the
Item
Period Period
Value added tax 89,294,823.33 76,516,228.55
Urban maintenance and
construction tax
Enterprise income tax 151,425,647.81 150,514,660.37
Property tax 12,159,179.39 6,620,755.79
Land use tax 3,122,347.85 2,581,318.12
Individual income tax 2,914,260.12 6,048,274.85
Stamp duty 2,893,138.97 3,111,598.15
Education surcharges 6,388,865.05 6,321,350.34
Others 1,879,047.94 2,205,988.23
Total 279,656,691.03 263,380,339.80
Line items
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Balance at the Beginning of the
Item
Period Period
Dividends payable 345,350,501.55 9,890,041.38
Other payables 3,425,662,686.35 3,359,225,199.29
Total 3,771,013,187.90 3,369,115,240.67
Dividends payable
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of Balance at the
Item
the Period Beginning of the Period
Common shares dividend 335,940,005.88 20,174.46
Qingyuan Xinbeijiang (Group) Company 1,200,710.00 1,200,710.00
Other legal persons and individual shares of
subsidiaries
Staff shares of subsidiaries 3,110,933.94 3,366,988.90
Total 345,350,501.55 9,890,041.38
Other payables
(1) Other payables by nature
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Balance at the Beginning of
Item
Period the Period
Office expenses 57,347,637.70 70,346,214.43
Security deposits 67,317,395.98 63,916,974.36
Utility bill 34,188,422.67 30,909,899.69
Scientific research expenses 78,775,977.06 74,508,883.71
Business promotion
expenses
Others 203,441,394.53 190,536,171.21
Total 3,425,662,686.35 3,359,225,199.29
(2) Significant other payables aged over 1 year
□Applicable √N/A
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Other descriptions:
√Applicable □N/A
The obligations of repurchasing restricted shares of the directors, the senior management and
their spouses amounted RMB0.00 at the End of the Period.
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Balance at the Beginning of
Item
Period the Period
Lease liabilities due within
one year
Long-term loans and interest
due within one year
Total 539,276,416.15 395,975,991.36
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Balance at the End of the Balance at the Beginning of
Period the Period
Output VAT pending for
transfer
Total 6,492,734.60 11,841,940.51
Change of short-term bonds payable
□Applicable √N/A
Other descriptions:
□Applicable √N/A
(1) Classification of long-term loans
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the Balance at the
Range of interest Range of interest
Item End of the Beginning of the
rate rate
Period Period
Unsecured loans 1.70%-2.45% 1,200,698,463.32 1.80%-2.95%
Guaranteed loans 1.80%-2.50% 1,600,109,812.72 2.15%-2.65%
Long-term loans
due within one -517,953,227.22 1.70%-2.45% -376,173,163.67 2.15%-2.95%
year
Total 2,285,563,489.02 2,424,635,112.37
Other descriptions, including interest rate range:
□Applicable √N/A
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Balance at the End of the Balance at the Beginning of the
Period Period
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Lease payments payable 42,455,800.87 39,778,647.46
Lease liabilities due within one
-21,323,188.93 -19,802,827.69
year
Total 21,132,611.94 19,975,819.77
Other descriptions:
The interest expense of lease liabilities accrued for the period amounts to RMB0.9961 million,
which is included in financial expenses - interest expense.
Deferred income
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the Balance at the
Reason of
Item Beginning of Increase Decrease End of the
formation
the Period Period
Government
grants
Total 334,970,008.52 36,330,550.00 31,900,233.17 339,400,325.35 /
Other descriptions:
√Applicable □N/A
Government grants recorded as deferred income refer to Note VIII. Government grants.
√Applicable □N/A
Unit: Yuan Currency: RMB
Changes for the Period (+ -)
Balance at the Balance at the
Issuance Conversion
Beginning of Stock End of the
of new from capital Others Subtotal
the Period bonus Period
shares reserve
I. Tradable
shares subject to
selling
restrictions
legal person 0 0 0 0 0 0 0
shares
natural person 0 0 0 0 0 0 0
shares
legal person 0 0 0 0 0 0 0
shares
Tradable shares
subject to
selling 0 0 0 0 0 0 0
restrictions in
aggregate
II. Tradable
shares
shares
denominated in
RMB
listed foreign 0 0 0 0 0 0 0
shares
Tradable shares
in aggregate
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
III. Total
number of 1,874,200,420 0 0 0 -44,747,034 -44,747,034 1,829,453,386
shares
Other descriptions:
The reduction in the current period's share capital is due to the cancellation of treasury shares.
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the
Balance at the
Item Beginning of the Increase Decrease
End of the Period
Period
Capital premium
(Share premium)
Other capital reserve 479,020,458.94 4,087.65 0.00 479,024,546.59
Total 1,654,383,491.41 88,140,356.72 631,459,257.89 1,111,064,590.24
Other descriptions, including changes for the current period and reasons therefor:
(1) The increase in share capital premium in the current period is:
①For non-proportionate capital increases of subsidiaries and acquisition of minority equity of
subsidiaries, the difference between the capital contribution and acquisition amount and the
corresponding share of the net assets of the subsidiaries was RMB12,854,784.35.
②The repurchase and cancellation of shares by the subsidiary Livzon Group led to changes in
the company's equity ratio and other equity changes, resulting in an increase in capital reserve of
RMB75,281,484.72.
(2) The reduction in share capital premium in the current period is:
The share repurchase by the Company and its subsidiaries, Livzon Group, decreased the
capital premium by RMB631,459,257.89.
（3）The increase in other capital reserves in the current period is：
The equity method accounting units of the company and its subsidiary Livzon Group had other
equity changes, resulting in an increase in capital reserve of RMB 4,087.65.
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the Balance at the
Item Beginning of Increase Decrease End of the
the Period Period
Repurchase of shares to be 171,762,288.14 499,983,567.56
cancelled 328,221,279.42
Total 0.00
Other descriptions, including changes for the current period and reasons therefor:
The increase in treasury shares in the current period is: the total amount of funds used by the
company to repurchase 15,718,664 shares of the company through centralized bidding
transactions. The reduction in treasury shares in the current period was: 44,747,034 shares were
cancelled.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
√Applicable □N/A
Unit: Yuan Currency: RMB
For the Period
Less: Amount
transferred to profit
Balance at the or loss in the current Less: transferred to Amount Amount Balance at the
Item Beginning of period that was profit or loss in Less: Income attributable to attributable to End of the
Amount before tax
The Period previously current year or tax expenses parent company minority interests Period
recognized in other retained earnings after tax(2) after tax
comprehensive
income
I. Other comprehensive
income not reclassified into -75,152,067.26 -1,492,661.09 0.00 -3,355,439.11 1,692,965.05 2,572,255.43 -2,402,442.46 -72,579,811.83
profit or loss subsequently
income not reclassified to
profit or loss under equity
method
other equity instrument -79,615,982.49 -1,492,661.09 0.00 -3,355,439.11 1,692,965.05 2,572,255.43 -2,402,442.46 -77,043,727.06
investments
II. Other comprehensive
income that will be
reclassified into profit or
loss subsequently
Including:Other
comprehensive income that
will be transferred to profit
or loss under equity method
Translation difference of
foreign currency financial 33,631,518.09 -76,861,437.58 0.00 0.00 0.00 -47,741,556.71 -29,119,880.87 -14,110,038.62
statements
Total of other
-41,177,547.42 -78,351,688.31 0.00 -3,355,439.11 1,692,965.05 -45,168,170.38 -31,521,043.87 -86,345,717.80
comprehensive income
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the Balance at the
Item Beginning of Increase Decrease End of the
the Period Period
Statutory surplus
reserve
Discretionary
surplus reserve
Reserve funds 1,103,954.93 0.00 0.00 1,103,954.93
Total 883,841,583.49 0.00 0.00 883,841,583.49
√Applicable □N/A
For the Previous
Item For the Period
Year
Retained earnings in previous period before
adjustments
Adjustments to opening balance of retained
earnings (increase +, decrease -)
Opening balance of retained earnings after
adjustments
Add: Net profit attributable to parent company for
the current year
Gains from disposal of other equity instruments
-3,355,439.11 25,413,707.24
investment
Less: Appropriation of statutory surplus reserve 0.00 24,795,379.72
Appropriation of discretionary surplus reserve 0.00 0.00
Appropriation for dividends to ordinary shares 365,890,677.20 337,353,555.60
Dividend to ordinary shares converted to share
capital
Closing balance of undistributed profits 10,907,386,718.31 10,491,692,921.28
Profit distributions
For the Previous
Item For the Period
Period
Dividends:
Balance sheet: Dividends proposed for future
distribution:
Note 1: On 7 April 2025, the eighth meeting of the ninth board of directors of the company
resolved to approve the 2024 profit distribution plan. According to the plan, based on the total
share capital as of the record date for the 2024 profit distribution, a cash dividend of RMB2.00 per
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
undistributed profits will be carried forward to future annual distributions. The profit distribution
plan was approved by the general meeting of shareholders on 6 June 2025, and
RMB179,130,730.60 was paid before 30 June 2025.
Note 2: On 2 April 2024, the 38th meeting of the 8th Board of Directors of the company
resolved to approve the profit distribution plan for 2023. Based on the total share capital of the
company as determined by the equity registration date for the implementation of the 2023 profit
distribution plan, a cash dividend of RMB 1.80 per 10 shares (including tax) will be distributed to
all shareholders. The remaining undistributed profits will be carried forward for distribution in
subsequent years. This profit distribution plan was approved by the shareholders' meeting on 7
June 2024, and RMB161,217,657.54 was paid before 30 June 2024.
(1) The information of operating income and operating cost
√Applicable □N/A
Unit: Yuan Currency: RMB
For the Period For the Previous Period
Item
Revenue Cost Revenue Cost
Primary operations 7,830,218,720.39 2,934,347,562.81 8,173,461,033.34 2,974,282,136.23
Other operations 68,109,530.02 50,785,013.14 61,173,066.11 46,843,748.10
Total 7,898,328,250.41 2,985,132,575.95 8,234,634,099.45 3,021,125,884.33
(2) Breakdown information of principal activities income
For the Period
Item
Revenue Cost
Segregation by products
Chemical pharmaceuticals (化学制剂) 3,768,397,541.37 835,301,991.09
Chemical active pharmaceutical ingredients
(APIs) and intermediates (化学原料药及中间 2,525,232,005.46 1,621,005,352.12
体)
Traditional Chinese medicine (中药制剂) 811,989,019.94 216,941,469.41
Biological product (生物制品) 94,818,856.99 44,399,451.25
Health care products (保健食品) 243,554,008.45 52,577,327.12
Diagnostic reagents and equipment (诊断
试剂及设备)
Others 12,092,242.01 8,140,540.45
Segregation by operating location
Domestic 6,349,632,796.55 2,042,425,170.47
Overseas 1,480,585,923.84 891,922,392.34
Total 7,830,218,720.39 2,934,347,562.81
Other descriptions:
√Applicable □N/A
Segregation by other operations
For the Period For the Previous Period
Item
Revenue Cost Revenue Cost
Sale of materials,
processing fees, 20,576,139.31 15,168,621.27 25,800,600.50 18,997,877.26
etc.
Rental fees 2,929,706.93 449,082.91 3,024,342.21 148,201.49
Others 44,603,683.78 35,167,308.96 32,348,123.40 27,697,669.35
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Total 68,109,530.02 50,785,013.14 61,173,066.11 46,843,748.10
Segregation by timing of revenue recognition
For the Period For the Previous Period
Item Revenue Cost Revenue Cost
Primary operations:
Including: Recognized at a
point in time
Other operations:
Including: Recognized at a
point in time
Rental income 2,929,706.93 449,082.91 3,024,342.21 148,201.49
Total 7,898,328,250.41 2,985,132,575.95 8,234,634,099.45 3,021,125,884.33
Information of top five customers of business revenue
Total operating income of the top Proportion to primary operating income
Period
five customers in the period (%)
January to June 2025 730,163,348.03 9.32
January to June 2024 715,005,732.49 8.75
√Applicable □N/A
Unit: Yuan Currency: RMB
Item For the Period For the Previous Period
Urban construction tax 39,869,596.03 37,554,614.36
Education surcharge 30,265,248.52 28,260,945.88
Land use tax 5,250,361.03 5,267,621.69
Property tax 17,383,491.54 16,642,223.76
Stamp duty and others 6,731,566.60 6,273,783.07
Total 99,500,263.72 93,999,188.76
Other descriptions:
The bases of calculations for major taxes and surcharges are set out in Note IV. Taxation.
√Applicable □N/A
Unit: Yuan Currency: RMB
For the Previous
Item For the Period
Period
Marketing and promotional expenses 1,567,645,657.62 1,640,113,871.36
Staff salaries 355,211,344.49 386,607,163.05
Entertainment and travel expenses 30,039,977.93 27,182,049.32
Conference fees 33,682,098.36 12,546,131.84
Others 30,215,410.44 30,188,605.88
Total 2,016,794,488.84 2,096,637,821.45
√Applicable □N/A
Unit: Yuan Currency: RMB
Item For the Previous
For the Period
Period
Staff salaries 261,216,044.63 248,101,172.69
Depreciation and amortization 54,876,173.79 66,928,239.88
Shares incentive expenses 0.00 19,109,462.08
Advisory, consultancy and information
disclosure fees
Quality project expenses 15,351,835.48 14,317,285.79
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Office, entertainment and travelling
expenses
Repair of utilities, transportation and
miscellaneous expenses
Recruitment and staff training expenses 2,181,985.49 3,085,907.19
Others 43,134,631.72 35,814,512.37
Total 421,890,723.11 445,024,332.82
√Applicable □N/A
Unit: Yuan Currency: RMB
For the Previous
Item For the Period
Period
Material fee 87,370,397.20 116,587,935.74
Staff salaries 217,466,763.10 226,560,094.36
Testing fee 148,399,711.74 186,082,969.68
Depreciation and amortization 73,411,944.38 82,573,107.00
External purchased R&D expenses 47,150,943.40 73,924,498.23
Others 37,353,308.79 29,001,124.74
Total 611,153,068.61 714,729,729.75
√Applicable □N/A
Unit: Yuan Currency: RMB
Item For the Previous
For the Period
Period
Interest expenses 45,725,827.28 72,457,072.68
Less: Interest income 246,070,795.96 187,438,919.12
Exchange (gains)/losses -24,822,171.64 -11,834,527.48
Bank charges and others 3,463,828.78 3,087,407.79
Total -221,703,311.54 -123,728,966.13
√Applicable □N/A
Unit: Yuan Currency: RMB
For the For the Previous Related to assets/
Item
Period Period Related to income
Government grants 31,779,020.73 20,738,663.26 Related to assets
Government grants 36,660,019.43 31,582,303.89 Related to income
Handling fees for tax
withholding
Tax refund on super-deduction 12,596,104.90 15,174,169.56
Total 85,396,777.46 70,438,830.56
Other descriptions:
For specific information on government grants, please refer to Note VIII, Government
Subsidies; for the reasons of government subsidies recognized as non-recurring gains and losses,
please refer to Note XVIII, 1.
.
√Applicable □N/A
Unit: Yuan Currency: RMB
For the Previous
Item For the Period
Period
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Long-term equity investments income under equity
method 39,476,098.20 23,799,217.29
Investment income from financial assets held for
trading during the holding period 3,382,790.06 191,174.96
Dividend income from other equity instrument
investments 1,505,811.26 8,551,779.20
Investment income from disposal of long-term
equity investments -731,350.19 0.00
Investment income from disposal of financial
assets held for trading -4,091,436.47 2,803,134.42
Total 39,541,912.86 35,345,305.87
Note 1: The details of investment income from the disposal of financial assets held for trading are
as follows:
For the Previous
Item For the Period
Period
Trading equity instruments investment - Stock
investments
Trading debt instruments investment 101,250.00 0.00
Derivatives not designated as hedging
-4,192,686.47 2,803,134.42
instruments
Including: Forward foreign exchange contracts -4,192,686.47 2,803,134.42
Total -4,091,436.47 2,803,134.42
√Applicable □N/A
Unit: Yuan Currency: RMB
Sources of gains from changes in fair
For the Period For the Previous Period
value
Financial assets held for trading -15,737,790.86 -14,957,580.08
Including:
Funds 9,815.15 41,271.91
Structured deposits 220,784.14 0.00
Equity instruments investment -16,458,768.85 -11,276,951.07
Derivative financial assets 490,378.70 -3,135,586.92
Bank wealth management products 0.00 -586,314.00
Financial liabilities held for trading 9,037,972.35 -4,618,887.47
Including: Derivative financial liabilities 9,037,972.35 -4,618,887.47
Total -6,699,818.51 -19,576,467.55
√Applicable □N/A
Unit: Yuan Currency: RMB
Item For the Period For the Previous Period
Bad debts of notes receivable -5,216,270.63 -1,625,649.65
Bad debts of accounts receivable -2,116,153.12 -2,247,797.05
Total -7,332,423.75 -3,873,446.70
√Applicable □N/A
Unit: Yuan Currency: RMB
Item For the Period For the Previous Period
I. Losses on bad debts
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
II. Losses on decline in value of
inventories and on impairment of contract -14,804,425.35 -29,755,574.41
performance costs
III. Losses on impairment of long-term
equity investments
IV. Losses on impairment of property
V. Losses on impairment of fixed assets -9,636.13 -25,498.94
VI. Losses on impairment of project
materials
VII. Losses on impairment of construction
in progress
VIII. Losses on impairment of bearer
biological assets
IX. Losses on impairment of oil and gas
assets
X. Losses on impairment of intangible
assets
XI. Losses on impairment of goodwill
XII. Losses on impairment of development
expenditure
Total -14,814,061.48 -82,185,254.98
√Applicable □N/A
Unit: Yuan Currency: RMB
Item For the Period For the Previous Period
Gain from disposal of fixed assets (“-” for
-149,723.72 -76,440.36
Loss)
Total -149,723.72 -76,440.36
√Applicable □N/A
Unit: Yuan Currency: RMB
For the
Amount included in non-
Item For the Period Previous
recurring gains and losses
Period
Income from scraps 1,443,497.38 1,056,550.93 1,443,497.38
Amount not required to be
paid
Compensation income 359,027.48 423,432.89 359,027.48
Gains on destruction or
retirement of non-current 1,168.15 208,198.42 1,168.15
assets
Others 623,677.15 482,333.50 623,677.15
Total 5,194,263.72 4,941,102.08 5,194,263.72
Government grants included in current profit or loss
□Applicable √N/A
√Applicable □N/A
Unit: Yuan Currency: RMB
Amount included in
For the
Item For the Period non-recurring gains
Previous Period
and losses
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Loss on retirement of non-
current assets
Donation expenses 4,672,542.76 3,127,095.07 4,672,542.76
Others 7,583,245.07 5,539,182.27 7,583,245.07
Total 13,955,342.84 9,830,386.52 13,955,342.84
(1) Table of income tax expenses
√Applicable □N/A
Unit: Yuan Currency: RMB
Item For the Period For the Previous Period
Current income tax 384,597,530.87 326,704,262.92
Deferred income tax -75,570,304.32 -40,890,419.06
Total 309,027,226.55 285,813,843.86
(2) Reconciliation between income tax expenses and accounting profits
√Applicable □N/A
Unit: Yuan Currency: RMB
Item For the Period
Profit before tax 2,072,742,025.46
Income tax expenses calculated at statutory (or applicable) tax rates 518,185,506.37
Impact from tax preferential rate in certain subsidiaries -314,094.45
Effect of tax reduction and exemption -255,098,920.57
Effect of non-deductible costs, expenses and losses 4,984,405.81
Effect of deductible tax losses for which no deferred tax assets were recognised
in prior periods -569,927.52
Effect of deductible tax losses or deductible temporary differences for which
no deferred tax asset was recognised in the current period 44,870,558.53
Others -3,030,301.62
Income tax expenses 309,027,226.55
Other descriptions:
□Applicable √N/A
（1）Cash related to operating activities
Other cash received relating to operating activities
√Applicable □N/A
Unit: Yuan Currency: RMB
Item For the Period For the Previous Period
Government grants 73,697,228.18 39,954,273.83
Interest income 224,104,487.80 206,243,681.08
Deposits & security deposits 16,514,248.79 42,029,489.24
Current accounts and others 27,731,148.43 37,142,996.31
Total 342,047,113.20 325,370,440.46
Other cash paid relating to operating activities
√Applicable □N/A
Unit: Yuan Currency: RMB
Item For the Period For the Previous Period
Business promotion expenses 1,669,141,529.12 1,682,132,413.13
Research and development
expenses
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Bank charges 3,480,877.87 3,101,436.48
Deposits & security deposits 15,183,367.91 9,661,803.40
Other expenses paid 220,029,336.53 242,750,496.66
Current accounts and others 13,382,383.19 26,601,157.28
Total 2,177,616,301.22 2,294,251,618.88
（2）Cash related to investing activities
Significant cash received relating to investing activities
√Applicable □N/A
Unit: Yuan Currency: RMB
Item For the Period For the Previous Period
Fixed deposits/Structured deposit 3,131,877,262.48 610,855,000.00
Cash management 109,993,408.80 102,484,966.04
Total 3,241,870,671.28 713,339,966.04
Significant cash paid relating to investing activities
√Applicable □N/A
Unit: Yuan Currency: RMB
Item For the Period For the Previous Period
Fixed deposits/Structured deposit 3,302,000,000.00 560,199,497.71
Cash management 110,644,515.80 102,139,574.41
Haibin Pharma Pingshang New
Factory (深圳海滨坪山新厂)
Total 3,430,201,719.72 717,856,887.54
Other cash received relating to investing activities
√Applicable □N/A
Unit: Yuan Currency: RMB
Item For the Period For the Previous Period
Others 75,249.03 0.00
Total 75,249.03 0.00
Other cash paid relating to investing activities
√Applicable □N/A
Unit: Yuan Currency: RMB
Item For the Period For the Previous Period
Foreign exchange forward contract losses 4,517,299.69 931,044.37
Total 4,517,299.69 931,044.37
(3)Cash related to financing activities
Other cash received relating to financing activities
√Applicable □N/A
Unit: Yuan Currency: RMB
Item For the Period For the Previous Period
Discount of acceptance bills 0.00 0.00
Collection and advance payment of
individual income tax
Total 0.00 1,040,757.54
Other cash paid relating to financing activities
√Applicable □N/A
Unit: Yuan Currency: RMB
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Item For the Period For the Previous Period
Repurchase of shares and
transaction fees
Rental payments 14,070,372.31 18,170,767.66
Collection and advance payment of
individual income tax
Withholding income tax 18,493,376.16 0.00
Total 590,694,203.10 153,731,977.05
Changes in liabilities arising from financing activities
√Applicable □N/A
Unit: Yuan Currency: RMB
Increase of the current period Decrease of the current period
Beginning
Item Closing balance
balance Non-cash Non-cash
Cash movement Cash movement
movement movement
Short-term
loans
Long-term
loans
Lease
liabilities
Total 5,295,586,923.50 1,942,140,000.00 61,477,279.43 2,321,588,509.67 1,643,176.15 4,975,972,517.11
Notes to the presentation of cash flows on a net basis
□Applicable √N/A
Significant activities and financial effects that do not involve current cash receipts and payments
but affect the financial position of the enterprise or may affect the enterprise's cash flows in the
future
□Applicable √N/A
(1) Supplemental to cash flow statement
√Applicable □N/A
Unit: Yuan Currency: RMB
For the Previous
Supplemental information For the Period
Period
from operating activities:
Net profit 1,763,714,798.91 1,696,215,507.01
Add: Assets impairment loss 14,814,061.48 82,185,254.98
Credit impairment loss 7,332,423.75 3,873,446.70
Depreciation of fixed assets 339,393,439.98 323,427,510.43
Amortization of right-of-use assets 14,127,614.55 16,677,138.23
Amortization of intangible assets 54,174,875.56 48,998,552.05
Long-term prepaid expenses amortization 45,545,273.26 82,339,421.37
Losses on disposal of fixed assets,
intangible assets and other long-term assets 149,723.72 76,440.36
(Gain as in “-”)
Loss on retirement of fixed assets (Gain as
in “-”)
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Losses on changes in fair value (Gain as in
“-”)
Financial expenses (Gain as in “-”) 31,931,171.41 43,451,326.34
Investment losses (Gain as in “-”) -39,541,912.86 -35,345,305.87
Decrease in deferred tax assets (Increase as
-78,506,758.96 -38,050,714.67
in “-”)
Increase in deferred tax liabilities
(Decrease as in “-”)
Decrease in inventories (Increase as in “-”) 291,311,960.30 31,330,850.55
Decrease in operating receivables
-129,847,275.66 -817,376,945.52
(Increase as in “-”)
Increase in operating payables (Decrease
-399,577,397.35 275,230,296.80
as in “-”)
Others 0.00 6,574,319.57
Net cash flows from operating activities 1,926,356,658.10 1,737,299,772.25
activities not involving cash:
Conversion of debt into capital 0.00 0.00
Convertible bonds mature within one year 0.00 0.00
Right-of-use assets newly recognized in
the current period
equivalents:
Cash and bank balance as at end of period 14,475,971,323.03 15,240,011,240.15
Less: cash and bank balance at beginning
of period
Add: cash equivalents at end of period 0.00 0.00
Less: cash equivalents at beginning of
period
Net increase in cash and cash equivalents -366,674,355.29 -100,858,132.58
(2) Net cash paid for acquisition of subsidiaries during the period
□Applicable √N/A
(3). Net cash received from disposal of subsidiaries during the period
□Applicable √N/A
(4). Details of cash and cash equivalents
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the
Balance at the
Item Beginning of the
End of the Period
Period
I. Cash 14,475,971,323.03 14,842,645,678.32
Including: Cash on hand 455,778.12 370,795.14
Cash at bank readily available for payment 14,349,821,520.23 14,715,786,650.25
Other monetary fund readily available for payment 125,694,024.68 126,488,232.93
II. Cash equivalents 0.00 0.00
Including: bonds investment mature within 3
months
III. Cash and cash equivalents as at closing balance 14,475,971,323.03 14,842,645,678.32
(5).Presentation of cash and cash equivalents with restricted use
□Applicable √N/A
(6).Monetary funds not classified as cash and cash equivalents
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
√Applicable □N/A
Unit: Yuan Currency: RMB
Closing balance Reason for not classified as cash and
Item Closing balance
of Previous year cash equivalents
Security deposits for
bank acceptance bills
Total 10,356,971.52 9,331,443.62
Other descriptions:
√Applicable □N/A
Cash and cash equivalents do not include cash and cash equivalents whose use by the company is
restricted.
(1). Items in foreign currencies
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance in foreign Equivalent RMB
Item currency at year Conversion rate balance at year
end end
Cash and bank balances
Including: Hong Kong
Dollar (HKD)
Euro (EUR) 124,600.15 8.40240 1,046,940.30
US Dollar (USD) 748,897,958.42 7.15860 5,361,060,925.15
Macau Pataca (MOP) 6,315,391.52 0.88472 5,587,358.68
Japanese Yen (JPY) 389,915,001.00 0.04959 19,337,444.56
British Pound (GBP) 1,690.10 9.83000 16,613.68
Malaysian Ringgit
(MYR)
Indonesian Rupiah
(IDR)
Singapore Dollar
(SGD)
Philippine Peso (PHP) 7,470,918.27 0.12671 946,640.05
Accounts receivable
Including: US Dollar (USD) 103,399,379.59 7.15860 740,194,798.73
Japanese Yen (JPY) 103,513,210.00 0.04959 5,133,634.14
Other receivables
Including: Hong Kong
Dollar (HKD)
Dividends receivable
Including: Hong Kong
Dollar (HKD)
Accounts payable
Including: Euro (EUR) 5,665.41 8.40240 47,603.04
Japanese Yen (JPY) 59,378,753.16 0.04959 2,944,829.88
US Dollar (USD) 582,012.31 7.15860 4,166,393.32
Indonesian Rupiah
(IDR)
Macau Pataca (MOP) 171.84 0.88472 152.03
Other payables
Including: US Dollar (USD) 5,800,853.11 7.15860 41,525,987.07
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Indonesian Rupiah
(IDR)
Hong Kong Dollar
(HKD)
Philippine Peso (PHP) 153,608.50 0.12671 19,463.73
Dividends Payable
Including: Hong Kong
Dollar (HKD)
(2). Descriptions of overseas operating entities, including disclosure of the main overseas
business locations, functional currency and the basis for selection of important overseas operating
entities, and the reasons for changes in functional currency (if any)
□Applicable √N/A
(1) As leasee
√Applicable □N/A
Variable lease payments not included in the measurement of lease liabilities
□Applicable √N/A
Rental of simplified short-term leases and leases of low-value assets
√Applicable □N/A
Item For the Period
Short-term rental expenses 3,380,049.09
Sale and leaseback transactions and basis of judgment
□Applicable √N/A
(2) As lessor
Operating leases as a lessor
√Applicable □N/A
Including:income relating to variable
Item For the Period lease payments not recognised as lease
receipts
Rental income 2,929,706.93 0.00
Total 2,929,706.93 0.00
Financial leases as a lessor
□Applicable √N/A
Reconciliation statement of undiscounted lease receipts and net investment in leases
□Applicable √N/A
Undiscounted lease receipts for the next five years
√Applicable □N/A
Unit: Yuan Currency: RMB
Annual undiscounted leasereceipts
Item
Closing balance Opening balance
First year 5,359,103.78 5,588,563.93
Second year 1,088,088.61 2,488,706.60
Third year 158,600.00 734,478.10
Fourth year 50,000.00 355,544.00
Fifth year 50,000.00 355,544.00
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
(3)Profits or losses on sales recognised under finance leases as a producer or distributor
□Applicable √N/A
VI. Research and development expenditures
(1) Presented based on nature of expense
√Applicable □N/A
Item For the period For the previous period
Material costs 88,162,358.44 126,100,191.84
Staff salaries 221,996,262.91 235,158,288.21
Testing fees 191,381,078.65 218,820,116.20
Depreciation and amortisation 73,817,274.89 86,332,766.39
External purchase of research 79,917,963.40 111,978,688.97
projects
Others 39,769,436.13 32,420,529.06
Total 695,044,374.42 810,810,580.67
Of which: Expenses amount 611,153,068.61 714,729,729.75
Capitalised amount 83,891,305.81 96,080,850.92
(2) Development expenses on R&D projects eligible for capitalisation
√Applicable □N/A
Increase Decrease
Beginning Recognized Closing
Item Internal Recognized
balance Other as balance
development in profit or Others
increase intangible
costs loss
assets
Chemical
pharmaceuticals
Total 362,703,730.11 51,124,285.81 32,767,020.00 0.00 469,515.74 0.00 446,125,520.18
Significant capitalised R&D projects
√Applicable □N/A
Expected
method of Commencement
Item R&D progress generating time of Specific basis
economic capitalization
benefits
Project Approved for Obtained clinical approval and
Marketing Clinical trials
JP1366 clinical trials evaluated by the company
Pixavir
Obtained clinical approval and
Marboxil NDA Marketing Clinical trials
evaluated by the company
Capsules
Provision for Impairment of Development Expenditures
√ Applicable □ Not Applicable
Item Beginning Increase Decrease Closing Balance
balance
Chemical
pharmaceuticals
Biologics 92,425,008.50 0.00 92,425,008.50 0.00
Total 192,637,726.78 0.00 92,425,008.50 100,212,718.28
Other descriptions
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
(3) Significant acquired research and development projects
Criteria for
Expected method of
determining whether a
Item generating economic Specific basis
project is capitalized or
benefits
expensed
Obtained clinical
Project JP1366 Marketing Clinical trials approval and evaluated
by the company
Other descriptions:
JP1366 has been approved for launching in South Korea. It was purchased to undergo
domestic clinical trials managed by the Livzon Group. After evaluation by the Livzon Group, it is
determined that the future economic benefits of this project are likely to accrue to the company.
Therefore, the purchase price is recognized as development expenses.
VII. Change to Consolidation Scope
□Applicable √N/A
□Applicable √N/A
□Applicable √N/A
Was there any circumstance under which a single disposal of the investment in subsidiaries will
lose control
□Applicable √N/A
Other descriptions:
□Applicable √N/A
Descriptions of changes in scope of consolidation caused by other reasons (such as establishment
of a new subsidiary and liquidation of a subsidiary, etc.) and their relevant information:
□Applicable √N/A
□Applicable √N/A
VIII Equity in other entities
(1). Group structure
√Applicable □N/A
Main Shareholding %
Place of Business
Name of subsidiary operating Registered capital Acquisition method
registration nature Direct Indirect
location
Topsino Industries
Limited (Topsino Hong Kong HKD896,933,973.00 Hong Kong Business 100 0 Set-up by investment
Industries)
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Main Shareholding %
Place of Business
Name of subsidiary operating Registered capital Acquisition method
registration nature Direct Indirect
location
Shenzhen Taitai Genomics
Inc. Co., Ltd. (Taitai Shenzhen RMB50,000,000.00 Shenzhen Industry 75 25 Set-up by investment
Genomics)
Shenzhen Taitai
Pharmaceutical Industry
Shenzhen RMB100,000,000.00 Shenzhen Industry 100 0 Set-up by investment
Co., Ltd. (Taitai
Pharmaceutical)
Health Investment
The British The British
Holdings Ltd. (Health USD50,000.00 Investment 0 100 Set-up by investment
Virgin Islands Virgin Islands
Investment)
Joincare Pharmaceutical
The British The British
Group Industry USD50,000.00 Investment 0 100 Set-up by investment
Virgin Islands Virgin Islands
Co.,Ltd.(BVI) *
Joincare Pharmaceutical
Cayman Cayman
Group Industry Co., Ltd. USD50,000.00 Investment 0 100 Set-up by investment
Islands Islands
(CAYMAN ISLANDS)
Xinxiang Haibin
Henan Henan
Pharmaceutical Co., RMB170,000,000.00 Industry 0 100 Set-up by investment
Xinxiang Xinxiang
Ltd.(Xinxiang Haibin)
Shenzhen Fenglei Electric
Power Investment Co.,
Shenzhen RMB100,000,000.00 Shenzhen Investment 100 0 Set-up by investment
Ltd. (Fenglei Electric
Power)
Jiaozuo Joincare Bio
Technological Co., Henan Jiaozuo RMB760,000,000.00 Henan Jiaozuo Industry 75 25 Set-up by investment
Ltd.(Jiaozuo Joincare)
Shanghai Frontier Health
Pharmaceutical
Shanghai RMB50,000,000.00 Shanghai Industry 65 0 Set-up by investment
Technology Co.,
Ltd.(Shanghai Frontier)
Shenzhen Taitai
Biological Technology
Shenzhen RMB5,000,000.00 Shenzhen Industry 100 0 Set-up by investment
Co., Ltd. (Taitai
Biological)
Guangdong Taitai
Shenzhen RMB0.00 Shenzhen Business 0 100 Set-up by investment
Forenstic Test Institute
Joincare Haibin
Pharmaceutical Co., Ltd Shenzhen RMB500,000,000.00 Shenzhen Industry 25 75 Set-up by investment
(Joincare Haibin)
Shenzhen Haibin Business combination
Pharmaceutical Co., Ltd. Shenzhen RMB700,000,000.00 Shenzhen Industry 97.87 2.13 not under common
(Haibin Pharma) control
Joincare Daily-Use & Business combination
Health Care Co., Ltd. Shenzhen RMB 25,000,000.00 Shenzhen Business 80 20 not under common
(Joincare Daily-Use) ) control
Health Pharmaceuticals Business combination
(China) Limited (Health Zhuhai HKD73,170,000.00 Zhuhai Industry 0 100 not under common
China) control
Livzon Pharmaceutical Business combination
Group Inc. (Livzon Zhuhai RMB904,100,430.00 Zhuhai Industry 24.49 21.84 not under common
Group) *Note 1 control
Hong Kong Health Business combination
Pharmaceutical Industry Hong Kong HKD10,000.00 Hong Kong Investment 0 100 not under common
Company Limited control
Health Pharmaceutical Business combination
Industry Company Hong Kong HKD10,000.00 Hong Kong Investment 0 100 not under common
Limited control
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Main Shareholding %
Place of Business
Name of subsidiary operating Registered capital Acquisition method
registration nature Direct Indirect
location
Shenzhen Hiyeah Industry Business combination
Co., Ltd (Hiyeah Industry Shenzhen RMB178,000,000.00 Shenzhen Business 97.58 2.42 not under common
) control
Business combination
Guangzhou Hiyeah
Guangzhou RMB3,000,000.00 Guangzhou Industry 0 100 not under common
Industry Co., Ltd.
control
Business combination
Zhongshan Renhe Health
Zhongshan RMB500,000.00 Zhongshan Industry 0 100 not under common
Products Co., Ltd.
control
Joincare (Guangdong)
Special medicine Food Shaoguan RMB20,000,000.00 Shaoguan Industry 100 0 Set-up by investment
Co., Ltd.
Henan Joincare
Biomedical Research Jiaozuo RMB100,000,000.00 Jiaozuo Industry 0 70.78 Set-up by investment
Institute Co., Ltd.
Jiaozuo Jianfeng
Jiaozuo RMB50,000,000.00 Jiaozuo Industry 0 66.5 Set-up by investment
Biotechnology Co., Ltd.
JOINCARE PHARMA
SINGAPORE Singapore SGD600,000.00 Singapore Business 0 100 Set-up by investment
HOLDINGS PTE. LTD.
Joincare Pharma
Netherlands EUR2,000.00 Netherlands Business 0 100 Set-up by investment
Netherlands B.V.
Joincare Pharma
Philippines PHP11,500,000.00 Philippines Business 0 100 Set-up by investment
Philippines Inc.
*Note 1:Livzon Group controls the subsidiaries in which the company holds stakes
(1) The company, together with Livzon Group, established Lijian (Guangdong) Animal Health
Co., Ltd. (丽健(广东) 动物保健有限公司) on 1 February 2023. Livzon Group holds 51%, and the
company holds 49%.
(2) The company, together with Livzon Group, established Wuhan Kangli Health Investment
Management Co., Ltd. (武汉康丽健康投资管理有限公司) on 8 February 2023. Livzon Group
holds 60%, and the company holds 40%.
(3) Zhuhai Livzon Biopharmaceutical Technology Co., Ltd. (珠海市丽珠生物医药科技有限
公 司 ) (Livzon Biopharma) is a subsidiary under the consolidation scope of Livzon Group.
Originally, it was 100% indirectly owned by Livzon Group. Due to the restructuring of Livzon
Group's subsidiary shareholding structure and Livzon Group's additional capital injection, Livzon
Group now holds 66.54% of the shares, the company holds 22.58%, YF Pharmab Limited holds
投资合伙企业(有限合伙) ) holds 5.12%.
Other descriptions:
Subsidiaries not included in the scope of consolidation in the current period:
Registered
Name of subsidiary Actual investment Interest held
Capital
Guangzhou Hiyeah Industry Co.,
Ltd.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Zhongshan Renhe Health Products
Co., Ltd.
Guangzhou Hiyeah Industry Co., Ltd. (广州市喜悦实业有限公司) and Zhongshan Renhe Health
Products Co., Ltd. (中山市仁和保健品有限公司) are wholly-owned subsidiaries of Shenzhen
Hiyeah. Both companies entered liquidation in 2008, ceased operations for many years, and have
completed tax deregistration procedures. Therefore, they are not included in the scope of the
consolidated financial statements.
(2). Significant non-wholly owned subsidiaries
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance of
Shareholding of Profit or loss
Name of Dividend paid to minority
minority attributable to
subsidiary minority interest interests at
interest(%) minority interest
period end
Livzon Group 53.6690 682,190,866.64 521,293,245.00 7,260,343,995.39
Descriptions of the difference between the shareholding ratio of minority shareholders and their
proportion of voting rights in a subsidiary:
□Applicable √N/A
Other descriptions:
□Applicable √N/A
(3). Principal financial information of significant non-wholly owned subsidiaries
√Applicable □N/A
Unit: 100,000,000 Yuan Currency: RMB
Closing balance Beginning balance
Name of Non- Non- Non- Non-
subsidiary Current Total Current Total Current Total Current Total
current current current current
assets assets liabilities liabilities assets assets liabilities liabilities
assets liabilities assets liabilities
Livzon
Group
Current period Prior Period
Cash Cash
Name of Total flow Total flow
subsidiary Net Net
Revenue Comprehensive from Revenue Comprehensive from
profit profit
income operating income operating
activities activities
Livzon
Group
(4). Significant restrictions on the use of enterprise group assets and settlement of enterprise
group debts:
□Applicable √N/A
(5). Financial support or other support offered for the structured entities included in the
scope of consolidated financial statements:
□Applicable √N/A
Other descriptions:
□Applicable √N/A
√Applicable □N/A
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
a) Changes in the share of the owners' equity in a subsidiary
Livzon Group originally held 55.13% of the equity in LivzonBio, Inc.(珠海市丽珠生物医药
科技有限公司) (hereinafter referred to as " LivzonBio "). According to the "Capital Increase
Agreement of LivzonBio, Inc." and the resolution of LivzonBio 's shareholders' meeting, the
registered capital of LivzonBio was increased from RMB 889,023,284.00 to RMB 1,095,472,334.00.
Livzon Group will contribute to the additional registered capital of RMB 206,449,050.00 by
monetary contribution before 31 December 2028. The subscription price for this increase is RMB
Livzon Group made payments for the capital increase on 17 April 2025 and 18 June 2025, with the
amounts of RMB 50,000,000 and RMB32,000,000, respectively. This capital increase resulted in
an increase in Livzon Group's minority interests by RMB39,371,207.74 and a decrease in the capital
reserve by RMB39,371,207.74.
b) Effect of the transactions on minority interest and equity attributable to the owners of the
parent company
√Applicable □N/A
Item LivzonBio
Acquisition cost
– Cash 82,000,000.00
Total acquisition cost 82,000,000.00
Less: Difference in net assets shares of subsidiaries
calculated based on the proportion of equity acquired
Difference 39,371,207.74
Of which: adjustment in capital reserve 39,371,207.74
Other descriptions:
□Applicable √N/A
√Applicable □N/A
(1). Significant joint arrangements or associates
√Applicable □N/A
Unit: Yuan Currency: RMB
Shareholding(%) Accounting
Name of joint Main
Place of Business treatment
arrangements operating
registration nature Direct Indirect of joint
or associates location
investment
Tianjin
Tongrentang Manufacture Equity
Tianjin Tianjin 0.00 40.00
Group Co., of medicine method
Ltd.
(2). Key financial information of significant joint arrangements
□Applicable √N/A
(3). Main financial information of significant associates
√Applicable □N/A
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Tianjin Tongrentang Group
Co., Ltd.
Item
period
Owners’ equity attributable to parent company 720,385,150.55
Share of net assets by shareholding 288,154,060.21
Adjustments
Including: Goodwill 498,457,683.68
Carrying value of equity investment in associates 786,611,743.89
Operating income 530,647,791.79
Dividends received by the company from associates in the
current period
Other descriptions:
√Applicable □N/A
The Company calculates the share of assets of associate based on the shareholding for the
amount attributable to the parent company in the consolidated financial statements. The amounts
in the consolidated financial statements of associates take into account the fair value of
identifiable net assets and liabilities of associates at the time of acquisition and the impact of
unified accounting policies.
(4). Summary of financial information of other insignificant associates
√Applicable □N/A
Unit: Yuan Currency: RMB
Closing balance/ Beginning balance/
Current period Prior period
Associates:
Total carrying amount of
investment
The following amount are calculated on the basis of shareholding ratio
Net profit 2,158,558.89 -6,911,463.99
Other comprehensive
income
Total comprehensive income 2,160,969.25 -6,823,937.66
(5) Description of significant restrictions on the ability of joint ventures or associates to transfer
funds to the company
□Applicable √N/A
(6) Excess losses incurred by joint ventures or associates
□Applicable √N/A
(7) Unconfirmed commitments related to joint venture investment
□Applicable √N/A
(8) Contingent liabilities related to investments in joint ventures or associates
□Applicable √N/A
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
□Applicable √N/A
Relevant descriptions of structured entities not included in the scope of consolidated financial
statements:
□Applicable √N/A
□Applicable √N/A
IX. Government grants
□Applicable √N/A
Reasons for not receiving the projected amount of government grants at the projected point in time
□Applicable √N/A
√Applicable □N/A
Unit: Yuan Currency: RMB
Amount
included
Other Related to
Financial Additions in non- Transfer to
Beginning changes assets/
statement during the operatin other gains Closing balance
balance during the Related to
items period g income for the period
period income
for the
period
Deferred Related to
income assets
Deferred Related to
income income
Total 334,970,008.52 36,330,550.00 0.00 31,823,242.02 76,991.15 339,400,325.35
The above government grants mainly come from the relevant government departments, such
as the Development and Reform Commission, Finance Bureau, and the Science and Technology
and Industry and Information Technology Bureau at the provincial and municipal levels, which
provide subsidies for research and development, technological transformation, technological
innovation, relocation, and other projects to the company and its subsidiaries.
Unit: Yuan Currency: RMB
Category For the period For the previous period
Related to assets 31,779,020.73 20,738,663.26
Related to income 36,660,019.43 31,582,303.89
Total 68,439,040.16 52,320,967.15
The above Government grants mainly come from relevant government departments at the
provincial and municipal levels, such as the Development and Reform Commission, Finance
Bureau, Commerce Bureau, Science and Technology Bureau, Industry and Information
Technology Bureau, Human Resources and Social Security Bureau, etc., providing subsidies for
projects related to business operations, research and development, technological transformation,
technological innovation, export credit insurance, job stabilization, and other areas for the
company and its subsidiaries.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Other descriptions
(1) Government grants offsetting related costs using the net method
None.
(2) Government grants refunded in this year
None.
X. Risk Management of Financial Instruments
√Applicable □N/A
The major financial instruments of the Company include cash, notes receivable, accounts
receivable, other receivables, non-current assets due within one year, other current assets, financial
assets held for trading, other equity instrument investments, notes payable, accounts payable, other
payables, short-term borrowings, financial liabilities held for trading, non-current liabilities due
within one year, long-term borrowings and long-term payables. The details of these financial
instruments are disclosed in the respective notes. The financial risk of these financial instruments
and financial management policies used by the Company to minimize the risk are disclosed as below.
The management of the Company manages and monitors the exposure of these risks to ensure the
above risks are controlled in the limited range.
The operation activities of the Company are subject to various financial risks: market risks
(mainly including foreign exchange risks and interest rate risks), credit risks and liquidity risks. The
Company formulates an overall risk management plan with respect to the unforeseeability of the
financial market in order to minimise the potential adverse impacts on the financial performance of
the Company.
(1) Foreign exchange risks
The Company conducts its operation primarily in China. Substantially all of the transactions
were denominated and settled in Renminbi. However, the Company still has certain imports and
exports businesses regarding APIs and diagnostic reagents that are settled in U.S. dollar, Euro and
Japanese Yen. The Company’s businesses outside China (mainly in Hong Kong, India, Europe) are
settled in Hong Kong dollars, U.S. dollar and Euro. In addition, the Company will have foreign
currency loans according to the operating needs. In respect of the above, the Company still exposes
to certain foreign exchange risks. Taking into account the foreign exchange risks acceptable by the
Company, the Company adopted Derivative instruments to control foreign exchange risk. However,
as to the foreign exchange risk in loans, the Company shall closely monitor the trend of the exchange
rate of Renminbi, and timely adjust the extent of borrowings, so as to minimise its risks.
Financial assets and liabilities in foreign currencies held by the Company expressed in
Renminbi are stated below:
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
① As at 2025.06.30
Unit: 1,000 Yuan
Item HKD EUR USD MOP JPY GBP MYR IDR SGD PHP
Financial assets in foreign
currency —
Cash and bank balances 485,854.79 1,046.94 5,361,060.93 5,587.36 19,337.44 16.61 33.46 23,779.13 1,817.50 946.64
Financial assets held for
trading
Accounts receivable 0.00 0.00 740,194.80 0.00 5,133.63 0.00 0.00 0.00 0.00 0.00
Other receivables 2,947.93 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Dividends receivable 146.73 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other equity instruments
investment
Subtotal: 701,077.33 1,046.94 6,101,255.73 5,587.36 24,471.07 16.61 33.46 23,779.13 1,817.50 946.64
Financial liabilities in
foreign currency —
Accounts payable 0.00 47.60 4,166.39 0.15 2,944.83 0.00 0.00 36.72 0.00 0.00
Other payables 53.50 0.00 41,525.99 0.00 0.00 0.00 0.00 52.63 0.00 19.46
Dividends payable 327,751.35 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Subtotal: 327,804.85 47.60 45,692.38 0.15 2,944.83 0.00 0.00 89.35 0.00 19.46
②As at 2024.12.31
Unit: 1,000 Yuan
Item HKD EUR USD MOP JPY GBP MYR IDR SGD PHP
Financial assets in foreign currency —
Cash and bank balances 1,164,555.76 1,611.26 3,115,769.54 5,727.37 13,236.90 15.34 27.64 147,362.32 105.66 494.62
Financial assets held for trading 61,589.37 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Accounts receivable 0.00 0.00 575,982.63 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other receivables 2,992.40 31.06 0.00 0.00 0.00 0.00 0.00 0.00 0.00 15.01
Other equity instruments investment 256,754.72 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Subtotal: 1,485,892.25 1,642.32 3,691,752.17 5,727.37 13,236.90 15.34 27.64 147,362.32 105.66 509.63
Financial liabilities in foreign currency—
Accounts payable 0.00 42.64 1,518.91 0.00 1,152.88 0.00 0.00 0.00 0.00 0.00
Other payables 55.64 0.00 31,671.97 0.00 0.00 0.00 0.00 5.89 0.00 0.00
Subtotal: 55.64 42.64 33,190.88 0.00 1,152.88 0.00 0.00 5.89 0.00 0.00
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
As of 30 June 2025, if the Chinese Yuan appreciates or depreciates by 5% against the Hong
Kong Dollar, US Dollar, Euro, Japanese Yen, Macanese Pataca, and other foreign currencies, with
all other factors remaining constant, the company’s profit will increase or decrease by
approximately RMB324.17 million (31 December 2024: approximately RMB265.59 million).
(2) Interest rate risk
The Company’s exposures to interest rate risk are mainly arising from interest-bearing
liabilities such as bank borrowings. The interest rates are affected by the macro monetary policies
of China, hence the Company will face the risks arising from fluctuation of interest rates in the
future.
The finance department of the head office of the Company continues to monitor the level of
interest rate of the Company. The rise in the interest rate will increase the cost of additional interest-
bearing liabilities and the interest expenses of the Company’s outstanding interest-bearing liabilities
of which the interests are calculated at floating rates, and impose material adverse impact on the
financial results of the Company. The management will make timely adjustment based on the
updated market conditions. The directors of the Company consider that the future changes in the
interest rate will have no material adverse impact on the operating results of the Company.
(3) Credit risk
Credit risk is primarily attributable to cash and cash equivalents, restricted funds, accounts
receivables and other receivables. In respect of cash at banks, they were placed at several banks
with good reputations, for which the credit risk was limited. In respect of receivables, the Company
shall assess the credit limit granted to customers for credit purpose. Moreover, as the customer base
of the Company is large, the credit risk on accounts receivables is not concentrated. In terms of bills
receivable settlement, external payments are settled with bills receivable with priority and most of
the remaining bills are high-quality bills with maturity within three months; thus none expected
major credit risk exists. In addition, the provision made on the impairment of accounts receivables
and other receivables are adequate to manage the credit risk.
Among the accounts receivables of the Company, the accounts receivable of the top five
customers accounted for 11.95% (31 December 2024: 10.92%); among the other receivables of the
Company, the other receivables of the top five customers accounted for 40.84% (31 December 2024:
(4) Liquidity risk
The Company adopts prudent liquidity risk management for the sufficient supply of monetary
funds and liquidity. It secures readily available credit loans from banks mainly by maintaining
adequate monetary funds and banking facilities. Apart from indirect financing from banks, a number
of financing channels were available, such as direct financing by inter-bank market including short-
term financing bills and medium-term financing bills, corporate bonds etc. These instruments can
effectively reduce the effects of scale of financing and the macro monetary policies of China on
indirect bank financing, which shall secure adequate funds in a flexible manner.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
As at the date of the balance sheet, the contractual cash flows of financial assets and financial
liabilities are presented below by term of maturity:
①As at 2025.06.30
Item Within a year 1-2 years 2-5 years Over 5 years Total
Financial assets:
Cash and bank
balances
Financial assets held
for trading
Notes receivable 1,644,458,811.36 0.00 0.00 0.00 1,644,458,811.36
Accounts receivable 2,886,227,493.74 0.00 0.00 0.00 2,886,227,493.74
Other receivables 61,778,202.56 0.00 0.00 0.00 61,778,202.56
Non-current assets
due within one year
Long-term
receivables
Subtotal: 20,637,838,267.33 339,564,859.20 8,251,101.00 0.00 20,985,654,227.53
Financial liabilities:
Short-term loans 2,130,000,000.00 0.00 0.00 0.00 2,130,000,000.00
Financial liabilities
held for trading
Notes payable 1,210,521,011.10 0.00 0.00 0.00 1,210,521,011.10
Accounts payable 741,306,014.68 0.00 0.00 0.00 741,306,014.68
Other payables 3,771,013,187.90 0.00 0.00 0.00 3,771,013,187.90
Non-current liabilities
due within one year
Lease liabilities 0.00 10,643,368.39 10,489,243.55 0.00 21,132,611.94
Long term loans 0.00 412,873,031.42 1,145,840,457.60 726,850,000.00 2,285,563,489.02
Subtotal: 8,398,617,946.37 423,516,399.81 1,156,329,701.15 726,850,000.00 10,705,314,047.33
②As at 2024.12.31
Item Within a year 1-2 years 2-5 years Over 5 years Total
Financial assets:
Cash and bank
balances 14,851,977,121.94
Financial assets held
for trading
Notes receivable 1,951,213,189.48 0.00 0.00 0.00 1,951,213,189.48
Accounts receivable 2,429,891,052.01 0.00 0.00 0.00 2,429,891,052.01
Other receivables 51,166,649.86 0.00 0.00 0.00 51,166,649.86
Non-current assets due
within one year
Long-term receivables 0.00 854,236,296.77 204,390,121.77 0.00 1,058,626,418.54
Subtotal: 19,930,021,871.58 854,236,296.77 204,390,121.77 0.00 20,988,648,290.12
Financial liabilities:
Short-term loans 2,455,000,000.00 0.00 0.00 0.00 2,455,000,000.00
Financial liabilities
held for trading
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Item Within a year 1-2 years 2-5 years Over 5 years Total
Notes payable 1,384,943,947.17 0.00 0.00 0.00 1,384,943,947.17
Accounts payable 765,512,193.23 0.00 0.00 0.00 765,512,193.23
Other payables 3,369,115,240.67 0.00 0.00 0.00 3,369,115,240.67
Non-current liabilities
due within one year
Lease liabilities 0.00 8,539,311.43 11,436,508.34 0.00 19,975,819.77
Long term loans 0.00 548,836,865.48 1,148,948,246.89 726,850,000.00 2,424,635,112.37
Subtotal: 8,379,593,926.72 557,376,176.91 1,160,384,755.23 726,850,000.00 10,824,204,858.86
Capital management
The capital management policies are made to keep the continuous operation of the Company,
to enhance the return to shareholders, to benefit other stakeholders and to maintain the best capital
structure to minimize the cost of capital.
For the maintenance or adjustment of the capital structure, the Company might adjust
financing method, the amount of dividends paid to shareholders, return capital to shareholders,
issue new shares and other equity instruments or make an asset disposal to reduce the liabilities.
The Company monitors the capital structure with gearing ratio (calculated by dividing total
liabilities by total assets. As of 30 June 2025, the Company’s gearing ratio is 33.80% (31
December 2024: 34.49%).
Transfer of financial assets
(1) Classification of transfer methods
Amount of Termination of Judgment basis
Transfer Nature of transferred
transferred financial recognition for termination
methods financial assets
assets status of recognition
The contract right
to receive cash
Bill
Notes receivable 45,661,199.62 Derecognised flows from the
endorsement
financial assets is
terminated
Factoring Accounts receivable 50,589,614.49 Derecognised Without recourse
Total 96,250,814.11
(2) Financial assets derecognized due to transfer
Gains or losses
related to
Item Transfer methods Derecognition amount
termination
confirmation
Notes receivable Bill endorsement 45,661,199.62 0.00
Accounts receivable Transfer 50,589,614.49 0.00
Total 96,250,814.11 0.00
(3). Transferred financial assets with continued involvement
□Applicable √N/A
Other descriptions:
In this period, the company discounted Bank acceptance bills amounting to RMB0.00
（previous period: RMB9,767,218.08) with the bank.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
On 30 June 2025, the carrying amount of Bank acceptance bills endorsed to suppliers for
settling Accounts payable, which are not due for payment, is RMB45,661,199.62 (as of 31
December 2024: RMB37,606,855.80). There are no Commercial acceptance bills endorsed to
suppliers for settling Accounts payable that are not due for payment (as of 31 December 2024: RMB
the relevant provisions of the "Negotiable Instruments Law", if the accepting bank refuses to make
payment, the holder has the right to claim against the company ("continued involvement") . The
company believes that it has transferred nearly all of its risks and rewards, so it derecognizes the
carrying amount of the bills and the associated settled Accounts payable. The maximum loss from
continued involvement and repurchase of the bills, as well as the undiscounted cash flows, are equal
to their carrying amount. The company believes that the fair value of the continued involvement is
not significant.
From January to June 2025, the company did not incur any gains or losses on the transfer date
of the bills. The company has not recognized any current or cumulative income or expenses related
to the continued involvement in derecognized financial assets. The endorsement occurred roughly
in balance during the period.
XI. Fair value
√Applicable □N/A
Unit: Yuan Currency: RMB
Closing balance of fair value
Level 1 fair Level 2 fair
Item Level 3 fair value
value value Total
measurement
measurement measurement
I. Recurring fair value measurement
（Ⅰ）Financial assets held for
trading
through profit or loss
（1）Funds 997,444.81 0.00 0.00 997,444.81
(2) Structured deposits 0.00 0.00 432,302,591.80 432,302,591.80
（3）Equity instruments investment 56,535,180.88 0.00 0.00 56,535,180.88
（4）Derivative financial assets 0.00 788,963.82 0.00 788,963.82
fair value through profit or loss
（1）Investments in debt
instruments
（2）Investments in equity
instruments
(II) Other debt investments
(III) Other investments in equity
instruments
(IV) Investment properties
be leased out.
transfer upon capital appreciation
(V) Biological asset
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Total assets measured at fair value
on a recurring basis
(VI) Financial liabilities held for
trading
through profit or loss
Including: Issued tradable bonds
Derivative financial
liabilities
Others
at fair value through profit or loss
Total liabilities measured at fair
value on a recurring basis
II. Non-recurring fair value
measurement
(Ⅰ) Assets held-for-sale 0.00 0.00 54,046,737.68 54,046,737.68
Total assets measured at fair value
on a non-recurring basis
Total liabilities measured at fair
value on a non-recurring basis
In 6-month period ended 30 June 2025, there were no transfers of the fair value measurements
between level 1 and level 2 and no transfers into or out of level 3.
For financial instruments traded in active markets, the company determines their fair value
based on the quoted market prices in those active markets. The company's trading debt instruments
and equity instruments are listed in markets such as Shenzhen, Hong Kong, and the United States,
and their fair value is determined based on the closing price of the last trading day of the reporting
period.
For financial instruments not traded in active markets, the company uses valuation techniques
to determine their fair value. The valuation models primarily used are the discounted cash flow
model and the market comparable company model. The inputs for these valuation techniques mainly
include risk-free interest rates, benchmark interest rates, exchange rates, credit spreads, liquidity
premiums, and discounts for lack of liquidity, among others.
measurement items
√Applicable □N/A
Level 1 inputs: unadjusted quoted prices in active markets that are observable at the measurement
date for identical assets or liabilities.
adopted for continuous and non-continuous level 2 fair value measurement items
√Applicable □N/A
Level 2 inputs: inputs other than Level 1 inputs that are either directly or indirectly observable for
underlying assets or liabilities.
Fair value at the
Item Valuation techniques
End of the Period
Calculated and determined based on the quoted
Derivative financial assets 788,963.82 forward exchange rate corresponding to the expiring
contract
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Calculated and determined based on the quoted
Derivative financial liabilities 8,581.94 forward exchange rate corresponding to the expiring
contract
adopted for continuous and non-continuous level 3 fair value measurement items
√Applicable □N/A
Level 3 inputs: inputs that are unobservable for underlying assets or liabilities.
unobservable parameters for continuous level 3 fair value measurement items
√Applicable □N/A
Fair value at the end
Item Valuation techniques
of the period
Other equity instrument investments- Shanghai Yunfeng
Xinchuang Equity Investment Center (上海云锋新创股权投资 49,767,472.21 Net assets
中心)
Other equity instrument investments - Shanghai JingYi
Investment Center (上海经颐投资中心)
Other equity instrument investments-Qianhai Equity Investment
Fund (前海股权投资基金)
Other equity instrument investments –Apricot Forest, Inc (杏树
林)
Other equity instrument investments – China Resources Bank of
Zhuhai Co., Ltd. (珠海华润银行股份有限公司)
Other equity instrument investments - Yizun Biopharmaceutics
(Shanghai) Co., Ltd. (羿尊生物医药(上海) 有限公司)
Other equity instrument investments - Zhuhai Medpha
Biotechnology Co., Ltd. (珠海麦得发生物科技股份有限公司)
Other equity instruments investment- Xiangrong (Shanghai)
Biotechnology Co., Ltd. (享融(上海) 生物科技有限公司)
Other equity instrument investments –GLOBAL HEALTH
SCIENCE
Other equity instrument investments –Nextech V Oncology
S.C.S., SICAV-SIF
Other equity instrument investments –LUNGLIFE AI, INC. 131,857.55 Net assets
Other equity instrument investments -Others 62,510,000.00 Cost
Assets held-for-sale 54,046,737.68 Cost
Financial assets held for trading- Structured deposits 432,302,591.80 Expected return
Total 1,464,203,370.82
Joincare Pharmaceutical Group Interim Report 2025
Reconciliation table for fair value measurement classified as the Level 3 of the fair value hierarchy
Total profit or loss for the For assets held
Buy, issue, sell and settle at the end of
period
the reporting
period, the
Transfer
Item(Current Transfer to Recorded in change in
year) Level 3 Recorded in other unrealized
Level 3 Buy or Issue transferred Sell Settle
profit or loss comprehensive gains or losses
income in the period
recognised in
profit or loss
Financial
assets held for 15,081,807.66 0.00 0.00 305,606.06 0.00 432,000,000.00 0.00 0.00 15,084,821.92 432,302,591.80 220,784.14
trading
Assets held-
for-sale
Other equity
instruments 968,914,547.65 1,039,717.94 0.00 1,505,811.26 -7,085,196.22 15,407,603.40 0.00 422,631.43 0.00 977,854,041.34 0.00
investment
Total 1,038,025,592.99 1,039,717.94 0.00 1,811,417.32 -7,085,196.22 447,425,103.40 0.00 422,631.43 15,084,821.92 1,464,203,370.82 220,784.14
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
for determining transfer time point for continuous fair value measurement items
□Applicable √ N/A
□Applicable √ N/A
□Applicable √ N/A
□Applicable √ N/A
XII. Related parties and related party transactions
√Applicable □N/A
Unit: Yuan Currency: RMB
Name of Shareholding Voting right by
Place of Nature of Registered
parent ratio by parent parent company
registration business capital
company company (%) (%)
investment and
establishment of
Shenzhen
industry,
Baiyeyuan
Shenzhen domestic 80,000,000.00 48.96 48.96
Investment
commerce, and
Co., Ltd.
material supply
and marketing
Notes to the parent company of the Company:
(1) Registered capital of parent company and its changes
Increase for Decrease for
Name of parent company 2024.12.31 2025.06.30
the Period the Period
Shenzhen Baiyeyuan Investment
Co., Ltd.
(2) Shares of the company held by the parent company and its changes
Name of parent Increase for Decrease for
company the Period the Period
Shenzhen
Baiyeyuan
Investment Co.,
Ltd.
The ultimate controller of the Company: Zhu Baoguo
Details of subsidiaries refer to Note
√Applicable □N/A
Please refer to notes Ⅶ.1. for the details of subsidiaries.
For details of the significant joint ventures or associates of the Company, please see the notes.
√Applicable □N/A
Details of significant joint ventures or associates refer to Note Ⅴ. 11 Note VII. 3.
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Other joint ventures or associates entered into transactions with the Company during the period, or
during the prior period with remaining closing balance were as follows:
√Applicable □N/A
Name of joint ventures and associates Relationship with the Company
Jiaozuo Jinguan Jiahua Electric Power Co., Ltd. (焦作金冠嘉华电力
Associates
有限公司)
Guangdong Blue Treasure Pharmaceutical Co. Ltd. (广东蓝宝制药有
Associates
限公司)
AbCyte Therapeutics Inc. Associates
L&L Biopharma, Co. Ltd. (上海健信生物医药科技有限公司) Associates
Zhuhai Sanmed Biotech Inc. (珠海圣美生物诊断技术有限公司) Associates
Aetio Biotherapy, Inc. Associates
Hangzhou New Element Pharmaceutical Co., Ltd. (杭州新元素药业有
Associates
限公司)
Tianjin Tongrentang Group Co., Ltd. (天津同仁堂集团股份有限公
Associates
司)
Infinite Intelligence Pharmaceutical Co. Ltd. (北京英飞智药科技有限
Associates
公司)
Shenzhen Kangti Biomedical Technology Co., Ltd. (深圳康体生物医
Associates
药科技有限公司)
Shanghai Sheo Pharmaceutical Technology Co., Ltd. (上海偕怡医药
Associates
科技有限公司)
Feellife Health Inc. (深圳来福士雾化医学有限公司) Associates
Zhuhai Sanmed Gene Diagnostics Ltd. (珠海市圣美基因检测科技有
Entity controlled by an associate
限公司)
Zhuhai Hengqin Weisheng Precision Medicine Technology Co., Ltd.
Entity controlled by an associate
(珠海横琴维胜精准医学科技有限公司)
Other descriptions
□Applicable √ N/A
√Applicable □N/A
Name of other related parties Relationship with the Company
Shenzhen Taitelixing Investment Development Co., Ltd. (深圳泰特力 Subsidiaries of the company’s
兴投资发展有限公司) ultimate actual controller
Zhuozhou Jingnan Yongle Golf Club Co., Ltd. (涿州京南永乐高尔夫 A company controlled by the
俱乐部有限公司) Company’s parent company
Shenzhen Healthy Deer Information Technology Co., Ltd. (深圳市健 An associate of the Company’s
康阿鹿信息科技有限公司) parent company
Sichuan Healthy Deer Hospital Management Co., Ltd. and its A subsidiary of an associate of the
subsidiaries (四川健康阿鹿医院管理有限公司及其子公司) Company’s parent company
Shenzhen Qianhai WeBank Co., Ltd. (深圳前海微众银行股份有限公 An investee of the Company’s parent
司) company
Beijing Shuobai Pharmaceutical Technology Co., Ltd. (北京硕佰医药
An investee of the Company
科技有限责任公司)
Zhuhai Zhong Hui Yuan Investment Partnership (Limited Partnership) The director of Livzon Group
(珠海中汇源投资合伙企业(有限合伙)) controls this entity
Zhuhai Liying Investment Management Partnership (Limited The director of Livzon Group
Partnership) (珠海丽英投资管理合伙企业(有限合伙) ) controls this entity
Jiangsu One Winner Medical Technology Co., Ltd. (江苏一赢家医疗 The director of Livzon Group
科技有限公司) controls this entity
Zhuhai Pu Xiaoying Enterprise Management Co., Ltd. (珠海市蒲小英 Businesses controlled by close
family members of Livzon Group’s
企业管理有限公司)
director
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Zhuhai Medisan Biotechnology Co., Ltd.（珠海麦得发生物科技股份 A company where the supervisor of
有限公司） Livzon Group is a director
Zhuhai Xianghetai Investment Management Partnership Enterprise Businesses controlled by Livzon
(Limited Partnership)(珠海祥和泰投资管理合伙企业（有限合伙）) Group’s director
Directors, Supervisors and other senior management personnel Key management personnel
(1). Sales and purchase of goods, rendering and receipt of services
Purchase of goods, receipt of services
√Applicable □N/A
Unit: Yuan Currency: RMB
Whether
the
Approved transaction
Nature of Current transaction limit has
Name of related parties Prior period
transaction period amount (if been
applicable) exceeded
(if
applicable)
Guangdong Blue Treasure
Pharmaceutical Co. Ltd. (广东蓝宝制药 Raw
materials
有限公司)
Jiangsu One Winner Medical Technology
Co., Ltd. and its subsidiaries (江苏一赢 Modern
service
家医疗科技有限公司 及其子公司）
Jiaozuo Jinguan Jiahua Electric Power Electricity,
Co., Ltd. (焦作金冠嘉华电力有限公司) Steam
Sales of goods/rendering of services
√Applicable □N/A
Unit: Yuan Currency: RMB
Current
Name of related parties Nature of transaction Prior period
period
Guangdong Blue Treasure Pharmaceutical Co. Ltd. (广东 Finished products,
water, electricity and 17,634,391.44 16,066,909.24
蓝宝制药有限公司)
power
Zhuhai Sanmed Biotech Inc. (珠海圣美生物诊断技术有 Finished products,
限公司) power and others
Zhuhai Sanmed Gene Diagnostics Ltd. (珠海市圣美基因 Finished products,
检测科技有限公司) power and others
Subsidiary of Sichuan Health Alu Hospital Management
Co., Ltd. and its subsidiaries (四川健康阿鹿医院管理有 Finished products 0.00 1,744,679.12
限公司之子公司)
Zhuhai Hengqin Weisheng Precision Medicine
Technology Co., Ltd. (珠海横琴维胜精准医学科技有 Finished products 418,223.89 0.00
限公司)
Descriptions of related party transactions with respect to the sales and purchase of goods,
rendering and receipt of services
□Applicable √ N/A
(2). Related entrusted management/contracting and entrusting management/outsourcing
Table of the entrusted management/contracting of the Company:
□Applicable √ N/A
Descriptions of related trusteeship/outsourcing
□Applicable √ N/A
Table of the entrusting management/outsourcing of the Company:
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
□Applicable √ N/A
Descriptions of related management/outsourcing
□Applicable √ N/A
(3). Related party leases
The Company as a lessor
√Applicable □N/A
Unit: Yuan Currency: RMB
Lease income
Type of Lease income
Name of lessee recognized in the
leased assets recognized in prior year
current period
Zhuhai Sanmed Biotech Inc. (珠海圣美生
Building 80,081.18 948,587.04
物诊断技术有限公司)
Zhuhai Sanmed Gene Diagnostics Ltd. (珠
Building 92,779.98 120,000.00
海市圣美基因检测科技有限公司)
Shenzhen Baiyeyuan Investment Co., Ltd.
Building 9,445.88 9,445.88
(深圳市百业源投资有限公司)
Shenzhen Taitelixing Investment
Development Co., Ltd. (深圳泰特力兴投 Building 9,360.00 9,360.00
资发展有限公司)
The Company as a lessee:
□Applicable √ N/A
Descriptions of related leases
□Applicable √ N/A
(4). Related party guarantees
The Company as the guarantor
√Applicable □N/A
Unit: 10,000 Yuan Currency: RMB
Name of Guarantee Actual date of Guarantee Performance
guaranteed party amount event maturity date completed or not
Jinguan Electric
Power
Jinguan Electric
Power
Jinguan Electric
Power
Jinguan Electric
Power
Jinguan Electric
Power
Jinguan Electric
Power
Jinguan Electric
Power
Jinguan Electric
Power
Jinguan Electric
Power
Jinguan Electric
Power
Jinguan Electric
Power
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Jinguan Electric
Power
Jinguan Electric
Power
Jinguan Electric
Power
Jinguan Electric
Power
Jinguan Electric
Power
Jinguan Electric
Power
Jinguan Electric
Power
The Company as the guaranteed party
□Applicable √ N/A
Descriptions of guarantees with related parties
√Applicable □N/A
①On 6 June 2025, the "Proposal on the Company and its subsidiary Jiaozuo Joincare in
Providing Loan Guarantee for Jinguan Electric Power" was reviewed and approved by the
Company's 2024 annual general meeting, the Company and its subsidiary Jiaozuo Joincare jointly
provided a guarantee for Jinguan Electric Power on its revolving loans facility with a balance of not
more than RMB 450 million (including RMB 450 million) (the specific guarantor will be specified
in each guarantee contract), and the term is from the date of approval of this guarantee proposal at
the Company’s annual general meeting to 31 December 2028.
As at 30 June 2025, the Company provided Jinguan Electric Power with guarantees for loans
of RMB415.9409 million; of which RMB112 million in Shenzhen Branch of China Everbright Bank,
RMB57 million in Shenzhen Branch of Zheshang Bank, RMB146.9409 million in Shenzhen Branch
of Nanyang Commercial Bank,and RMB100 million in Jiaozuo Branch of China CITIC Bank.
In order to ensure the safety of secured loans, Jinguan Electric Power provided counter
guarantees for the said guarantees provided by the Company and its subsidiary, Jiaozuo Joincare,
based on its owned assets, and undertook that it would unconditionally provide mutual guarantees
for the Company or its controlling subsidiary designated with total facility of no more than RMB450
million (inclusive) whenever the Company deemed necessary.
② The other shareholder of Zhuhai Livzon Monoclonal Antibody Biotechnology Co., Ltd. (珠
海市丽珠单抗生物技术有限公司), The company, has issued a "Counter-Guarantee Commitment
Letter", committing to provide 26.84% joint and several liability for Livzon Group's guarantee
responsibility towards Zhuhai Livzon Monoclonal Antibody Biotechnology Co., Ltd. (珠海市丽珠
单 抗 生 物 技 术 有 限 公 司 ), with the guarantee period ending when the company's guarantee
responsibility terminates.
③ The other shareholder of Livzon Group Xinbeijiang Pharmaceutical Manufacturing Inc.
(丽珠集团新北江制药股份有限公司) , Zhuhai Zhong Hui Yuan Investment Partnership (Limited
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Partnership) (珠海中汇源投资合伙企业 (有限合伙), The company, has issued a "Counter-
Guarantee Commitment Letter", committing to provide 8.44% joint and several liability for Livzon
Group's guarantee responsibility towards Livzon Group Xinbeijiang Pharmaceutical Manufacturing
Inc. (丽珠集团新北江制药股份有限公司)
(5). Lending funds of related parties
□Applicable √N/A
(6). Asset transfer and debt restructuring between related parties
□Applicable √N/A
(7). Remuneration of key management personnel
√Applicable □N/A
Unit: 10,000 Yuan Currency: RMB
Amount for the current Amount for the prior
Item
period period
Remuneration of key
management personnel
For the 6-month period ended 30 June 2025
Unit: 10,000 Yuan Currency: RMB
Director/ Wages Bonus
Social Housing Severance
Item Supervisor and and Total
security fund pay
Allowance allowances others
Zhu Baoguo (朱保国) 162.50 0.00 3.82 1.57 0.00 0.00 167.89
Liu Guangxia (刘广霞) 162.50 9.97 5.02 1.57 9.20 0.00 188.26
Lin Nanqi (林楠棋) 0.00 130.00 4.31 1.57 0.00 0.00 135.88
Qiu Qingfeng (邱庆丰) 0.00 67.50 4.31 1.57 0.00 0.00 73.38
Xing Zhiwei (幸志伟) 0.00 67.50 4.15 1.57 0.00 0.00 73.22
Qin Yezhi (覃业志) 6.00 0.00 0.00 0.00 0.00 0.00 6.00
Peng Juan (彭娟) 6.00 0.00 0.00 0.00 0.00 0.00 6.00
Yin Xiaoxing(印晓星) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Shen Xiaoxu（沈小旭） 1.74 0.00 0.00 0.00 0.00 0.00 1.74
Huo Jing (霍静)
（Resigned）
Supervisors:
Yu Xiaoyun (余孝云) 2.40 19.08 4.13 1.12 0.00 0.00 26.74
Peng Jinhua (彭金花) 2.40 0.00 0.00 0.00 0.00 0.00 2.40
Li Nan(李楠) 2.40 0.00 0.00 0.00 0.00 0.00 2.40
Other senior management:
Zhang Leiming(张雷明) 0.00 67.50 4.31 1.57 0.00 0.00 73.38
Du Yanmei（杜艳媚） 0.00 75.00 4.15 1.57 1.00 0.00 81.72
Tang Tingke（唐廷科） 0.00 67.50 4.31 1.57 0.02 0.00 73.40
Zhu Yifan（朱一帆） 0.00 67.50 4.15 1.57 0.00 0.00 73.22
Total 350.20 571.55 42.66 15.26 10.22 0.00 989.88
Note: Mr. Zhu Baoguo (朱保国) serves as the chairman of Livzon, a controlled subsidiary of the
Company; and Mr. Lin Nanqi (林楠棋) and Mr. Qiu Qingfeng (邱庆丰) serve as non-executive
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
directors of Livzon. The remuneration presented in above does not include the portion paid by
Livzon.
For the 6-month period ended 30 June 2024
Unit: 10,000 Yuan Currency: RMB
Director/ Wages Bonus
Social Housing Severance
Item Supervisor and and Total
security fund pay
Allowance allowances others
Zhu Baoguo (朱保国) 162.50 0.00 3.43 1.48 0.00 0.00 167.41
Liu Guangxia (刘广霞) 162.50 9.80 4.83 1.48 0.00 0.00 178.62
Yu Xiong (俞雄) 0.00 130.00 0.00 0.00 0.00 0.00 130.00
Lin Nanqi (林楠棋) 0.00 79.51 3.85 1.48 0.00 0.00 84.85
Qiu Qingfeng (邱庆丰) 0.00 67.50 3.85 1.48 0.00 0.00 72.84
Huo Jing (霍静) 6.00 0.00 0.00 0.00 0.00 0.00 6.00
Qin Yezhi (覃业志) 6.00 0.00 0.00 0.00 0.00 0.00 6.00
Peng Juan (彭娟) 6.00 0.00 0.00 0.00 0.00 0.00 6.00
Yin Xiaoxing(印晓星) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Yu Xiaoyun (余孝云) 2.40 19.08 3.73 1.12 0.00 0.00 26.34
Peng Jinhua (彭金花) 2.40 0.00 0.00 0.00 0.00 0.00 2.40
Li Nan(李楠) 0.88 0.00 0.00 0.00 0.00 0.00 0.88
Zhao Fenguang (赵凤光) 0.00 67.50 3.85 1.48 0.00 0.00 72.84
Zhang Leiming(张雷明) 0.00 67.50 3.85 1.48 0.00 0.00 72.84
Xing Zhiwei (幸志伟) 1.52 43.26 3.41 1.19 0.00 0.00 49.38
Total 350.20 484.15 30.81 11.21 0.00 0.00 876.38
Note: Mr. Zhu Baoguo (朱保国) serves as the chairman of Livzon, a controlled subsidiary of the
Company; and Mr. Yu Xiong (俞雄) and Mr. Qiu Qingfeng (邱庆丰) serve as non-executive
directors of Livzon. The remuneration presented in above does not include the portion paid by
Livzon.
(8). Other related transactions
□Applicable √N/A
(1). Receivables from related parties
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Balance at the Beginning of
Period the Period
Item Name of related parties
Book Provision for Book Provision for
balance bad debts balance bad debts
Guangdong Blue Treasure
Notes Pharmaceutical Co. Ltd. (广东蓝宝 3,000,000.00 0.00 6,000,000.00 0.00
receivable
制药有限公司)
Guangdong Blue Treasure
Accounts
Pharmaceutical Co. Ltd. (广东蓝宝 2,041,600.00 20,416.00 0.00 0.00
receivable
制药有限公司)
Zhuhai Sanmed Gene Diagnostics
Accounts
Ltd. (珠海市圣美基因检测科技有 0.00 0.00 53,978.00 545.18
receivable
限公司)
Accounts Zhuhai Sanmed Biotech Inc. (珠海
receivable 圣美生物诊断技术有限公司
Zhuhai Sanmed Biotech Inc. (珠海
Prepayments 211,200.00 0.00 211,200.00 0.00
圣美生物诊断技术有限公司
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Feellife Health Inc. (深圳来福士雾
Prepayments 1,082,093.15 0.00 1,164,309.54 0.00
化医学有限公司)
Jiaozuo Jinguan Jiahua Electric
Prepayments Power Co., Ltd. (焦作金冠嘉华电 0.00 0.00 15,799,796.87 0.00
力有限公司)
Prepayments 北京硕佰医药科技有限责任公司 325,880.00 0.00 0.00 0.00
Other Zhuhai Sanmed Biotech Inc. (珠海
receivables 圣美生物诊断技术有限公司
Zhuhai Sanmed Gene Diagnostics
Other Ltd. (珠海市圣美基因检测科技有 463,818.23 4,638.18 511,310.14 5,113.10
receivables
限公司)
Zhongshan Renhe Health Products
Other Co., Ltd. (中山市仁和保健品有限 469,895.78 469,895.78 469,895.78 469,895.78
receivables
公司)
(2). Payables to related party
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of Balance at the
Item Related parties
the Period Beginning of the Period
Subsidiary of Sichuan Health Alu Hospital
Contract Management Co., Ltd. (四川健康阿鹿医院管 0.00 68,563.91
liabilities
理有限公司之子公司)
Guangdong Blue Treasure Pharmaceutical Co.
Notes payable 883,200.00 2,292,000.00
Ltd. (广东蓝宝制药有限公司)
Accounts Guangdong Blue Treasure Pharmaceutical Co.
payable Ltd. (广东蓝宝制药有限公司)
Accounts Jiaozuo Jinguan Jiahua Electric Power Co., Ltd.
payable (焦作金冠嘉华电力有限公司)
XIII. Share-based payment
(1). Detailed information
Quantity: ten thousand units/Amount: ten thousand yuan
Exercised in the Forfeited in the
Grant in the year Vested in the year
year year
Grant recipients
Quantity Amount Quantity Amount Quantity Amount Quantity Amount
Sales personnel 842.90
Administrative personnel 474.20
R&D personnel 314.30
Total 1,631.40
(2). Stock options or other equity instruments outstanding at the end of the period
□Applicable √N/A
√Applicable □N/A
Unit: Yuan Currency: RMB
Objects of share-based payments settled by Middle and senior management personnel
equity and key business personnel
Method in determining the fair value of equity
Black-Scholes Model, market price
instruments at the date of grant
Important parameters of the fair value of equity Risk - free rate, historical stock price
instruments on the grant date volatility, dividend rate
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Basis for determining the number of Determine according to the exercisable
exercisable equity instruments conditions and the expected turnover rate
Reasons for significant differences between this
period's estimate and the previous period's No significant difference.
estimate
Total amount of share-based payments settled
in equity recorded in capital reserve
□Applicable √N/A
Share-based
Share-based compensation
Grant recipients compensation expense
expense settled in equity
settled in cash
Middle and senior managers and key
business personnel
Total 0.00 0.00
□Applicable √N/A
(1) The Company
① On 29 August 2022, the Company held the third extraordinary general meeting of
shareholders in 2022, and reviewed and approved the "Proposal on the Company's 2022 Share
option Incentive Plan (Draft) and its Summary", Proposal on the Company's 2022 Share option
Incentive Plan Implementation Appraisal Management Measures" and "Proposal on Requesting the
Company's Shareholders' Meeting to Authorize the Board of Directors to Handle Matters Related
to Shares Incentive". The Company held the 16th meeting of the eighth board of directors on 5
September 2022, and reviewed and passed the "Proposal on First Time Granting Share options to
Incentive Participants". With 5 September 2022 as the grant date, 49.45 million share options were
granted to 423 incentive participants at a price of RMB 11.24 per share. The date of completion and
effective date of registration of share options granted is 16 September 2022.
In 2022, the share option incentive plan initially granted 32 former incentive recipients (a total
of 2.37 million options) had their options revoked due to their resignation and no longer meeting
the incentive conditions. Following the forfeiture, the number of share options initially granted
under the Company's 2022 share option incentive plan was adjusted from 49.45 million to 47.08
million, and the number of initial incentive recipients was adjusted from 423 to 391.
In light of the 2022 stock option incentive plan of the Company, 15 initial grant incentive
targets and 7 reserved grant incentive targets were no longer eligible due to resignation or retirement.
A total of 1.12 million stock options granted to them, but not yet exercised, were cancelled.
Meanwhile, since the Company's 2023 performance did not meet the company-level performance
assessment requirements, the Company cancelled a total of 16.314 million stock options for all
remaining active incentive targets. These included stock options for the second exercise period of
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
the initial grant and stock options for the first exercise period of the reserved grant. The total number
of stock options cancelled was 17.434 million. The cancellation was completed on May 16, 2024.
The first exercise period for the 2022 stock option incentive plan was from September 5, 2023,
to September 4, 2024, and expired on September 4, 2024. During the first exercise period, the
incentive targets exercised a total of 12,177,502 stock options, and the remaining stock options
unexercised amounted to 6,654,498. According to the "Health Yuan Pharmaceutical Group Co., Ltd.
options that have been granted but not yet exercised cannot be exercised and will be cancelled by
the company." Therefore, the company has decided to cancel the 6,654,498 stock options granted
in the first exercise period of the 2022 stock option incentive plan that remain unexercised.
On 24 April 2025, the Company convened the ninth meeting of the ninth session of the Board
of Directors, at which the Proposal on the Cancellation of the Remaining Stock Options under the
provisions of the Incentive Scheme (Draft), as the Company failed to achieve the corporate
performance assessment targets set out therein for the third exercise period of the initially granted
stock options and the second exercise period of the reserved stock options, the corresponding stock
options may not be exercised and shall be cancelled by the Company. It was resolved to cancel a
total of 16.314 million stock options for the third exercise period of the initial grant and the second
exercise period of the reserved grant under the 2022 Stock Option Incentive Plan. Upon review and
confirmation by the Shanghai Branch of China Securities Depository and Clearing Corporation
Limited, the cancellation of the aforesaid 16.314 million stock options was completed on 6 May
② On 11 August 2023, the Company convened the 28th meeting of the eighth board of
directors to deliberate and approve the "Proposal on Reserving Share Options for Incentive
Recipients". The grant date was set as 11 August 2023, and 5.5 million share options were granted
to 149 incentive recipients at a price of RMB 11.06 per share. The registration completion date and
effective date for this grant of share options were 30 August 2023.
(2) The Company’s subsidiary Livzon Group
①Share option incentive plan
A、2022 Share Option Incentive Plan - First Grant
On 14 October 2022, Livzon Group’s 2022 Second Extraordinary Shareholders’ Meeting, 2022
Second A-Share Class Shareholders’ Meeting and 2022 H-Share Class Shareholders’ Meeting
reviewed and approved the “Proposal on the Company's 2022 Share option Incentive Plan (Revised
Draft) and Its Summary", "Proposal on the company's 2022 Share option Incentive Plan
Implementation Appraisal Management Measures", "Proposal on submitting to the company's
general meeting of shareholders to authorize the board of directors to handle matters related to the
Directors of Livzon Group reviewed and approved the "Proposal on Matters Related to the First
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Time Grant of the 2022 Share option Incentive Plan". With 7 November 2022 as the grant date,
A share. The date of completion and effective date of registration of share options granted is 23
November 2022.
In 2022, the share option incentive plan initially granted share options to 25 former incentive
recipients (a total of 361,000 options) , which were revoked due to their resignation and no longer
meeting the incentive conditions. Following the forfeiture, the number of share options initially
granted under the Livzon Group's 2022 share option incentive plan was adjusted from 17.9735
million to 17.6125 million, and the number of initial incentive recipients was adjusted from 1,026
to 1,001.
On 12 October 2023, Livzon Group convened the 4th meeting of the eleventh board of directors
to deliberate and approve the " Proposal on matters related to the planned reserved grant of share
option incentive plan in 2022". The grant date was set as 30 October 2023, and 2.0 million share
options were granted to 243 incentive recipients at a price of RMB 36.26 per A share. The
registration completion date and effective date for this grant of share options were 28 November
On 13 May 2024, the Company convened the sixteenth meeting of the eleventh Board of
Directors, at which the Proposal on the Cancellation of Certain Stock Options under the 2022 Stock
Option Incentive Scheme was considered and approved. As the Company failed to achieve the
corporate performance assessment targets for the second exercise period of the initially granted
stock options and the first exercise period of the reserved stock options, 5.28375 million stock
options for the second exercise period of the initial grant and 1 million stock options for the first
exercise period of the reserved grant may not be exercised and shall be cancelled by the Company.
On 23 April 2025, the Company convened the twenty-fourth meeting of the eleventh Board of
Directors, at which the Proposal on the Cancellation of Certain Stock Options under the 2022 Stock
Option Incentive Scheme was considered and approved. It was resolved to cancel 384,045 stock
options under the first exercise period of the initial grant that had not been exercised by 31 incentive
participants upon expiry. As the Company failed to achieve the corporate performance assessment
targets for the third exercise period of the initially granted stock options and the second exercise
period of the reserved stock options, it was further resolved to cancel 5.28375 million stock options
for the third exercise period of the initial grant and 1 million stock options for the second exercise
period of the reserved grant under the 2022 Stock Option Incentive Scheme.
② Other shares incentive
None
XIV. Commitments and contingencies
√Applicable □N/A
Significant commitments to outsiders as of the balance sheet date, and their nature and amount
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
（1）Capital commitments
Capital commitments entered into but not Beginning
Closing balance
recognized in the financial statements balance
Commitments in relation to acquisition of long-
term assets
Commitments in relation to research and
development expenditures
（2）Other commitments
None.
（3）Performance of previous commitments
The Company has duly performed the capital expenditure commitments and the operating lease
commitments and the other commitments as at 30 June 2025.
(1). Significant contingencies as of the balance sheet date
□Applicable √N/A
(2).Please also make explanations thereof if the Company has no significant contingency to be
disclosed:
□Applicable √N/A
□Applicable √N/A
XV. Events after the Balance Sheet Date
□Applicable √N/A
□Applicable √N/A
□Applicable √N/A
□Applicable √N/A
XVI. Other significant events
Pharmaceutical Group Inc., a subsidiary of the Company, considered and approved the Proposal on
the Proposed Acquisition of Equity Interests in Vietnam’s IMP. On the same date, the Company’s
overseas wholly-owned subsidiary, LIAN SGP HOLDING PTE. LTD. (“LIAN SGP”), entered into
a Framework Agreement with SK Investment Vina III Pte. Ltd. (“SK”), Sunrise Kim Investment
Joint Stock Company (“Sunrise”), and KBA Investment Joint Stock Company (“KBA”, together
with SK and Sunrise, the “Sellers”), pursuant to which LIAN SGP agreed to acquire from the Sellers
a 64.81% equity interest in Imexpharm Corporation, a listed company in Vietnam, for VND
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
exchange rate on the signing date of the agreement).
As of 30 June 2025, save as disclosed above, there were no other material matters required to
be disclosed by the Company.
XVII. Net current assets and total assets minus current liabilities
Item 2025.6.30 2024.12.31
Current assets 23,390,878,032.22 23,005,860,977.31
Less: Current liabilities 9,097,550,764.70 9,270,783,051.69
Net current assets 14,293,327,267.52 13,735,077,925.62
Item 2025.6.30 2024.12.31
Total assets 35,552,215,282.00 35,718,129,456.13
Less: Current liabilities 9,097,550,764.70 9,270,783,051.69
Total assets minus current liabilities 26,454,664,517.30 26,447,346,404.44
XVIII. Notes to the Key Components of Financial Statements item of the Parent Company
Balance at the End of the Period Balance at the Beginning of the Period
Provision Provision
Category
Book balance for bad Carrying value Book balance for bad Carrying value
debts debts
Bank
acceptance 104,016,458.86 0.00 104,016,458.86 213,110,653.41 0.00 213,110,653.41
bills
Commercial
acceptance 0.00 0.00 0.00 0.00 0.00 0.00
bill
Total 104,016,458.86 0.00 104,016,458.86 213,110,653.41 0.00 213,110,653.41
（1）Notes receivable pledged at the end of the period
Category Amount pledged at the End of the Period
Bank acceptance bills 68,047,246.12
（2）Notes receivable endorsed or discounted to other parties but not yet expired at balance sheet
date
Amount derecognised at Amount not derecognised
Category
the End of the Period at the End of the Period
Bank acceptance bills not yet
mature but already endorsed
Bank acceptance bills not yet
mature but already discounted
Total 0.00
（3）There were no bills transferred into accounts receivables for non-performance by the issuer
at the End of the Period.
（4）Classification by the method of bad debt provision
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Balance at the End of the Period Balance at the Beginning of the Period
Provision for Provision for Provision for
Book balance Book balance
Category bad debts Book balance bad debts bad debts
Percentage Percentage Amount Percentage Percentage Carrying
Amount Amount Amount Amount
(%) (%) (%) (%) value
Provision for
bad debt on an
individual
basis
Provision for
bad debt on a 104,016,458.86 100.00 0.00 0.00 104,016,458.86 213,110,653.41 100.00 0.00 0.00 213,110,653.41
portfolio basis
Including:
Bank
acceptance 104,016,458.86 100.00 0.00 0.00 104,016,458.86 213,110,653.41 100.00 0.00 0.00 213,110,653.41
bills
Total 104,016,458.86 100.00 0.00 0.00 104,016,458.86 213,110,653.41 100.00 0.00 0.00 213,110,653.41
（5）Provision for bad debt made, recovered or reversed during the Period
None
（6）There are no bills receivables actually written-off for the Period.
(1). Disclosure using the aging analysis method
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Balance at the Beginning
Aging
Period of the Period
Within 1 year 166,762,499.98 212,981,199.07
Over 5 years 6,478,527.09 6,598,168.58
Total 179,414,182.60 226,368,420.45
(2). Classification by the method of bad debt provision
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Period Balance at the Beginning of the Period
Provision for Provision for
Book balance Book balance
bad debts bad debts
Category Expected Carrying Expected Carrying
Percentage credit value Percentage credit value
Amount Amount Amount Amount
(%) loss (%) loss
rate (%) rate (%)
Provision
for bad
debts on 426,373.39 0.24 426,373.39 100.00 0.00 426,373.39 0.19 426,373.39 100.00 0.00
individual
basis
Including:
Receivables
from
domestic
customers
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Provision
for bad
debts on 178,987,809.21 99.76 9,564,101.53 5.34 169,423,707.68 225,942,047.06 99.81 9,946,720.46 4.40 215,995,326.60
portfolio
basis
Including:
Receivables
from
domestic
customers
Total 179,414,182.60 100.00 9,990,474.92 5.57 169,423,707.68 226,368,420.45 100.00 10,373,093.85 4.58 215,995,326.60
Provision for bad debts on individual item:
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Period
Provision Expected
Name Reason for provision
Book balance for bad credit loss rate
made
debts (%)
Purchase of Not expected to be
goods recoverable
Total 426,373.39 426,373.39 100.00 /
Statements of provision for bad debt on individual basis:
□Applicable √N/A
Provision for bad debts on portfolio basis:
√Applicable □N/A
Item on portfolio basis: Due from domestic customers
Unit: Yuan Currency: RMB
Balance at the End of the Period
Aging Accounts Provision for bad Carrying Value
receivables debts (%)
Within 1 year 166,762,499.98 1,667,625.00 1.00
years)
years)
years)
years)
Over 5 years 6,052,153.70 6,052,153.70 100.00
Total 178,987,809.21 9,564,101.53 5.34
Standards of provision for bad debts made by portfolio and descriptions thereof:
□Applicable √N/A
If the provision for bad debts is made in accordance with the general model of expected credit
losses, please refer to other receivables disclosure:
□Applicable √N/A
(3). Provision for bad debts
√Applicable □N/A
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Unit: Yuan Currency: RMB
Balance at Changes for the current period
Balance at
the Recovery
Item Removal/write- Other the End of
Beginning of Provision or
off changes the Period
the Period reversal
Accounts
receivables
Total 10,373,093.85 -60,760.99 0.00 321,857.94 0.00 9,990,474.92
Significant recovery or reversal of bad debt provision for the current period:
□Applicable √N/A
(4). Accounts receivable actually written off for the current period
□Applicable √N/A
(5). The top five balances of accounts receivable by debtors as at the End of the Period
√Applicable □N/A
Proportion of
the total
Ending balance of
Ending Ending balances of accounts Ending
balance of balance of accounts receivable balance of
Unit name
accounts contract receivable and contract the bad debt
receivable assets and contract assets at the reserve
assets end of the
period
（%）
Unit 1 7,771,476.80 0.00 7,771,476.80 4.33 77,714.77
Unit 2 6,437,460.40 0.00 6,437,460.40 3.59 64,374.60
Unit 3 5,566,715.35 0.00 5,566,715.35 3.10 55,667.15
Unit 4 4,868,006.01 0.00 4,868,006.01 2.71 48,680.06
Unit 5 4,653,997.61 0.00 4,653,997.61 2.59 46,539.98
Total 29,297,656.17 0.00 29,297,656.17 16.32 292,976.56
As of 30 June 2025, the total amount of the top five debtors in closing balance is
RMB29,297,656.17, accounting for 16.32% of the total amount of closing balance of accounts
receivable, and the corresponding closing balance of provision for bad debts is total
RMB292,976.56.
Other descriptions:
financial assets.
receivable and continued involvement.
Line items
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Balance at the Beginning of
Item
Period the Period
Dividends receivable 519,999,500.00 594,999,500.00
Other receivables 162,144,065.47 160,356,099.84
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Total 682,143,565.47 755,355,599.84
Other descriptions:
□Applicable √N/A
(1). Dividends receivable
Dividends receivable
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Balance at the Beginning
Item
Period of the Period
Topsino 499,999,500.00 499,999,500.00
Fenglei Electric Power 20,000,000.00 20,000,000.00
Joincare Haibin 0.00 75,000,000.00
Total 519,999,500.00 594,999,500.00
Other receivables
(1).Disclosure by aging
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Balance at the Beginning of the
Aging
Period Period
Subtotal within 1
year
Over 5 years 18,280,135.57 18,392,160.13
Total 180,741,316.69 179,035,341.22
(2).Disclosure by nature of the amount
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of Balance at the Beginning
Item
the Period of the Period
Other receivables of each company
within the scope of combination
Treasury bonds and security deposits 16,954,735.37 16,954,735.37
External entities balances 145,000.01 1,628,134.32
Security deposits 4,512,803.50 3,764,547.80
Others 4,173,439.17 2,229,121.09
Total 180,741,316.69 179,035,341.22
(3).Provision made for bad debts
√Applicable □N/A
Unit: Yuan Currency: RMB
First stage Second stage Third stage
Expected credit Expected credit
Expected
Provision for bad losses over the losses over the
credit losses Total
debts lifetime (without lifetime (with
over the next
impairment of impairment of
credit) credit)
Balance at the
Beginning of the 0.00 1,724,506.01 16,954,735.37 18,679,241.38
Period
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Movement of
beginning balance 0.00 0.00 0.00 0.00
during the period
-- Transferred to
Second stage
-- Transferred to
third stage
-- Reversed to
second stage
-- Reversed to first
stage
Provisions made for
the Period
Reversals for the
Period
Write-off for the
Period
Settlement for the
Period
Other changes 0.00 0.00 0.00 0.00
Balance at the End
of the Period
Basis for division of each stage and provision ratio for bad debts
As at the End of the Period, provision for bad debts in first stage:
Expected credit
Provision
losses rate over Carrying
Category Book balance for bad Reason
the next 12 value
debts
months (%)
Provision for bad
debt on portfolio 154,955,338.64 0.00 0.00 154,955,338.64
basis
Other receivables of
each company Expected to
within the scope of be recovered
combination
Total 154,955,338.64 0.00 0.00 154,955,338.64
As at the End of the Period, provision for bad debts in second stage:
Expected
Provision
Book credit losses Carrying
Category for bad Reason
balance rate over the value
debts
lifetime (%)
Provision for bad debt on
portfolio basis
Receivables of
security, deposits and 4,512,803.50 35.15 1,586,281.46 2,926,522.04
rental fees
Other receivables 4,318,439.18 1.30 56,234.39 4,262,204.79
Total 8,831,242.68 18.60 1,642,515.85 7,188,726.83
As at the End of the Period, provision for bad debts in third stage:
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
Expected
credit
losses rate Provision for Carrying
Category Book balance Reason
over the bad debts value
lifetime
(%)
Provision for bad debt
on individual item
National debt and
margin
Total 16,954,735.37 100.00 16,954,735.37 0.00
As at 31 December 2024, provision made for bad debts:
As at 31 December 2024, provision for bad debts in first stage:
Expected
credit losses Provision
Carrying
Category Book balance rate over the for bad Reason
value
next 12 debts
months (%)
Provision for bad debt
on portfolio basis
Other receivables of
Expected to
each company within
the scope of
recovered
combination
Total 154,458,802.64 0.00 0.00 154,458,802.64
As at 31 December 2024, provision for bad debts in second stage:
Expected
Provision
Book credit losses Carrying
Category for bad Reason
balance rate over the value
debts
lifetime (%)
Provision for bad debt on
portfolio basis
Receivable securities,
deposits and rental fees
Other receivables 3,857,255.41 34.20 1,319,296.63 2,537,958.78
Total 7,621,803.21 22.63 1,724,506.01 5,897,297.20
As at 31 December 2024, provision for bad debts in the third stage:
Expected
credit losses Provision for Carrying
Category Book balance Reason
rate over the bad debts value
lifetime (%)
Provision for bad debt
on an individual basis
Treasury bonds and
Margin
Descriptions of the significant changes in the gross carrying amount of other receivables for which
the changes in loss allowance occur for the current period:
□Applicable √N/A
Provision for bad debts in the current period and the basis for assessing whether the credit risk of
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
financial instruments have increased significantly:
□Applicable √N/A
(4). The situation of bad debt provision
□Applicable √N/A
(5). Actual written-off of other receivables at the End of the Period
□Applicable √N/A
(6) Other receivables due from the top five debtors at the End of the Period
√Applicable □N/A
Unit: Yuan Currency: RMB
Proportion to
Balance of
total other
Balance at the provision for
receivables at
Name of entity Nature of receivables End of the Ageing bad debts at
the End of
Period the End of the
the Period
Period
(%)
Shenzhen Fenglei
Electric Power
Investment Co.,
Current account 129,956,104.29 Over one year 71.90 0.00
Ltd. (深圳市风雷
电力投资有限公
司)
Joincare
(Guangdong) Within 1 year：
Special medicine 1,213,099.62；
Current account 21,274,865.75 11.77 0.00
Food Co., Ltd. (健
Over 1 year：
康元(广东) 特医食
品有限公司) 20,061,766.13
Hua Xia Securities
Treasury bonds and
Co., Ltd. (华夏证券 16,954,735.37 Over 5 years 9.38 16,954,735.37
security deposits
股份有限公司)
Shanghai Frontier
Health Within 1 year：
Pharmaceutical 3,583,574.42；
Technology Co., Current account 3,724,368.60 2.06 0.00
Ltd. (上海方予健 Over 1 year：
康医药科技有限公 140,794.18；
司)
Tianjin Ocean
Engine Information
Technology Co.,
Deposit 1,000,000.00 Within one year 0.55 10,000.00
Ltd. (天津巨量引
擎信息技术有限公
司)
Total / 172,910,074.01 / 95.66 16,964,735.37
(7).Other receivables derecognised due to the transfer of financial assets
□Applicable √N/A
(8).Assets and liabilities generated by the transfer of other receivables and continuing
involvement therein
□Applicable √N/A
Other descriptions:
□Applicable √N/A
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Period Balance at the Beginning of the Period
Provision Provision
Item
Book balance for Carrying value Book balance for Carrying value
impairment impairment
Investments in
subsidiaries
Investments in
associates and 78,137,475.86 0.00 78,137,475.86 77,716,596.30 0.00 77,716,596.30
joint ventures
Total 3,754,815,787.97 7,010,047.91 3,747,805,740.06 3,754,394,908.41 7,010,047.91 3,747,384,860.50
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
(1).Investments in subsidiaries
√Applicable □N/A
Unit: Yuan Currency: RMB
Change during the Period Balance at
Balance at Beginning Ending
the End of
the Beginning balance of balance of
Investee Increased Decreased Provide for the
of the Year (Carrying impairment Others impairment
investment investment impairment losses Period(Carrying
value) provisions provisions
value)
Livzon 608,741,654.08 0.00 0.00 0.00 0.00 0.00 608,741,654.08 0.00
Haibin Pharma 783,054,186.38 0.00 0.00 0.00 0.00 0.00 783,054,186.38 0.00
Joincare Daily-Use 22,506,450.65 1,610,047.91 0.00 0.00 0.00 0.00 22,506,450.65 1,610,047.91
Topsino 813,552,689.31 0.00 0.00 0.00 0.00 0.00 813,552,689.31 0.00
Taitai Genomics 37,500,000.00 0.00 0.00 0.00 0.00 0.00 37,500,000.00 0.00
Taitai
Pharmaceutical
Shenzhen Hiyeah 164,700,000 5,400,000.00 0.00 0.00 0.00 0.00 164,700,000 5,400,000.00
Fenglei Electric
Power
Jiaozuo Joincare 525,000,000.00 0.00 0.00 0.00 0.00 0.00 525,000,000.00 0.00
Shanghai Frontier 32,500,000.00 0.00 0.00 0.00 0.00 0.00 32,500,000.00 0.00
Taitai Biological 4,832,950.00 0.00 0.00 0.00 0.00 0.00 4,832,950.00 0.00
Joincare Haibin 100,000,000.00 0.00 0.00 0.00 0.00 0.00 100,000,000.00 0.00
Joincare Special
Medicine Food
LivzonBio 294,037,191.00 0.00 0.00 0.00 0.00 0.00 294,037,191.00 0.00
Fluffy Buddy
Animal Health
(Guangdong) Co.,
Ltd.
Wuhan Kangli
Health Investment
Management Co.,
Ltd.
Total 3,669,668,264.20 7,010,047.91 0.00 0.00 0.00 0.00 3,669,668,264.20 7,010,047.91
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
(2) Investment in associates and joint ventures
√Applicable □N/A
Unit: Yuan Currency: RMB
Change during the Period Balance of
provision
Balance Investment Cash
Adjustment Balance for
at the profit and Other dividend
Investee Increased Decreased in other Provision for at the End of impairment
Beginning loss under equity or profit Others
investmen investment comprehensive Impairment the Period at the End
of the Year the equity changes distribution
income of the
method declared
Period
Ⅱ Associates
Ningbo
Ningrong
Biomedical Co.,
Ltd.
Feellife Health
Inc.
Jiangsu Baining
Yingchuang
Medical 31,960,440.67 0.00 0.00 1,093,606.87 0.00 0.00 0.00 0.00 0.00 33,054,047.54 0.00
Technology Co.,
Ltd.
Shanghai Sheo
Pharmaceutical
Technology Co.,
Ltd.
Total 77,716,596.30 0.00 0.00 420,879.56 0.00 0.00 0.00 0.00 0.00 78,137,475.86 0.00
(3). Impairment testing of long - term equity investments
□Applicable √N/A
Other descriptions:
□Applicable √N/A
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
(1) Operating income and operating cost
√Applicable □N/A
Unit: Yuan Currency: RMB
For the Period For the Previous Period
Item
Revenue Cost Revenue Cost
Primary operations 580,739,605.09 385,386,857.00 961,415,921.07 568,495,093.42
Other operations 13,774,202.59 7,601,053.77 12,499,902.79 7,680,249.90
Total 594,513,807.68 392,987,910.77 973,915,823.86 576,175,343.32
(2) Descriptions of operating income
For the Period For the Previous Period
Item
Revenue Cost Revenue Cost
Product types
Chemical
pharmaceuticals
Health care products 11,686,760.12 15,075,594.34 33,650,115.39 12,962,049.38
Traditional Chinese
medicine
Classification by
business region
Domestic 580,739,605.09 385,386,857.00 961,104,940.74 568,398,928.40
Overseas 0.00 0.00 310,980.33 96,165.02
Total 580,739,605.09 385,386,857.00 961,415,921.07 568,495,093.42
Operating income and operating cost presented by time of income recognition
For the Period For the Previous Period
Item
Revenue Cost Revenue Cost
Commodities
(transferred at a point 580,739,605.09 385,386,857.00 961,415,921.07 568,495,093.42
in time)
Total 580,739,605.09 385,386,857.00 961,415,921.07 568,495,093.42
(3) Descriptions of other activities
For the Period For the Previous Period
Item
Revenue Cost Revenue Cost
Rental fees 4,212,986.53 812,445.35 4,151,769.93 484,596.92
Technical services 8,490.56 19,458.53 2,035,973.59 556,932.22
Others 9,552,725.50 6,769,149.89 6,312,159.27 6,638,720.76
Total 13,774,202.59 7,601,053.77 12,499,902.79 7,680,249.90
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
√Applicable □N/A
Unit: Yuan Currency: RMB
For the Previous
Item For the Period
Period
Long-term equity investments income under cost
method
Long-term equity investments income under equity
method
Investment income from disposal of long-term
equity investments
Investment income from disposal of financial assets
held for trading
Total 264,579,370.62 322,471,744.99
□Applicable √N/A
XIX Supporting Information
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Amount
Gain or loss on disposal of non-current assets (including the reversal of
-2,579,460.77
previously recognized asset impairment provisions).
Government grants recognized in profit or loss for the current period
(excluding government grants that are closely related to the business of the
Company and are provided in fixed amount or quantity continuously according
to the applicable policies and standards of the country).
Excluding effective hedging activities related to the company's ordinary
operating business, this refers to gains and losses arising from changes in the
fair value of financial assets and financial liabilities held by non-financial -7,751,339.88
enterprises, as well as gains and losses from the disposal of financial assets
and financial liabilities.
Reversal of provision for impairment of accounts receivable with individual
impairment test
Other non-operating income and expenditure apart from the above items -7,062,692.26
Less: Income tax effect 11,889,356.58
Effect of minority interests (after tax) 24,029,394.63
Total 15,126,796.04
For the items not listed in the “Explanatory Announcement No.1 for Public Company Information
Disclosures-Extraordinary Gains or Losses” that the company identifies as non-recurring gains
Joincare Pharmaceutical Group Industry Co., Ltd. Interim Report 2025
and losses, especially those with significant amounts, as well as the extraordinary gain or loss
items as illustrated in the “Explanatory Announcement No.1 for Public Company Information
Disclosures-Extraordinary Gains or Losses” which has been defined as its recurring gain or loss
items, the reasons for such classification should be explained.
□Applicable √N/A
√Applicable □N/A
Weighted average Earnings per share
Profit for the Reporting Period
return on equity (%) Basic EPS Diluted EPS
Net loss attributable to the Company’s
ordinary shareholders
Net profit attributable to the parent
company’s shareholders, excluding 5.28 0.42 0.42
non-recurring profit or loss
□Applicable √N/A
□Applicable √N/A
Chairman: Zhu Baoguo
Date of Submission Approved by the Board: 22 August, 2025
Revised information
□Applicable √N/A
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