Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
1 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Important Notice
Ⅰ The Board of Directors (the “Board”) directors 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 Warning for 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
2 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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
3 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Table of Contents
Financial Highlights ................................ 5
Chapter 1 Definitions ............................... 6
Chapter 2 Company Profile and Major Financial Indi... 8
Chapter 3 Management Discussion and Analysis ....... 12
Chapter 4 Corporate Governance Environmental and S.. 47
Chapter 5 Major Events ............................. 52
Chapter 6 Changes in Equity and Shareholders ....... 63
Chapter 7 Information on Bonds ..................... 67
Chapter 8 Financial statements ..................... 68
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
4 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Financial Highlights
5 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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
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 Consumer
PIC/S Refers to Pharmaceutical Inspection Co-operation Scheme
GnRH Refers to Gonadotropin-releasing hormone
IMP Refers to Imexpharm Corporation
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)
Health Pharmaceutical (China) Co. Ltd.* (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)
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. * (古田福兴医
Gutian Fuxing Refers to
药有限公司)
6 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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. *(焦作
Jinguan Electric Power Refers to
金冠嘉华电力有限公司)
LivzonBio Refers to LivzonBio Inc.*(珠海市丽珠生物医药科技有限公司)
Reporting Period Refers to From 1 January 2026 to 30 June 2026
End of the Reporting
Refers to 30 June 2026
Period
Currency or unit Refers to RMB unless otherwise specified
*For identification purpose only
7 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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)
Joincare Pharmaceutical Group
Joincare Pharmaceutical Group Building
Building No. 17 Langshan Road
Address No. 17 Langshan Road North District
North District Hi-tech Zone Nanshan
Hi-tech Zone Nanshan District Shenzhen
District Shenzhen
Telephone 0755-86252656 0755-86252656
Fax 0755-86252165 0755-86252165
E-mail zhuyifan@joincare.com lihongtao@joincare.com
III Overview of Changes in the Company’s Basic Information
Joincare Pharmaceutical Group Building No. 17 Langshan Road North
Registered address
District 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
Changed its registered address to Taitai Pharmaceutical Industrial
Historical changes in Building the 5th Industrial Area Nanshan District Shenzhen on 22 September
registered address 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
Office address
District Hi-tech Zone Nanshan District Shenzhen
Postal code of Office
518057
address
Website http://www.joincare.com
E-mail joincare@joincare.com
8 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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
Shanghai Securities News
the 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
Reporting Period for the Reporting
Same Period of
Principal accounting data (From January to Period as compared
Previous Year
June) to the same period
last year (%)
Revenues 6582795940.02 7898328250.41 -16.66
Total profit 1601002822.74 2072742025.46 -22.76
Net profit attributable to
Shareholders of the listed 647654146.46 784939913.34 -17.49
company
Net profit attributable to
shareholders of the listed
603924511.04769813117.30-21.55
company after deducting the
extraordinary gain or loss
Net cash flow from
2042478501.511926356658.106.03
operating activities
Increase/decrease as
at the end of the
End of the End of the Previous
Reporting Period as
Reporting Period Year
compared to the end
of last year (%)
Net assets attributable to
Shareholders of the listed 15221206583.02 15179567286.42 0.27
company
Total assets 34715790522.32 35414299308.64 -1.97
9 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
(II) Principal Financial Indicators
Increase/decrease
for the Reporting
Reporting
Same Period Period as
Period
Principal Financial Indicators of Previous compared to the
(From January
Year same period of
to June)
Previous Year
(%)
Basic earnings per share (RMB/share) 0.35 0.43 -18.60
Diluted earnings per share (RMB/share) 0.35 0.43 -18.60
Basic earnings per share after deducting
the extraordinary gain or loss 0.33 0.42 -21.43
(RMB/share)
Weighted average return on net assets Decreased by 1.17
4.215.38
(%) percentage points
Weighted average return on net assets
Decreased by 1.36
after deducting the extraordinary gain or 3.92 5.28
percentage points
loss (%)
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
Gain or loss on disposal of non-current assets
(including the reversal of previously recognized 11134514.30
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
46780880.06
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 23699235.79
by non-financial enterprises as well as gains and
losses from the disposal of financial assets and
financial liabilities.Other non-operating income and expenses apart
-6828062.47
from the above items
Less: Income tax effect 753191.30
Effects of non-controlling interests (after tax) 30303740.96
Total 43729635.42
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
10 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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
11 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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
healthcare 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 healthcare 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:
12 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
(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. Main business models of the Company are as follows:
1. R&D
The Company adopts a multi-pronged R&D model that integrates independent innovation external
introduction and collaborative development. In terms of in-house innovation the Company has
established a multi-tiered R&D system covering a wide range of areas including chemical formulations
and biopharmaceuticals. Based on its technology platforms the Company has developed a clearly defined
R&D pipeline focused on key therapeutic areas such as respiratory diseases and immuno-oncology. In
terms of collaborative innovation the Company actively engages in domestic and international scientific
partnerships through commission or joint development. It also pursues technology transfer and in-
licensing of strategic new technologies and products to facilitate commercialization strengthen its position
in core therapeutic areas and expand into emerging markets.
13 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
2. Procurement
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 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.
3. Production
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
considering 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.
4. Sales
(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
with Good Supply Practice for Pharmaceutical Products (GSP) certification. 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
14 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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) Healthcare 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 leveraging the distribution channels and terminal coverage of commercial partners across
chain pharmacies the Company collaborates with approximately 95 first-tier distributors including 63
pharmaceutical distributors and 32 food and supermarket distributors. Their underlying second-tier
distributors and covered terminals across pharmaceutical and food channels exceed 400000. Through this
tiered marketing network the Company effectively manages and promotes its products. In addition to
traditional distribution management models the Company fosters synergistic development through online
channels having established official flagship stores across major e-commerce platforms including Tmall
JD.com Douyin Xiaohongshu (RED) Pinduoduo WeCom Youzan and WeChat Channels Store.(III) Analysis of industry development
2026 marks the first year of China’s 15th Five-Year Plan. The biomedical industry has been officially
classified as a national emerging pillar industry assigned the mission to foster new quality productive
forces and support public health and the upgrading of the real economy. In the first half of the year driven
by this new strategic positioning the industry accelerated its structural improvements in quality and
efficiency highlighted by targeted policy support innovation-driven growth and deeper international
expansion. Industrial resources further concentrated on innovative drugs with high clinical value
solidifying innovation as the primary driver of the sector's high-quality development.On the policy front guided by national strategies a comprehensive support system for innovation
has taken shape. China has continuously refined incentive mechanisms including Breakthrough Therapy
Designation (BTD) conditional approval and priority review thereby accelerating the commercialization
of cutting-edge modalities such as novel antibodies ADCs cell and gene therapies and nucleic acid drugs.In addition the differentiated medical insurance payment system has been further improved refining entry
and renewal mechanisms based on clinical value to balance innovation with affordability. Meanwhile
15 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Volume-Based Procurement (VBP) has entered a normalized and institutionalized phase focusing
primarily on generic drugs and mature medical consumables thus having a manageable impact on the
innovative drug sector. This has effectively facilitated the phase-out of low-end homogeneous production
capacity and consolidated the foundation for the industry's innovative transformation.The industry sustained strong momentum marked by the accelerated conversion of research
breakthroughs. The number of domestically approved Class 1 innovative drugs grew steadily in H1 2026
alongside marked efficiency gains in translating clinical pipelines. The pace of global expansion gathered
momentum with overseas competitiveness becoming increasingly prominent. In H1 2026 the total value
of China’s overseas pharmaceutical transactions reached US$99.7 billion with the full-year figure
expected to set a record. Chinese enterprises have expanded their presence through BD licensing joint
R&D and global commercialization elevating the international profile of domestic innovative assets and
propelling the industry into a new era of global value competition.In summary supported by national policy the structural differentiation of the pharmaceutical
industry intensified in H1 2026 making proprietary innovation capacity the core differentiator for
enterprises. Looking ahead under the 15th Five-Year Plan the industry will focus on three strategic pillars:
original technological innovation meeting essential clinical needs and expanding global footprint. Market
participants with sustained R&D capabilities high-value innovative pipelines and mature commercial
operations will be best positioned to capitalize on strategic opportunities and fully unlock the benefits of
high-quality growth.Explanation of newly added significant non-principal businesses during the Reporting Period
□ Applicable √ Not applicable
II Discussion and analysis of business conditions
1. Main business conditions during the Reporting Period
（1）Operating Results and Reasons for Changes
During the Reporting Period amid multiple pressures arising from tighter medical insurance cost
controls the normalized implementation of national volume-based procurement and the cyclical trough in
the active pharmaceutical ingredient (“API”) industry the Company’s operating results came under
temporary pressure. Nevertheless its business mix continued to improve and its core competitiveness
remained solid. The Company recorded operating revenue of RMB6583 million representing a year-on-
year decrease of 16.66%; net profit attributable to shareholders of the listed company amounted to
RMB648 million representing a year-on-year decrease of 17.49%; and net profit excluding non-recurring
gains and losses amounted to RMB604 million representing a year-on-year decrease of 21.55%. The
simultaneous decline in revenue and profit was mainly attributable to the concentrated impact of the above
industry-wide factors on certain key products of the Company compounded by a year-on-year decrease
in patient visits for influenza and respiratory diseases in China during the first quarter of 2026.By business segment the fluctuations in performance were mainly attributable to Livzon Group a
controlled subsidiary of the Company. During the Reporting Period Livzon Group recorded operating
16 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
revenue of around RMB5000 million representing a year-on-year decrease of 20.28%; and net profit
attributable to shareholders of its parent company of RMB932 million representing a year-on-year
decrease of 27.23%. The impact of multiple industry-wide factors was concentrated on its key products.In the chemical preparation segment sales revenue from the Ilaprazole Sodium series and Menotrophins
for Injection declined because of price reductions under the medical insurance scheme. Sales of
Leuprorelin Acetate Microspheres for Injection decreased significantly in regions covered by the
Guangdong Alliance procurement programme. Fluvoxamine Maleate Tablets a product in the psychiatry
portfolio became subject to the eleventh round of national volume-based procurement from this year
resulting in a decline in revenue. In the API and intermediate segment total domestic sales decreased
slightly due to the cyclical trough and structural adjustments in the domestic industry. The traditional
Chinese medicine preparation and diagnostic segments were affected by the decline in patient visits for
influenza and respiratory diseases during the first quarter with revenue from Antiviral Granules and
respiratory-related diagnostic products decreasing year on year. For further details please refer to the 2026
Interim Report of Livzon Group.During the Reporting Period the Company’s standalone operations demonstrated strong resilience.Driven by the successive launch of innovative drug products and continued growth in healthcare products
the profitability of the Company’s standalone operations increased slightly. For further details please refer
to Section 2 of this chapter.
(2) Highlights and Resilience of Core Business Segments
* Innovation-led Transformation of the Respiratory Segment Continued to Deliver Results
with the Revenue Mix Steadily Shifting towards Innovation-driven Growth
During the Reporting Period revenue from innovative drugs accounted for nearly 35% of the
respiratory segment’s revenue representing a notable increase from approximately 27% in the
corresponding period of 2025. The Company’s strategic transformation towards innovation continued to
gain momentum and deliver results.ⅰ.Commercialization of Pixavir Marboxil Capsules (壹立康) the Company’s first Class 1
innovative chemical drug in the respiratory field progressed smoothly. During the Reporting Period the
product completed listing on drug procurement platforms in all provincial-level regions across China
gained access to a number of key medical institutions and became available on leading online
pharmaceutical platforms. The Company also frequently conducted academic promotion activities in
collaboration with leading experts in the respiratory field. In June 2026 the Company formally applied
for inclusion in the NRDL during the 2026 NRDL adjustment. Following its potential inclusion in the
NRDL the product is expected to achieve further sales ramp-up and volume growth.ⅱ. Tobramycin Inhalation Solution maintained its growth momentum despite the high comparison
base resulting from rapid growth in the corresponding period of the previous year recording a year-on-
year increase of more than 10%. As innovative products successively enter the commercialization stage
the revenue mix of the respiratory segment is expected to continue improving.
17 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
* Healthcare Products Segment Sustained Its Growth Momentum with Eagle’s（鹰牌）
American Ginseng Tea Delivering Its Best First-half Sales Performance in a Decade
During the Reporting Period the Company’s healthcare products segment recorded sales revenue of
RMB304 million representing a year-on-year increase of 25%. Despite the high comparison base in the
corresponding period of the previous year the segment continued to achieve high-quality growth
primarily driven by the continued implementation of its dual-engine strategy. On the brand front the
Company focused on the flagship products of its well-established national brands including Eagle’s (鹰牌)，Taita (太太) and Jingxin (静心) and precisely targeted consumer demand in festive gifting scenarios.Gift-box products delivered outstanding performance across all channels.In particular Eagle’s strengthened its positioning as a premium Chinese New Year gifting choice.Shipments of its Spring Festival gift boxes reached nearly 300000 boxes representing a year-on-year
increase of approximately 87%. The products recorded strong sales and sold out across all channels and
became a benchmark gifting product on multiple platforms. On the channel front the Company further
strengthened online-offline integration. Online it directly reached consumers through the direct-to-
consumer (“DTC”) model on platforms including Douyin Tmall and JD.com. Offline it continued to
expand point-of-sale coverage through chain pharmacies key-account (“KA”) supermarkets and new
retail channels. Brand momentum and channel efficiency improved in tandem.
18 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
(3) Response Measures
In response to industry policy adjustments price reductions affecting certain key products andperiodic fluctuations in demand the Company will adhere to its operating approach of “stabilizing theexisting business expanding incremental growth improving efficiency and controlling risks” with a focus
on the following initiatives:
* Proactively Mitigating the Impact of Policy Adjustments and Consolidating the Foundation
of Established Businesses
In response to the impact of medical insurance price reductions and the implementation of national
volume-based procurement on certain key preparation products of Livzon Group the Company will
strengthen access to healthcare institutions channel coverage and communication of clinical value
optimize the allocation of marketing resources and enhance its ability to capture sales volume following
price reductions. The Company will further optimize the product and customer mix of its API business
strengthen coordination between domestic and overseas markets and enhance cost control to improve
operating quality. It will also strengthen demand monitoring production and sales coordination and
channel inventory management for its traditional Chinese medicine preparation and diagnostic businesses
to improve market responsiveness. For details of Livzon Group’s operating initiatives please refer to the
2026 Interim Report of Livzon Group.
* Accelerating the Commercialization of Innovative Products and Improving the Quality of
Growth in the Respiratory Segment
Following the completion of nationwide listing of Pixavir Marboxil Capsules (壹立康) on
provincial drug procurement platforms the Company will focus on advancing access to healthcare
institutions academic promotion and patient accessibility. It will also actively pursue inclusion in the
National Reimbursement Drug List (“NRDL”) with a view to progressively translating market access
coverage into actual clinical use. Meanwhile the Company will continue to expand coverage of healthcare
institutions for innovative products such as Tobramycin Inhalation Solution and increase the contribution
of innovative products to the revenue and profitability of the respiratory segment.
19 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
The Company will also advance its key pipeline projects and the development of related dosage forms
as planned. It will further strengthen collaboration among R&D medical affairs market access marketing
and supply chain functions to improve the efficiency of translating innovative achievements into
commercially successful products.* Consolidating the Growth Momentum of Healthcare Products and Strengthening
Sustainable Operating CapabilitiesThe Company will continue to focus on its core brands and flagship products including Eagle’s（鹰牌） Taita（太太） and Jingxin（静心） and deepen collaboration between online and offline channels.While consolidating its advantages in festive gifting occasions the Company will actively expand into
consumption scenarios such as daily nourishment and family health. It will further strengthen customer
engagement repeat-purchase conversion product mix management and improve the efficiency of
marketing expenditure while closely monitoring point-of-sale sell-through and channel inventory
turnover thereby promoting coordinated improvements in business scale and profitability.* Advancing the application of AI and new technologies and deepening lean operations
The Company will strengthen the end-to-end application of AI across R&D production sales and
corporate functions continue to advance production process optimization supply chain collaboration and
digitalized operations and improve the efficiency of resource allocation and utilization improve resource
input-output efficiency. Meanwhile it will further enhance quality safety environmental protection and
compliance management to provide safeguards for the sound development of each business segment.
(4) Future Outlook
Looking ahead to the second half of 2026 factors including medical insurance cost controls the
implementation of national volume-based procurement price adjustments affecting certain established
products and competition in the API market may continue to exert pressure on the Company’s operations
and it may take time for the related impacts to be fully absorbed. Demand relating to respiratory diseases
is seasonal while uncertainties also remain regarding NRDL inclusion coverage of healthcare institutions
and the pace of commercial sales ramp-up for innovative drugs. At the same time the brand and channel
foundations accumulated by the healthcare products segment the continued commercialization of
innovative respiratory products and the Company’s diversified business portfolio will continue to provide
support for its operations.The Company will increasingly rely on product mix optimization and improvements in operating
efficiency to drive business recovery. It will strive to stabilize the foundation of its established businesses
increase the contribution from innovative products and high-growth businesses and continuously enhance
its overall operating quality and long-term sustainable development capabilities.
2. Analysis of R&D Progress
(1) Core Pipeline Advanced Steadily During the Reporting Period
During the Reporting Period the Company’s R&D pipeline entered a pivotal stage in which value
realization and portfolio expansion advanced in parallel. Guided by unmet clinical needs and differentiated
innovation the Company kept pace with developments in AI-enabled pharmaceutical R&D and continued
20 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
to deepen iterative innovation by leveraging its strengths in respiratory diseases anti-infectives and pain
management.As at the end of the Reporting Period the Group had established a pipeline comprising more than 20
Class 1 innovative drug candidates. In the respiratory and anti-infective therapeutic areas which have long
been the Group’s core areas of focus the Group had proactively established a portfolio of more than ten
Class 1 innovative drug candidates. In particular in the field of chronic obstructive pulmonary disease
(“COPD”) the Group has established a comprehensive network of therapeutic target encompassing
upstream inflammatory pathways oral anti-inflammatory therapies and inhaled maintenance therapies
with its differentiated competitive advantages becoming increasingly evident:
21 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Progress of Other Pipeline Programs:
* JKN2404 Inhalation Suspension a next-generation inhaled corticosteroid (ICS) was approved
for clinical trials in bronchial asthma.* JKN2501 for Injection a novel β-lactamase inhibitor in the anti-infective field added hospital-
acquired pneumonia (HAP) and ventilator-associated pneumonia (VAP) as new indications.* JKN2502 for Injection a next-generation polymyxin antibacterial agent also received clinical
trial approval further strengthening the Company’s innovative portfolio in the respiratory and
anti-infective fields.* For details of Livzon’s pipeline progress please refer to the 2026 Interim Report of Livzon Group.
(2) AI Capabilities Empowering Early-Stage Research
The Company has completed the on-premises deployment of mainstream AI models and established
an end-to-end AI-powered drug R&D platform integrating target identification molecule generation
ADMET prediction and retrosynthetic analysis. During the Reporting Period the platform increased the
hit rate for novel active molecules by two- to five-fold and shortened the virtual compound screening cycle
from several months under conventional approaches to just a few days. In COPD research the lead
compound discovery timeline was reduced to approximately six months. In addition AI technology has
delivered quantifiable efficiency improvements across pharmaceutical research process development and
clinical research continuously enhancing R&D efficiency and return on investment. The Group has
22 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
currently deployed multiple early-stage novel-target programs strengthening the foundation of early-stage
research and providing a continuous source of support for its overall pipeline portfolio.
3. Internationalization: Accelerating Systematic Global Expansion
During the Reporting Period the Company accelerated the upgrade of its internationalization strategy
from “product exports” to “systematic global expansion”. Through the coordinated advancement of
overseas M&A APIs as a foundation and formulation breakthroughs the Company achieved milestone
progress in its global market presence.
(1) Milestone Progress in Overseas M&A
The Company’s controlled subsidiary Livzon Group completed the public tender offer for IMP
(Imexpharm Corporation) a listed company in Vietnam acquiring a 67.87% equity interest and obtaining
control. The transfer of the relevant shares was completed in May 2026. The Company thereby became
the first Chinese pharmaceutical enterprise to acquire a Vietnamese listed company marking a critical
step in its strategic expansion into Southeast Asia. IMP operates the largest number of EU-GMP-certified
production lines in Vietnam and its products reach more than 80% of medical institutions across the
country providing manufacturing qualifications and channel support for the rapid entry of the Company’s
formulation products into the Southeast Asian market.The integration of IMP is currently progressing in an orderly manner. In production management
leveraging IMP’s existing EU-GMP-certified manufacturing facilities the Group is advancing the
integration of its formulation manufacturing system with IMP’s quality system and harmonizing
compliance and operational standards. In product introduction the Group is progressively advancing
technology transfer and import registration for formulation products based on market demand in Southeast
Asia. The first batch includes the technology transfer of three injectable products—Ilaprazole Sodium for
Injection Daptomycin for Injection and Tedizolid Phosphate for Injection—as well as the import
registration of four key products: Recombinant Human Follitropin Alfa Solution for Injection
Recombinant Human Choriogonadotropin Alfa for Injection Cetrorelix Acetate for Injection and
Lecankitug Injection. In channel integration the Group plans to use Vietnam as a strategic hub serving
the broader ASEAN market by leveraging local manufacturing qualifications and the advantages of free
trade agreements. This is expected to reduce import tariffs on finished products and logistics.
(2) Coordinated Overseas Expansion of APIs and Formulations
The overseas foundation of the API business remained solid with the contribution from
regulated markets continuing to increase. During the Reporting Period API export revenue accounted
for more than 60% of the segment’s total revenue the overseas business maintaining a solid foundation.Revenue from regulated markets continued to increase as a proportion of the total orders under long-
term agreements accounted for a significant share the customer mix remained stable and order
stickiness strengthened. The Company’s overseas market share is expanding steadily and is expected to
become a major contributor to the segment’s performance.In terms of capacity and compliance construction of the API facility in Jakarta Indonesia
jointly developed by the Company and Kalbe Group progressed in an orderly manner. The facility
23 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
is intended to serve as a strategic foothold for high-end European and US markets. Joincare Haibin
obtained a PIC/S GMP certificate issued by Malaysia’s National Pharmaceutical Regulatory Agency
(NPRA); the Fuzhou Fuxing facility successfully passed an EU-GMP inspection; and the Ningxia facility
passed an FDA inspection with zero Form 483 observations as well as an inspection by the German
regulatory authorities. The Company’s quality management system is now fully aligned with international
standards.Overseas sales of formulations expanded steadily with the registration network covering five major
regions. During the Reporting Period the Company further expanded the overseas market presence of its
formulation products. It had more than 40 overseas distributors covering Southeast Asia the Middle East
Eurasia Latin America and Africa and advanced the registration of 29 products in 53 countries/regions.The Company obtained marketing authorizations for multiple products in markets including Pakistan
Uzbekistan and Indonesia and completed product registration filings and GMP certifications in key
emerging markets such as Brazil and Malaysia. Its Philippine subsidiary obtained a local FDA License to
Operate while its Dutch subsidiary obtained manufacturing and import authorizations. The Company has
initially established an international registration and compliance framework covering Asia and Latin
America and extending into the European Union.Performance in key regions was particularly notable. The Company’s reproductive products became
the leading brand by market share in Pakistan while Livzon’s recombinant human chorionic gonadotropin
(rHCG) accounted for approximately 44% of the Indonesian market. Semaglutide Injection successfully
passed a GMP inspection conducted by Brazil’s National Health Surveillance Agency (ANVISA) with
registration approval expected in the second half of the year. It is expected to become the first biosimilar
to be marketed in Brazil.
4. ESG Practices: Deepening Sustainability Practices
The Company has deeply integrated ESG principles into its governance framework and the full scopeof its operational management. It has established a three-tier governance structure comprising the “Boardof Directors–Sustainability Committee–Sustainability Working Group” and incorporated key ESG
indicators into the performance assessment framework for relevant management personnel forming a top-
down closed-loop management mechanism. During the Reporting Period the Company published its
sustainability report for the ninth consecutive year and was once again included in the S&P Global
Sustainability Yearbook 2026 (Global Edition). The Company and its controlled subsidiary Livzon Group
were both included in the S&P Global Sustainability Yearbook 2026 (China Edition) and ranked among
the top 5% of China’s pharmaceutical industry demonstrating continued recognition of their sustainability
capabilities by authoritative international institutions.Shareholder Returns and Corporate Governance: The Company remains committed to an
investor-centric approach and shares its operating results with shareholders through both cash dividends
and share repurchases. During the Reporting Period the Company completed its 2025 annual profit
distribution distributing a cash dividend of RMB2.20 per 10 shares (tax inclusive) to all shareholders
with aggregate cash dividends amounting to RMB402 million representing an increase of approximately
24 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
10% over the previous year. In April 2026 the Company issued its 2026 Action Plan for “EnhancingQuality and Efficiency with a Focus on Returns” setting out annual measures to improve operating quality
strengthen investment in innovation enhance governance mechanisms and increase shareholder returns.Going forward while coordinating business development with its capital structure the Company will
place greater emphasis on enhancing the certainty of shareholder returns through sustained and stable cash
dividends.Green Operations and Environmental Management: In pursuit of green and low-carbon
development the Company continued to advance energy conservation and emissions reduction efficient
resource utilization pollution prevention and control and recycling while strengthening climate risk
management and response measures in line with its operational realities. In supply chain management the
Company continued to improve its supplier management mechanisms by incorporating environmental
social and governance requirements into supplier onboarding audit and evaluation processes. Through the
implementation of the Supplier Code of Conduct and targeted EHS (Environment Health and Safety)
training the Company promoted compliant operations among upstream and downstream partners and
safeguarded the long-term stability and sustainability of its supply chain.Talent Development and Organizational Building: During the Reporting Period the Company
filled critical positions in line with the business requirements of its innovation-driven transformation and
the internationalization of its formulation business. Its R&D and functional systems continued to optimize
their organizational structures achieving a leaner workforce and improved operational efficiency. In
support of its digital and intelligent transformation the Company also strengthened employee AI skills
training and hands-on enablement encouraging frontline employees and technical specialists to integrate
AI tools into real-world business scenarios. These initiatives enhanced organizational responsiveness
while broadening employees’ career development opportunities.Inclusive Healthcare and Social Responsibility: The “Inclusive Chronic Disease Prevention andControl Public Welfare Project” jointly implemented by the Company and its controlled subsidiary
Livzon Group has continued to advance since its launch in 2018. As at the end of the Reporting Period
the project covered 37 underserved regions in need of support across 12 provinces and four autonomous
regions nationwide benefiting more than 48000 low-income patients with chronic diseases. Working with
professional charitable organizations and primary-level health authorities and healthcare systems the
project has established a closed-loop process of “needs assessment–precise matching–designated delivery”
to ensure that medicines reach families at the grassroots level thereby supporting rural revitalization and
the Healthy China strategy.Material Changes in the Company's Business Operations During the Reporting Period and
Matters That Have Had or Are Expected to Have a Material Impact on Its Business Operations
□Applicable √N/A
25 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
III Analysis of core competitive strengths during the Reporting Period
√Applicable □N/A
1. Strategic Foresight: A Value-Oriented Approach to Navigating Industry Cycles
As a long-term value creator in the pharmaceutical and healthcare sector Joincare has continuously
advanced its business portfolio and strengthened its capabilities in response to evolving industry trends
and clinical needs since completing its strategic integration with Livzon Pharmaceutical Group in 2002.Against a backdrop of industry cycles changes in the policy environment and intensifying market
competition the Company has maintained strong development resilience and sustainable operating
capabilities. Its ability to navigate industry cycles stems from management’s forward-looking assessment
of industry trends sustained focus on core therapeutic areas and long-term investment in critical resources.Forward-looking business planning is an important source of the Company’s core competitiveness.In 2013 the Company was among the first to recognize the market potential of respiratory disease
treatments amid an aging population and made a strategic move into high-end inhalation formulations.Following years of sustained R&D investment and technological accumulation the Company gradually
overcame the relevant technical barriers. After the launch of its first product in 2019 sales of its respiratory
products grew rapidly increasing 22-fold over four years and establishing the Company as an important
player in China’s respiratory pharmaceutical market.Through sustained strategic investment and business development Joincare has established
significant competitive advantages in the respiratory gastrointestinal and assisted reproductive fields. In
the respiratory field the Company secured a first-mover advantage through its early entry and broad
product portfolio. Ten products have been launched to date successfully breaking the long-standing
dominance of multinational pharmaceutical companies and placing the Company among the first tier of
market participants by market share. In close alignment with clinical needs the Company has also built a
pipeline of more than ten Category 1 innovative drug candidates creating momentum for long-term
growth.In the gastrointestinal field Ilaprazole a domestically developed innovative proton pump inhibitor
(“PPI”) has distinguished itself through its significant therapeutic advantages and secured a leading
market position. The Company’s P-CAB product under development has also laid a solid foundation for
technological advancement and market expansion in this field. In assisted reproduction the Company has
developed a comprehensive product portfolio with its flagship product ranking first in its market segment
for several consecutive years. Meanwhile leveraging the strengths of its microsphere formulation
technology platform the Company has strategically planned a portfolio of long-acting formulations and
steadily advanced its pipeline projects providing strong support for its sustainable development in this
field.While comprehensively advancing innovative drug R&D the Company has also keenly captured the
opportunities for industrial upgrading presented by artificial intelligence and other emerging technologies.It is actively promoting the integration of AI technology into target discovery molecular design clinical
trial data management and corporate compliance governance. From its early strategic positioning in key
26 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
therapeutic areas to its current efforts to integrate artificial intelligence with the pharmaceutical industry
the Company’s strategic foresight in translating cutting-edge technologies into business productivity is
becoming an important enabler of accelerated innovative drug development and the establishment of long-
term competitive barriers.
2. Organizational Execution: An Efficient Engine for Strategy Implementation
Strong organizational execution is critical to the successful implementation of Joincare’s strategies.The Company has assembled a young dynamic professional and highly execution-oriented management
team whose members possess expertise across key business and functional areas including R&D
production sales and marketing. With a strong emphasis on organizational collaboration the Company
has established efficient communication and coordination mechanisms that enable close cooperation and
seamless alignment among departments. These mechanisms help break down information silos minimize
information loss and significantly improve the quality of decision-making and the efficiency of execution
thereby laying a solid organizational foundation for the achievement of the Company’s strategic objectives.In recent years the Company has continued its transition from generic drugs to innovative drugs
focusing on key therapeutic areas and establishing systematic R&D and product portfolios spanning
respiratory diseases pain management gastrointestinal diseases and psychiatric disorders. With the
official approval and launch of its first innovative drug Pixavir Marboxil Capsules (壹立康) the
Company’s innovative drug business has entered a new stage of development. Drawing on its accurate
assessment of industry trends and extensive scientific research capabilities the Company has established
a well-structured and mature innovative drug pipeline comprising more than 20 core programs across
asthma chronic obstructive pulmonary disease pain management autoimmune diseases and antiviral
therapies. The efficient conversion of strategic transformation into tangible results not only demonstrates
Joincare’s outstanding organizational execution and precise resource allocation capabilities but also
signifies that the Company has successfully crossed the threshold into pharmaceutical innovation.Supported by an increasingly competitive innovation portfolio the Company is accelerating its progress
towards the strategic objective of becoming a world-leading pharmaceutical enterprise.Joincare has also remained at the forefront of enterprise-level applications of artificial intelligence
within the industry. In 2025 the Company took the lead in deploying capabilities based on DeepSeek and
related large language models to improve business efficiency. In 2026 it further explored and deployed a
new generation of intelligent agent technologies represented by OpenClaw. By rapidly introducing large
AI models into real-world business scenarios—including drug screening clinical analysis compliance
management and digital marketing—the Company has demonstrated its ability to respond swiftly to
cutting-edge technologies and integrate them effectively across the organization. These initiatives
continue to enhance operating efficiency and support management upgrades. As the relevant applications
are further expanded and deepened the Company’s advantages in operating efficiency process
optimization and management enhancement are expected to become increasingly evident.
3. Brand Value: Built on Quality and a Strong Business Ecosystem
27 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
In the highly competitive pharmaceutical and healthcare market Joincare has remained deeply
committed to building brand value. Through strategic vision firm execution and sustained cultivation the
Company has progressively developed a distinctive and powerful brand portfolio.“Taita” (太太)and “Eagle’s (鹰牌)” both nationally recognized brands under Joincare with a history
of more than 30 years embody a rich and enduring brand heritage. Building on these established brands
the Company has comprehensively advanced a dual-engine strategy combining “quality heritage” with
“digital innovation.” In recent years the Company’s refined and professional digital operations have
provided strong momentum for the rapid and sustainable growth of its healthcare products business.In the active pharmaceutical ingredient (“API”) sector Joincare and the Zhuhai and Jiaozuo
production facilities of its subsidiary Livzon Group have deeply integrated advanced intelligent
manufacturing systems to enable precise digital and intelligent control throughout the entire production
process. The outstanding product quality created through stringent quality control has earned the strong
confidence of leading global multinational pharmaceutical companies including Pfizer Eli Lilly and Teva
with which the Group has established stable long-term relationships. By now Joincare’s API products
have been sold in more than 60 countries and regions worldwide supported by their exceptional qualityand consistent performance. The Company has established a benchmark for “Intelligent Manufacturing inChina” in the high-end API sector and become an industry model for innovation and quality excellence.In the prescription drug field the Company has vigorously advanced its digital marketing strategyand established a user-centric digital marketing system. Through the professional “Respiratory Experts’Insights” platform the Company invites leading industry experts to share professional knowledge and
participate in academic exchanges. This has strengthened interaction and communication with physicians
and patients while effectively enhancing the professionalism and credibility of its brands. At the same
time the Company leverages big data analytics and artificial intelligence to gain precise insights into
market demand and user preferences and formulate well-targeted strategies. By establishing an efficient
service loop connecting healthcare professionals patients and the Company Joincare has achieved
industry-leading brand recognition.IV Overview of business operations during the Reporting Period
(I) Analysis of principal businesses
1 Table for analysis of changes in items related to financial statements
Unit: Yuan Currency: RMB
Amount in the current Amount in the same
Item Change (%)
period period of last year
Revenues 6582795940.02 7898328250.41 -16.66
Operating costs 2718714845.41 2985132575.95 -8.92
Selling expenses 1446242526.58 2016794488.84 -28.29
Administrative expenses 379655410.85 421890723.11 -10.01
Financial expenses -7424462.80 -221703311.54 N/A
R&D expenses 510717025.64 611153068.61 -16.43
Net cash flow from operating
2042478501.511926356658.106.03
activities
Net cash flow from investing -668569328.87 -641473685.58 N/A
28 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
activities
Net cash flow from financing
-1473754688.83 -1608668997.81 N/A
activities
Reasons for changes in financial expenses: Mainly due to a decrease in interest income from
deposits and an increase in foreign exchange losses during the Period.
2 Details of material changes in business type components or source of profits during the current
period
□Applicable √N/A
3 Analysis of revenues and costs
Principal businesses by industry product and region
Unit: Yuan Currency: RMB
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 3.53
manufacturing 6523055975.07 2674720018.75 59.00 -16.69 -8.85
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 4.93
2955847407.34800859183.1272.91-21.56-4.12
pharmaceuticals percentage points
Chemical APIs and Decreased by 0.83
2348213838.091526823862.1934.98-7.01-5.81
intermediates percentage points
Increased by 2.05
TCM products 543355312.11 134054146.84 75.33 -33.08 -38.21
percentage points
Diagnostic reagents Decreased by 0.91
270208467.23115115873.5257.40-27.78-26.20
and equipment percentage points
Increased by 2.38
Healthcare products 303728999.40 58330372.80 80.80 24.71 10.94
percentage points
Increased by 8.36
Biologics 94372908.29 36303239.20 61.53 -0.47 -18.23
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 1.86
Domestic 4942675015.29 1681558304.59 65.98 -22.16 -17.67
percentage points
Decreased by 2.60
Overseas 1580380959.78 993161714.16 37.16 6.74 11.35
percentage points
4. Investment in R&D
(1) Table for investment in R&D
Unit: Yuan Currency: RMB
Expensed investment in R&D during the Period 491982398.20
Capitalized investment in R&D during the Period 47538013.75
Total investment in R&D 539520411.95
Total amount of investment in R&D as a percentage of revenues (%) 8.20
29 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
(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:
Therapeutic Area R&D Project Indication R&D Stage
Uncomplicated
Pixavir Marboxil Dry influenza A and B in
Respiratory Phase III Clinical Trial
Suspension children aged 2 to 12
years
Moderate-to-severe
Respiratory TSLP mAb Phase III Clinical Trial
COPD
Chronic Clinical trial approval
rhinosinusitis with obtained; eligible to
Respiratory TSLP mAb
nasal polyps proceed directly to a
(CRSwNP) Phase II study
Moderate-to-severe
Respiratory PREP Inhibitor Phase II Clinical Trial
COPD
MABA Inhalation
Respiratory COPD Phase II Clinical Trial
Solution
Respiratory IL-4R mAb Asthma and COPD Phase II Clinical Trial
Respiratory Next-generation ICS Asthma Phase I Clinical Trial
Respiratory PDE4 Inhibitor Asthma and COPD Preclinical
Respiratory DPP-1 Inhibitor Bronchiectasis Preclinical
Pain Management NaV1.8 Inhibitor Acute pain Phase II Clinical Trial
In combination with
meropenem for the
treatment of
Novel β-Lactamase
Anti-infection complicated urinary Phase I Clinical Trial
Inhibitor
tract infections
including acute
pyelonephritis
In combination with
meropenem for the
treatment of hospital-
Novel β-Lactamase acquired pneumonia Approved for Clinical
Anti-infection
Inhibitor and ventilator- Trials
associated
pneumonia
(HAP/VAP)
Serious infections
caused by
Acinetobacter
baumannii complex
Anti-infection Novel Polymyxin B Pseudomonas Phase I Clinical Trial
aeruginosa
Escherichia coli and
Klebsiella
pneumoniae
Invasive fungal
Anti-infection SG1001 Tablets Phase II Clinical Trial
diseases
30 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Marketing Application
Gastroenterology JP-1366 Tablets Reflux esophagitis
under Review
Eradication of
Helicobacter pylori
Gastroenterology JP-1366 Tablets Phase III Clinical Trial
(Hp) in combination
with antibiotics
Gastroenterology JP-1366 for Injection Peptic ulcer bleeding Phase III Clinical Trial
LPM7108 Capsules
GnRH/Assisted Assisted
(Oral GnRH Phase III Clinical Trial
Reproduction reproduction
Antagonist)
Recombinant Human Anovulation ovarian
GnRH/Assisted Follitropin Alfa stimulation in
Approved for Marketing
Reproduction Solution for Injection assisted reproductive
(Injection Pen) technologies etc.Triptorelin Acetate
GnRH/Assisted Central precocious
Microspheres for Phase III Clinical Trial
Reproduction puberty
Injection
Prostate cancer
Leuprorelin Acetate
GnRH/Assisted breast cancer and Marketing Application
Microspheres for
Reproduction central precocious under Review
Injection (3M)
puberty
Alarelin Acetate
GnRH/Assisted
Microspheres for Breast cancer Phase II Clinical Trial
Reproduction
Injection
Marketing Application
Lecankitug Injection Moderate-to-severeAutoimmune under Review（granted(IL-17A/F mAb) plaque psoriasispriority review status）
Lecankitug Injection Ankylosing Marketing Application
Autoimmune
(IL-17A/F mAb) spondylitis Accepted
Type 2 diabetes Marketing Application
Metabolic Semaglutide Injection
mellitus under Review
Marketing Application
Metabolic Semaglutide Injection Weight management
Accepted
Brexpiprazole
Schizophrenia in
Psychiatry Microspheres for Phase I Clinical Trial
adults
Injection
Psychiatry NS-041 Tablets Epilepsy Phase II Clinical Trial
Psychiatry LZZN1801 Vestibular migraine Preclinical
Prevention of venous
Cardiovascular and thromboembolism
H001 Capsules Phase II Clinical Trial
Cerebrovascular following major
orthopedic surgery
Quadrivalent
Recombinant Prevention of
Vaccines Phase I Clinical Trial
Influenza Protein influenza
Vaccine
(II) Description of material changes in profits arising from non-principal businesses
√Applicable □N/A
Unit: Yuan Currency: RMB
Proportion of Whether
Item Amount Explanations
total profits sustainable
Mainly due to changes in profit or
Investment income 116169744.11 7.26% loss arising from the equity-method No
accounting of associates as well as
31 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
dividends declared by other
investees.Gains from changes Mainly due to fluctuations in the
4344650.11 0.27% No
in fair value fair value of financial assets held.Credit impairment Mainly due to expected credit
-294385.29 -0.02% No
losses losses on accounts receivable.Mainly due to impairment
Assets impairment provisions made for investments in
-15963936.27 -1.00% No
losses certain investees due to their poor
operating performance.Mainly due to the transfer of
Non-operating payables no longer required to be
6775567.63 0.42% No
income paid and income from scrap
disposal.Mainly due to donation expenses
Non-operating
16800453.32 1.05% and losses on the retirement of No
expenses
assets.Mainly due to government
Other income 58347716.21 3.64% No
subsidies received.(III) Analysis of assets and liabilities
√Applicable □N/A
1. Analysis of assets and liabilities
Unit: Yuan Currency: RMB
Percentage
Percentage
of total Change
of total
Balance at the end assets at from the
Balance at the end assets at
Item of the previous the end of end of the Explanations
of the Period the end of
year the previous
the Period
previous year (%)
(%)
year (%)
Financial Mainly due to the maturity
assets held 644477284.66 1.86 1694102766.69 4.78 -61.96 and redemption of certain
for trading structured deposits.Mainly due to a decline in
revenue during the Period
Notes
1070737720.24 3.08 1636435183.16 4.62 -34.57 which led to a
receivable
corresponding decrease in
notes receivable.Mainly due to the increase
in prepayments for
Prepayments 297409602.31 0.86 202964890.16 0.57 46.53
materials during the
current period.Mainly due to an increase
Dividends in dividends receivable
13083993.15 0.04 0.00 0.00 N/A
receivable that have been declared
but not yet received.Non-current Mainly due to the transfer
assets due out of cash management
525916708.481.51880840324.512.49-40.29
within one instruments maturing
year within one year.Mainly due to newly
Other current
269408484.06 0.78 129622238.09 0.37 107.84 added cash management
assets
during the Period.Investments in Mainly due to an increase
other equity 3001539169.91 8.65 990428693.50 2.80 203.05 in long-term held non-
instruments trading equity investments
32 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
during the Period.Mainly due to the
acquisition of IMP by
Livzon Group a
Right-of-use controlled subsidiary
186884748.430.5443784500.370.12326.83
assets during the Period which
resulted in the recognition
of corresponding right-of-
use assets.Mainly due to the
goodwill arising from the
acquisition of IMP by
Goodwill 1605956000.70 4.63 636339503.82 1.80 152.37
Livzon Group a
controlled subsidiary
during the Period.Mainly due to the
reclassification of time
Other non-
278710456.88 0.80 660059793.71 1.86 -57.77 deposits maturing within
current assets
one year to non-current
assets due within one year.Mainly due to the
adjustment of the debt
Short-term structure of subsidiaries
3495815777.9910.072240000000.006.3356.06
borrowings replacing long-term
borrowings with short-
term borrowings.Mainly due to the payment
Employee
of year-end performance
benefits 257772326.55 0.74 491740918.10 1.39 -47.58
bonuses for the previous
payable
year.Mainly due to the
implementation of profit
distribution plans by non-
Dividends
211015638.89 0.61 14017248.88 0.04 1405.40 wholly-owned
payable
subsidiaries resulting in
an increase in dividends
payable during the Period.Non-current Mainly due to the
liabilities due repayment of long-term
91737557.100.26373229691.101.05-75.42
within one borrowings upon their
year maturity within one year.Mainly due to the
adjustment of the debt
Non-current structure of subsidiaries
783906650.002.261572266599.044.44-50.14
borrowings replacing long-term
borrowings with short-
term borrowings.Mainly due to the
acquisition of IMP by
Livzon Group a
Non-current controlled subsidiary of
employee the Company during the
3619183.40 0.01 - - N/A
benefits current period which
payable resulted in the recognition
of the corresponding non-
current employee benefits
payable.
33 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Mainly due to the
acquisition of IMP by
Livzon Group a
Other non- controlled subsidiary of
current 1898428.93 0.01 - - N/A the Company during the
liabilities current period which
resulted in the recognition
of the corresponding other
non-current liabilities.Mainly due to changes in
the fair value of
investments in other
Other
equity instruments and
comprehensive -432836903.62 -1.25 -134669133.15 -0.38 N/A
changes in foreign
income
currency translation
differences arising from
exchange rate fluctuations.
2. Overseas assets
√Applicable □N/A
(1) Asset size
Among them: Overseas assets were 61.16 (Unit: 100 million Currency: RMB) representing 17.62% of
the total assets.
(2) Statement on high proportion of overseas assets
□Applicable √N/A
3. Restrictions on assets entitlements as at the end of the Reporting Period
√Applicable □N/A
Unit: Yuan Currency: RMB
Carrying value at the End
Item Cause for restriction
of the Period
Cash and bank Mortgaged borrowings deposits for acquisition and guarantee
3975720.00
balances businesses
Notes receivable 365372261.54 Notes pool business and pledge of notes receivable
Accounts
25900000.00
receivable Pledged/mortgaged borrowings issuance of letters of guarantee
and letters of credit
Inventories 45325000.00
Right-of-use
25557437.78 Mortgaged borrowings
assets
Intangible assets 813997.54 Mortgaged borrowings
Total 466944416.86
4. Others
□Applicable √N/A（IV）Analysis of investment
1. Overall analysis of equity investments
√Applicable □N/A
During the Reporting Period the Company carried out strategic investments according to development
plans and schedules as follows:
34 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
(1) Major equity investments
√Applicable □N/A
Unit: 10000 Yuan Currency: RMB
Whether the
target is Whether included Item on the
Source
primarily Investment Investment Percentage of in the Company’s financial Partner (if
Name of investee Principal business of
engaged in method amount shareholding scope of statement (if applicable)
funds
investment consolidation applicable)
business
Production of APIs and
finished Western
medicines as well as the
processing of Chinese
medicinal materials and
manufacture of traditional
Chinese medicine
preparations; operation of
proprietary EU-GMP-
Imexpharm compliant production Own
No Acquisition 154943.92 32.02% Yes N/A N/A
Corporation lines for injectables oral funds
solid dosage forms
syrups and topical
preparations; and
provision of contract
manufacturing
organization (CMO)
services to
pharmaceutical
companies.Total / / / 154943.92 / / / / /
(Continued)
Expected
Investment period Status as of balance Impact on gain or loss Litigation Disclosure date Disclosure index
Name of investee return
(if any) sheet date for the Period involved or not (if any) (if any)
(if any)
35 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Imexpharm See note 1 for
N/A Completed N/A -451.06 No See note 1 for details
Corporation details
Total / / -451.06 / / /
Note 1: For further details please refer to the Announcement on the Proposed Acquisition of Equity Interests in Vietnam IMP by Controlled Subsidiary Livzon Group
published by the Company on May 23 2025 (Lin 2025-044) the Announcement on the Progress of the Proposed Public Tender of the Acquisition of Equity Interests
in Vietnam’s IMP by Controlled Subsidiary Livzon Group published by the Company on December 31 2025 (Lin 2025-087) the Announcement on the Progress of the
Proposed Public Tender of the Acquisition of Equity Interests in Vietnam IMP by Controlled Subsidiary Livzon Group published by the Company on March 7 2026
(Lin 2026-010) the Announcement on the Progress of the Public Tender Offer by the Controlled Subsidiary Livzon Group for Equity of Vietnam IMP published by the
Company on April 30 2026 (Lin 2026-034) and the Announcement on the Progress of the Public Tender Offer by the Controlled Subsidiary Livzon Group for Equity
of Vietnam IMP and Completion of Ownership Transfer published by the Company on May 12 2026 (Lin 2026-038).
(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 135965592.54 8284034.70 -27869046.25 - - - - 116380580.99
Funds 453384798.32 462029.53 7099652.81 - 254899491.14 2963761.61 - 712882210.19
Derivatives 2721531.36 -1932130.21 - - - - - 789401.15
Others 2092459537.97 -2538907.19 -361267976.85 - 6141111608.31 5053800000.00 - 2815964262.24
Total 2684531460.19 4275026.83 -382037370.29 - 6396011099.45 5056763761.61 - 3646016454.57
Information on investment in securities
36 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
√Applicable □N/A
Unit: Yuan Currency: RMB
Amount Amount
Carrying Gain or loss on Accumulated of of Carrying
Source Profit or
Type of Securities Securities Initial amount at the change in fair change in fair purchase disposal amount at the Accounting
of loss for the
securities code abbreviation investment cost beginning of the value for the value included in during during end of the item
fund Period
Period Period equity the the Period
Period Period
Financial
Kunlun Own
Share 00135 4243647.64 6710924.60 -1021922.10 - - - - 5689002.50 assets held
Energy funds
for trading
Financial
Penghua Own
Fund 206001 150000.00 1005892.28 10539.22 - - - - 1016431.50 assets held
Fund funds
for trading
Financial
Huadong Own
Share 000963 39851.86 13003193.40 -3734503.96 - - - 191174.96 9268689.44 assets held
Medicine funds
for trading
Beam Financial
Own
Share BEAM(US) Therapeutics 31117151.47 58811009.72 13040460.76 - - - - 71851470.48 assets held
funds
Inc. for trading
Investments
Elicio
Own in other
Share ELTX(US) Therapeutics 35363302.05 7406957.15 - -3800258.75 - - - 3606698.40
funds equity
Inc.instruments
Investments
Carisma
Own in other
Share CARM(US) Therapeutics 38807266.00 297891.87 - -297402.64 - - - 489.23
funds equity
Inc.instruments
Investments
Luzhu Own in other
Share 02480 30000000.00 49735615.80 - -23771384.86 - - - 25964230.94
Biotech-B funds equity
instruments
Total / / 139721219.02 136971484.82 8294573.92 -27869046.25 - - 191174.96 117397012.49 /
Statement of investments in securities
□Applicable √N/A
Information on investment in private equity fund
37 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
√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 RMB457 million.Information on investment in derivatives
√Applicable □N/A
(1) Derivative investments for hedging purposes during the Reporting Period.
√Applicable □N/A
Unit: 10000 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
195127.53223.41-186.25-154554.08158069.7337.930.00
(sell/short)
Total 195127.53 223.41 -186.25 - 154554.08 158069.73 37.93 0.00
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
A realized loss of RMB9.5672 million was recorded during the Reporting Period.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
38 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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
rates the forward foreign exchange trading business faces certain market risks. However for the unilateral forward exchange settlement or purchase
business the Company has effectively reduced the risks arising from exchange rate fluctuations by studying and judging the foreign exchange rate
trends and locking in the settlement or sale price through contracts. Control measures: The foreign exchange derivatives trading business shall follow
the Company's prudent and sound risk management principles without carrying out speculative trading. The Company and its subsidiaries will
strengthen the research and analysis of exchange rate pay close attention to changes in the international and domestic market environment in real time
and duly 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. Counterparty default risk: The closedown of a cooperative bank
Risk analysis of derivatives position
during the contract period may make the Company unable to perform the original foreign exchange contract at the contract price. When selecting
held during the Reporting Period and
cooperative banks to carry out foreign exchange derivatives trading business the Company will choose large banks with financially strong and sound
explanation of control measures
operation to avoid the default risk caused by their bankruptcy. Control measures: The Company and its subsidiaries will only conduct foreign exchange
(including but not limited to market risk
derivatives business with legally qualified banks and other financial institutions and will prudently review the terms and conditions of contracts entered
liquidity risk credit risk operational
into with qualified financial institutions to prevent any legal risk.risk legal risk etc.)
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 the price exposure associated with raw material procurement. 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: systemic risks in the market divergence between futures and spot prices
and insufficient liquidity of futures contracts among others. Control measures: the Company's futures hedging business shall not carry out speculative
trading and shall adhere to the operation principle of prudence and stability. The volume of hedging transactions shall be strictly limited so that it does
not exceed the actual number of spot transactions and the futures position shall not exceed the spot volume for hedging purposes. 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 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 During the Reporting Period forward foreign exchange contracts option contracts and commodity futures contracts recorded a fair value loss of
the derivatives invested during the RMB1.8625 million.
39 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Reporting Period the specific method
related assumptions and parameters used
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 1 April 2026
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
40 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
(V) Sale of major assets and equity
□Applicable √N/A
(VI) Analysis of major holding and participating companies
√Applicable □N/A
Analysis of major controlled companies and invested companies affecting 10% or more to the Company’s
net profit
√Applicable □N/A
Unit: 10000 Yuan Currency:RMB
Main products Registered Operating
Company Type Total assets Net assets Revenues Net profit
and services capital profit
R&D
production and
sale of oral
liquids tablets
(hormone-
containing)
aerosols
(including
hormone-
containing
Taitai aerosols)
Subsidiary 10000 54085.49 48523.63 10195.87 2785.70 2513.04
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
Haibin Pharma Subsidiary formulations 70000 182098.40 148911.72 47262.15 5612.18 5303.00
(solution for
inhalation)
powders for
inhalation
pharmaceutical
excipients R&D
technical
services and
testing technical
services
41 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Manufacturing
and sale of
pharmaceutical
intermediates
and APIs
(excluding
Xinxiang proprietary
Subsidiary 17000 64076.66 44162.03 21077.93 1227.73 1160.49
Haibin Chinese
medicine or
TCM decoction
pieces)
(excluding
hazardous
chemicals)
R&D
production
storage
transportation
and sale of
chemical APIs
(including
intermediates)
Joincare and
Subsidiary 50000 129065.40 120824.77 15194.30 1266.84 1183.61
Haibin pharmaceuticals.Import and
export business
and domestic
trading
(excluding State
controlled or
franchised
goods)
Production and
sale of self-
produced dietary
Health China Subsidiary supplements HKD7317 26490.28 19848.96 19294.16 4816.26 3386.10
TCM decoction
pieces and drug
products
R&D
production and
sale of
pharmaceuticals
Jiaozuo chemical APIs
Subsidiary 76000 219060.40 143064.63 65330.25 10606.59 9057.24
Joincare biological APIs
pharmaceutical
intermediates
and biological
products
Investment and
Topsino Subsidiary HKD89693 274043.91 233424.18 0.00 26842.75 25969.97
trading
Drug R&D
production
Livzon Group Subsidiary 88790.7171 2359149.00 1459772.57 499966.97 133224.29 112091.52
manufacturing
and sale
Notes: 1. The companies listed above are companies where the Company directly or indirectly held 100% equity interest;
The financial data presented above are derived from the respective companies’ separate financial statements and represent
42 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
amounts attributable to their parent companies; as there are transactions between subsidiaries or between a subsidiary and
the Company data of individual financial statements are not separately analyzed.
2. For business conditions of Livzon Group please refer to the 2026 Interim Report of Livzon Group.
Acquisition and disposal of subsidiaries during the Reporting Period
√Applicable □ Not applicable
Method of Acquisition or Impact on Overall
Company Name Disposal of Subsidiaries Production Operations and
during the Reporting Period Performance
Joincare Wellness Limited (健康元
Establishment No material impact
康健有限公司)
Imexpharm Corporation Tender Offer No material impact
Fluffy Buddy Animal Health Partial disposal and passive dilution
(Guangdong) Co. Ltd. (毛孩子动物 resulting from a capital increase by a No material impact保健（广东）有限公司) third party
Henan Joincare Bio-Pharmaceutical
Research Institute Co. Ltd. (河南省 Deregistration No material impact
健康元生物医药研究院有限公司)
Other descriptions
□ Applicable √ Not applicable
(VII) Structured entities controlled by the Company
√ Applicable □N/AFor details of the structured entities controlled by the Company please refer to Note VII “Equity inOther Entities”.V.Other matters for disclosure
(I) Potential risks
√Applicable □N/A
1. Policy Risks
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 compliance management framework and related policies.
43 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Meanwhile the Company actively pursues inclusion in and participates in negotiations concerning the
National Reimbursement Drug List (“NRDL”) and continues to expand hospital coverage and increase
product sales volumes to realize the objective of “trade price for volume” so as to reduce the impact
of adjustments to medical insurance reimbursement prices on the Company’s steady growth. Moreover
the national volume-based procurement has become 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 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 support the
Company’s stable operations.
2. Market risk
With the advancement of supply-side structural reform in pharmaceutical manufacturing and the
implementation of the two-invoice system in pharmaceutical distribution the structure of the
pharmaceutical market is undergoing profound changes. With the gradual standardization and
consolidation 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 cost controls and volume-based procurement of the pharmaceutical industry
in current stage winning bid prices for drugs will be further lowered competition among enterprises in
the industry will be intensified and price war occurs from time to time thus the Company faces the risk
of further drug price reductions.Response measures: The Company will establish a more market-oriented operating mechanism
through strict compliance operation so as to build its competitive advantages 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 price reductions through
higher sales volumes and optimize technical process and tap internal efficiency potential and optimize
production processes. Moreover the Company will accelerate the R&D and launch of new products
diversify the Company’s risks while expanding the presence of existing products across different market
segments improve sales and develop new sources of profit growth by increasing product varieties in the
future.
3. Safety and Environmental Risks
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
44 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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 consistently upheld the people-oriented approach to
workplace safety 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 ensure that pollutants are discharged only
after proper treatment and compliance with applicable emission standards 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.
4. Risks Relating to Raw Material Prices and Supply
There is a larger fluctuation in the supply price of major raw materials of the Company due to changes
in market prices especially the materials of traditional Chinese medicine causing greater volatility or rise
in production costs of the Company. Meanwhile the Company sources numerous categories of raw
materials from a large number of suppliers 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 Procurement
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.
5. Risk of Quality Control
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.
45 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
6. R&D Risk
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—concentrate resources on achieving
breakthroughs in the R&D of core products. A comprehensive R&D project risk management system will
be established to support full-cycle risk assessment and monitoring. This will enable 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 make early-stage plans for relevant
R&D projects 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
46 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Chapter 4 Corporate Governance Environmental and Social
I Changes in directors supervisors and senior management of the Company
√Applicable □N/A
Explanation of Reason
Name Position Change Reason for Change
for Change
Zhang Qinglei Vice President Appointment / /
Completion of the
Qin Yezhi Independent Director Resigned Others
statutory six-year term
Description of changes in directors supervisors and senior management of the Company
√Applicable □N/A
On 16 January 2026 the Company convened the fifteenth meeting of the ninth Board of Directors
at which the Proposal on the Appointment of Mr. Zhang Qinglei as Vice President of the Company was
considered and approved. Mr. Zhang Qinglei was appointed as Vice President of the Company and will
be fully responsible for the Company’s pharmaceutical regulatory affairs and advancing clinical trial
applications and marketing authorization applications for the Company’s innovative drug pipeline. His
term commenced upon Board approval and will last until the expiration of the term of the ninth Board of
Directors of the Company.On April 24 2026 the Board of Directors of the Company received a written resignation letter from
Mr. Qin Yezhi an Independent Director. As Mr. Qin 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 an independent director may not serve consecutively for more than six
years he applied to resign from his position as Independent Director of the Company as well as from his
positions on the Board’s special committees and other related posts.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
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 further details please refer to the
On June 1 2026 the 19th meeting of the 9th session of the Board
Announcement of Joincare Pharmaceutical
of Directors reviewed and approved the Proposal on the Extension
Group Industry Co. Ltd. on the Extension of the
of the Duration of the Second Phase of the Medium- and Long-Term
Duration of the Second Phase of the Medium-
Business Partnership Stock Ownership Plan. The Board approved
and Long-Term Business Partnership Stock
47 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
the extension of the duration of the current phase of the stock Ownership Plan (Lin 2026-045) disclosed on
ownership plan by 12 months to June 7 2027. June 2 2026.(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
14
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
1 Haibin Pharma (https://gdee.gd.gov.cn/gdeepub/front/dal/ent/list/detailentId=c7eceafd-5ac9-
41c7-9a06-e01c4659be3a)
Guangdong Provincial Department of Ecology and Environment Public Website
2 Taitai Pharmaceutical (https://gdee.gd.gov.cn/gdeepub/front/dal/ent/list/detailentId=40dca157-4e8c-
4772-8d3a-02e2ab555899)
Henan Enterprise Environmental Information Disclosure System
3 Xinxiang Haibin (http://222.143.24.250:8247/enpInfo/enpOverviewenterId=91410700764894542
9001C)
Henan Enterprise Environmental Information Disclosure System
4 Jiaozuo Joincare (http://222.143.24.250:8247/enpInfo/enpOverviewenterId=9141080077512952
0A001P)
Guangdong Provincial Department of Ecology and Environment Public Website
（https://www-Livzon Pharmaceutical app.gdeei.cn/gdeepub/front/dal/report/listentName=%E4%B8%BD%E7%8F%A
5
Factory 0%E9%9B%86%E5%9B%A2%E4%B8%BD%E7%8F%A0%E5%88%B6%E8
%8D%AF%E5%8E%82&reportType=&areaCode=440400&entType=&reportDateStartStr=&reportDateEndStr=）
Guangdong Provincial Department of Ecology and Environment Public Website
（https://www-app.gdeei.cn/gdeepub/front/dal/report/listentName=%E4%B8%BD%E7%8F%A
6 Livzon Limin
0%E9%9B%86%E5%9B%A2%E5%88%A9%E6%B0%91%E5%88%B6%E8%
8D%AF%E5%8E%82&reportType=&areaCode=440200&entType=&reportDateStartStr=&reportDateEndStr=）
Guangdong Provincial Department of Ecology and Environment Public Website
（https://www-
7 Livzon MAB app.gdeei.cn/gdeepub/front/dal/report/listentName=%E5%8D%95%E6%8A%9
7&reportType=&areaCode=440400&entType=&reportDateStartStr=&reportDateEndStr=）
Guangdong Provincial Department of Ecology and Environment Public Website8 Livzon Hecheng （https://www-app.gdeei.cn/gdeepub/front/dal/report/listentName=%E7%8F%A0%E6%B5%B
48 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
7%E4%BF%9D%E7%A8%8E%E5%8C%BA%E4%B8%BD%E7%8F%A0%E5
%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=&reportDateStartStr=&reportDateEndStr=）
Guangdong Provincial Department of Ecology and Environment Public Website
（https://www-app.gdeei.cn/gdeepub/front/dal/report/listentName=%E4%B8%BD%E7%8F%A
9 Livzon Xinbeijiang 0%E9%9B%86%E5%9B%A2%E6%96%B0%E5%8C%97%E6%B1%9F%E5%
88%B6%E8%8D%AF%E8%82%A1%E4%BB%BD%E6%9C%89%E9%99%90
%E5%85%AC%E5%8F%B8&reportType=&areaCode=441800&entType=&reportDateStartStr=&reportDateEndStr=）
Henan Enterprise Environmental Information Disclosure System10 Jiaozuo Hecheng （http://222.143.24.250:8247/enpInfo/enpOverviewenterId=9141080069058603
6E001P&reportYear=2025）
Shanghai Enterprise Environmental Information Disclosure System
11 Shanghai Livzon（https://e2.sthj.sh.gov.cn:8081/jsp/view/hjpl/index.jsp）
Ningxia Enterprise Environmental Information Disclosure System
12 Ningxia Pharmaceutical（https://222.75.41.50:10958）Fujian Enterprise Environmental Information Disclosure System（Beta
13 Fuzhou FuxingVersion） http://220.160.52.213:10053/idp-province/#/home）Fujian Enterprise Environmental Information Disclosure System（Beta
14 Gutian FuxingVersion） 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
1. Industrial revitalization
Guided by the requirements for revitalizing the Chinese medicinal materials industry Livzon Group
a controlled subsidiary of the Company has anchored its efforts in the coordinated development of the
industrial ecosystem and deeply integrated the concept of green development into the development of its
industrial and supply chains. It remains committed to advancing industrial-chain development in tandem
with natural resource conservation. By strengthening the foundation for the sustainable utilization of
resources and selecting high-quality authentic raw materials Livzon Group harnesses industrial
development to support local ecological conservation thereby achieving coordinated improvements in
industrial quality and efficiency and in the ecological environment.Livzon Group has established self-built planting bases for authentic Astragalus Root(黄芪) and
Forsythia (连翘) in authentic production areas including the Hengshan Mountains in Datong Shanxi
Province and forestland in Hongtong County Shanxi Province empowering the revitalization of local
specialty industries through the cultivation of distinctive Chinese medicinal materials. The Datong base
adopts a “human planting and natural nurturing” (人种天养) wild-simulated cultivation model. Following
the natural growth patterns of the plants the base uses no irrigation pesticides or chemical fertilizers
throughout the cultivation process. This approach enables the development of the Chinese medicinal
materials cultivation industry while conserving soil and water resources and promotes harmonious
coexistence between medicinal materials cultivation and the regional ecosystem. To date Datong Livzon
Qiyuan Medicine Co. Ltd. (大同丽珠芪源药材有限公司) has established a 26358-mu wild-simulated
49 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Astragalus Root planting base; Longxi Livzon Shenyuan Medicine Co. Ltd. (陇西丽珠参源药材有限公
司) has established a 2233-mu organic Codonopsis Root planting base; and in 2026 Linfen Livzon
Qiaoyuan Medicinal Materials Co. Ltd. (临汾丽珠翘源药材有限公司) completed the development of a
Forsythia planting base covering more than 500 mu. The Linfen base uses one-year-old seedlings
cultivated from local wild Forsythia and adopts manual planting without pesticides or chemical fertilizers
with moderate supplementary watering provided only during dry periods. In this way the base develops
the distinctive Forsythia cultivation industry while conserving soil and water conditions and maintaining
regional biodiversity.For its various jointly developed bases Livzon Group has explored industry-based pathways toengage and benefit farmers and has introduced an innovative assistance model combining “purchase orders+ technical support.” Under this model standardized cultivation techniques and professional guidance are
provided to local large-scale planters and farming households enabling farmers to carry out the
standardized cultivation and production of Chinese medicinal materials. This promotes the regulated
development of the local Chinese medicinal materials industry while ensuring the effective conservation
of soil and water resources throughout the process. Livzon Group’s self-built and jointly developed
Chinese medicinal materials bases have obtained a number of authoritative certifications and recognitions
including the Organic Product Certificate certification as an Authentic and High-quality Chinese
Medicinal Materials Planting Base (Astragalus Root) and certification as a 5A-rated Astragalus Root
Planting Base (Manual Sowing and Natural Growth). Its subsidiary Longxi Livzon Shenyuan Medicine
Co. Ltd. (陇西丽珠参源药材有限公司 ) has obtained the Organic Conversion Certificate and
certification as a Demonstration Base for High-quality Authentic Chinese Medicinal Materials
(Codonopsis Root). The Company is also advancing the special certification for GAP extension
inspections at its jointly developed Rehmannia (Di Huang) and Grassleaf Sweetflag Rhizome (Shi Chang
Pu) bases in an orderly manner with a view to developing standardized Chinese medicinal materials
cultivation bases across the entire value chain. These certifications fully demonstrate the solid progress
made by the Company in revitalizing the Chinese medicinal materials industry safeguarding the
ecological baseline of the industry and exercising strict control over the quality of medicinal materials.
2. Rural Revitalization: Inclusive Chronic Disease Prevention and Control Public Welfare
Project
To support rural revitalization and the effective consolidation and expansion of achievements in
poverty alleviation and to actively respond to the national policies on rural revitalization and commonprosperity the Company has continued to implement the “Inclusive Chronic Disease Prevention andControl 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. Focusing on common chronic diseases such as
hypertension hyperlipidemia and cardiovascular and cerebrovascular diseases the project plans to donate
treatment medications worth RMB1million to remote areas including Pravastatin Sodium 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
50 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
囊 ) Isosorbide Mononitrate Tablets ( 单 硝 酸 异 山 梨 酯 片 ) and Bismuth Potassium Citrate
Tablets/Granules (枸橼酸铋钾片/颗粒). These medications effectively help alleviate the financial burden
on low-income families arising from the long-term use of medications for chronic diseases and address
difficulties in accessing such medications. The project also helps raise patients’ awareness of chronicdisease prevention control and health management thereby effectively preventing “poverty caused byillness” and “returning to poverty due to illness” and contributing to local rural revitalization efforts.Since late 2018 with the support of 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 Pingwu County and Tongjiang County in
Sichuan Province; Hunyuan County Guangling County Lingqiu County Fangshan County and Shilou
County in Shanxi Province; Dongxiang County Tianzhu County Linze County Shandan County
Huining County Sunan County Suzhou District and Weiyuan County in Gansu Province; Xianghai
National Nature Reserve in Jilin Province; Macun District of Jiaozuo City and Hua County 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; Rongjiang County in Guizhou
Province; Neiqiu County in Hebei Province; Xianfeng County in Hubei Province; Chayu County Bomi
County Gaize County and Nyingchi City in the Tibet Autonomous Region; Kashgar City in the Xinjiang
Uygur Autonomous Region; Balinzuo Banner and Tuoketuo County in Inner Mongolia; and Ziyuan
County in the Guangxi Zhuang Autonomous Region.As of the end of the Reporting Period the project had covered 37 remote areas in need of assistance
across 12 provinces and 4 autonomous regions nationwide benefiting more than 48000 low-income
patients with chronic diseases.
51 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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
reasons
Whether Whether should be
Time limit for
there is a commitment stated in
Commitment Commitment Commitment Time of of failure in
Subject time limit is strictly case of
background type content commitment commitmen timely
for fulfilled in failure in
t fulfillmen
fulfillment time timely
t shall be
fulfillment
given
Settlement of Please see
horizontal Baiyeyuan Note 1 for 30 April 2001 No Long-term Yes - -
Commitment competition details
related to Baiyeyuan de
initial public Settlement of facto controllers Please see
10 January
offering horizontal and persons Note 2 for No Long-term Yes - -
2014
competition acting-in concert details
and the Company
Other
commitments
made to the Please see
17 December
minority Others The Company Note 3 for No Long-term Yes - -
2008
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 liability for compensation 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
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)
52 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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;
5. 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 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.
6. The controlling shareholders de facto controllers and persons acting-in-concert of the Company the Company and its
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
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 were temporarily suspended from trading
for any reason).Note 3: (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
53 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Group that were planned to be sold through the centralized bidding system of Shenzhen Stock Exchange and reduced more
than 5% shares within six months from the first share reduction the Company would publish a notice of the proposed
disposal disclosed by Livzon Group within two trading days before the first share reduction.II Non-operating use of funds by the controlling shareholder and its related parties during the
Reporting Period
□Applicable √N/A
III Information on Guarantees Provided in Violation of Applicable Requirements
□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
1. Ad Hoc Announcements without progress or change in subsequent implementation
√Applicable □N/A
Overview Query index
On December 30 2025 the Company convened the 14th
For further details please refer to the
meeting of the 9th session of the Board of Directors at which
Announcement on the Resolutions of the 14th
the Proposal on Routine Connected Transactions between
Meeting of the 9th Session of the Board of
Jiaozuo Joincare a Controlled subsidiary of the Company and
Directors of Joincare Pharmaceutical Group
Jinguan Electric Power was reviewed and approved. The
Industry Co. Ltd. (Lin 2025-084) and the
Board approved Jiaozuo Joincare’s procurement of steam and
Announcement of Joincare Pharmaceutical
power from Jinguan Electric Power in 2026 at an estimated
Group Industry Co. Ltd. on Routine Connected
maximum amount not exceeding RMB300 million (inclusive).Transactions between the Controlled
The proposal was reviewed and approved at a special meeting
subsidiary Jiaozuo Joincare and Jinguan
of the Company’s independent directors and the Supervisory
Electric Power (Lin 2025-085) both disclosed
Committee also issued its relevant review opinion thereon.by the Company on December 31 2025.The pricing for the above connected transactions was
54 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
determined by reference to prevailing market prices. During
the Reporting Period the actual amount of the above
connected transactions was RMB120.1575 million.
2. Matters that have been disclosed in the Ad Hoc announcements with progress or change in
subsequent implementation
□Applicable √N/A
3. Matters that have not been disclosed in the Ad Hoc announcements
□Applicable √N/A
(II) Related transactions relating to assets or equity acquisition and sale
1. Ad Hoc announcements without progress or change in subsequent implementation
□Applicable √N/A
2. Matters that have been disclosed in the Ad Hoc announcements with progress or change in
subsequent implementation
√Applicable □N/A
On 30 December 2025 the Company Livzon Group Shenzhen Xinyou Maohai Investment
Partnership (Limited Partnership)（深圳市心有毛孩投资合伙企业（有限合伙））(“Xinyou Maohai”)and Fluffy Buddy Animal Health (Guangdong) Co. Ltd.（毛孩子动物保健（广东）有限公司）(“FluffyBuddy”) entered into the Agreement on Capital Subscription and Equity Transfer. The Proposal on the
Connected Transaction Concerning the Equity Transfer and Capital Increase and Expansion of a
Subsidiary was considered and approved at the 14th Meeting of the 9th Session of the Board of Directors
of the Company.Pursuant to the agreement the Company proposed to transfer its 49% equity interest in Fluffy Buddy
corresponding to RMB98 million of its registered capital of which RMB73.5 million had been paid up
and RMB24.5 million remained unpaid to Xinyou Maohai for a consideration of RMB51.45 million (the
“Equity Transfer”). Concurrently Xinyou Maohai proposed to subscribe for RMB15 million of the
increased registered capital of Fluffy Buddy for a consideration of RMB15 million (the “Capital Increase”
together with the Equity Transfer the “Transaction”). Livzon Group proposed to waive its pre-emptive
right in respect of the Equity Transfer and its pre-emptive subscription right in respect of the Capital
Increase while the Company proposed to waive its pre-emptive subscription right in respect of the Capital
Increase.As of 2 April 2026 Xinyou Maohai had completed the aforesaid acquisition of equity interest and
capital increase and obtained a 52.56% equity interest in Fluffy Buddy. The Company ceased to hold any
direct equity interest in Fluffy Buddy while Livzon Group’s equity interest in Fluffy Buddy changed to
47.44% resulting in its loss of control over Fluffy Buddy. Accordingly Fluffy Buddy ceased to be
included in the scope of consolidation of the Company’s financial statements.For details of the aforesaid related-party transaction please refer to the Announcement of Joincare
Pharmaceutical Group Industry Co. Ltd. on the Disposal of Assets and Related-party Transaction (Lin
2025-086) disclosed by the Company on 31 December 2025.
3. Matters that have not been disclosed in the Ad Hoc announcements
□Applicable √N/A
55 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
4. In case of performance agreement information on performance realization during the
Reporting Period shall be disclosed
□Applicable √N/A
(III) Substantial related transactions of joint outbound investment
1. Ad Hoc announcements without progress or change in subsequent implementation
□Applicable √N/A
2. Matters that have been disclosed in the Ad Hoc announcements with progress or change in
subsequent implementation
□Applicable √N/A
3. Matters that have not been disclosed in the Ad Hoc announcements
□Applicable √N/A
(IV) Related-party Receivables and Payables
1. Ad Hoc announcements without progress or change in subsequent implementation
□Applicable √N/A
2. Matters that have been disclosed in the Ad Hoc announcements with progress or change in
subsequent implementation
□Applicable √N/A
3. Matters that have not been disclosed in the Ad Hoc announcements
√Applicable □N/A
Unit:Yuan Currency:RMB
Funds provided to related parties Funds provided by related parties to the Company
Relationship
Balance at the Balance at the Balance at the Balance at the
Related party with related Amount Amount
beginning of end of the beginning of the end of the
party changed changed
the Period Period Period Period
Guangdong Blue Treasure
Associated
Pharmaceutical Co. Ltd. 25930146.92 2392058.06 28322204.98 1048800.00 -551000.00 497800.00
company
(广东蓝宝制药有限公司)
Jiaozuo Jinguan Jiahua
Associated
Electric Power Co. Ltd. (焦 0.00 0.00 0.00 101020551.90 -8541916.28 92478635.62
company
作金冠嘉华电力有限公司)
Associated
Agimexpharm 0.00 997848.74 997848.74 0.00 637825.95 637825.95
company
Zhuhai Sanmed Biotech Inc.Associated
(珠海圣美生物诊断技术有413791.253614.37417405.620.000.000.00
company
限公司)
Feellife Health Inc. (深圳来 Associated
1090580.00-72930.001017650.000.000.000.00
福士雾化医学有限公司) company
Fluffy Buddy Animal
Health (Guangdong) Co. Associated
0.0080985.1480985.140.000.000.00
Ltd. (毛孩子动物保健(广 company
东)有限公司)
Total 27434518.17 3401576.31 30836094.48 102069351.90 -8455090.33 93614261.57
Reasons for the related-party receivables
During the Reporting Period the Company had normal operating fund transactions with related parties
and payables
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
56 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
(VI) Other substantial related transactions
□Applicable √N/A
(VII) Others
□Applicable √N/A
57 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
XI Material contracts and their enforcement
1. Custody contracting and leasing
□Applicable √N/A
2. Material Guarantees Performed during the Reporting Period and Outstanding as at the End of the Reporting Period
√Applicable □N/A
Unit：10000 Yuan Currency：RMB
External guarantees of the Company (excluding guarantees to its subsidiaries)
Relationship
Whether the Whether a Whether the
between the Date of Commence
Secured Amount of Expiry date Guarantee guarantee Whether Overdue counter- guarantee is
Guarantor Guarantor guarantee ment date of Relationship
party guarantee of guarantee type obligation has overdue amount guarantee is provided to a
and the listed agreement guarantee
been discharged provided related party
company
Jinguan Joint
Company Associated
Joincare Electric 5000.00 2025/8/27 2025/8/27 2026/7/9 liability No No 0 Yes Yes
headquarters company
Power guarantee
Jinguan Joint
Company Associated
Joincare Electric 4840.00 2025/10/13 2025/10/13 2026/10/13 liability No No 0 Yes Yes
headquarters company
Power guarantee
Jinguan Joint
Company Associated
Joincare Electric 3000.00 2025/12/25 2025/12/25 2026/7/10 liability No No 0 Yes Yes
headquarters company
Power guarantee
Jinguan Joint
Company Associated
Joincare Electric 3000.00 2025/11/27 2025/11/27 2026/11/27 liability No No 0 Yes Yes
headquarters company
Power guarantee
Jinguan Joint
Company Associated
Joincare Electric 800.00 2025/11/27 2025/11/27 2026/11/27 liability No No 0 Yes Yes
headquarters company
Power guarantee
Jinguan Joint
Company Associated
Joincare Electric 800.00 2025/11/28 2025/11/28 2026/11/27 liability No No 0 Yes Yes
headquarters company
Power guarantee
Jinguan Joint
Company Associated
Joincare Electric 5000.00 2026/1/22 2026/1/22 2027/1/22 liability No No 0 Yes Yes
headquarters company
Power guarantee
Jinguan Joint
Company Associated
Joincare Electric 4703.60 2026/6/22 2026/6/22 2027/1/31 liability No No 0 Yes Yes
headquarters company
Power guarantee
58 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Jinguan Joint
Company Associated
Joincare Electric 519.62 2026/6/29 2026/6/29 2027/6/29 liability No No 0 Yes Yes
headquarters company
Power guarantee
Amount of guarantees provided during the Reporting Period (excluding guarantees to
10223.22
subsidiaries)
Total guaranteed amount as of the end of the Reporting Period (A) (excluding guarantees
27663.22
to subsidiaries)
Guarantee provided by the Company and its subsidiaries to subsidiaries
Total amount of guarantees to subsidiaries during the Reporting Period 166561.31
Total amount of guarantees to subsidiaries as of the end of the Reporting Period (B) 185432.21
Total guaranteed amount of the Company (including guarantees to subsidiaries)
Total guaranteed amount (A+B) 213095.43
Percentage of total guaranteed amount in the Company's net assets (%) 8.97
Including:
Amount of guarantees provided to shareholders de facto controllers and their related
0.00
parties (C)
Amount of debt guarantee directly or indirectly provided to a guaranteed party with an
82049.81
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) 82049.81
Statement on the contingent joint liability that might be assumed in connection with
N/A
outstanding guarantee
Statement on guarantees Details of the above related-party guarantees are set out in Note XI.5(4) to the financial statements.
3. Other material contracts
□Applicable √N/A
XII Progress of Proceeds Usage
√Applicable □N/A
(I) Overall Usage of Proceeds
√Applicable □N/A
59 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Unit: US$10000
Including: Cumulative
Progress
Total Total investment
committed Total
of
Total investment progress of Percentage
Net amount of investment of amount of
cumulative
investment amount of excess of Total
investment Investment
Sources Paid-in proceeds after proceeds excess amount of excess proceeds as investment amount of
Total amount as at the amount
of time of deducting stated in the proceeds proceeds as proceeds as at the end of amount in proceeds
of proceeds （3）= end of the during the proceeds proceeds issuance prospectus or at the end of at the end the the year with change
Reporting year (8)
expenses (1) offering （1）- the Reporting of the Reporting (%) (9) = of usage
Period (%)
memorandum （2） Period (4) Reporting Period (8)/(1) (6) =
（2） Period （%）(7)＝
(4)/(1)
（5）(5)/(3)
Others 2022/9/26 USD9203.57 USD8930.00 USD8930.00 USD0.00 USD250.40 N/A 2.80 N/A USD0.00 0.00 N/A
Total / USD9203.57 USD8930.00 USD8930.00 USD0.00 USD250.40 N/A / / / / /
Other Notes
□Applicable √N/A
(II) Details of Investment Projects with Proceeds
√Applicable □N/A
1、Detailed Usage of Proceeds
√Applicable □N/A
Unit: 10000 Yuan
Progress of
Whether it is a Total cumulative
Whether
committed investment investment Date when
involving Total amount of
investment Investment amount of as at the end the project
Sources of Nature of any proceeds
Name of project project stated in amount during proceeds as at of the reaches
proceeds project change in commitments
the prospectus the year the end of the Reporting intended
investmen for project (1)
or offering Reporting Period usable state
t direction
memorandum Period（2） （%）
(3)＝(2)/(1)
Others Global R&D and Industrialization Plan R&D Yes No USD 6251.00 USD0.00 USD244.36 3.91 N/A
Construction of global product sales and Operation
Others Yes No USD 893.00 USD0.00 USD3.39 0.38 N/A
after-sales network and service system management
60 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Replenishment of working capital and other Operation
Others Yes No USD 1786.00 USD0.00 USD2.66 0.15 N/A
general corporate purposes management
Total / / / / USD8930.00 USD0.00 USD250.40 2.80
(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.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 Yes N/A No
other general corporate purposes
Total / / / / /
2、Detailed Usage of over-allotment
□Applicable √N/A
(III) Changes in or termination of investment of proceeds during the Reporting Period
□Applicable √N/A
61 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
(IV) Other information on the usage of proceeds during the Reporting Period
1、 Previous investment and replacement of projects invested with proceeds
□Applicable √N/A
2、 Information on temporary replenishment of working capital with idle proceeds
□Applicable √N/A
3、 Cash management of idle proceeds and investment in relevant products
□Applicable √N/A
4、 Others
□Applicable √N/A
(V) Conclusive Opinions of Intermediary Institutions on the Special Verification and
Assurance of the Storage and Use of Proceeds
□Applicable √N/A
(VI) 6、Rectification Measures Taken in Response to Unauthorized Changes in the Use of
Proceeds or Misappropriation of Proceeds
□Applicable √N/A
XIII Other significant matters
□Applicable √N/A
62 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Chapter 6 Changes in Equity and Shareholders
I Changes in Share Capital
(I) Table of changes in shares
1. Table of changes in shares
During the Reporting Period the total number of the company's shares and the share capital
structure remained unchanged.
2. Explanations on changes in shares
□ Applicable √N/A
3. Impact of changes in shares on earnings per share net assets per share and other financial
indicators from the Reporting Period to the date of disclosure of the interim report (if any)
□ Applicable √N/A
4. Other information deemed necessary by the Company or as required by the securities
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 74898
Total number of shareholders of preferred shares with resumed voting
0
rights at the end of the Reporting Period
(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 Percentage Nature of
with Share
(Full name) Reporting at the end of (%) Number Shareholder
selling status
Period the Period
restrictions
Domestic
Shenzhen Baiyeyuan non-state-
0 895653653 48.96 0 None
Investment Co. Ltd. * owned
entity
Foreign
Might Seasons Limited 0 35929699 1.96 0 Unknown
entity
Hong Kong Securities
Clearing Company -8943101 24378459 1.33 0 Unknown Unknown
Limited
63 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Domestic
Zhang Yongliang 4727721 23005717 1.26 0 Unknown Natural
Person
Bank of Shanghai Co.Ltd.－Yinhua CSI
Innovative Drug Industry
4839600 18168920 0.99 0 Unknown Unknown
Trading Open-end Index
Securities Investment
Fund
Rui Life Insurance Co.-298100 12441118 0.68 0 Unknown Unknown
Ltd. -Own fund
Bank of China Limited –
Guangfa CSI Innovative 4249966 11916899 0.65 0 Unknown Unknown
Pharmaceuticals ETF
Domestic
Li Yanli 10136080 10136080 0.55 0 Unknown Natural
Person
Joincare Pharmaceutical
Group Industry Co. Ltd.-
the Third Phase
Ownership Scheme under 0 9370400 0.51 0 None Others
Medium to Long-term
Business Partner Share
Ownership Scheme
CPIC Fund -China Pacific
Life Insurance Co. Ltd. -
with-profit insurance-
CPIC Fund China Pacific
1097900 8975500 0.49 0 Unknown Unknown
Life Equity Relative
Income (Guaranteed
Dividend) single assets
management plan
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. * 895653653 denominated in 895653653
Renminbi
Ordinary shares
Might Seasons Limited 35929699 denominated in 35929699
Renminbi
Ordinary shares
Hong Kong Securities Clearing Company
24378459 denominated in 24378459
Limited
Renminbi
Ordinary shares
Zhang Yongliang 23005717 denominated in 23005717
Renminbi
Bank of Shanghai Co. Ltd.－Yinhua CSI Ordinary shares
Innovative Drug Industry Trading Open- 18168920 denominated in 18168920
end Index Securities Investment Fund Renminbi
Ordinary shares
Rui Life Insurance Co. Ltd. -Own fund 12441118 denominated in 12441118
Renminbi
Ordinary shares
Bank of China Limited – Guangfa CSI
11916899 denominated in 11916899
Innovative Pharmaceuticals ETF
Renminbi
Ordinary shares
Li Yanli 10136080 denominated in 10136080
Renminbi
Joincare Pharmaceutical Group Industry
Ordinary shares
Co. Ltd.-the Third Phase Ownership
9370400 denominated in 9370400
Scheme under Medium to Long-term
Renminbi
Business Partner Share Ownership Scheme
64 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
CPIC Fund -China Pacific Life Insurance
Co. Ltd. -with-profit insurance-CPIC Fund Ordinary shares
China Pacific Life Equity Relative Income 8975500 denominated in 8975500
(Guaranteed Dividend) single assets Renminbi
management plan
Notes on the special repurchase account
Not applicable
among the top 10 shareholders
Description of the above shareholders
involved in entrustment/entrusted voting Not applicable
right and waiver of voting right
There was no connection or acting-in-concert relationship between Shenzhen
Description of connection or acting-in-
Baiyeyuan Investment Co. Ltd. a controlling shareholder of the Company and other
concert relationship of the above
shareholders; whether there is connection or acting-in-concert relationship among other
shareholders
shareholders is unknown.Description of holders of preferred shares
with resumed voting rights and number of Not applicable
preferred 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
□ 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 and senior management and those who
resigned during the Reporting Period
□ Applicable √N/A
Description of other information
□ Applicable √N/A
(II) Equity incentive granted to directors and senior management during the Reporting Period
□ Applicable √N/A
(III) Other Descriptions
□ Applicable √N/A
65 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
IV Changes in controlling shareholders or de facto controllers
□ Applicable √N/A
V. Information on Preferred Shares
□ Applicable √N/A
66 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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
67 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Chapter 8 Financial Statements
I. Auditor’s report
□Applicable √N/A
II. Financial statements
Consolidated Balance Sheet
30 June 2026
Prepared by: Joincare Pharmaceutical Group Industry Co. Ltd.Unit: Yuan Currency: RMB
Item Note 30 June 2026 31 December 2025
Current assets:
Cash and bank balances V.1 11558953714.96 13610715754.64
Financial assets held for trading V.2 644477284.66 1694102766.69
Notes receivable V.3 1070737720.24 1636435183.16
Accounts receivable V.4 2476239965.62 2722328581.17
Receivables financing
Prepayments V.5 297409602.31 202964890.16
Other receivables V.6 77184000.76 69355886.15
Including: Interest receivables
Dividend receivables 13083993.15
Inventories V.7 2410696842.92 2213802715.08
Contract assets
Assets held-for-sale
Non-current assets due within one year 525916708.48 880840324.51
Other current assets V.8 269408484.06 129622238.09
Total current assets V.9 19331024324.01 23160168339.65
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment V.10 1646483786.65 1483192139.93
Other equity instrument investments V.11 3001539169.91 990428693.50
Other non-current financial assets
Investment properties V.12 14856004.42 15276446.14
Fixed assets V.13 5551365051.11 5421615752.18
Construction in progress V.14 625004086.39 615348388.91
Productive biological assets
Oil & gas assets
Right-of-use assets V.15 186884748.43 43784500.37
Intangible assets V.16 846306418.05 885697302.13
Development cost V.17 408827256.63 364875894.36
Goodwill V.18 1605956000.70 636339503.82
Long-term prepaid expenses V.19 306821945.05 314844828.54
Deferred tax assets V.20 912011274.09 822667725.40
Other non-current assets V.21 278710456.88 660059793.71
Total non-current assets 15384766198.31 12254130968.99
Total assets 34715790522.32 35414299308.64
Current liabilities:
Short-term loans V.23 3495815777.99 2240000000.00
68 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Financial liabilities held for trading V.24 410080.56 487431.05
Notes payable V.25 1137315224.65 1295877244.31
Accounts payable V.26 724582732.32 691432568.22
Receipts in advance
Contract liabilities V.27 93732189.39 121567789.34
Employee benefits payable V.28 257772326.55 491740918.10
Taxes payable V.29 181337292.27 240737007.47
Other payables V.30 3540554724.15 3392845948.69
Including: Interest payables
Dividend payables 211015638.89 14017248.88
Liabilities held-for-sale
Non-current liabilities due within one
V.31 91737557.10 373229691.10
year
Other current liabilities V.32 5878032.75 7996328.84
Total current liabilities 9529135937.73 8855914927.12
Non-current liabilities:
Long-term loans V.33 783906650.00 1572266599.04
Bonds payable
Lease liabilities V.34 19510267.04 21905133.24
Long-term payables
Long-term payroll payable V.35 3619183.40
Estimated liabilities
Deferred income V.36 316000886.12 327844468.42
Deferred tax liabilities V.20 306156991.33 268219857.78
Other non-current liabilities V.37 1898428.93
Total non-current liabilities 1431092406.82 2190236058.48
Total liabilities 10960228344.55 11046150985.60
Owner’s equity (or shareholder’s equity)
Share capital V.38 1829453386.00 1829453386.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve V. 39 1235222305.56 1142268958.89
Less: Treasury shares
Other comprehensive income V. 40 -432836903.62 -134669133.15
Special reserve
Surplus reserve V.41 940060474.71 940060474.71
Undistributed profits V.42 11649307320.37 11402453599.97
Total shareholders' equity attributable to
15221206583.0215179567286.42
the parent
Minority shareholder's equity 8534355594.75 9188581036.62
Total owner’s equity (or shareholder’s
23755562177.7724368148323.04
equity)
Total liabilities and shareholders'
34715790522.3235414299308.64
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
69 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Balance Sheet of the Parent Company
30 June 2026
Prepared by: Joincare Pharmaceutical Group Industry Co. Ltd.Unit: Yuan Currency: RMB
Item Note 30 June 2026 31 December 2025
Current assets:
Cash and bank balances 1495564446.93 1438512991.88
Financial assets held for trading 50006944.44 160350136.97
Derivative financial assets
Notes receivable 140440440.58 138080748.46
Accounts receivable 121036875.39 141144985.53
Receivable financing
Prepayments 44040486.81 35244391.31
Other receivables 696763105.30 1041462965.70
Including: Interest receivables
Dividends receivable 424999500.00 769999500.00
Inventories 27749739.89 38219898.47
Contract assets
Assets held-for-sale
Non-current assets due within one
154497598.91391562666.67
year
Other current assets 22098183.33
Total current assets 2730099638.25 3406676968.32
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment 4556380522.64 3764875812.23
Other equity instrument investment 167270818.66 166816305.60
Other non-current financial assets
Investment properties 6191475.43 6191475.43
Fixed assets 44706210.18 45817926.98
Construction in progress 406674.53 406674.53
Productive biological assets
Oil & gas assets
Right-of-use assets 3824615.19 5258845.89
Intangible assets 270562757.68 293655238.10
Development cost 15490025.74
Goodwill
Long-term prepaid expenses 5868595.86 7131509.50
Deferred income tax assets 223503565.66 193025021.85
Other non-current assets 105332560.92 256336915.34
Total non-current assets 5399537822.49 4739515725.45
Total assets 8129637460.74 8146192693.77
Current liabilities:
Short-term loans
Financial liabilities held for trading
Notes payable 175103695.10 120215713.00
Accounts payable 724719611.13 521846531.29
Receipts in advance
Contract liabilities 12952360.50 9551935.76
Employee benefits payable 22393319.49 39077636.34
70 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Taxes payable 7039537.78 6353634.49
Other payables 461925158.66 463612150.87
Including: Interest payables
Dividends payable
Liabilities held-for-sale
Non-current liabilities due within
73251521.61109140800.91
one year
Other current liabilities 1639346.95 1197291.73
Total current liabilities 1479024551.22 1270995694.39
Non-current liabilities:
Long-term loans 758006650.00 822910000.00
Bonds payable
Including: preference shares
Lease liabilities 1025920.46 2533159.78
Long-term payables
Long-term payroll payable
Estimated liabilities
Deferred income 4634403.01 5325848.89
Deferred tax liabilities 2946610.81 3726682.53
Other non-current liabilities
Total non-current liabilities 766613584.28 834495691.20
Total liabilities 2245638135.50 2105491385.59
Owner’s equity (or shareholder’s equity):
Share capital 1829453386.00 1829453386.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 588557918.21 588564080.96
Less: Treasury shares
Other comprehensive income -4172811.60 -4559147.70
Special reserve
Surplus reserve 851458526.33 851458526.33
Undistributed profits 2618702306.30 2775784462.59
Total owner’s equity (or
5883999325.246040701308.18
shareholder’s equity)
Total liabilities and owner’s
8129637460.748146192693.77
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
71 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Consolidated Income Statement
January to June 2026
Unit: Yuan Currency: RMB
Item Note First half of 2026 First half of 2025
I. Total Revenues V.43 6582795940.02 7898328250.41
Including: Operating revenues V.43 6582795940.02 7898328250.41
II. Total operating costs 5130576929.66 5912767808.69
Including: Operating costs V.43 2718714845.41 2985132575.95
Operating tax and surcharges V.44 82671583.98 99500263.72
Selling expenses V.45 1446242526.58 2016794488.84
Administrative expenses V.46 379655410.85 421890723.11
R&D expenses V.47 510717025.64 611153068.61
Financial expenses V.48 -7424462.80 -221703311.54
Including: Interest expenses 32881624.05 45725827.28
Interest income 109840472.99 246070795.96
Add: Other income V.49 58347716.21 85396777.46
Investment income (“-” for loss) V.50 116169744.11 39541912.86
Including: Income from investments
54704091.6739476098.20
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 4344650.11 -6699818.51
for loss)
Losses of credit impairment (“-” for
V.52 -294385.29 -7332423.75
loss)
Impairment loss of assets (“-” for
V.53 -15963936.27 -14814061.48
loss)
Gains from disposal of assets (“-” for
V.54 -3795090.80 -149723.72
loss)
III. Operating profit (“-” for loss) 1611027708.43 2081503104.58
Add: Non-operating income V.55 6775567.63 5194263.72
Less: Non-operating expenses V.56 16800453.32 13955342.84IV. Total profit (“-” for loss)） 1601002822.74 2072742025.46
Less: Income tax expenses V.57 234795512.38 309027226.55
V. Net profit (“-” for loss) 1366207310.36 1763714798.91
(I) Classified by continuity of operations：
1. Net profit from continuing
1366207310.361763714798.91
operations (“-” for loss)
2. Net profit from discontinued
operations (“-” for loss)
(II) Classified by attribution to ownership：
1. Net profit attributable to
shareholders of the parent (“-” for 647654146.46 784939913.34
loss)
2. Net profit attributable to minority
718553163.90978774885.57
interests (“-” for loss)
VI. Other comprehensive income
-462715887.81-80044653.36
net of tax
(I) Other comprehensive income
attributable to shareholders of the -297821230.32 -48523609.49
parent net of tax
72 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
1. Other comprehensive income not
reclassified into profit or loss -204148564.18 -783183.68
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 -204148564.18 -783183.68
instruments
(4) Changes in fair value of the
Company's own credit risks
2. Other comprehensive income that
will be reclassified into profit or loss -93672666.14 -47740425.81
subsequently
(1) Other comprehensive income that
can be reclassified into profit or loss 5312.63 1130.90
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 -93677978.77 -47741556.71
denominated in foreign currencies
(7) Others
(II) Other comprehensive income
attributable to minority shareholders -164894657.49 -31521043.87
net of tax
VII. Total comprehensive income 903491422.55 1683670145.55
(I) Total comprehensive income
attributable to owners of the parent 349832916.14 736416303.85
company
(II) Total comprehensive income
553658506.41947253841.70
attributable to minority shareholders
Ⅷ. Earnings per share
(I) Basic earnings per share
0.350.43
(RMB/share)
(II) Diluted earnings per share
0.350.43
(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
73 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Income Statement of the Parent Company
January to June 2026
Unit: Yuan Currency: RMB
Item Note First half of 2026 First half of 2025
I. Total Revenues 680904680.03 594513807.68
Less: Operating costs 411151406.04 392987910.77
Operating tax and surcharges 3690953.48 4239505.51
Selling expenses 198239627.15 186461694.92
Administrative expenses 78004823.08 59998897.84
R&D expenses 94168219.60 97827723.36
Financial expenses 11535170.57 -9479509.07
Including: Interest expenses 9928596.93 13820881.41
Interest income 20691090.39 26456877.18
Add: Other income 1672481.03 1720782.25
Investment income (“-” for loss) 329786362.20 264579370.62
Including: Income from investments in
-668754.91420879.56
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
-343192.53254509.60
loss)
Losses of credit impairment (“-” for loss) -9980.97 142751.15
Impairment loss of assets (“-” for loss)
Gains from disposal of assets (“-” for loss)
II. Operating profit (“-” for loss) 215220149.84 129174997.97
Add: Non-operating income 65632.33 2049.94
Less: Non-operating expenses 1177002.97 237402.27
III. Total profit (“-” for loss) 214108779.20 128939645.64
Less: Income tax expenses -31288809.43 -31617296.51
IV. Net profit (“-” for loss) 245397588.63 160556942.15
(I) Net profit from continuing operations
245397588.63160556942.15（"-" for net loss）
(II) Net profit from discontinued
operations (“-” for loss)
V. Other comprehensive income net of
386336.10-4573401.34
tax
(I) Other comprehensive income not
reclassified into profit or loss 386336.10 -4573401.34
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
386336.10-4573401.34
other equity instruments
4.Changes in fair value of the Company's
own credit risks
(II)Other comprehensive income that will
be reclassified into profit or loss
subsequently
74 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
1.Other comprehensive income that can be
reclassified into profit or loss 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 in translation of
financial statements denominated in
foreign currencies
7. Others
VI.Total comprehensive income 245783924.73 155983540.81
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
75 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Consolidated Cash Flow Statement
January to June 2026
Unit: Yuan Currency: RMB
Item Note First half of 2026 First half of 2025
I. Cash flows from operating activities：
Cash received from sales of goods or
7930882565.368365901348.13
rendering of services
Tax refund received V.58 77110943.19 82817164.75
Other cash received relating to operating
202399751.02342047113.20
activities
Sub-total of cash inflows 8210393259.57 8790765626.08
Cash paid for goods and services 2262626581.71 2272460058.12
Cash paid to and on behalf of employees 1449108645.32 1464238914.58
Payments of all types of taxes 775013547.99 950093694.06
Other cash paid relating to operating
V.58 1681165983.04 2177616301.22
activities
Sub-total of cash outflows 6167914758.06 6864408967.98
Net cash flows from operating activities 2042478501.51 1926356658.10
II. Cash flows from investing activities：
Cash received from disposal of
6182143607.483242861092.69
investments
Cash received from returns on investments 34356225.32 14255709.03
Net cash received from disposal of fixed
assets intangible assets and other long- 5899329.09 30429573.00
term assets
Net cash received from disposal of
subsidiaries and other business units
Other cash received relating to investing
V.58 1855603200.00 75249.03
activities
Sub-total of cash inflows from investing
8078002361.893287621623.75
activities
Cash paid to acquire fixed assets
intangible assets and other long-term 343283224.95 488268022.92
assets
Cash paid to acquire investments 6770564463.99 3436309986.72
Net cash paid for acquisition of
1557160427.97
subsidiaries and other business units
Other cash paid relating to investing
V.58 75563573.85 4517299.69
activities
Sub-total of cash outflows in investing
8746571690.763929095309.33
activities
Net cash flows from investing activities -668569328.87 -641473685.58
III. Cash flows from financing activities ：
Cash received from capital contribution 39500000.00 3350000.00
Including: Cash received from investment
39500000.003350000.00
by minority interests of subsidiaries
Cash received from borrowings 3372306940.58 1942140000.00
Other cash received related to financing
V.58
activities
Subtotal of cash inflow from financing
3411806940.581945490000.00
activities
Cash repayments of amounts borrowed 3234854363.15 2264521809.00
Cash payments for interest expenses and
1633646412.00698942985.71
distribution of dividends or profits
76 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Including: Dividend paid to minority
1196123200.68478852409.14
interests of subsidiaries
Other cash payments relating to financing
V.58 17060854.26 590694203.10
activities
Sub-total of cash outflows in financing
4885561629.413554158997.81
activities
Net cash flows from financing activities -1473754688.83 -1608668997.81
IV. Effect of foreign exchange rate
-176774656.64-42888330.00
changes on cash and cash equivalents
V. Net increase in cash and cash
-276620172.83-366674355.29
equivalents
Add: Opening balance of cash and cash
11745695094.9514842645678.32
equivalents
VI. Closing balance of cash and cash
11469074922.1214475971323.03
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
77 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Cash Flow Statement of Parent Company
January to June 2026
Unit: Yuan Currency: RMB
Item Note First half of 2026 First half of 2025
I. Cash flows from operating activities：
Cash received from sales of goods or
782601091.61832919579.47
rendering of services
Tax refund received
Other cash received relating to
391212867.0562174269.98
operating activities
Sub-total of cash inflows 1173813958.66 895093849.45
Cash paid for goods and services 220426058.78 379250549.67
Cash paid to and on behalf of
147670353.90164772801.65
employees
Payments of all types of taxes 31570682.15 25449069.12
Other cash paid relating to operating
588079164.54204913432.36
activities
Sub-total of cash outflows 987746259.37 774385852.80
Net cash flows from operating
186067699.29120707996.65
activities
II. Cash flows from investing activities：
Cash received from disposal of
1600296814.68399167968.04
investments
Cash received from returns on
688655452.08340739664.63
investments
Net cash received from disposal of
fixed assets intangible assets and 3862448.54 224898.53
other long-term assets
Net cash received from disposal of
51450000.00
subsidiaries and other business units
Other cash received relating to
investing activities
Sub-total of cash inflows from
2344264715.30740132531.20
investing activities
Cash paid to acquire fixed assets
intangible assets and other long-term 5222015.16 11365298.15
assets
Cash paid to acquire investments 1930000000.00 382000000.00
Net cash paid for acquisition of
subsidiaries and other business units
Other cash paid relating to investing
activities
Sub-total of cash outflows in
1935222015.16393365298.15
investing activities
Net cash flows from investing
409042700.14346767233.05
activities
III. Cash flows from financing activities ：
Cash received from capital
contribution
Cash received from borrowings 152000000.00
Other cash received related to
financing activities
Subtotal of cash inflow from
152000000.00
financing activities
78 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Cash repayments of amounts
100900000.006470000.00
borrowed
Cash payments for interest expenses
and distribution of dividends or 413200737.30 192732461.20
profits
Other cash payments relating to
1747513.50173041091.26
financing activities
Sub-total of cash outflows in
515848250.80372243552.46
financing activities
Net cash flows from financing
-515848250.80-220243552.46
activities
IV. Effect of foreign exchange rate
changes on cash and cash -22210693.58 -2913521.17
equivalents
V. Net increase in cash and cash
57051455.05244318156.07
equivalents
Add: Opening balance of cash and
1438512991.881267163186.68
cash equivalents
VI. Closing balance of cash and
1495564446.931511481342.75
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
79 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Consolidated Statement of Changes in Owner's Equity
January to June 2026
Unit: Yuan Currency: RMB
First half of 2026
Owner's equity attributable to the parent company
Minority Total
Item Other equity instruments Less: Other General
Special Undistributed shareholder's shareholders'
Share capital Preferred Perpetual Capital reserve Treasury comprehensive Surplus reserve risk Subtotal
Others reserve profits equity equity
share bonds shares income reserve
I. Balance at
the end of 1829453386.00 1142268958.89 -134669133.15 940060474.71 11402453599.97 15179567286.42 9188581036.62 24368148323.04
previous year
Add: Change
of accounting
policies
Correction to
errors of the
previous
period
Others
II. Balance at
the beginning 1829453386.00 1142268958.89 -134669133.15 940060474.71 11402453599.97 15179567286.42 9188581036.62 24368148323.04
of the year
III. Increase
and decrease
of the Period 92953346.67 -298167770.47 246853720.40 41639296.60 -654225441.87 -612586145.27
(“-” for
decrease)
(I) Total
comprehensive -297821230.32 647654146.46 349832916.14 553658506.41 903491422.55
income
(II) Capital
contribution or
92959509.4292959509.42109551851.94202511361.36
reduction from
shareholders
1. Capital
contribution
313865135.18313865135.18
from
shareholders
2. Capital
invested by
other equity
instrument
holders
3. Amount of
share-based
payment
included in
owner's equity
4. Others 92959509.42 92959509.42 -204313283.24 -111353773.82
(III) Profit
-402479744.92-402479744.92-1389695773.37-1792175518.29
distribution
1. Accrual of
surplus reserve
80 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
2. Accrual of
general risk
provision
3. Amount
distributed to
-402479744.92-402479744.92-1389695773.37-1792175518.29
owners (or
shareholders)
4. Others
(IV)Internal
carrying
-346540.151679318.861332778.711332778.71
forward of
owner's equity
1. Capital
reserve
transferred to
increase
capital (or
share capital)
2. Surplus
reserve
transferred to
increase
capital (or
share capital)
3. Surplus
reserve
compensating
losses
4. Retained
earnings
carried over
from changes
in the defined
benefit plan
5. Retained
earnings
carried over
-346540.151679318.861332778.711332778.71
from other
comprehensive
income
6. Others
(V) Special
reserve
1. Accrual of
the current
year
2. Amount
utilized in the
current period
(VI) Others -6162.75 -6162.75 72259973.15 72253810.40
IV. Balance
at end of 1829453386.00 1235222305.56 -432836903.62 940060474.71 11649307320.37 15221206583.02 8534355594.75 23755562177.77
period
81 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
First half of 2025
Owner's equity attributable to the parent company
Other equity instruments Minority Total
Item Other General
Perpet Less: Treasury Special Undistributed shareholder's shareholders'
Share capital Preferred Other Capital reserve comprehensive Surplus reserve risk Subtotal
ual shares reserve profits equity equity
shares s income reserve
bonds
I.Balance
at the
end of 1874200420.00 1654383491.41 328221279.42 -41177547.42 883841583.49 10491692921.28 14534719589.34 8865423189.94 23400142779.28
previous
year
Add:
Change of
accountin
g policies
Correctio
n to errors
of the
previous
period
Others
II.Balance
at the
1874200420.001654383491.41328221279.42-41177547.42883841583.4910491692921.2814534719589.348865423189.9423400142779.28
beginnin
g of the
year
III.Increase
and
decrease
-44747034.00-543318901.17-328221279.42-45168170.38415693797.03110680970.9025790959.69136471930.59
of the
Period
(“-” for
decrease)
(I) Total
comprehe
-48523609.49784939913.34736416303.85947253841.701683670145.55
nsive
income
(II)
Capital
contributi
on or
-44747034.00-455236533.56-328221279.42-171762288.14-343739509.13-515501797.27
reduction
from
sharehold
ers
1.Capital
contributi
on from -44747034.00 -455236533.56 171762288.14 -671745855.70 3350000.00 -668395855.70
sharehold
ers
2. Capital
invested
by other
equity
instrumen
t holders
82 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
3.
Amount
of share-
based
payment
included
in owner's
equity
4. Others -499983567.56 499983567.56 -347089509.13 152894058.43
(III)
Profit
-365890677.20-365890677.20-626443245.00-992333922.20
distributi
on
1.Accrual
of surplus
reserve
2.Accrual
of general
risk
provision
3.Amount
distribute
d to
owners -365890677.20 -365890677.20 -626443245.00 -992333922.20
(or
sharehold
ers)
4. Others
(IV)
Internal
carrying
3355439.11-3355439.11-3796209.52-3796209.52
forward
of owner's
equity
1. Capital
reserve
transferre
d to
increase
capital (or
share
capital)
2. Surplus
reserve
transferre
d to
increase
capital (or
share
capital)
3. Surplus
reserve
compensa
ting
losses
4.Retaine
d earnings
carried
83 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
over from
changes
in the
defined
benefit
plan
5.Retaine
d earnings
carried
over from
3355439.11-3355439.11-3796209.52-3796209.52
other
comprehe
nsive
income
6. Others
(V)
Special
reserve
1. Accrual
of the
current
year
2.
Amount
utilized in
the
current
period
(VI)
-88082367.61-88082367.6152516081.64-35566285.97
Others
IV.Balance
1829453386.001111064590.24-86345717.80883841583.4910907386718.3114645400560.248891214149.6323536614709.87
at end of
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
84 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Statement of Changes in Owner's Equity of the Parent Company
January to June 2026
Unit: Yuan Currency: RMB
First half of 2026
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 1829453386.00 588564080.96 -4559147.70 851458526.33 2775784462.59 6040701308.18
Add: Change of accounting policies
Correction to errors of the previous period
Others
II. Balance at the beginning of the year 1829453386.00 588564080.96 -4559147.70 851458526.33 2775784462.59 6040701308.18
III. Increase and decrease of the Period
-6162.75386336.10-157082156.29-156701982.94
(“-” for decrease)
(I). Total comprehensive income 386336.10 245397588.63 245783924.73
(II) Capital contribution or reduction from
shareholders
1. Capital contribution from shareholders
2. Capitals invested by other equity
instrument holders
3. Amount of share-based payment included
in owner's equity
4. Others
(III) Profit distribution -402479744.92 -402479744.92
1. Accrual of surplus reserve
2. Amount distributed to owners (or
-402479744.92-402479744.92
shareholders)
3. Others
(IV) Internal carrying forward of owner's
equity
1. Capital reserve transferred to increase
capital (or share capital)
2. Surplus reserve transferred to increase
capital (or share capital)
3. Surplus reserve compensating losses
4. Retained earnings carried over from
changes in the defined benefit plan
5. Retained earnings carried over from other
comprehensive income
6. Others
(V) Special reserve
1. Accrual of the current year
2. Amount utilized in the current period
(VI) Others -6162.75 -6162.75
IV. Balance at the end of the Period 1829453386.00 588557918.21 -4172811.60 851458526.33 2618702306.30 5883999325.24
85 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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 1874200420.00 1043800614.52 328221279.42 888524.41 795239635.11 2635705118.80 6021613033.42
Add: Change of accounting policies
Correction to errors of the previous
period
Others
II. Opening balance of the current year 1874200420.00 1043800614.52 328221279.42 888524.41 795239635.11 2635705118.80 6021613033.42
III. Increase and decrease of the Period
-44747034.00-455236533.56-328221279.42-4573401.34-205333735.05-381669424.53
(“-” for decrease)
(I). Total comprehensive income -4573401.34 160556942.15 155983540.81
(II). Capital contribution or reduction
-44747034.00-455236533.56-328221279.42-171762288.14
from shareholders
1. Capital contribution from shareholders -44747034.00 -455236533.56 171762288.14 -671745855.70
2. Capitals invested by other equity
instrument holders
3. Amount of share-based payment
included in owner's equity
4. Others -499983567.56 499983567.56
(III) Profit distribution -365890677.20 -365890677.20
1. Accrual of surplus reserve
2. Amount distributed to owners (or
-365890677.20-365890677.20
shareholders)
3. Others
(IV) Internal carrying forward of owner's
equity
1. Capital reserve transferred to increase
capital (or share capital)
2. Surplus reserve transferred to increase
capital (or share capital)
3. Surplus reserve compensating losses
4. Retained earnings carried over from
changes in the defined benefit plan
5. Retained earnings carried over from
other comprehensive income
6. Others
(V)Special reserve
1. Accrual of the current year
2. Amount utilized in the current period
Others
IV. Balance at end of year 1829453386.00 588564080.96 -3684876.93 795239635.11 2430371383.75 5639943608.89
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
86 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Joincare Pharmaceutical Group Industry Co. Ltd
Notes to the financial statements
（All amounts in RMB Yuan unless otherwise stated）
I Company Profile
1. Overview
√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
18 December 1992 with the approval from Shenzhen Administration for Industry and Commerce.
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 2026 the total share capital of the Company was RMB1829453386 and the
total number of shares of the Company was 1829453386. 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.
17 Langshan Road North District High-tech Zone Nanshan District Shenzhen.
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 21st Meeting of the 9th Session of the Board on 24 August 2026.II Basis of Preparation for the Financial Statements
1. Basis of preparation
These financial statements have been prepared in accordance with the Accounting Standards
for Business Enterprises (ASBE) issued by the Ministry of Finance together with their applicationguidelines interpretations and other relevant regulations (collectively referred to as the “AccountingStandards for Business Enterprises”). In addition the Company has disclosed the relevant financial
information in accordance with the Rules for the Preparation and Submission of Information
Disclosures by Companies Offering Securities to the Public No. 15 — General Provisions on
87 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026Financial Reports (《公开发行证券的公司信息披露编报规则第 15 号——财务报告的一般规定》)(2023 Revision) issued by the China Securities Regulatory Commission (CSRC).The Company's accounting is based on the accrual basis of accounting. Except for certain
financial instruments these financial statements are measured on a historical cost basis. Non-current
assets held for sale are measured at the lower of their carrying amount and the amount of fair value
less estimated costs to sell provided that they meet the conditions for classification as held for sale.If assets are impaired corresponding impairment provisions are recognized in accordance with the
relevant provisions.
2. Continuing operation
√Applicable □N/A
The financial statements have been prepared on the going-concern basis.III Significant Accounting Policies and Accounting Estimates
Specific accounting policies and accounting estimates:
√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.
1. Statement of compliance with the Accounting Standards for Business Enterprises
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 2026 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-month period ending 30 June
2026.
2. Accounting period
The fiscal year of the Company is from 1 January to 31 December in each calendar year.
3. Business cycle
√Applicable □N/A
The Company’s operating cycle is 12 months.
4. Functional currency
The functional currency of the Company and its domestic subsidiaries is Renminbi (“RMB”).Overseas subsidiaries of the Company usually determine Hong Kong Dollar Macanese Pataca
Indonesian Rupiah Singapore Dollar Euro Philippine Peso Vietnamese Dong and US Dollar as
88 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
their functional currencies according to the primary economic environment in which these
subsidiaries operate. The Company prepares its financial statements in RMB.
5. Determination and selection basis of materiality criteria
√Applicable □N/A
Item Materiality criteria
Material receivables subject to provision for Individual debtor accounts for more than 5% of all types of receivables
bad debt individually 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 than
Material contract liabilities aged over one
10% of consolidated contract liability and the amount exceeds RMB
year
50 million
Individual accounts payable/other payable aged over one-year accounts
Material accounts payable and other
for more than 10% of total accounts payables/other payables and the
payables aged over one year
amount exceeds RMB 50 million
One or both of the subsidiary's total assets operating income net profit
Material non-wholly owned subsidiaries (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 cash
Material investment activities 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
6. Accounting treatment for business combinations involving enterprises under common
control and business combinations involving enterprises not under common control
√Applicable □N/A
(1) Business combinations involving enterprises under common control
For 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 is recognized 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
89 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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 by the
combining party in the business combination are measured at their carrying amounts in the
consolidated financial statements of the ultimate controlling party as at the combination date. The
difference between the aggregate of the carrying amount of the investment held before the
combination and the carrying amount of the consideration newly paid at the combination date and
the carrying amount of the net assets acquired in the combination shall be adjusted against the share
premium in the capital reserve. Where the share premium in the capital reserve is insufficient to
absorb the difference retained earnings shall be adjusted. In respect of a long-term equity
investment held by the combining party before obtaining control over the combined party the
related profit or loss other comprehensive income and other changes in owners’ equity recognized
during the Period from the later of the date on which the original equity interest was acquired and
the date on which the combining party and the combined party came under the common control of
the same ultimate controlling party to the combination date shall be offset against the opening
retained earnings for the comparative financial statement periods or profit or loss for the current
period as appropriate.
(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 recognized 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 recognized 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 recognized 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 recognized due to the changes in other shareholders’ equity other than the changes of net loss
and profit other comprehensive income and profit distribution shall be transferred to profit or loss
90 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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 recognized 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
recognized 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
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 recognized 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.
7. Basis for determination of control and preparation of the consolidated financial statements
√Applicable □N/A
(1) Basis for determination of control
The scope of consolidated financial statements is determined based on control. Control means
the Company has power over the investee is exposed to or has rights to variable returns from its
involvement with the investee and can use its power over the investee to affect the amount of such
returns. 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 consolidated financial statements the Company and its subsidiaries are required to
apply consistent accounting policies and accounting periods and intra-group transactions and
balances shall be offset.
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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 consolidation of the
Company from the date when it is under control of the ultimate controlling party and 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.The shareholders' equity of the subsidiaries that are not attributable to the Company shall be
presented in the consolidated balance sheet under shareholders' equity as non-controlling interests.The portion of the net profit or loss of the subsidiaries for the Period attributable to non-controllinginterests is presented in the consolidated income statement under “profit or loss attributable to non-controlling interests”. Where the loss borne by the non-controlling interests of a subsidiary exceeds
their share of the opening balance of the owners' equity of the subsidiary the excess shall still be
debited against non-controlling interests.
(3) Purchase of the minority stake in the subsidiary
The difference between the cost of the long-term equity investments newly acquired through
the purchase of minority interests and the share of the net assets of the subsidiaries that are
continuously calculated from the acquisition date or the consolidation date proportionate to the
additional shareholding acquired as well as the difference between the disposal consideration
received from the partial disposal of equity investments in a subsidiary without losing control and
the share of the net assets of the subsidiary that is continuously calculated from the acquisition date
or the consolidation date corresponding to the disposed long-term equity investment shall be
adjusted against the capital reserve (share premium); where the capital reserve is insufficient any
excess shall be adjusted against 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 recognized
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
92 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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 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:
* such transactions are entered into simultaneously or upon the consideration of the mutual
impacts;
* no complete commercial result will be realized without such transactions as a whole;
* the occurrence of one transaction depends on the occurrence of at least another transaction;
* the result of an individual transaction is not economical but it would be economical after
considering 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 intothe investment income for the current period; where the transactions constitute “a basket oftransactions” 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 recognized
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 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:
* in case the transactions are “a basket of transactions” such difference is recognized 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 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.
8. Classification of joint arrangement and accounting treatment for joint operation
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√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 has rights and obligations to
the relevant assets and liabilities.The Company recognizes the following items in relation to its interest in 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;
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 is 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.
9. Standards for determination of cash and cash equivalents
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.
10. Foreign currency transactions and translation of financial statements in foreign currency
√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 recognized 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
94 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
recognized 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 average exchange rate for the
Period while special transactions such as dividends and investments are translated at the spot
exchange rate. The effect of exchange differences on cash is adjusted and separately presented as
"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.
11. Financial instruments
√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 recognized when the Company becomes one of the
parties under a financial instrument contract.The financial assets will be derecognized if any of the following conditions is satisfied:
* the contractual right to receive the cash flow of the financial assets is terminated;
* 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 derecognized. 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 from the original financial liability the original financial liability shall be de-
recognized and the new financial liability shall be recognized at the same time.
95 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Regular way purchases or sales of financial assets are recognized and derecognized on the trade
date.
(2) Classification and measurement of financial assets
The Company classifies financial assets into three categories: financial assets at amortized 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
consider a significant financing component are initially recognized at the expected amount to be
received.Financial assets at amortized 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 amortized 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 amortized cost using the
effective interest method. Gains or losses arising from financial assets which are measured at
amortized cost and not part of any hedging relationship are included in the profit and loss of the
current period upon de-recognition amortization 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 recognized in profit or loss for the current period while other gains or losses are
recognized in other comprehensive income. The cumulative profit or loss previously included in
96 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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 amortized cost or at fair value
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. Upon initial recognition
in order to eliminate or significantly reduce accounting mismatches the Company irrevocably
designates some financial assets that should have been measured at amortized cost or at fair value
through other comprehensive income as financial assets at fair value through profit or loss for the
current period.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 recognized 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 recognized in profit and loss and other gains or losses and
changes in fair value are recognized in other comprehensive gains. When derecognized the
accumulated gains or losses previously recognized 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.
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Only when the Company changes its business model of managing financial assets shall all the
financial assets affected 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 amortized 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 recognized amount.Financial liabilities at fair value through profit or loss
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
recognized in profit or loss for the current period.Financial liabilities at amortized cost
Other financial liabilities are subsequently measured at amortized cost using the effective
interest method; gains and losses arising from derecognition or the amortization process is
recognized 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 the following criteria:
* a contractual obligation to deliver cash or another financial asset to another entity.* under potential adverse condition contractual obligation to exchange financial assets or
financial liabilities with other parties.* 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.* 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 will or may be settled in the Company’s own equity instruments the
Company considers whether those equity instruments used for settlement represent a substitute for
cash or other financial assets or entitle the holder of the instrument to a residual interest in the
Company’s assets after deducting all of its liabilities. In the former case the instrument is a financial
liability of the Company; in the latter case it is an equity instrument of the Company.
(4) Derivative financial instruments and embedded derivatives
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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 recognized as an
asset otherwise that with negative fair value shall be recognized as a liability. Any gain or loss
arising from changes in fair value that does not qualify for hedge accounting is recognized directly
in profit or loss for the 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
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 amortized 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.
99 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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 recognize 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
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 events 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 financial instruments in Stages 1 and 2 and those with low credit risk the Company
calculates interest income by applying the effective interest rate to the gross carrying amount
without deducting the loss allowance. For financial instruments in Stage 3 the Company calculates
interest income by applying the effective interest rate to the amortized cost being the gross carrying
amount less the loss allowance.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
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For notes receivable trade receivables and contract assets regardless of 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.Where information necessary for assessing the expected credit losses of an individual financial
asset or contract asset is not available at reasonable cost the Company groups notes receivable
trade receivables or contract assets into portfolios based on their credit risk characteristics and
measures expected credit losses on a portfolio basis. The basis for determining the portfolios is as
follows:
A. Notes receivable
? Notes receivable portfolio 1: Bank acceptance bills
? Notes receivable portfolio 2: Commercial acceptance bills
B. Accounts receivable
? Accounts receivable portfolio 1: Amount due from domestic customers
? Accounts receivable portfolio 2: Amount due from overseas customers
? Accounts receivable 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 trade receivables grouped into portfolios the Company measures expected credit losses by
preparing a matrix of the ageing of trade receivables and the corresponding lifetime expected credit
loss rates with reference to historical credit loss experience current conditions and forecasts of
future economic conditions. The ageing of trade receivables is calculated from the date of
recognition.Other receivables
The Company classifies other receivables into certain portfolios based on credit risk
characteristics and measures expected credit losses on a portfolio 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.
101 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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 a portfolio
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
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 has 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
102 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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 amortized 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;
* 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 be considered;
* 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 recognized as an impairment gain or loss in profit or loss. For
financial assets measured at amortized cost the loss provision is offset against their carrying
amounts in the balance sheet. For debt investments at FVOCI the Company recognizes 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 when 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 recognized as a reversal
of impairment in profit or loss in the Period in which the recovery occurs.
(7) Transfer of financial assets
103 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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 derecognizes 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 derecognize
a financial asset if it retains substantially all the risks and rewards of ownership of the financial asset.Where the Company neither transfers nor retains substantially all the risks and rewards of
ownership of a financial asset it accounts for the transaction as follows: if the Company has
relinquished control over the financial asset it derecognizes the financial asset and recognizes any
resulting assets and liabilities; if the Company retains control over the financial asset it continues
to recognize the financial asset to the extent of its continuing involvement in the transferred financial
asset and recognizes an associated liability accordingly.
(8) Offsetting financial assets and financial liabilities
Financial assets and financial liabilities are offset and the net amount is presented in the
balance sheet only when the Company currently has a legally enforceable right to offset the
recognized amounts and intends either to settle on a net basis or to realize the financial asset and
settle the financial liability simultaneously. In all other circumstances financial assets and financial
liabilities are presented separately in the balance sheet and are not offset.
12. Fair value measurement
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 assumptions used by the market
participants to realize 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 techniques to recognize 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
104 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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 to the use of relevant
observable inputs only the observable inputs cannot be obtained or is 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 recognized to
be measured at fair value on the financial statements to make sure whether conversion occurs
between fair value hierarchies.
13. Inventories
√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 amortized in full upon the use.
(3) Inventory system
The Company maintains a perpetual inventory system.
(4) Amortization methods of consumables
Low-value consumables and packaging materials of the Company are amortized in full when
used.Determination basis and provision method for decline in value of inventories
√Applicable □N/A
On the balance sheet date the inventories are calculated at the lower of cost and the net
realizable value. When its net realizable value is lower than its cost a provision for inventory
impairment is made.
105 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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.
14. Non-current Assets or Disposal Groups Held for Sale
√Applicable □N/A
Non-current Assets Held for Sale and Discontinued Operations
Recognition and accounting treatment of non-current assets or the disposal group held for
sale
√Applicable □N/A
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 non-monetary 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 circumstances 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
106 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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 recognized 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 recognized in
disposal groups the carrying amount of disposal groups' goodwill shall be offset against the carrying
amount of disposal groups' goodwill 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 recognized on the noncurrent asset recognized after the non-current
asset was classified as held for sale. 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 amortization 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 recognized 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
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:
* 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 amortization or impairment that could have
been recognized if it was not classified into the held-for-sale category;
* the recoverable amount.Determination standard and presentation method of discontinued operations
√Applicable □N/A
(1) Determination of discontinued operation
Discontinued operation refers to the component meeting one of the following conditions which
has been disposed of by the Company or classified by the Company into the held-for-sale type and
can be identified separately:
107 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
* the component represents an independent principal business or a separate principal business
place.* the component is a part of the related plan for the contemplated disposal of an independent
principal business or a separate principal business place.* the component is a subsidiary acquired exclusively for the purpose of resale.
(2) 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
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.
15. Long-term equity investment
√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-
108 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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 ventures 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 undistributed the cash dividend or profit declared and distributed by the investee is
recognized 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 assets
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 assets 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 recognized according to the share in the investee's realized 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
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 recognized 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
109 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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 recognizedin accordance with “Accounting Standards for Business Enterprises No. 22 – Recognition andMeasurement of Financial Instruments” and the difference between fair value and carrying amount
should be recognized as profit or loss for current period. Other comprehensive income of original
equity investment recognized under equity method shall be recognized 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 recognized under equity method
since the acquisition date. The surplus owners' equity that are unable to implement joint control orhave no significant influence over investees shall be processed in accordance with “AccountingStandards for Business Enterprises No. 22 – Recognition and Measurement of FinancialInstruments” and the difference between fair value and carrying amount at the day of loss of control
shall be recognized 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 recognize 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.The Company recognizes the unrealized profit or loss of intra-transaction between the joint
ventures or associates that belongs to itself according to the proportion of the shares and recognizes
the investment income or loss after offset. However the loss arising from the unrealized 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 step is to determine whether the relevant
arrangement is controlled collectively by all the parties involved or the group of the parties involved.Secondly 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
110 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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.Protective 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 below 20% 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.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 in subsidiaries associates and joint ventures and the
impairment provision of assets.
16. Investment properties
(1) Depreciation or amortization method under the cost model
Depreciation or amortization Method
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 held for transfer after appreciation buildings that have already been leased out etc.
111 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Investment properties of the Company are measured initially at cost upon acquisition and
subject to depreciation or amortization 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 of the income from the disposal transfer scrapping or destruction of the
investment properties less their book values and the relevant taxes shall be recognized in the profit
or loss for the current period.
17. Fixed assets
(1) Conditions for recognition of fixed assets
√Applicable □N/A
The Company's fixed assets represent the tangible assets held by the Company used 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 recognized only when the economic benefit related to the fixed asset is
likely 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 derecognized.
(2) Method of depreciation
√Applicable □N/A
Depreciation Annual
Category method Useful life (years)
Residual rate
depreciation
(%)
(%)
Properties and Straight-line
5-400-102.25-20
Buildings method
Machinery and Straight-line
3-150-106-33.33
equipment method
Transportation Straight-line
5-100-109-20
equipment method
Electric equipment Straight-line
3-80-1011.25-33.33
and others method
Where an impairment provision has been made for a fixed asset the accumulated amount of
the fixed asset impairment provision shall be deducted when computing and determining the
depreciation rate.
112 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
(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 assets and
the depreciation method applied at each period end.The useful lives of fixed assets 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 are recognized 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 recognized in profit or loss for the current period.Property plant and equipment are depreciated during the intervals of the regular overhaul.
18. Construction in progress
√Applicable □N/A
Construction in progress is measured at actual cost. Actual cost comprises necessary project
expenditure incurred during construction borrowing cost that is eligible for capitalization and other
necessary costs 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.
(4) If GMP certification is required it must pass the GMP on-site inspection and receive a
Buildings and structures
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
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.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”.
19. Borrowing costs
√Applicable □N/A
(1) Recognition principle of capitalization of borrowing costs
113 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
For borrowing costs that are directly attributable to the acquisition construction or production
of a qualifying asset they shall be capitalized and included in the cost of related assets; other
borrowing costs are recognized as expenses and included in profit or loss when incurred.Capitalization of such borrowing costs can commence only when all of the following conditions are
satisfied:
* 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 capitalization;
* borrowing costs incurred;
* 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) Capitalization period of borrowing costs
Capitalization 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 recognized as an expense in the Period in which they are incurred and included in profit
or loss for the current period.Capitalization 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 normal interrupted
period continue to be capitalized.
(3) Calculation of the capitalization 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 capitalized. The capitalization rate of the
general borrowing is determined by applying the weighted average effective interest rate of general
borrowings to the weighted average of the excess amount of cumulative expenditures on the asset
over the amount of specific borrowings.During the capitalization period exchange differences on foreign currency special borrowings
shall be capitalized; exchange differences on foreign currency general borrowings shall be
recognized as current profits or losses.
20. Biological assets
√Applicable □N/A
(1) Determination of biological assets
Biological assets refer to assets comprising living animals and plants. No biological asset shall
be recognized unless it meets the conditions as follows simultaneously:
* an enterprise possesses or controls the biological asset as a result of past transaction or event;
* the economic benefits or service potential concerning this biological asset are likely to flow
into the enterprise;
114 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
* 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 consumable biological assets obtained by self-planting self-cultivating or self-breeding is the
necessary cost directly attributable to this asset prior to the harvest consisting of borrowing costs
that meet the conditions of capitalization. The subsequent expenses for the maintenance protection
and cultivation of a consumable biological asset after the harvest shall be included in the current
profit 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 realizable value of the consumable biological assets is lower than their carrying
amount provision of impairment loss is made and recognized in the profit or loss for the current
period as the excess of the carrying amount over the net realizable value. If the factors affecting the
impairment of consumable biological assets no longer exist the amount of write-down shall be
reversed and shall be reversed from the original provision for the impairment loss before being
recognized in the profit or loss for the current period.
21. Intangible assets
(1) Pricing methods useful lives and impairment tests
√Applicable □N/A
An intangible asset is an identifiable non-monetary asset without physical substance owned or
controlled by the Company. An intangible asset is recognized 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.* where the consideration for the purchase of an intangible asset is deferred beyond normal
credit terms and is in substance of a financing nature the cost of the intangible asset is determined
based on the present value of the purchase consideration.* where an intangible asset is obtained by the Company in a debt restructuring as a settlement
of debts its recorded value is determined based on the fair value of the intangible asset and the
difference between the carrying amount of the restructured debt and the fair value of the intangible
115 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
asset used to settle the debt is recognized in profit or loss for the current period. Where a non-
monetary asset exchange has commercial substance and the fair value of the asset received or the
asset given up can be measured reliably the intangible asset received in the non-monetary asset
exchange is usually determined based on the fair value of the asset given up unless there is
conclusive evidence that the fair value of the asset received is more reliable; where the aforesaid
conditions are not satisfied the cost of the intangible asset received in the non-monetary asset
exchange is the carrying amount of the asset given up plus the relevant taxes payable and no gain
or loss is recognized.* an intangible asset acquired through an absorption merger of enterprises under common
control is recorded at the carrying amount of the merged party; an intangible asset acquired through
an absorption merger of enterprises not under common control is recorded at fair value.Upon the acquisition of an intangible asset the Company analyses and judges its useful life.Where the useful life of an intangible asset is finite the Company estimates the number of years of
the useful life or the quantity of the output or other similar measurement units constituting the useful
life; where the Period over which the intangible asset will bring economic benefits to the Company
cannot be foreseen the intangible asset is regarded as one with an indefinite useful life.Amortization method of intangible assets: An intangible asset with a finite useful life is
amortized over its useful life on a straight-line basis and charged to profit or loss. An intangible
asset with an indefinite useful life or with perpetual property rights is not amortized. The Company
reviews the useful life and the amortization method of intangible assets with finite useful lives at
least at each year end. Where the useful life or the amortization method of an intangible asset differs
from the previous estimate the intangible asset is amortized using the reviewed useful life and
amortization method.Amortization of intangible assets with finite useful life is as follows:
Basis for determination
Category Useful life Amortization method Note
of useful life
Land use rights 42 to 56 years Land use period Straight-line method
Patents and proprietary Shorter of estimated benefit period
1 to 10 years Straight-line method
technologies and patent validity period
Software 2 to 5 years Estimated benefit period Straight-line method
Shorter of estimated benefit period
Trademark rights 5 years Straight-line method
and trademark validity period
Others 3 to 10 years Estimated benefit period Straight-line method
The useful life for an intangible asset with a finite useful life and the method of amortization
are reviewed at least once at the end of each financial year. If the useful life and amortization method
for the intangible assets are different from the previous estimate the change of amortization is
recognized 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 of which should be reversed to profit or
loss for the current period.
116 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Please refer to Note III. 23 for the provision of impairment of intangible assets.
22. Research and development expenditures
(1) Scope of R&D Expenditures and the Related Accounting Treatment
√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.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 recognized in profit or loss for the current period
when incurred.Expenditures on the development phase will be capitalized 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 recognized 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 technical and economic feasibility studies.Capitalized 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.Capitalization conditions for specific research and development projects are as follows:
* 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 recognized in profit or loss for the current period when incurred;
the Period from the pilot phase upon obtaining of production approvals is treated as the development
phase and all expenditures shall be recognized as development expenditures and reclassified as
intangible assets after the obtaining of production approvals.
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* 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 recognized 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 recognized as development
expenditures and reclassified as intangible assets after the obtaining of production approval.* purchased technologies or formulas etc. where the purchase price is recognized as
development expenses require subsequent R&D to be accounted for in accordance with the
procedures outlined in points * and * above.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 stage
the corresponding development expenditures are recognized in profit or loss for the current period.Where 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
recognized in profit or loss for the current period.
23. Impairment of assets
√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 is any indication of
impairment; if so the Company estimates the recoverable amount and performs an impairment test.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 less
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 recognized.
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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 recognized reporting segment.When there is an indication that the asset or asset group are prone to impairment the Company
should test for impairment for asset and asset group excluding goodwill and calculate the
recoverable amount and recognize 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 recognized
when the recoverable amount of assets is lower than its carrying amount.Once impairment loss is recognized it cannot be reversed in subsequent accounting periods.
24. Long-term deferred expenses
√Applicable □N/A
The Company’s long-term deferred expenses measured at cost actually incurred and evenly
amortized on straight-line basis over the expected beneficial period. For the long-term deferred
expense items that cannot benefit in subsequent accounting period their amortized value is
recognized through profit or loss.
25. Employee compensation
(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 dependents survivors of the deceased
employees or to other beneficiaries.According to liquidity employment compensations are presented separately as “accruedpayroll” item and “long-term employment compensation payable” item in the balance sheet.
(2) Short-term employee compensation
√Applicable □N/A
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 recognized as liability and included in the profit or loss for
the current period or related asset costs.
(3) Post-employment benefits
√Applicable □N/A
119 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Post-employment benefit plans mainly include defined contribution plans and defined benefit
plans. A defined contribution plan refers to a post-employment benefit plan under which the
Company no longer bears further payment obligations after making fixed contributions to an
independent fund. The Company is only involved in defined contribution plans; a defined benefit
plan refers to a post-employment benefit plan other than a defined contribution plan.Defined contribution plans include basic pension insurance and unemployment insurance etc.During the accounting period in which the employees render services the amount payable
calculated under the defined contribution plan is recognized as a liability and included in the profit
or loss for the current period or in the cost of related assets.Defined benefit plans
For a defined benefit plan the cost of providing the benefits is determined at each annual
balance sheet date using the projected unit credit method. The employee compensation cost arising
from the defined benefit plan of the Company comprises the following components:
* service cost including current service cost past service cost and settlement gains or losses.Current service cost refers to the increase in the present value of the defined benefit obligation
resulting from employee service in the current period; past service cost refers to the increase or
decrease in the present value of the defined benefit obligation relating to employee service in prior
periods arising from an amendment to the defined benefit plan.* net interest on the net defined benefit liability or net asset including interest income on plan
assets interest expense on the defined benefit obligation and the effect of the asset ceiling.* Re-measurements of the net defined benefit liability or net asset.Unless other accounting standards require or permit employee benefit cost to be included in
the cost of assets the Company recognises items * and * above in profit or loss for the current
period; item * is recognised in other comprehensive income and will not be reclassified to profit
or loss in subsequent accounting periods. When the original defined benefit plan is terminated the
amounts previously recognised in other comprehensive income are transferred in full to retained
earnings within equity.
(4) Termination benefits
√Applicable □N/A
The liability of employee compensation arising from termination benefits is recognized 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 recognizes costs or expenses related to the
restructuring that involves the payment of termination benefits.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 ceased rendering services to the Company to the scheduled retirement date
120 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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 inaccordance with the relevant provisions of the above defined benefit plans except that the “changein 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.
26. Provision for liabilities
√Applicable □N/A
An obligation related to a contingency is recognized 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
outflows. 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 settlement of the provision are fully or partially compensated by a third
party and the compensated amount can be virtually certain it is recognized separately as an asset.The compensated amount recognized shall not be greater than the carrying amount of the liability
recognized.
27. Share-based payment and equity instruments
√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
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
121 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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 vesting 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. At
the vesting date the final estimated number of vesting equity instruments should equal the actual
number of vesting equity instruments.
(4) Accounting treatment for implementation amendment and termination of share-based
payment
Equity-settled share-based payment is measured at the fair value of the equity instruments
granted to employees. Instruments which are vested 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 vesting equity instruments the services
received for the Period are recognized 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 recognized 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 vested
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
vesting situation the services received for the Period are recognized 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 recognized
accordingly following the increase in fair value of the equity instruments; if such modification
increases the number of equity instruments granted the increase in fair value of the equity
instruments is recognized 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
122 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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 recognized during the pending period in the profit and loss for
the current period immediately and recognize 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:
* for 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 recognized as long-term equity investment in the enterprise receiving services at the same time
capital reserve (other capital reserve) or liabilities are recognized.* where 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 recognized and measured in each of the respective
financial statements of the enterprise receiving services and the settlement enterprise by reference
to the above principles.
123 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
28. Preferred shares perpetual bonds and other financial instruments
√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
combines 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 recognized 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 amortized cost are included
in the initial measurement amount of the issued instrument; if classified as equity instruments are
deducted from equity.
29. Revenue
(1) Accounting Policies for Revenue Recognition and Measurement by Type of Business
√Applicable □N/A
(1) General principle
The Company shall recognize 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:
* when the customer simultaneously receives and consumes the benefits provided by the
Company when the Company performs its obligations under the contract.
124 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
* when the customer is able to control the commodity in progress in the course of performance
by the Company under the contract.* 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 recognize revenue over
time by measuring the progress 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 recognized 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 recognize 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:
* 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.* 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.* the Company has transferred the physical possession of goods to the customer which is
when the customer obtains physical possession of the goods.* the Company has transferred all the substantial risks and rewards of ownership of the goods
to the customer which is when the client obtains all the substantial risks and rewards of ownership
of the goods.* when the customer has accepted the goods or services.* 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 recognized (see Note
III.11(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 “Othernon-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.
(2) Specific method
125 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
The Company enters into sales contracts with customers. Revenue from sales is recognized
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 recognized mainly
by adopting FOB mode according to customs 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).
30. Contract costs
√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 recognizes 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 recognizes an asset from the costs incurred to fulfil a contract
only if those costs meet all of the following criteria:
* 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;
* 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;
* the costs are expected to be recovered.Assets recognized for the incremental costs of obtaining a contract and assets recognized for
the costs to fulfil a contract (the “assets related to contract costs”) are amortized on a systematic
basis that is consistent with the transfer to the customer of the goods or services to which the assets
relate and recognized in profit or loss for the current period.
126 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
The Company recognizes an impairment loss in profit or loss to the extent that the carrying
amount of an asset related to contract costs exceeds:
* remaining amount of consideration that the Company expects to receive in exchange for
the goods or services to which the asset relates;
* the cost estimated to be incurred for the transfer of related goods or services.The costs of contract performance recognized as assets if the amortization period does not
exceed one year or a normal operating cycle upon the initial recognition are presented as
“Inventories” item and if the amortization 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 recognized as assets if the amortization period does not exceedone year or a normal operating cycle upon the initial recognition are presented as “Other currentassets” item and if the amortization period is more than one year or a normal operating cycle upon
the initial recognition are presented as “Other non-current assets” item.
31. Government grants
√Applicable □N/A
A government grant shall be recognized 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 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 recognized 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 recognized 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 recognized as deferred income and shall be recognized 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.
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The government grants related to daily activities are recognized as other income in accordance
with the substance of economic business or offset against related costs and expenses. Government
grants that are not related to daily activities are recognized as non-operating income.If the recognized 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 assets and the excess is recognized in the profit or
loss for the current period. Other circumstances it is directly recognized in the profit or loss for the
current period.
32. Deferred tax assets and deferred tax liabilities
√Applicable □N/A
Income tax comprises 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 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 can 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-forwards 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) 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 (Except for single transactions that give rise to equal amounts of
taxable and deductible temporary differences upon initial recognition of the assets and liabilities
concerned);
(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
128 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
foreseeable future and it is probable that taxable profits will be available in the future against which
the temporary difference can be utilized.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
reflecting the tax consequences of the manner in which the enterprise expects to recover the asset
or settle the liability.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.
33. Leases
(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 to the contract transfers the right to
control the use of one or more identified assets for a period of time in exchange for consideration.Basis for Determining and Accounting for Short-term Leases and Leases of Low-value Assets
under the Simplified Approach as a Lessee
√Applicable □N/A
At the inception of a lease the Company recognizes 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 payments
at the inception of a lease discounted using the interest rate implicit in the lease or the incremental
borrowing rate. Lease payments include: fixed payments and in-substance fixed payments less any
lease incentives (if there is a lease incentive) ; variable lease payments 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
129 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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
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 recognizes 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
40000 when it is a brand-new asset.
The Company recognized 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: * the lease modification expands
the scope of the lease by adding the right to use one or more leased assets; * 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.Lease Classification Criteria and Accounting Treatment as a Lessor
√Applicable □N/A
When the Company is the lessor the lease that substantially transfers all the risks and rewards
related to the ownership of assets is recognized as a finance lease and leases other than finance
leases are recognized as operating leases.
130 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Finance leases
In a finance 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 payments at the inception
of a lease discounted using the interest rate implicit in the lease. The Company as the lessor
calculates and recognizes the interest income over each period of the lease term at a fixed periodic
interest rate. Variable lease payments not included in the measurement of the net investment in the
lease which are obtained by the Company as a lessor are recognized in profit or loss as incurred.The termination of recognition and impairment of finance lease receivables is accounted for in
accordance with the provisions of Accounting Standards for Business Enterprises No. 22 –
Recognition and Measurement of Financial Instruments and Accounting Standards for Business
Enterprises No. 23 – Transfer of Financial Assets.Operating leases
For the rental of operating leases the Company recognizes 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 capitalized and amortized 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 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:* the modification expands the
scope of the lease by adding the right to use one or more leased assets;* 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 modification to finance lease is not accounted for as a separate lease the Company will
deal with the modified lease under the following circumstances:* if the modification takes effect
on the inception 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;* if the modification takes effect on the inception 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 Instruments.
131 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
34. Right-of-use assets
(1) Recognition condition of right-of-use assets
The right-of-use assets of the Company are defined as the right to use the underlying assets in
the lease term for the Company as a lessee.Right-of-use assets are initially measured at cost as at the inception 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 inception date of the lease less any lease incentives received if any; initial direct costs
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 recognizes
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.
35. Repurchase of shares
Prior to cancellation or transfer of shares repurchased the Company recognizes all
expenditures arising from share repurchase as cost of treasury shares in the treasury share account.Considerations and transaction costs incurred from the repurchase of shares shall lead to the
elimination of owners’ equity and do not recognize 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 recognized as capital reserve when the treasury stocks are transferred if the capital reserve
is not sufficient to be offset the excess amount shall be recognized to offset surplus reserve and
undistributed profit. When the treasury stocks are cancelled the share capital shall be reduced
according to the number of shares cancelled and their par value and the difference between the
carrying amount of the treasury stocks cancelled and their par value shall be charged to capital
reserve. If the capital reserve is not sufficient to be offset the excess shall be charged to surplus
reserve and undistributed profit.
36. Other significant accounting judgments and estimates
√Applicable □N/A
132 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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
Significant judgments 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 how financial assets’ performance is evaluated
and reported to key management personnel how risks affecting the performance of financial assets
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 judgments: 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
133 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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 or groups of asset groups to which the goodwill is
allocated. In estimating the 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 capitalized 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 are recognized 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 recognized with
reference to the tax planning strategy.
(7) Revenue recognition
As stated in note III. 29 the Company makes the following significant accounting judgments
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 recognized 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.; determining whether the
performance obligations are satisfied over time or at a point in time; and determining the progress
towards completion. The Company makes judgments primarily based on historical experiences and
activities. 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 and
may constitute significant impacts.
(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
134 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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.
37. Changes in significant accounting policies and accounting estimates and correction to
accounting errors
(1) Changes in significant accounting policies
□Applicable √N/A
(2) Changes in significant accounting estimates
□Applicable √N/A
IV. Taxation
1. Major taxes and their tax rates
√Applicable □N/A
Tax category Basis of taxation Statutory tax rate (%)
Taxable value-added
Value added tax 3 5 6 10 13(Note 1)
amount
Urban maintenance and construction Actual turnover tax
157
tax paid
Actual turnover tax
Education surcharges 3
paid
Actual turnover tax
Local education surcharge Note 2
paid
Enterprise income tax Taxable income Note 3
Note 1: Imexpharm Corporation a subsidiary of the Company is subject to a value-added tax
(VAT) rate of 5% on the sale of pharmaceutical products and a VAT rate of 10% on the sale of
nutritional/healthcare products.Note 2: 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 3: The implementation of enterprise income tax rate is as follows:
√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
16.5
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)
0 or 12 (Tax rate is 12%
Companhia de Macau Carason Limitada (澳门嘉安信有限公司) Li Zhu where the taxable income is
MOP600000 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 MOP600000 they
有限公司) are exempted from income
taxes.)
135 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Entity Income tax rate (%)
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) 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
15
Manufacturing Co. Ltd. (上海丽珠制药有限公司) 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)
17 or 24 (17% applies where
the registered capital is less
than MYR 2.5 million and
profit does not exceed MYR
LIVZON MALAYSIA SDN. BHD
600000; 24% applies where
the registered capital exceeds
MYR 2.5 million or profit
exceeds MYR 600000)
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
Imexpharm Corporation 20
Health Investment Holdings Ltd Joincare Pharmaceutical Group Industry Co.Ltd. (BVI) Joincare Pharmaceutical Group Industry Co. Ltd. (CAYMAN
0
ISLANDS) Livzon International Ventures Livzon International Ventures I
Livzon International Ventures II LIAN International Holding LTD
25 or enjoy preferential tax
Other subsidiaries policies for small and micro-
profit enterprises
2. Tax incentives
√Applicable □N/A
136 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
(1)Preferential value added tax
In accordance with the Announcement on Value-Added Tax Issues Concerning the Sale of
Biological Products by Pharmaceutical Trading Enterprises (Announcement of the State
Administration of Taxation [2012] No. 20) and the Notice on Value-Added Tax Policies for Anti-
Cancer Drugs issued by the Ministry of Finance the General Administration of Customs the State
Administration of Taxation and the National Medical Products Administration (Cai Shui [2018] No.
47) the Company's sales of biological products and anti-cancer drugs are subject to value-added tax
calculated and paid under the simplified method at the collection rate of 3%.In accordance with Vietnam's phased VAT reduction policy most goods and services
originally subject to the 10% VAT rate are temporarily taxed at a reduced rate of 8% during the
period from 1 July 2025 to 31 December 2026. Accordingly for the sale of nutritional/healthcare
products by Imexpharm Corporation the preferential VAT rate of 8% shall apply during the above-
mentioned period.
(2) Preferential enterprise income tax
The Company and its subsidiary Joincare Haibin (健康元海滨) and Jiaozuo Joincare (焦作
健康元) have passed the re-recognition as High and New Technology Enterprises in this period
and shall enjoy the preferential enterprise income tax policies for High and New Technology
Enterprises for three years starting from 2025. The Company's subsidiaries Taitai Pharmaceutical
(太太药业) Haibin Pharma (海滨制药) and Xinxiang Haibin (新乡海滨) have applied for the
review of the High and New Technology Enterprises qualification in this period.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 applied for the review of the High and New Technology Enterprises qualification in this period.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) shall enjoy the preferential
enterprise income tax policies for High and New Technology Enterprises for three years starting
from 2025. Shanghai Livzon Biotechnology Co. Ltd. (上海丽珠生物科技有限公司) shall enjoy
the preferential enterprise income tax policies for High and New Technology Enterprises for three
years starting from 2024. Livzon Group (Ningxia) Pharmaceutical Manufacturing Co. Ltd. (丽珠集团（宁夏）制药有限公司) has been approved to enjoy the preferential tax policies for enterprises
in the encouraged industries in the Western China Region. The above-mentioned companies are
applying the enterprise income tax rate of 15% in this period.
137 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
In accordance with 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) for qualified industrial enterprises located in the
Hengqin Guangdong-Macao Deep Cooperation Zone enterprise income tax is levied at a reduced
rate of 15%. 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 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 applying the enterprise income tax rate of 15%
in 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 Chinese herbal medicines planting business engaged by the
subsidiaries of Livzon Group 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 ) is
exempted from enterprise income tax.According to the tax preferential policies for small and micro enterprises until 31 December
2027 the portion of annual taxable income not exceeding RMB3 million of a small and micro
enterprise shall be subject to enterprise income tax at a rate of 5%.According to Indonesia's tax preferential policies for micro small and medium enterprises for
micro small and medium enterprises the portion of their taxable income not exceeding IDR 4.8
billion shall be subject to enterprise income tax at a rate of 11%.According to the Philippines' tax preferential policies for micro small and medium enterprises
for micro small and medium enterprises i.e. enterprises with annual taxable revenue not exceeding
PHP5 million a tax rate of 20% is applicable.
3. Others
□Applicable √N/A
V. Notes to the items of consolidated financial statements
1.Cash and bank balances
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at End of the Balance at Beginning of the
Items
Period Period
Cash on hand 357498.53 349028.70
Bank deposits 11541608291.48 13495487589.67
Other monetary funds 15259852.11 114879136.27
Interest receivable 1728072.84 0.00
Total 11558953714.96 13610715754.64
Including: total overseas
1954509841.374181219245.26
deposits
Other descriptions:
* Other monetary funds are mainly deposits for investments deposits for letter of credit and
138 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
bank acceptance bills.* Restricted funds held as deposits for letters of credit and bank acceptance notes were
excluded from cash and cash equivalents in the cash flow statement. Apart from these restricted
funds the cash at bank is not subject to any charge pledge or other restrictions that may limit its
use. Certain bank balances are held outside mainland China and may be subject to risks in their
collection.Below are the details of the use of restricted monetary funds:
Item 30 June 2026 31 December 2025
Deposits 3975720.00 1865020659.69
2. Financial assets held for trading
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the Balance at the
Item
End of the Period Beginning of the Period
Financial asset measured at fair
644477284.661694102766.69
value through profit or loss
Including:
Funds 256367412.95 1005892.28
Structured deposits 300511308.14 1611850215.33
Equity instrument investments 86809162.42 78525127.72
Derivative financial assets 789401.15 2721531.36
Total 644477284.66 1694102766.69
* the equity instruments investments and debt instruments investments held by the Company
at the end of the Period which are listed and traded on domestic and overseas exchanges have their
fair value determined based on the closing price of the last trading day of the Reporting Period.* derivative financial assets represent foreign currency forward contracts measured at fair
value which were recognized as financial assets as at the balance sheet date.Other descriptions:
√Applicable □N/A
(1) No restrictive financial asset measured at fair value through profit or loss was included in
the closing balance.
(2) No hedging instruments in the closing balance and no hedging transactions have occurred
during the Period.
3. Notes receivable
(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 1070737720.24 1636435183.16
Total 1070737720.24 1636435183.16
(2) Notes receivable pledged at the End of the Period
√Applicable □N/A
Unit: Yuan Currency: RMB
139 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Category Amount pledged at the End of the Period
Bank acceptance bills 365372261.54
Total 365372261.54
As of 30 June 2026 bank acceptance bills with carrying amount of RMB365372261.54 (31
December 2025: RMB828335011.06) 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
Derecognized amount at the Amount not derecognized at
Category
End of the Period the End of the Period
Bank acceptance bills not
yet mature but already 78117752.12 0.00
endorsed
Bank acceptance bills not
yet mature but already 179341662.20 0.00
discounted
Total 257459414.32 0.00
During the current period the Company discounted bank acceptance bills to banks in the amount
of RMB 179341662.20 (prior period: RMB 0.00). The discounted bank acceptance bills were
without recourse and substantially all the risks and rewards incidental to ownership of the bills
had been transferred to the banks; therefore they were derecognized. The discount interest
expense arising from such discounting in this period amounted to RMB 482757.09.
(4) As at the End of the Period the Company had no bills that were transferred to accounts
receivable due to the failure of the drawer to fulfill the payment obligations.
(5) 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
Book balance Book balance
debts bad debts
Expec
Category Expected ted
Carrying value Carrying value
Ratio credit Ratio credit
Amount Amount Amount Amount
(%) loss rate (%) loss
(%) 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 1070737720.24 100.00 0.00 0.00 1070737720.24 1636435183.16 100.00 0.00 0.00 1636435183.16
portfolio
basis
Including:
Bank
acceptance 1070737720.24 100.00 0.00 0.00 1070737720.24 1636435183.16 100.00 0.00 0.00 1636435183.16
bills
Total 1070737720.24 / 0.00 / 1070737720.24 1636435183.16 / 0.00 / 1636435183.16
Provision for bad debts on individual item:
□Applicable √N/A
Provision for bad debt on a portfolio basis:
140 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
√Applicable □N/A
Provision for bad debts on portfolio basis: Bank acceptance bills
Unit: Yuan Currency: RMB
Balance at the End of the Period
Item Notes Provision for bad Expected credit loss rate
receivable debts (%)
Within one
1070737720.240.000.00
year
Total 1070737720.24 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
(6) Provision for bad debts
□Applicable √N/A
(7) Actual write-off of notes receivable in the Period
□Applicable √N/A
4. Accounts receivable
(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: 2501717742.95 2749368127.74
1-2 years 19597442.81 14148605.95
2-3 years 2496712.53 3897464.61
3-4 years 2020890.53 11192213.28
4-5 years 9923690.04 1650610.33
Over 5 years 20197748.30 19705295.10
Total 2555954227.16 2799962317.01
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 15164344.30 0.59 15164344.30 100.00 0.00 15224028.91 0.54 15224028.91 100.00 0.00
individual
item
Including:
Receivables
from 15164344.30 0.59 15164344.30 100.00 0.00 15224028.91 0.54 15224028.91 100.00 0.00
domestic
customers
141 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Receivables
from
0.000.000.000.000.000.000.000.000.000.00
overseas
customers
Provision
for bad
debts on 2540789882.86 99.41 64549917.24 2.54 2476239965.62 2784738288.10 99.46 62409706.93 2.24 2722328581.17
portfolio
basis
Including:
Receivables
from 1714675354.05 67.09 52896169.98 3.08 1661779184.07 2167249699.10 77.41 52704052.40 2.43 2114545646.70
domestic
customers
Receivables
from
826114528.8132.3211653747.261.41814460781.55617488589.0022.059705654.531.57607782934.47
overseas
customers
Total 2555954227.16 100.00 79714261.54 3.12 2476239965.62 2799962317.01 100.00 77633735.84 2.77 2722328581.17
Provision for bad debt on individual item:
√Applicable □N/A
Unit: Yuan Currency: RMB
Closing balance
Expected
Name Provision for
Book balance credit loss Reason of provision
bad debts
rate (%)
Purchase of Full amount is unlikely to be
15164344.3015164344.30100.00
goods recovered
Total 15164344.30 15164344.30 100.00 /
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
Aging Account Provision for Expected credit
receivables bad debt loss rate (%)
Within 1 year: 1676707382.80 30753490.45 1.83
1 to 2 years (inclusive of 2
17855799.563165740.4317.73
years)
2 to 3 years (inclusive of 3
2495168.481501987.0860.20
years)
3 to 4 years (inclusive of 4
1905533.891805361.2594.74
years)
4 to 5 years (inclusive of 5
4852326.234810447.6899.14
years)
Over 5 years 10859143.09 10859143.09 100.00
Total 1714675354.05 52896169.98 3.08
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
Aging Balance at the End of the Period
142 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Account Provision for Expected credit
receivables bad debts loss rate (%)
Within 1 year: 824721654.07 11530243.72 1.40
1 to 2 years 1275974.05 12173.89 0.95
2 to 3 years 1544.05 43.88 2.84
3 to 4 years 115356.64 111285.77 96.47
Total 826114528.81 11653747.26 1.41
Standards of provision for bad debts on portfolio basis and descriptions thereof:
□Applicable √N/A
(3) Provision for bad debts
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at Changes for the current period
Balance at the
the Recovery Changes in
Category Removal/write- End of the
Beginning of Provision or the Scope of Others
off Period
the Period reversal Consolidation
Provision
for bad 77633735.84 2426126.24 0.00 739923.95 395648.01 -1324.60 79714261.54
debts
Total 77633735.84 2426126.24 0.00 739923.95 395648.01 -1324.60 79714261.54
(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 739923.95
(5) Accounts receivable and contract assets of the top five debtors by aggregate balance at the
end of the Period
√Applicable □N/A
Unit: Yuan Currency: RMB
Percentage of the
Closing aggregate closing Closing
Closing Closing balances
balance balance of balance of
Unit balance of of accounts
of accounts allowance
name accounts receivable and
contract receivable and for bad
receivable contract assets
assets contract assets debts
（%）
Unit 1 68764519.00 0.00 68764519.00 2.69 1485863.85
Unit 2 63456447.05 0.00 63456447.05 2.48 958914.10
Unit 3 58933900.38 0.00 58933900.38 2.31 884294.02
Unit 4 55252970.65 0.00 55252970.65 2.16 1747704.69
Unit 5 39261891.26 0.00 39261891.26 1.54 587621.18
Total 285669728.34 0.00 285669728.34 11.18 5664397.84
In the current period the aggregate balance of the accounts receivable from the top five debtors
was RMB285669728.34 accounting for 11.18% of the total balance of accounts receivable at the
end of the Period and the corresponding aggregate balance of the provision for bad debts accrued
at the End of the Period was RMB 5664397.84.Other descriptions:
√Applicable □N/A
(1) Accounts receivable derecognized due to transfers of financial assets
143 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
During the Period from January to June 2026 the Company carried out non-recourse factoring
on a small portion of its accounts receivable whereby substantially all the risks and rewards
incidental to the ownership of such receivables had been transferred to other parties. The accounts
receivable derecognized as a result amounted to RMB15079225.53 and the gains and losses
recognized in relation to such derecognition were RMB0.00.
(2) The Company has no assets or liabilities arising from continued involvement in transferred
accounts receivable.
5. Prepayments
(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 279071702.91 93.77 190158800.61 93.58
1 to 2 years 11830716.90 3.97 8677965.20 4.27
2 to 3 years 3639834.66 1.22 2398600.48 1.18
Over 3 years 3104444.74 1.04 1966620.77 0.97
Subtotal 297646699.21 100.00 203201987.06 100.00
Less:
Provision for 237096.90 237096.90
impairment
Total 297409602.31 100.00 202964890.16 100.00
(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 19029388.46 6.39
Unit 2 11880388.36 3.99
Unit 3 10315571.60 3.47
Unit 4 5980777.05 2.01
Unit 5 5891173.29 1.98
Total 53097298.76 17.84
As of 30 June 2026 the total amount of the top five prepayments in closing balance is RMB
53097298.76 accounting for 17.84% of the total amount of closing balance of prepayments.
6. Other receivables
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 13083993.15 0.00
Other receivables 64100007.61 69355886.15
Total 77184000.76 69355886.15
Dividends receivable
(1) Dividends receivable
√Applicable □N/A
Unit: Yuan Currency: RMB
144 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Balance at the Beginning of the
Item (or Investee) Balance at the End of the Period
Period
Dividends receivable 13083993.15 0.00
Total 13083993.15 0.00
(2) Significant dividends receivable aged over 1 year
□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 Beginning of
Aging
Period the Period
Within 1 year 57317406.09 62525312.48
1 to 2 years 8575696.39 9851955.68
2 to 3 years 2714113.74 798732.93
3 to 4 years 1029683.71 678744.37
4 to 5 years 275655.90 1698369.46
Over 5 years 29150635.66 31042787.90
Total 99063191.49 106595902.82
(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 13396679.92 14788676.17
Reserved funds and advances 19183357.19 11667777.61
Related party balances 1216813.48 1143746.92
External corporate borrowings and current
10665033.4210658666.50
accounts
Tax refund on exports 14280833.14 32973586.60
Treasury bonds and security deposits 16042449.77 16042449.77
Others 24278024.57 19320999.25
Total 99063191.49 106595902.82
(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 12862752.45 24377264.22 37240016.67
Movement of
beginning balance 0.00 -189160.00 189160.00 0.00
during the Period
--transfer to third stage 0.00 -189160.00 189160.00 0.00
145 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Provision for the
0.00-2131740.950.00-2131740.95
Period
Reversal in the Period 0.00 0.00 0.00 0.00
Write-off in the Period 0.00 0.00 0.00 0.00
Other movements 0.00 -145091.84 0.00 -145091.84
Closing balance 0.00 10396759.66 24566424.22 34963183.88
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:
Book Expected credit loss Provision for bad Carrying
Category Reason
balance rate for lifetime (%) debts amount
Provision for bad debts on
0.000.000.000.00
individual item
Provision for bad debts on
74496767.2713.9610396759.6664100007.61
portfolio basis
Export tax refund
14280833.142.25321764.0513959069.09
receivable
Security deposits deposits
13396679.9221.982944341.0010452338.92
and rental receivable
Other receivables 46819254.21 15.23 7130654.61 39688599.60
Total 74496767.27 13.96 10396759.66 64100007.61
At the End of the Period provision for bad debts on those in third stage:
Expected credit
Provision for Carrying
Category Book balance loss rate for Reason
bad debts amount
lifetime (%)
Provision for bad debts
24566424.22100.0024566424.220.00
on individual item
Likelihood of
Treasury bonds and
16042449.77 100.00 16042449.77 0.00 recovery is
security deposits
expected to be low
Likelihood of
Other receivables 8523974.45 100.00 8523974.45 0.00 recovery is
expected to be low
Total 24566424.22 100.00 24566424.22 0.00
As of 31 December 2025 information of provision for bad debts:
As of 31 December 2025 there is no provision for bad debts on those in first stage:
As of 31 December 2025 Provision for bad debts on those in second stage:
Book Expected credit loss Provision for bad Carrying
Category Reason
balance rate for lifetime (%) debts amount
Provision for bad debts on
0.000.000.000.00
individual item
Provision for bad debts on
82218638.6015.6412862752.4569355886.15
portfolio basis
Export tax refund
32973586.605.731890313.5531083273.05
receivable
Security deposits deposits
14820676.1722.633354336.1111466340.06
and rental receivable
Other receivables 34424375.83 22.13 7618102.79 26806273.04
Total 82218638.60 15.64 12862752.45 69355886.15
As of 31 December 2025 Provision for bad debts on those in third stage:
Expected credit
Provision for Carrying
Category Book balance loss rate for Reason
bad debts amount
lifetime (%)
146 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Provision for bad
debts on individual 24377264.22 100.00 24377264.22 0.00
item
Likelihood of
Treasury bonds and
16042449.77 100.00 16042449.77 0.00 recovery is expected
security deposits
to be low
Likelihood of
Other receivables 8334814.45 100.00 8334814.45 0.00 recovery is expected
to be low
Total 24377264.22 100.00 24377264.22 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 the Period is
significant:
□Applicable √N/A
(5) Actual write-offs of other receivables in the Period
□Applicable√N/A
Significant other receivables that are written off:
□Applicable √N/A
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 Provision for
Proportion to
receivables bad debts
Name of entity Nature Aging total other
Closing Closing
receivables (%)
balance balance
Treasury
Hua Xia Securities Co. Ltd. (华夏 bonds and Over 5
16042449.7716.1916042449.77
证券股份有限公司) security years
deposits
Export tax Within 1
Tax refund on exports 14280833.14 14.42 321764.05
refund year
Guangzhou Galaxy Sunshine
Over 5
Biological Products Co. Ltd. (广州 Loan 5000000.00 5.05 5000000.00
years
银河阳光生物制品有限公司)
Zhongnuo Kailin Pharmaceutical Security
Development (Suzhou) Co. Ltd. Within deposits and
(中诺凯琳医药发展(苏州) 有限公 1410000.00 1-3 1.42 251600.00 Purchase of
years
司) and its subsidiaries goods
Jiaozuo Yangsen Trading Co. Ltd. Over 5
Others 1174630.34 1.19 1174630.34
(焦作市阳森贸易有限公司) years
Total / 37907913.25 / 38.27 22790444.16
(7) Amounts presented in other receivables due to centralized cash management
147 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
□Applicable √N/A
Other descriptions:
The company has no other accounts receivable that are derecognized due to the transfer of
financial assets.The company has no assets or liabilities formed from the transfer of other accounts receivable
while continuing to be involved.
7. Inventories
(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
Book balance diminution Book balance diminution Carrying amount
amount
in value in value
Raw materials 568829691.51 14152971.58 554676719.93 484250105.97 15354283.03 468895822.94
Packaging materials 121072138.51 23942306.45 97129832.06 115639286.27 25907963.62 89731322.65
Work-in-progress and semi-
742324960.2312364760.16729960200.07728611288.3623403443.84705207844.52
finished products
Low-value consumables 65121148.62 446741.47 64674407.15 58474411.61 729622.83 57744788.78
Finished goods and stock
949713458.7723106244.87926607213.90876591334.0229953148.74846638185.28
goods
Sub-contracting materials 847000.39 0.00 847000.39 1738534.65 0.00 1738534.65
Consumptive biological assets 22291276.75 0.00 22291276.75 19737998.28 0.00 19737998.28
Issued goods 14510192.67 0.00 14510192.67 24108217.98 0.00 24108217.98
Total 2484709867.45 74013024.53 2410696842.92 2309151177.14 95348462.06 2213802715.08
(2) Data resources recognized as inventories
□Applicable √N/A
(3) Provision for diminution in value of inventories and contract performance costs
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at Decrease during the
Increase during the Period Balance at
the Period
Item the End of
Beginning of Reversal or
Provision Others Others the Period
the Period written-off
Raw
15354283.03454048.471035449.032690808.950.0014152971.58
materials
Packaging
25907963.621371656.360.003333636.863676.6723942306.45
materials
Work-in-
progress and
semi- 23403443.84 275760.26 0.00 11314443.94 0.00 12364760.16
finished
products
Low-value
729622.83-254117.350.0028764.010.00446741.47
consumables
Finished
goods and 29953148.74 1160905.73 168816.94 7701057.05 475569.49 23106244.87
stock goods
Total 95348462.06 3008253.47 1204265.97 25068710.81 479246.16 74013024.53
The reasons for the reversal or write-off of the provision for diminution in value of inventories
during the current period
√Applicable □N/A
Basis for determination of net recoverable Reason for reversal or
Item
amount/residual value and cost to be incurred written-off of provision for
148 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
decline in value of
inventories/ Provision for
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 discarded
Packaging materials The estimated selling price less related taxes Discard
Work-in-progress
Estimated selling price less estimated costs of Processing of finished goods
and semi-finished
completion selling expenses and related taxes and discard
products
Low-value
Estimated selling price less related taxes Used or discarded
consumables
Finished goods and Estimated selling price less the estimated selling
Sale and discarded
goods in stock expenses and related taxes
Provision for inventory write-downs recognized by category
□Applicable √N/A
Basis for recognizing inventory write-down provisions by category
□Applicable √N/A
(4) Descriptions at the End of the Period of inventories including capitalized amount of
borrowing costs
□Applicable √N/A
(5) Description of amortization amount of contract performance cost in the current period
□Applicable √N/A
Other descriptions:
□Applicable √N/A
8. Non-current assets due within one year
√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 525916708.48 880840324.51
Total 525916708.48 880840324.51
Significant debt investments and other debt investments at the end of the Period:
□Applicable √N/A
9. Other current assets
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Balance at the Beginning of
Item
Period the Period
Input VAT pending deduction /Input
81968590.5286256592.55
tax pending for verification
Prepaid income tax 21427704.34 20823907.10
Cash management 109655490.00 0.00
Large-denomination certificates of
0.0022098183.33
deposit and related interest
Others 56356699.20 443555.11
Total 269408484.06 129622238.09
Compensating assets related information
□Applicable √N/A
149 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
10. Long-term equity investment
√Applicable □N/A
Unit: Yuan Currency: RMB
Movement in the Period
Beginning
Investment Closing balance balance of
Investee 2025.12.31 Adjustment in Announced Additions income/loss Changes 2026.6.30 of provision for provision for Decrease in other distribution of Provision for
in recognized under of other Others impairment impairment investment comprehensive cash dividend or impairment
investment the equity equity
income profit
method
* Joint ventures
Subtotal
* Associates
Livzon Medical
Electronic
Equipment (Plant)
Co. Ltd. (丽珠集 0.00 1200000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1200000.00团丽珠医用电子
设备有限公司)
Guangdong Blue
Treasure
Pharmaceutical Co. 118830426.33 0.00 0.00 0.00 7417555.63 0.00 0.00 11475000.00 0.00 0.00 114772981.96 0.00
Ltd. (广东蓝宝制
药有限公司)
Fluffy Buddy
Animal Health
(Guangdong) Co.Ltd.(毛孩子动物保 0.00 0.00 0.00 0.00 -407580.57 0.00 0.00 0.00 0.00 78566909.02 78159328.45 0.00
健(广东)有限公
司)
AbCyte
11407724.550.000.000.00-75539.830.000.000.000.000.0011332184.720.00
Therapeutics Inc.L&L Biopharma
Co. Ltd. (健信生物
12718668.040.000.000.00-517731.350.000.000.000.000.0012200936.690.00
科技(宁波)有限公
司)
Zhuhai Sanmed
Biotech Inc. (珠海
0.000.000.000.000.000.000.000.000.000.000.000.00
圣美生物诊断技
术有限公司)
Aetio Biotherapy
14794626.300.000.000.00-24127.050.000.000.0014770499.250.000.0014770499.25
Inc.Hangzhou New
Element
Pharmaceutical
Co. Ltd. (杭州新 72994422.51 0.00 0.00 0.00 -7661475.60 11261.32 0.00 0.00 0.00 0.00 65344208.23 0.00元素药业有限公
司)
150 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Movement in the Period
Beginning
Investment Closing balance balance of
Investee 2025.12.31 Adjustment in Announced Additions income/loss Changes 2026.6.30 of provision for provision for Decrease in other distribution of Provision for
impairment in recognized under of other Others
impairment
investment comprehensive cash dividend or impairment
investment the equity equity
income profit
method
Tianjin
Tongrentang Group
Co. Ltd. (天津同 815932340.59 0.00 0.00 0.00 48860931.37 0.00 0.00 0.00 0.00 0.00 864793271.96 0.00仁堂集团股份有
限公司)
Infinite Intelligence
Pharmaceutical Co.Ltd. (北京英飞智 17378560.97 0.00 0.00 0.00 168724.31 0.00 0.00 0.00 0.00 0.00 17547285.28 0.00
药科技有限公司)
Shenzhen Kangti
Biomedical
Technology Co.Ltd. (深圳康体生 10174650.46 0.00 0.00 0.00 -22135.96 0.00 0.00 0.00 0.00 0.00 10152514.50 0.00物医药科技有限
公司)
Agimexpharm 0.00 0.00 0.00 0.00 907346.86 0.00 0.00 0.00 0.00 91289540.16 92196887.02 0.00
Jiaozuo Jinguan
Jiahua Electric
Power Co. Ltd. (焦 321042892.01 0.00 0.00 0.00 7649863.08 0.00 0.00 0.00 0.00 0.00 328692755.09 0.00作金冠嘉华电力
有限公司)
Ningbo Ningrong
Biomedical Co.Ltd. (宁波宁融生 27172506.23 0.00 0.00 0.00 -188062.30 0.00 0.00 0.00 0.00 0.00 26984443.93 0.00
物医药有限公司)
Feellife Health Inc.(深圳来福士雾化8071722.610.000.000.00-963763.750.000.000.000.000.007107958.860.00
医学有限公司)
Jiangsu Baining
Yingchuang
Medical
Technology Co. 34326534.68 0.00 0.00 34326534.68 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Ltd. (江苏百宁盈创医疗科技有限
公司)
Shanghai Sheo
Pharmaceutical
Technology Co. 16745966.38 0.00 0.00 0.00 453063.58 0.00 0.00 0.00 0.00 0.00 17199029.96 0.00
Ltd. (上海偕怡医
药科技有限公司)
Haisong Precision
Parts (Taicang)
Co. Ltd. (海嵩精 1601098.27 0.00 0.00 1601098.27 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
密零部件(太仓)
有限公司)
Subtotal 1483192139.93 1200000.00 0.00 35927632.95 55597068.42 11261.32 0.00 11475000.00 14770499.25 169856449.18 1646483786.65 15970499.25
Total 1483192139.93 1200000.00 0.00 35927632.95 55597068.42 11261.32 0.00 11475000.00 14770499.25 169856449.18 1646483786.65 15970499.25
151 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
11. Other equity instruments investment
（1）Other equity instruments investment
√Applicable □N/A
Unit: Yuan Currency: RMB
Increase and decrease changes in this period Reasons for
Gains designating
Gains accumula as measured
Losses Losses
included in ted and at fair value
included in Dividend income accumulated in
other recorded and with
Item 2025.12.31 Additional Decrease in other Othe 2026.06.30 recognized in this other
comprehensi in other changes
investment investment comprehensive rs period comprehensive
ve income compreh recorded in
income for this income
for this ensive other
period
period income comprehensi
ve income
Single Asset
0.00 2397394925.12 0.00 0.00 362551293.66 0.00 2034843631.46 23202494.65 0.00 308168599.61 Non-trading
Management Plans
Other listed equities 57440464.82 0.00 0.00 0.00 27869046.24 0.00 29571418.58 0.00 0.00 73590207.21 Non-trading
Other unlisted
932988228.68 0.00 2963761.61 7099652.80 0.00 0.00 937124119.87 590968.83 0.00 684084.50 Non-trading
equities
Total 990428693.50 2397394925.12 2963761.61 7099652.80 390420339.90 0.00 3001539169.91 23793463.48 0.00 382442891.32 /
Other listed equities primarily representing early-stage equity investments made by the Company (and/or its subsidiaries) which subsequently went public on domestic
or overseas securities exchanges.
152 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
(2) Explanation of the situation of termination of recognition in this period
√Applicable □N/A
Cumulative gain Cumulative loss
transferred to transferred to Reasons for
Item
retained earnings retained earnings derecognition
due to derecognition due to derecognition
Other unlisted equity Partial recovery of
294559.130.00
investments investment
Total 294559.13 0.00
Other descriptions:
√Applicable □N/A
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.
12. Investment properties
Measurement of investment properties
(1) Investment properties measured at cost
Unit: Yuan Currency: RMB
Item Housing and buildings Total
I. Book value:
1. Beginning balance 79641895.79 79641895.79
2.Increase 0.00 0.00
(1) Purchased externally
(2) Transferred in from inventories /
fixed assets / construction in progress
(3) Increase due to business
combination
3.Decrease 0.00 0.00
(1) Disposal
(2) Other transfers out
4.Closing balance 79641895.79 79641895.79
II. Accumulated depreciation and amortization
1.Beginning balance 64365449.65 64365449.65
2.Increase 420441.72 420441.72
(1) Provision or amortization 420441.72 420441.72
3.Decrease 0.00 0.00
(1) Disposal
(2) Other transfers out
4. Closing balance 64785891.37 64785891.37
III. Provision for impairment
1.Beginning balance 0.00 0.00
2.Increase 0.00 0.00
(1) Provision
3. Decrease 0.00 0.00
(1) Disposal
(2) Other transfers out
4.Closing balance 0.00 0.00
IV. Carrying amount
1.Carrying value at period end 14856004.42 14856004.42
2.Carrying value at beginning of the
15276446.1415276446.14
Period
153 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
13. Fixed assets
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 5551365051.11 5421615752.18
Fixed assets for disposal 0.00 0.00
Total 5551365051.11 5421615752.18
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:
1.Beginning
4901146802.216749418795.69121237483.091005473081.7012777276162.69
balance
2.Increase 196246989.71 275933620.53 17847953.70 40068238.22 530096802.16
(1) Purchase 10098525.99 44799209.27 4425863.15 29809470.97 89133069.38
(2) Transfer from
construction in 64690001.41 63536022.86 220197.78 5770584.85 134216806.90
progress
(3) Changes in the
scope of 121458462.31 167598388.40 13201892.77 4398966.24 306657709.72
consolidation
(4) Other increase 0.00 0.00 0.00 89216.16 89216.16
3.Decrease 2156423.78 88186189.25 8688344.12 33589933.18 132620890.33
(1) Disposal or
1770986.8555782123.597868115.3128245743.0893666968.83
scrap
(2) Changes in the
scope of 0.00 31440456.28 0.00 5295489.11 36735945.39
consolidation
(3) Others 385436.93 963609.38 820228.81 48700.99 2217976.11
4.Closing balance 5095237368.14 6937166226.97 130397092.67 1011951386.74 13174752074.52
II. Accumulated depreciation
1.Beginning
2394529204.794040162010.1191333465.02721247827.617247272507.53
balance
2.Increase 111984117.55 189209324.62 5906867.07 41718054.53 348818363.77
(1) Provision 111984117.55 189209324.62 5906867.07 41644348.20 348744657.44
(2) Other increase 0.00 0.00 0.00 73706.33 73706.33
3.Decrease 1713847.46 49900546.90 7995240.54 21468595.97 81078230.87
(1) Disposal or
1534802.5842944392.927281544.0019429206.5771189946.07
scrap
(2) Changes in the
scope of 0.00 6439005.20 0.00 1996764.80 8435770.00
consolidation
(3) Others 179044.88 517148.78 713696.54 42624.60 1452514.80
4.Closing balance 2504799474.88 4179470787.83 89245091.55 741497286.17 7515012640.43
III. Provision for impairment
1.Beginning
30547641.1759002254.950.0018838006.86108387902.98
balance
2.Increase 0.00 0.00 0.00 0.00 0.00
(1) Provision 0.00 0.00 0.00 0.00 0.00
3.Decrease 0.00 13520.00 0.00 0.00 13520.00
(1) Disposal or
0.0013520.000.000.0013520.00
scrap
4.Closing balance 30547641.17 58988734.95 0.00 18838006.86 108374382.98
IV. Carrying amount
154 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
1.Carrying value
2559890252.092698706704.1941152001.12251616093.715551365051.11
at Period end
2.Carrying value
at beginning of 2476069956.25 2650254530.63 29904018.07 265387247.23 5421615752.18
the Period
(2) Fixed assets with temporary idle
√Applicable □N/A
Unit: Yuan Currency: RMB
Provision
Accumulated Carrying
Item Book value for Note
depreciation amount
impairment
Housing and
14243288.6712506692.800.001736595.87
buildings
Machinery and
154078175.42101779480.7038017809.1814280885.54
equipment
Electronic
equipment and 2057887.88 1816904.80 22252.11 218730.97
others
(3) Fixed assets leased out under operating leases
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Carrying Amount
Housing and buildings 1466757.21
(4) Fixed assets without property certificate
√Applicable □N/A
Unit: Yuan Currency: RMB
Reason for pending certificate of
Item Carrying Amount
ownership
Housing and
126701240.31 Application in progress
buildings
14. Construction in progress
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
625004086.39615348388.91
progress
Construction
0.000.00
materials
Total 625004086.39 615348388.91
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
Simei project (司美项目) 12993899.88 0.00 12993899.88 12789108.77 0.00 12789108.77
155 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
P03 Construction Project
of Livzon Group Livzon
Pharmaceutical Factory 67634314.15 0.00 67634314.15 58144309.60 0.00 58144309.60
(丽珠集团丽珠制药厂
P03 建设项目)
Livzon Jiaozuo new
factory relocation project 61866222.27 0.00 61866222.27 64454446.84 0.00 64454446.84
(丽珠焦作新厂迁建项目)
Construction Project of
Livzon Group Indonesia
（丽珠集团印尼 44111468.23 0.00 44111468.23 25769394.21 0.00 25769394.21 Factory工厂建设项目）
Haibin Pharma Pingshang
New Factory (深圳海滨 201988346.29 13576290.39 188412055.90 210121373.58 13576290.39 196545083.19
坪山新厂)
Jiaozuo Joincare High-
End Active
Pharmaceutical
Ingredients (API) Project 88099233.02 0.00 88099233.02 119822201.39 0.00 119822201.39
(焦作健康元高端原料药
项目)
Others 167737703.83 5850810.89 161886892.94 143674655.80 5850810.89 137823844.91
Total 644431187.67 19427101.28 625004086.39 634775490.19 19427101.28 615348388.91
(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
Simei project
168900000.0012789108.771261859.291057068.180.0012993899.88
(司美项目)
P03
Construction
Project of
Livzon Group
Livzon 106033900.00 58144309.60 9490004.55 0.00 0.00 67634314.15
Pharmaceutical
Factory (丽珠集团丽珠制药厂
P03 建设项目)
Livzon Jiaozuo
new factory
relocation
project (丽珠焦 184261900.00 64454446.84 1268848.67 3857073.24 0.00 61866222.27作新厂迁建项
目)
Construction
Project of
Livzon Group
Indonesia 191000000.00 25769394.21 18342074.02 0.00 0.00 44111468.23Factory（丽珠集团印尼工厂建设项目）
Haibin Pharma
Pingshang New
深圳海 1436107400.00 210121373.58 23731678.24 18249230.86 13615474.67 201988346.29 Factory (
滨坪山新厂)
156 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Jiaozuo Joincare
High-End Active
Pharmaceutical
Ingredients 170214900.00 119822201.39 26966000.00 58688968.37 0.00 88099233.02
(API) Project(焦作健康元高端
原料药项目)
Total 2256518100.00 491100834.39 81060464.77 81852340.65 13615474.67 476693483.84
(Continued)
Proportion of Cumulative Including: Interest
cumulative Progress amount of interest capitalization Source
Project item
input to （%） interest capitalized in rate for the of fund
budget (%) capitalized the Period Period (%)
Simei project (司美项 Self-
81.2280.000.000.000.00
目) funding
P03 Construction Project
of Livzon Group Livzon
Pharmaceutical Factory Self-64.31 65.00 0.00 0.00 0.00
(丽珠集团丽珠制药厂 funding
P03 建设项目)
Livzon Jiaozuo new
factory relocation Self-
project (丽珠焦作新厂 75.30 75.00 0.00 0.00 0.00 funding
迁建项目)
Construction Project of
Livzon Group Indonesia Self-
（丽珠集团印尼 23.10 25.00 0.00 0.00 0.00 Factory funding工厂建设项目）
Self-
Haibin Pharma
funding
Pingshang New Factory 94.00 94.00 0.00 0.00 0.00
and funds (深圳海滨坪山新厂)
raised
Jiaozuo Joincare High-
End Active
Pharmaceutical Self-
Ingredients (API) 86.24 86.00 0.00 0.00 0.00 funding
Project(焦作健康元高
端原料药项目)
Total / / 0.00 0.00 / /
15. Right-of-use assets
(1) Right-of-use assets
√Applicable □N/A
Unit: Yuan Currency: RMB
Housing and Machinery and
Item Land use rights Total
buildings equipment
I. Book value:
1.Beginning
86952461.343147044.400.0090099505.74
balance
2.Increase 12130897.36 0.00 146934751.11 159065648.47
(1) Leasing 12130897.36 0.00 0.00 12130897.36
(2) Changes in the
scope of 0.00 0.00 146934751.11 146934751.11
consolidation
3.Decrease 29506525.20 0.00 0.00 29506525.20
(1) Decrease 29506525.20 0.00 0.00 29506525.20
4. Closing balance 69576833.50 3147044.40 146934751.11 219658629.01
II. Accumulated depreciation
1.Beginning
46026526.30288479.070.0046315005.37
balance
157 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
2.Increase 14729651.75 157352.22 1078396.44 15965400.41
(1) Provision 14729651.75 157352.22 775364.36 15662368.33
(2) Other increase 0.00 0.00 303032.08 303032.08
3.Decrease 29506525.20 0.00 0.00 29506525.20
(1) Decrease 29506525.20 0.00 0.00 29506525.20
4.Closing balance 31249652.85 445831.29 1078396.44 32773880.58
III. Provision for impairment
1.Beginning
0.000.000.000.00
balance
2.Increase 0.00 0.00 0.00 0.00
3.Decrease 0.00 0.00 0.00 0.00
4.Closing balance 0.00 0.00 0.00 0.00
IV. Carrying amount
1.Carrying value at
the End of the 38327180.65 2701213.11 145856354.67 186884748.43
Period
2.Carrying value at
beginning of the 40925935.04 2858565.33 0.00 43784500.37
Period
Other descriptions:
During the current period the Company recognized rental expenses related to short-term leases
and leases of low-value assets amounting to RMB3.0951 million.At the end of the Period land use rights with a carrying amount of RMB25557437.78 were
pledged as security for borrowings.
16. Intangible assets
(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
1.Beginning
510851489.911541424568.48108108458.2462769716.9821855488.532245009722.14
balance
2.Increase 22637181.52 7915519.41 5803796.79 484998.24 215253.42 37056749.38
(1) Purchase 0.00 4328867.93 5591192.00 0.00 0.00 9920059.93
(2) Internal
0.003586651.480.000.000.003586651.48
R&D
(3) Increase
due to
22637181.080.00212604.79484998.24215253.6423550037.75
business
combination
(4) Other
0.440.000.000.00-0.220.22
increase
3.Decrease 7718849.22 7403290.50 4562794.56 0.00 3385.82 19688320.10
(1) Disposal 0.00 4195904.85 4545152.03 0.00 3385.82 8744442.70
(2) Increase
due to
0.003207385.650.000.000.003207385.65
business
combination
(3) Other
7718849.220.0017642.530.000.007736491.75
decrease
4.Closing 525769822.21 1541936797.39 109349460.47 63254715.22 22067356.13
2262378151.42
balance
II. Accumulated amortization
158 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
1.Beginning
150027015.841032481040.5087625709.4362767083.4311901080.671344801929.87
balance
2.Increase 5090609.83 47685231.15 4657192.08 16402.47 2121037.41 59570472.94
(1) Provision 5090609.83 47685231.15 4657192.08 16402.47 2121037.41 59570472.94
3.Decrease 0.00 1123058.50 1514790.52 0.00 2593.92 2640442.94
(1) Disposal 0.00 1123058.50 1497897.45 0.00 0.00 2620955.95
(2) Other
0.000.0016893.070.002593.9219486.99
decrease
4.Closing
155117625.671079043213.1590768110.9962783485.9014019524.161401731959.87
balance
III. Provision for impairment
1.Beginning
981826.9413528663.200.000.000.0014510490.14
balance
2.Increase 0.00 0.00 0.00 0.00 0.00 0.00
(1) Provision 0.00 0.00 0.00 0.00 0.00 0.00
3.Decrease 0.00 170716.64 0.00 0.00 0.00 170716.64
(1) Decrease 0.00 170716.64 0.00 0.00 0.00 170716.64
4.Closing
981826.9413357946.560.000.000.0014339773.50
balance
IV. Carrying amount
1.Carrying
value at 369670369.60 449535637.68 18581349.48 471229.32 8047831.97 846306418.05
period end
2.Carrying
value at
359842647.13495414864.7820482748.812633.559954407.86885697302.13
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 58.12%.At the end of the Period land use rights with a carrying amount of RMB813997.54 were pledged
as security for borrowings.
(2) Data resources recognized as inventories
□Applicable √N/A
(3) Intangible assets pending for certificates of ownership
□Applicable √N/A
Other descriptions
√Applicable □N/A
The land use rights are state-owned land use rights acquired by the Company within the
territory of China in accordance with Chinese laws with the assignment term being 50 years from
the acquisition of the land use rights; state-owned land use rights acquired within the territory of
Indonesia in accordance with Indonesian laws have an assignment term of 30 years from the
acquisition of the land use rights which may be extended for 20 years upon expiry with a second
renewal of 30 years and an aggregate maximum term of 80 years; and state-owned land use rights
acquired within the territory of Vietnam in accordance with Vietnamese laws are partly of perpetual
ownership while the term of the time-limited land use rights ranges from 42 to 50 years.
17. Development Costs
159 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Closing balance
Closing balance as of the
Item Increase Decrease as of the End of
previous year
the Period
Development
364875894.3647538013.753586651.48408827256.63
costs
For details please refer to Note VI. Research and Development Expenses
18. Goodwill
(1) Book value of goodwill
√Applicable □N/A
Unit: Yuan Currency: RMB
Decrease for the
Increase for the Period
Name of investee or Balance at the Period Balance at the
matter from which Beginning of the Formation by End of the
goodwill arose Period business Others Disposal Others Period
combination
Shanghai Livzon
Pharmaceutical Manufacturing
Co. Ltd. (上海丽珠制药有限 23916795.21 0.00 0.00 0.00 0.00 23916795.21
公司)
Zhuhai FTZ Livzon Hecheng
Pharmaceutical Manufacturing
Co. Ltd. (珠海保税区丽珠合 3492752.58 0.00 0.00 0.00 0.00 3492752.58
成制药有限公司)
Sichuan Guangda
Pharmaceutical Manufacturing
Co. Ltd. (四川光大制药有限 13863330.24 0.00 0.00 0.00 0.00 13863330.24
公司)
Livzon Group Xinbeijiang
Pharmaceutical Manufacturing
Inc. (丽珠集团新北江制药股 7271307.03 0.00 0.00 0.00 0.00 7271307.03
份有限公司)
Livzon Group Fuzhou Fuxing
Pharmaceutical Co. Ltd. (丽珠 46926155.25 0.00 0.00 0.00 0.00 46926155.25
集团福州福兴医药有限公司)
Livzon Group Livzon
Pharmaceutical Factory (丽珠 47912269.66 0.00 0.00 0.00 0.00 47912269.66
制药厂)
Livzon Group 395306126.41 0.00 0.00 0.00 0.00 395306126.41
Shenzhen Haibin
Pharmaceutical Co. Ltd. (深圳 91878068.72 0.00 0.00 0.00 0.00 91878068.72
市海滨制药有限公司)
Joincare Daily-Use & Health
Care Co. Ltd. (健康元日用保 1610047.91 0.00 0.00 0.00 0.00 1610047.91
健品有限公司)
Shenzhen Taitai
Pharmaceutical Co. Ltd. (深圳 635417.23 0.00 0.00 0.00 0.00 635417.23
太太药业有限公司)
Health Pharmaceutical (China)
Co. Ltd. (健康药业(中国) 有 23516552.65 0.00 0.00 0.00 0.00 23516552.65
限公司)
Shenzhen Hiyeah Industry Co.Ltd (深圳市喜悦实业有限公 6000000.00 0.00 0.00 0.00 0.00 6000000.00
司)
Jiaozuo Joincare Bio
Technological Co. Ltd. (焦作 92035.87 0.00 0.00 0.00 0.00 92035.87
健康元生物制品有限公司)
Imexpharm Corporation 0.00 969616496.88 0.00 0.00 0.00 969616496.88
1632037355.6
Total 662420858.76 969616496.88 0.00 0.00 0.00
4
For details of the increase in goodwill for the Period please refer to Note VII. 3 (1) Business
combinations not under common control.
(2) Provision for impairment of goodwill
160 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at Increase for the Decrease for the
Investee or matters the Period Period Balance at
that generated the Beginning the End of
goodwill of the Provision Others Disposal Others the Period
Period
Livzon Group
Xinbeijiang
Pharmaceutical
Manufacturing Inc. (丽珠 7271307.03 0.00 0.00 0.00 0.00 7271307.03集团新北江制药股份有
限公司)
Livzon Group Fuzhou
Fuxing Pharmaceutical
丽珠集团福州 11200000.00 0.00 0.00 0.00 0.00 11200000.00 Co. Ltd. (
福兴医药有限公司)
Shenzhen Hiyeah
Industry Co. Ltd (深圳 6000000.00 0.00 0.00 0.00 0.00 6000000.00
市喜悦实业有限公司)
Joincare Daily-Use &
Health Care Co. Ltd. (健
1610047.910.000.000.000.001610047.91
康元日用保健品有限公
司)
Total 26081354.94 0.00 0.00 0.00 0.00 26081354.94
Other descriptions
√Applicable □N/A
The goodwill of the Company arises from business combinations not under common control
(non-common-control business combinations). When performing impairment testing on goodwill
the Company compares the carrying amount of the asset groups (groups of cash-generating units)
to which the goodwill has been allocated with their recoverable amount. If the recoverable amount
is lower than the carrying amount the relevant difference is recognized in profit or loss for the
current period.
19. Long-term deferred expenses
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at Balance at
Other
Item the Beginning Increase Amortization the End of
decrease
of the Period the Period
Renovation
costs of 24784393.34 127061.74 3211620.06 141345.01 21558490.01
offices
Renovation
costs of 194650404.40 22805046.39 23364133.12 1012104.79 193079212.88
plants
Resins and
13506699.485101665.486100473.500.0012507891.46
fillers
License and
16333047.250.002024944.460.0014308102.79
royalty fees
Others 65570284.07 13706365.76 10720320.13 3188081.79 65368247.91
Total 314844828.54 41740139.37 45421491.27 4341531.59 306821945.05
161 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
20. Deferred tax assets and deferred tax liabilities
(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
533408785.3380912404.26531474555.3781530726.96
of assets
Deductible difference
arising from accrued 1178456902.76 178007877.70 1387725361.15 208935550.34
expenses
Deductible difference
1964808324.98294604833.191706649653.91255291234.32
arising from tax loss
Deductible difference
arising from deferred 257974098.28 38705114.73 269688821.77 40453323.26
income
Deductible difference
arising from unrealized
473612114.9470970008.02399518301.3860241846.25
gains from intra-
company transactions
Deductible difference
arising from changes in
299906053.4362636377.74189147223.7446750435.62
fair value of other equity
instruments
Deductible differences
arising from equity 98809144.73 14821371.71 98809144.73 14821371.71
incentive expenses
Tax and accounting
differences in
301381938.0245207290.69233017784.9734952667.74
amortization of
intangible assets
Lease liabilities 40004640.65 6105403.75 42479946.19 6390341.39
Other deductible
739876426.12120040592.30444946906.9373300227.81
temporary difference
Total 5888238429.24 912011274.09 5303457700.14 822667725.40
(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 11679822.45 1777175.82 19558426.35 2991495.75
for trading
Accelerated
depreciation of fixed 1269664952.42 191561378.08 1259990619.96 190422249.12
assets
Changes in fair value
of other equity
281439570.6342964428.84298330734.4747429088.39
instrument
investments
Unrealized gains from
intra-company 105940000.00 20791000.00 105940000.00 20791000.00
transactions
Right-of-use assets 45456813.19 7058292.40 43784500.36 6586024.52
Appraisal increments 209646763.70 41929352.74 0.00 0.00
Others 376817.26 75363.45 0.00 0.00
Total 1924204739.65 306156991.33 1727604281.14 268219857.78
162 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
(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
279738175.52300463620.68
difference
Deductible tax losses 3861593281.82 3966626731.87
Total 4141331457.34 4267090352.55
(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
2026554945209.10572643545.11
2027734129087.65752521835.88
20281083339882.691136066013.38
2029951059045.82983530105.66
2030363851461.04390710314.02
20319541782.58
Indefinite 164726812.94 131154917.82
Total 3861593281.82 3966626731.87
21. Other non-current assets
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Period Balance at the Beginning of the Period
Item Provision for Carrying Provision for Carrying
Book Balance Book Balance
impairment amount impairment amount
VAT input tax
19108770.160.0019108770.1614541254.810.0014541254.81
credits
Engineering and
equipment 290027688.07 70105592.70 219922095.37 209923113.13 70105592.70 139817520.43
payments
Time deposits 30557506.85 0.00 30557506.85 496893819.63 0.00 496893819.63
Others 9122084.50 0.00 9122084.50 8807198.84 0.00 8807198.84
Total 348816049.58 70105592.70 278710456.88 730165386.41 70105592.70 660059793.71
22. Ownership or using rights of assets subject to restriction
Unit: Yuan Currency: RMB
End of the Period
Item Carrying Restricted
Book balance Restricted situations
amount types
Pledged borrowings deposits for
Cash and bank Pledged
3975720.00 3975720.00 letter of credit and bank
balances Frozen
acceptance bills
Acceptance bills and pledged
Notes receivable 365372261.54 365372261.54 Pledged
notes receivable
Accounts Pledged/mortgaged borrowings
25900000.00 25900000.00 Pledged
receivable issuance of letters of guarantee
Inventories 45325000.00 45325000.00 Mortgaged and letters of credit
163 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Right-of-use assets 25557437.78 25557437.78 Mortgaged Mortgaged borrowings
Intangible assets 813997.54 813997.54 Mortgaged Mortgaged borrowings
Total 466944416.86 466944416.86
23. Short-term loans
(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 2450000000.00 2000000000.00
Guaranteed loans 1021145276.15 120000000.00
Pledged/mortgaged
24670501.84120000000.00
loans
Total 3495815777.99 2240000000.00
(2) Overdue short-term loans
□Applicable √N/A
24. Financial liabilities held for trading
√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 410080.56 487431.05 /
Including:
Derivative financial liabilities 410080.56 487431.05 /
Total 410080.56 487431.05 /
Other descriptions:
√Applicable □N/A
Derivative financial liabilities represent foreign currency forward contracts. The loss from
unexpired onerous contracts measured at fair value on balance sheet date was recognized as
financial liabilities held for trading.
25. Notes payable
√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 1137315224.65 1295877244.31
Total 1137315224.65 1295877244.31
26. Accounts payable
(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 604311815.36 544300115.35
Over 1 year 120270916.96 147132452.87
164 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Total 724582732.32 691432568.22
(2) Significant accounts payable aged over one year
□Applicable √N/A
Other descriptions:
√Applicable □N/A
The aging of accounts payable is calculated from the date of entry.
27. Contract liabilities
(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 63959868.24 91209210.73
Over 1 year 29772321.15 30358578.61
Total 93732189.39 121567789.34
(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
□Applicable √N/A
Other descriptions:
√Applicable □N/A
At the end of the Period the Company had no significant contract liabilities with an aging
exceeding one year. The amount of revenue recognized during the current period that was included
in the carrying amount of contract liabilities at the end of the prior year was RMB 91795468.19.
28. Employee benefits payables
(1) Descriptions of employee benefits payables
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the
Balance at the
Item Beginning of the Increase Decrease
End of the Period
Period
I. Short-term employee
483301413.101109220872.951340118559.00252403727.05
benefits
II. Post-employment
benefits -Defined 170945.22 105246554.56 105259653.32 157846.46
contribution plans
III. Termination
8268559.786089459.5013973168.78384850.50
benefits
Ⅳ. Other benefits due
0.004890774.5464872.004825902.54
within one year
Total 491740918.10 1225447661.55 1459416253.10 257772326.55
(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
475248222.77971161808.341202489978.48243920052.63
and allowances
165 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Ⅱ Staff welfare 5050892.94 56965405.15 57101275.25 4915022.84
Ⅲ Social
279415.5638804084.9238950121.77133378.71
insurances
Including: 1.
122157.1733194116.3233309566.316707.18
Medical insurance
2. Work injury
125820.324326526.364357113.2295233.46
insurance
3. Maternity
31438.071283442.241283442.2431438.07
insurance
Ⅳ Housing fund 1460520.12 35911681.61 35925348.03 1446853.70
Ⅴ Union funds
and staff 1262361.71 6377892.93 5651835.47 1988419.17
education
Ⅵ Stock
Ownership Plan 0.00 0.00 0.00 0.00
Special Fund
Total 483301413.10 1109220872.95 1340118559.00 252403727.05
(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 170945.22 105246554.56 105259653.32 157846.46
Including: 1. Basic pension
118982.64100642375.12100657252.33104105.43
insurance
2. Unemployment insurance 51962.58 4604179.44 4602400.99 53741.03
Total 170945.22 105246554.56 105259653.32 157846.46
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.
29. Taxes payable
√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 29084023.27 95236136.78
Urban maintenance and
6160734.078920610.59
construction tax
Enterprise income tax 111922147.51 100954700.77
Property tax 11949256.77 6679819.83
Land use tax 3138882.81 2804140.31
Individual income tax 10905285.11 15432117.73
Stamp duty 2660387.85 2987674.04
Education surcharges 4021236.60 6122253.93
Others 1495338.28 1599553.49
Total 181337292.27 240737007.47
30. Other payables
166 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
(1) 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 211015638.89 14017248.88
Other payables 3329539085.26 3378828699.81
Total 3540554724.15 3392845948.69
(2) Interest payable
□Applicable √N/A
(3) 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 202292240.72 20174.46
Qingyuan Xinbeijiang (Group) Company 1200710.00 1200710.00
Other legal persons and individual shares of
4755364.869945313.73
subsidiaries
Staff shares of subsidiaries 2767323.31 2851050.69
Total 211015638.89 14017248.88
(4) Other payables
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 92500819.34 69740676.43
Security deposits 62281890.14 63533334.20
Utility bill 46226391.80 33995659.53
Scientific research expenses 36550274.72 46281196.29
Business promotion
2904484319.743000493471.02
expenses
Others 187495389.52 164784362.34
Total 3329539085.26 3378828699.81
Significant other payables aged over 1 year
□Applicable √N/A
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.
31. Non-current liabilities due within one year
√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
21463376.5821599125.36
one year
167 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Long-term loans and interest
70274180.52351630565.74
due within one year
Total 91737557.10 373229691.10
32. Other current liabilities
√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
5878032.757996328.84
transfer
Total 5878032.75 7996328.84
Change of short-term bonds payable
□Applicable √N/A
33. Long-term loans
(1) Classification of long-term loans
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Balance at the Beginning of the
Item
Period Period
Credit loans 828280830.52 986964176.85
Guaranteed loans 0.00 936932987.93
Mortgage loans 25900000.00 0.00
Loans due within one year -70274180.52 -351630565.74
Total 783906650.00 1572266599.04
34. Lease liabilities
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Balance at the End of the Balance at the Beginning of the
Period Period
Lease payments payable 40973643.62 43504258.60
Less: Lease liabilities due within
21463376.5821599125.36
one year
Total 19510267.04 21905133.24
Other descriptions:
The interest expense of lease liabilities accrued for the Period amounts to RMB1.0901 million
which is included in financial expenses - interest expense.
35. Long-term payroll payable
√Applicable □N/A
(1) Long-term payroll payable
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Balance at the End of the Balance at the Beginning of the
Period Period
I. Post-employment benefits – net
liabilities under defined benefit
plans
II. Termination benefits
III. Other long-term benefits 3619183.40 0.00
168 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Less: Long-term payroll payable
0.000.00
due within one year
Total 3619183.40 0.00
Other long-term employee benefits represent provisions for long-service benefits and retirement
compensation for employees of Imexpharm Corporation.
36. Deferred income
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
327844468.423609700.0015453282.30316000886.12/
grants
Total 327844468.42 3609700.00 15453282.30 316000886.12 /
Other descriptions:
√Applicable □N/A
Government grants recorded as deferred income refer to Note VIII. Government grants.
37. Other non-current liabilities
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Balance at the End of the Balance at the Beginning of the
Period Period
Long-term deposits and
953120.000.00
guarantees
Long-term provision for site
945308.930.00
restoration payable
Total 1898428.93 0.00
38. Share capital
√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
1. Domestic
legal person 0 0 0 0 0 0 0
shares
2. Domestic
natural person 0 0 0 0 0 0 0
shares
3. Overseas
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
169 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
1. Ordinary 0 0
shares
18294533860001829453386
denominated in
RMB
2. Domestically
listed foreign 0 0 0 0 0 0 0
shares
Tradable shares
1829453386000001829453386
in aggregate
III. Total
number of 1829453386 0 0 0 0 0 1829453386
shares
39. Capital reserve
√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
663248499.9592959509.420.00756208009.37
(Share premium)
Other capital reserve 479020458.94 0.00 6162.75 479014296.19
Total 1142268958.89 92959509.42 6162.75 1235222305.56
Other descriptions including changes for the current period and reasons therefor:
(1) Changes in share premium during the current period are as follows:
The share premium increased by RMB92959509.42 which was attributable to (i) the
agreements reached between the Company and minority shareholders of its subsidiaries regarding
equity matters of the subsidiaries and (ii) the non-proportionate capital increases in the subsidiaries
resulting in differences between the actual capital contributions and the corresponding net asset
shares attributable to the Company in the subsidiaries. In aggregate the two items increased the
capital reserve.
(2) Changes in other capital reserve during the current period are as follows:
During the current period the disposal of long-term equity investments accounted for under
the equity method resulted in a corresponding transfer-out decrease of other capital reserve by
RMB6162.75.
170 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
40. Other comprehensive income
√Applicable □N/A
Unit: Yuan Currency: RMB
For the Period
Less: Amount
Less:
transferred to profit
Balance at the transferred to Amount Amount Balance at the
or loss in the current
Item Beginning of Amount before profit or loss in Less: Income tax attributable to attributable to End of the
period that was
The Period tax current year or expenses parent company minority interests Period
previously recognized
retained after tax(2) after tax
in other
earnings
comprehensive income
I. Other comprehensive
income not reclassified into -94237767.48 -383320687.10 0.00 346540.15 -59830695.52 -204495104.33 -119341427.40 -298732871.81
profit or loss subsequently
Including: remeasurements
of defined benefit plans
Other comprehensive
income not reclassified to
3172515.160.000.000.000.000.003172515.16
profit or loss under the
equity method
Changes in the fair value of
investments in other equity -97410282.64 -383320687.10 0.00 346540.15 -59830695.52 -204495104.33 -119341427.40 -301905386.97
instruments
II. Other comprehensive
income to be reclassified to -40431365.67 -139225896.23 0.00 0.00 0.00 -93672666.14 -45553230.09 -134104031.81
profit or loss
Including: other
comprehensive income to
be reclassified to profit or 393215.74 11261.32 0.00 0.00 0.00 5312.63 5948.69 398528.37
loss under the equity
method
Exchange differences on
translation of foreign -40824581.41 -139237157.55 0.00 0.00 0.00 -93677978.77 -45559178.78 -134502560.18
financial statements
Total other comprehensive
-134669133.15-522546583.330.00346540.15-59830695.52-298167770.47-164894657.49-432836903.62
income
171 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
41. Surplus reserve
√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
898745877.340.000.00898745877.34
reserve
Discretionary
40210642.440.000.0040210642.44
surplus reserve
Reserve fund 1103954.93 0.00 0.00 1103954.93
Total 940060474.71 0.00 0.00 940060474.71
42. Undistributed profits
√Applicable □N/A
For the Previous
Item For the Period
Year
Retained earnings in previous period before
11402453599.9710491692921.28
adjustments
Adjustments to opening balance of retained
0.000.00
earnings (increase + decrease -)
Opening balance of retained earnings after
11402453599.9710491692921.28
adjustments
Add: Net profit attributable to parent company for
647654146.461335547730.75
the current year
Gains from disposal of other equity instruments
1679318.86-2677483.64
investments
Less: Appropriation of statutory surplus reserve 0.00 56218891.22
Appropriation of discretionary surplus reserve 0.00 0.00
Appropriation for dividends to ordinary shares 402479744.92 365890677.20
Dividend to ordinary shares converted to share
0.000.00
capital
Closing balance of undistributed profits 11649307320.37 11402453599.97
Profit distributions
For the Previous
Item For the Period
Period
Dividends:
2025 year-end dividend paid (Note 1) 402479744.92
2024 year-end dividend paid (Note 2) -- 179130730.60
Balance sheet: Dividends proposed for future
--
distribution:
2025 year-end dividend distribution (Note 1) 402479744.92
2024 year-end dividend distribution (Note 2) -- 365890677.20
Note 1: On 30 March 2026 the seventeenth meeting of the ninth Board of Directors of the
Company resolved to approve the 2025 profit distribution plan. Under the plan based on the
Company’s total share capital as of the record date to be determined upon implementation of the
2025 profit distribution plan a cash dividend of RMB2.20 per 10 shares (tax inclusive) would be
172 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
distributed to all shareholders of the Company. No bonus shares would be issued nor would any
capital reserve be converted into share capital. The profit distribution plan was approved by the
general meeting of shareholders on 1 June 2026 and the payment was completed.Note 2: On 7 April 2025 the eighth meeting of the ninth Board of Directors of the Company
resolved to approve the 2024 profit distribution plan. Under the plan based on the Company’s
total share capital as of the record date determined upon implementation of the 2024 profit
distribution plan a cash dividend of RMB2.00 per 10 shares (tax inclusive) would be distributed
to all shareholders and the remaining undistributed profits would be carried forward for
distribution in future years. The profit distribution plan was approved by the general meeting of
shareholders on 6 June 2025 and RMB179130730.60 was paid before 30 June 2025.
43. Operating income and operating cost
(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 6523055975.07 2674720018.75 7830218720.39 2934347562.81
Other operations 59739964.95 43994826.66 68109530.02 50785013.14
Total 6582795940.02 2718714845.41 7898328250.41 2985132575.95
(2) Breakdown information of principal activities income
√Applicable □N/A
Unit: Yuan Currency: RMB
For the Period
Item
Revenue Cost
Segregation by products
Chemical pharmaceuticals (化学制剂) 2955847407.34 800859183.12
Chemical active pharmaceutical ingredients
(APIs) and intermediates (化学原料药及中间 2348213838.09 1526823862.19
体)
Traditional Chinese medicine (中药制剂) 543355312.11 134054146.84
Biological product (生物制品) 94372908.29 36303239.20
Healthcare products (保健食品) 303728999.40 58330372.80
Diagnostic reagents and equipment (诊断
270208467.23115115873.52
试剂及设备)
Others 7329042.61 3233341.08
Segregation by operating location
Domestic 4942675015.29 1681558304.59
Overseas 1580380959.78 993161714.16
Total 6523055975.07 2674720018.75
Other descriptions:
√Applicable □N/A
Segregation by other operations
For the Period For the Previous Period
Item
Revenue Cost Revenue Cost
Sales materials processing fees etc. 18134932.47 17364026.12 20576139.31 15168621.27
Rental expense 3203137.76 1534764.60 2929706.93 449082.91
Others 38401894.72 25096035.94 44603683.78 35167308.96
173 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Total 59739964.95 43994826.66 68109530.02 50785013.14
Segregation by timing of revenue recognition
For the Period For the Previous Period
Item
Revenue Cost Revenue Cost
Primary operations:
Including: Recognized at a
6523055975.072674720018.757830218720.392934347562.81
point in time
Other operations:
Including: Recognized at a
56536827.1942460062.0665179823.0950335930.23
point in time
Rental income 3203137.76 1534764.60 2929706.93 449082.91
Total 6582795940.02 2718714845.41 7898328250.41 2985132575.95
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 2026 445107472.62 6.82
January to June 2025 730163348.03 9.32
(3) Description of performance obligations
□Applicable √N/A
(4) Description of the transaction prices allocated to the remaining performance obligations
□Applicable √N/A
(5) Significant contract modifications or significant adjustments to the transaction price
□Applicable √N/A
44. Taxes and surcharges
√Applicable □N/A
Unit: Yuan Currency: RMB
Item For the Period For the Previous Period
Urban construction tax 30561553.95 39869596.03
Education surcharge 23324205.53 30265248.52
Land use tax 5309444.95 5250361.03
Property tax 17328941.81 17383491.54
Stamp duty and others 6147437.74 6731566.60
Total 82671583.98 99500263.72
Other descriptions:
The bases of calculations for major taxes and surcharges are set out in Note IV. Taxation.
45. Selling expenses
√Applicable □N/A
Unit: Yuan Currency: RMB
For the Previous
Item For the Period
Period
Marketing and promotional expenses 985482748.46 1567645657.62
Staff salaries 282482028.14 355211344.49
Entertainment and travel expenses 97064251.49 30039977.93
Conference fees 46828103.63 33682098.36
Others 34385394.86 30215410.44
Total 1446242526.58 2016794488.84
46. Administrative expenses
√Applicable □N/A
174 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Unit: Yuan Currency: RMB
Item For the Previous
For the Period
Period
Staff salaries 223335896.49 261216044.63
Depreciation and amortization 56332180.30 54876173.79
Advisory consultancy and information
7702086.607768803.85
disclosure fees
Quality project expenses 11001887.18 15351835.48
Office entertainment and travelling
29709168.7027369298.00
expenses
Repair of utilities transportation and
8798475.139991950.15
miscellaneous expenses
Recruitment and staff training expenses 1885031.06 2181985.49
Others 40890685.39 43134631.72
Total 379655410.85 421890723.11
47. R&D expenses
√Applicable □N/A
Unit: Yuan Currency: RMB
For the Previous
Item For the Period
Period
Material fee 101764115.42 87370397.20
Staff salaries 183074311.70 217466763.10
Testing fee 114827018.69 148399711.74
Depreciation and amortization 64115284.86 73411944.38
External purchased R&D expenses 23000000.00 47150943.40
Others 23936294.97 37353308.79
Total 510717025.64 611153068.61
48. Finance expenses
√Applicable □N/A
Unit: Yuan Currency: RMB
Item For the Previous
For the Period
Period
Interest expenses 32881624.05 45725827.28
Less: Interest income 109840472.99 246070795.96
Exchange (gains)/losses 66362949.46 -24822171.64
Bank charges and others 3171436.68 3463828.78
Total -7424462.80 -221703311.54
49. Other income
√Applicable □N/A
Unit: Yuan Currency: RMB
For the For the Previous Related to assets/
Item
Period Period Related to income
Government grants 15430901.52 31779020.73 Related to assets
Government grants 31349978.54 36660019.43 Related to income
Handling fees for tax
3953239.084361632.40
withholding
Tax refund on super-deduction 7613597.07 12596104.90
Total 58347716.21 85396777.46
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.
175 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
50. Investment income
√Applicable □N/A
Unit: Yuan Currency: RMB
For the Previous
Item For the Period
Period
Long-term equity investments income under equity
method 54704091.67 39476098.20
Investment income from financial assets held for
trading during the holding period 9864428.58 3382790.06
Dividend income from other equity instrument
investments 23793463.48 1505811.26
Investment income arising from disposal of long-
term equity investments 16372258.76 -731350.19
Gain arising from the remeasurement of the
remaining equity interest at fair value upon the 1754169.56 0.00
loss of control
Investment income from disposal of financial
assets held for trading 9681332.06 -4091436.47
Total 116169744.11 39541912.86
Other descriptions:
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
Investments in debt instruments held for trading 114123.49 101250.00
Derivative instruments not designated as hedging
9567208.57-4192686.47
relationships
Including: Forward foreign exchange contracts 9567208.57 -4192686.47
Total 9681332.06 -4091436.47
51. Gains from changes in fair value
√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 4275026.83 -15737790.86
Including: Funds 462029.53 9815.15
Structured deposits -2538907.19 220784.14
Equity instruments investment 8284034.70 -16458768.85
Derivative financial assets -1932130.21 490378.70
Financial liabilities held for trading 69623.28 9037972.35
Including: Derivative financial liabilities 69623.28 9037972.35
Total 4344650.11 -6699818.51
52. Credit impairment loss
√Applicable □N/A
Unit: Yuan Currency: RMB
Item For the Period For the Previous Period
Bad debt losses on accounts
-2426126.24-5216270.63
receivable
176 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Bad debt losses on other receivables 2131740.95 -2116153.12
Total -294385.29 -7332423.75
53. Asset impairment losses
√Applicable □N/A
Unit: Yuan Currency: RMB
Item For the Period For the Previous Period
I. Impairment losses on contract assets
II. Loss on write-down of inventories and
impairment losses on contract performance -1193437.02 -14804425.35
costs
III. Impairment losses on long-term equity
-14770499.250.00
investments
IV. Impairment losses on investment
property
V. Impairment losses on fixed assets 0.00 -9636.13
VI. Impairment losses on project materials
VII. Impairment losses on construction in
progress
VIII. Impairment losses on bearer
biological assets
IX. Impairment losses on oil and gas assets
X. Impairment losses on intangible assets
XI. Impairment losses on goodwill
XII. Impairment losses on development
expenditure
Total -15963936.27 -14814061.48
54. Gains on disposal of assets
√Applicable □N/A
Unit: Yuan Currency: RMB
Item For the Period For the Previous Period
Gain from disposal of fixed assets (“-” for
-3795090.80-149723.72
Loss)
Total -3795090.80 -149723.72
55. Non-operating income
√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 1138324.51 1443497.38 1138324.51
Amount not required to be
3943635.442766893.563943635.44
paid
Compensation income 807483.79 359027.48 807483.79
Gains on destruction or
retirement of non-current 711220.14 1168.15 711220.14
assets
Others 174903.75 623677.15 174903.75
Total 6775567.63 5194263.72 6775567.63
56. Non-operating expenses
√Applicable □N/A
Unit: Yuan Currency: RMB
177 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Amount included in
For the
Item For the Period non-recurring gains
Previous Period
and losses
Loss on retirement of non-
3908043.361699555.013908043.36
current assets
Donation expenses 4908728.80 4672542.76 4908728.80
Others 7983681.16 7583245.07 7983681.16
Total 16800453.32 13955342.84 16800453.32
57. Income tax expenses
(1) Table of income tax expenses
√Applicable □N/A
Unit: Yuan Currency: RMB
Item For the Period For the Previous Period
Deferred income tax expense -35803620.92 -75570304.32
Current income tax calculated in
accordance with tax laws and 270599133.30 384597530.87
relevant regulations
Total 234795512.38 309027226.55
(2) Reconciliation between income tax expenses and accounting profits
√Applicable □N/A
Unit: Yuan Currency: RMB
Item For the Period
Profit before tax 1601002822.74
Income tax expenses calculated at statutory (or applicable) tax rates 400250705.69
Impact from tax preferential rate on certain subsidiaries 596163.90
Effect of tax reduction and exemption -197104631.77
Effect of non-deductible costs expenses and losses 7022434.95
Effect of deductible tax losses for which no deferred tax assets were recognized
in prior periods -25733.04
Effect of deductible tax losses or deductible temporary differences for which
no deferred tax asset was recognized in the current period 38025059.92
Others -13968487.27
Income tax expenses 234795512.38
58. Notes to cash flows statement
（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 37078536.72 73697228.18
Interest income 100918952.85 224104487.80
Current accounts and others 64402261.45 44245397.22
Total 202399751.02 342047113.20
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 1128140612.08 1669141529.12
178 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Research and development
158136893.63256398806.60
expenses
Bank charges 3157205.61 3480877.87
Deposits & security deposits 11190943.95 15183367.91
Other expenses paid 355703226.87 220029336.53
Current accounts and others 24837100.90 13382383.19
Total 1681165983.04 2177616301.22
（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 6137558675.97 3131877262.48
Cash management 110179753.23 109993408.80
Total 6247738429.20 3241870671.28
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 3845814116.44 3302000000.00
Cash management 223266260.34 110644515.80
Cash paid for investment in
2701484087.210.00
financial assets
Net cash paid for acquisition of
1557160427.970.00
subsidiaries
Total 8327724891.96 3412644515.80
Other cash received relating to investing activities
√Applicable □N/A
Unit: Yuan Currency: RMB
Item For the Period For the Previous Period
Deposit for equity acquisition 1855603200.00 0.00
Others 0.00 75249.03
Total 1855603200.00 75249.03
Other cash paid relating to investing activities
√Applicable □N/A
Unit: Yuan Currency: RMB
Item For the Period For the Previous Period
Net cash flows from disposal of subsidiaries 71654390.52 0.00
Foreign exchange forward contract losses 1266677.07 4517299.69
Others 2642506.26 0.00
Total 75563573.85 4517299.69
(3) Cash related to financing activities
Other cash received relating to financing activities
□Applicable√N/A
Other cash paid relating to financing activities
√Applicable □N/A
179 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Unit: Yuan Currency: RMB
Item For the Period For the Previous Period
Repurchase of shares and
0.00558124454.63
transaction fees
Rental payments 17046941.60 14070372.31
Collection and advance payment of
13912.666000.00
individual income tax
Withholding income tax 0.00 18493376.16
Total 17060854.26 590694203.10
Changes in liabilities arising from financing activities
√Applicable □N/A
Unit: Yuan Currency: RMB
Decrease of the current
Increase of the current period
Beginning period
Item Closing balance
balance Non-cash Non-cash
Cash movement Cash movement
movement movement
Short-term
2240000000.003372306940.5839096292.242155587454.830.003495815777.99
loans
Long-term
1923897164.780.0044876428.061114592762.300.00854180830.52
loans
Lease
43504258.600.0014516326.6217046941.600.0040973643.62
liabilities
Total 4207401423.38 3372306940.58 98489046.92 3287227158.73 0.00 4390970252.13
(4) Notes to the presentation of cash flows on a net basis
□Applicable √N/A
(5) 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
59. Supplemental to cash flow statement
(1) Supplemental to cash flow statement
√Applicable □N/A
Unit: Yuan Currency: RMB
For the Previous
Supplemental information For the Period
Period
1. Reconciliation of net profit to cash flow from operating activities:
Net profit 1366207310.36 1763714798.91
Add: Assets impairment loss 15963936.27 14814061.48
Credit impairment loss 294385.29 7332423.75
Depreciation of fixed assets depletion of
oil and gas assets and depreciation of 349165099.16 339393439.98
productive biological assets
Amortization of right-of-use assets 15662368.33 14127614.55
Amortization of intangible assets 59570472.94 54174875.56
Amortization of long-term deferred
45421491.2745545273.26
expenses
Losses on disposal of fixed assets
intangible assets and other long-term assets 3795090.80 149723.72
(Gain as in “-”)
180 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Loss on retirement of fixed assets (Gain as
3196823.221698386.86
in “-”)
Losses on changes in fair value (Gain as in
-4344650.116699818.51
“-”)
Financial expenses (Gain as in “-”) 76305983.89 31931171.41
Investment losses (Gain as in “-”) -116169744.11 -39541912.86
Decrease in deferred tax assets (Increase as
-28631645.67-78506758.96
in “-”)
Increase in deferred tax liabilities
-7171975.252936454.64
(Decrease as in “-”)
Decrease in inventories (Increase as in “-”) -13554161.26 291311960.30
Decrease in operating receivables
789045788.85-129847275.66
(Increase as in “-”)
Increase in operating payables (Decrease
-512278072.47-399577397.35
as in “-”)
Others 0.00 0.00
Net cash flows from operating activities 2042478501.51 1926356658.10
2. Significant investment or finance activities not involving cash:
Conversion of debt into capital 0.00 0.00
Convertible bonds mature within one year 0.00 0.00
Fixed assets acquired under finance leases 159065648.47 18261380.89
3. Net increase/(decrease) in cash and cash equivalents:
Cash and bank balance as at the End of the
11469074922.1214475971323.03
Period
Less: cash and bank balance at the
11745695094.9514842645678.32
Beginning of the Period
Add: cash equivalents at the End of the
0.000.00
Period
Less: cash equivalents at the Beginning of
0.000.00
the Period
Net increase in cash and cash equivalents -276620172.83 -366674355.29
(2) Net cash paid for acquisition of subsidiaries during the Period
√Applicable □N/A
Unit: Yuan Currency: RMB
Item For the Period
Cash or cash equivalents paid in the current period for
1565806520.26
business combinations occurring in the current period
Including: Imexpharm Corporation 1565806520.26
Less: cash and cash equivalents held by the subsidiary at
9490092.29
the date of acquisition
Including: Imexpharm Corporation 9490092.29
Add: Cash or cash equivalents paid during the current
period for business combinations occurring in prior 844000.00
periods
Including: Shanghai Zhongtuo Pharmaceutical
844000.00
Technology Co. Ltd. (上海中拓医药科技有限公司)
Net cash paid for acquisition of subsidiaries 1557160427.97
(3) Net cash received from disposal of subsidiaries during the Period
√Applicable □N/A
Unit: Yuan Currency: RMB
181 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Item For the Period
Cash or cash equivalents received in the current period 51450000.00
from disposals of subsidiaries in the current period
Including: Fluffy Buddy Animal Health (Guangdong) 51450000.00
Co. Ltd.(毛孩子动物保健(广东)有限公司)
Less: cash and cash equivalents held by the subsidiary at 123104390.52
the date of loss of control
Including: Fluffy Buddy Animal Health (Guangdong) 123104390.52
Co. Ltd.(毛孩子动物保健(广东)有限公司)
Net cash received from disposal of subsidiaries -71654390.52
(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 11469074922.12 11745695094.95
Including: Cash on hand 357498.53 349028.70
Cash at bank readily available for payment 11457433291.48 11630468049.98
Other monetary funds readily available for
11284132.11114878016.27
payment
II. Cash equivalents 0.00 0.00
Including: bond investments mature within 3
0.000.00
months
III. Cash and cash equivalents as at closing balance 11469074922.12 11745695094.95
Cash and cash equivalents do not include cash and cash equivalents over which the Company has
restricted use.
(5) Presentation of cash and cash equivalents with restricted use
□Applicable √N/A
(6) Monetary funds not classified as cash and cash equivalents
√Applicable □N/A
Unit: Yuan Currency: RMB
Closing balance Reason for not classified as cash and
Item Closing balance
of Previous year cash equivalents
Business deposits for
equity acquisitions 3975720.00 1865020659.69 Frozen
bank guarantees etc.Interest is accrued at the fixed-deposit rate.Although the original term of the deposit
Time deposits 84175000.00 0.00 exceeds one year the Period from the
balance sheet date to maturity is less than
one year.Accrued interest 1728072.84 0.00 Interest accrued
Total 89878792.84 1865020659.69
60. Items in foreign currencies
(1) Items in foreign currencies
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance in foreign Equivalent RMB
Item currency at the Conversion rate balance at the
End of the Period End of the Period
182 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Cash and bank balances
Including: Hong Kong
361795366.380.86855314237365.47
Dollar (HKD)
Euro (EUR) 251647.76 7.76710 1954573.32
US Dollar (USD) 479907240.53 6.81090 3268600224.53
Macau Pataca (MOP) 6249068.66 0.84324 5269470.91
Japanese Yen (JPY) 203656660.00 0.04205 8562744.27
British Pound (GBP) 1691.13 9.01450 15244.69
Malaysian Ringgit
70093.431.67342117295.75
(MYR)
Indonesian Rupiah
185273063567.200.0003870589037.22
(IDR)
Singapore Dollar
323518.915.260501701871.23
(SGD)
Philippine Peso (PHP) 2495630.50 0.11100 277014.99
Vietnamese Dong
503483278188.000.00026130402169.05
(VND)
Accounts receivable
Including: US Dollar (USD) 101292043.95 6.81090 689889982.14
Japanese Yen (JPY) 80576380.00 0.04205 3387833.90
Euro (EUR) 95000.00 7.76710 737874.50
Vietnamese Dong
455145497024.000.00026117882683.73
(VND)
Dividends receivable
Including: Hong Kong
15083299.360.8685513100599.66
Dollar (HKD)
Other receivables
Including: Hong Kong
5778926.800.868555019286.87
Dollar (HKD)
Euro (EUR) 4127.61 7.76710 32059.56
Philippine Peso (PHP) 131202.45 0.11100 14563.47
Singapore Dollar
0.075.260500.37
(SGD)
Vietnamese Dong
9036136937.000.000262340359.47
(VND)
Other current assets
Including: US Dollar (USD) 16100000.00 6.81090 109655490.00
Other non-current assets
Including: Hong Kong
8900000.000.868557730095.00
Dollar (HKD)
Vietnamese Dong
1053774740.000.00026272927.66
(VND)
Short-term loans
Including: Vietnamese Dong
95252902841.000.0002624670501.84
(VND)
Accounts payable
Including: Euro (EUR) 63891.93 7.76710 496255.01
Japanese Yen (JPY) 10900980.29 0.04205 458331.72
US Dollar (USD) 1920522.69 6.81090 13080487.99
Indonesian Rupiah
82892250.000.0003831581.95
(IDR)
Vietnamese Dong
49447418514.000.0002612806881.40
(VND)
Dividends Payable
Including: Vietnamese Dong
92405377200.000.0002623932992.69
(VND)
183 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Other payables
Including: US Dollar (USD) 14557415.83 6.81090 99149103.48
Indonesian Rupiah
2801647154.200.000381067427.57
(IDR)
Hong Kong Dollar
60085.410.8685552187.18
(HKD)
Euro (EUR) 79246.88 7.76710 615518.44
Malaysian Ringgit
7400.001.6734212383.31
(MYR)
Philippine Peso (PHP) 61350.03 0.11100 6809.85
Vietnamese Dong
99092220765.000.0002625664885.18
(VND)
Long-term loans
Including: US Dollar (USD) 107052981.45 6.81090 729127151.34
Vietnamese Dong
100000000000.000.0002625900000.00
(VND)
61. Leases
(1) As leasee
√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 3095126.82
(2) As lessor
Operating leases as a lessor
√Applicable □N/A
Unit: Yuan Currency: RMB
Including: income relating to variable
Item For the Period lease payments not recognized as lease
receipts
Rental income 3203137.76 0.00
Total 3203137.76 0.00
Finance 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 4616408.66 4114245.73
Second year 2621709.93 1839065.27
Third year 1284545.94 1117248.77
Fourth year 417593.97 409903.97
Fifth year 236543.97 259903.97
184 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Total undiscounted lease
payments receivable after five 9176802.47 7740367.71
years
VI. Research and development expenditures
(1) Presented based on nature of expense
√Applicable □N/A
Unit: Yuan Currency: RMB
Item For the Period For the previous period
Material costs 105067430.00 88162358.44
Staff salaries 186159608.07 221996262.91
Testing fees 137473353.06 191381078.65
Depreciation and amortization 64166710.33 73817274.89
External purchase of research
39766280.0079917963.40
projects
Others 25621657.93 39769436.13
Total 558255039.39 695044374.42
Of which: Expenses amount 510717025.64 611153068.61
Capitalized amount 47538013.75 83891305.81
(2) Development expenses on R&D projects eligible for capitalization
√Applicable □N/A
Unit: Yuan Currency: RMB
Increase Decrease
Beginning Recognized Closing
Item Internal Recognized
balance Other as balance
development in profit or Others
increase intangible
costs loss
assets
Chemical
364875894.3630771733.7516766280.003586651.480.000.00408827256.63
pharmaceuticals
Total 364875894.36 30771733.75 16766280.00 3586651.48 0.00 0.00 408827256.63
Significant capitalized 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
Provision for Impairment of Development Expenditures
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Beginning Increase Decrease Closing Balance
balance
Chemical
75125514.720.000.0075125514.72
pharmaceuticals
Total 75125514.72 0.00 0.00 75125514.72
(3) Significant acquired research and development projects
√Applicable □N/A
185 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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:
The JP1366 project has been approved for marketing in South Korea. Following the purchase
the Company is responsible for conducting domestic clinical trials. Based on its assessment the
Company concluded that it is probable that future economic benefits from the project will flow to
the enterprise; accordingly the purchase consideration was recognized as development expenditure.VII Equity in other entities
1. Interests in subsidiaries
(1) Group structure
√Applicable □N/A
Unit: Yuan Currency: RMB
Main Shareholding %
Place of Business
Name of subsidiary operating Registered capital Acquisition method
registration nature
location Direct Indirect
Topsino Industries
Limited (Topsino Hong Kong HKD896933973.00 Hong Kong Business 100 Set-up by investment
Industries)
Shenzhen Taitai Genomics
Inc. Co. Ltd. (Taitai Shenzhen RMB50000000.00 Shenzhen Industry 75 25 Set-up by investment
Genomics)
Shenzhen Taitai
Pharmaceutical Industry
Shenzhen RMB100000000.00 Shenzhen Industry 100 Set-up by investment
Co. Ltd. (Taitai
Pharmaceutical)
Health Investment
The British The British
Holdings Ltd. (Health USD50000.00 Investment 100 Set-up by investment
Virgin Islands Virgin Islands
Investment)
Joincare Pharmaceutical
The British The British
Group Industry USD50000.00 Investment 100 Set-up by investment
Virgin Islands Virgin Islands
Co.Ltd.(BVI) *
Joincare Pharmaceutical
Cayman Cayman
Group Industry Co. Ltd. USD50000.00 Investment 100 Set-up by investment
Islands Islands
(CAYMAN ISLANDS)
Xinxiang Haibin
Henan Henan
Pharmaceutical Co. RMB170000000.00 Industry 100 Set-up by investment
Xinxiang Xinxiang
Ltd.(Xinxiang Haibin)
Shenzhen Fenglei Electric
Power Investment Co.Shenzhen RMB100000000.00 Shenzhen Investment 100 Set-up by investment
Ltd. (Fenglei Electric
Power)
Jiaozuo Joincare Bio
Technological Co. Henan Jiaozuo RMB760000000.00 Henan Jiaozuo Industry 75 25 Set-up by investment
Ltd.(Jiaozuo Joincare)
Shanghai Frontier Health
Pharmaceutical
Shanghai RMB50000000.00 Shanghai Industry 65 Set-up by investment
Technology Co.Ltd.(Shanghai Frontier)
186 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Main Shareholding %
Place of Business
Name of subsidiary operating Registered capital Acquisition method
registration nature
location Direct Indirect
Shenzhen Taitai
Biological Technology
Shenzhen RMB5000000.00 Shenzhen Industry 100 Set-up by investment
Co. Ltd. (Taitai
Biological)
Guangdong Taitai
Shenzhen RMB0.00 Shenzhen Business 100 Set-up by investment
Forensic Test Institute
Joincare Haibin
Pharmaceutical Co. Ltd Shenzhen RMB500000000.00 Shenzhen Industry 25 75 Set-up by investment
(Joincare Haibin)
Shenzhen Haibin Business combination
Pharmaceutical Co. Ltd. Shenzhen RMB700000000.00 Shenzhen Industry 97.87 2.13 not under common
(Haibin Pharma) control
Joincare Daily-Use & Business combination
Health Care Co. Ltd. Shenzhen RMB 25000000.00 Shenzhen Business 80 20 not under common
(Joincare Daily-Use) ) control
Health Pharmaceutical Business combination
(China) Co. Ltd. (Health Zhuhai HKD73170000.00 Zhuhai Industry 100 not under common
China) control
Livzon Pharmaceutical Business combination
Group Inc. (Livzon Zhuhai RMB887907171.00 Zhuhai Industry 24.93 22.25 not under common
Group) *Note 1 control
Hong Kong Health Business combination
Pharmaceutical Industry Hong Kong HKD10000.00 Hong Kong Investment 100 not under common
Company Limited control
Health Pharmaceutical Business combination
Industry Company Hong Kong HKD10000.00 Hong Kong Investment 100 not under common
Limited control
Shenzhen Hiyeah Industry Business combination
Co. Ltd (Hiyeah Industry Shenzhen RMB178000000.00 Shenzhen Business 97.58 2.42 not under common
) control
Joincare (Guangdong)
Special Medicine Food Shaoguan RMB20000000.00 Shaoguan Industry 100 Set-up by investment
Co. Ltd.Jiaozuo Jianfeng
Jiaozuo RMB50000000.00 Jiaozuo Industry 66.5 Set-up by investment
Biotechnology Co. Ltd.JOINCARE PHARMA
SINGAPORE Singapore SGD600000.00 Singapore Business 100 Set-up by investment
HOLDINGS PTE. LTD.Joincare Pharma
Netherlands EUR2000.00 Netherlands Business 100 Set-up by investment
Netherlands B.V.Joincare Pharma
Philippines PHP11500000.00 Philippines Business 100 Set-up by investment
Philippines Inc.CICC Fund Yuanhe No. 1
Single Asset Management Beijing RMB 40000 Beijing Investment 100 Set-up by investment
Plan
CITIC Securities Asset
Management Jianying No.Beijing RMB 50000 Beijing Investment 100 Set-up by investment
1 Single Asset
Management Plan
Joincare Wellness Limited H ong Kong HKD 10000.00 Hong Kong Trade 100 Set-up by investment
*Note 1: Livzon Group controls the subsidiaries in which the company holds stakes
A. 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% of its equity and the Company holds 40%.
187 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
B. Zhuhai Livzon Biopharmaceutical Technology Co. Ltd. (珠海市丽珠生物医药科技有限
公司) (“Livzon Biopharmaceutical Technology”) is a subsidiary within the consolidation scope of
Livzon Group. It was originally 100% indirectly held by Livzon Group. Following the restructuring
of the shareholding structure of Livzon Group’s subsidiaries and a capital injection by Livzon Group
based on the subscribed capital ratio Livzon Group now holds 66.54% of its equity the Company
holds 22.58% YF Pharmab Limited holds 5.76% and Hainan Lisheng Juyuan Investment
Partnership (Limited Partnership) (海南丽生聚源投资合伙企业（有限合伙）) holds 5.12%.Basis for control over significant structured entities included in the consolidation scope:
As at the end of the Reporting Period the Company (excluding Livzon Group) had two
significant structured entities included in its consolidation scope namely CICC Fund Yuanhe No.
1 Single Asset Management Plan (中金基金元和 1 号单一资产管理计划) and CITIC Securities
Asset Management Jianying No. 1 Single Asset Management Plan (中信证券资管健盈 1 号单一
资产管理计划). As the Company being the investor in these structured entities holds all interests
therein bears substantially all or all of the risks associated with the products and is entitled to
substantially all or all of their variable returns the Company has included these structured entities
in the scope of its consolidated financial statements.
188 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
(2) Significant non-wholly owned subsidiaries
√Applicable □N/A
Unit: Yuan Currency: RMB
Shareholding of minority Profit or loss attributable to Dividend paid to minority Balance of minority
Name of subsidiary
interest(%) minority interest interest interests at period end
Livzon Group 52.8241 492425844.51 670720773.37 7060377371.07
(3) Principal financial information of significant non-wholly owned subsidiaries
√Applicable □N/A
Unit: 10000 Yuan Currency: RMB
Closing balance Beginning balance
Name of Non- Non- Non- Non-
Current Current Total Current Current Total
subsidiary current Total assets current current Total assets current
assets liabilities liabilities assets liabilities liabilities
assets liabilities assets liabilities
Livzon
1311253.231047895.772359149.00846179.1553197.27899376.421611801.15786745.992398547.14721975.28121861.85843837.13
Group
Current period Prior Period
Name of Cash flow from Cash flow from
Total Comprehensive Total Comprehensive
subsidiary Revenue Net profit operating Revenue Net profit operating
income income
activities activities
Livzon Group 499966.97 112091.52 81424.32 176293.47 627191.26 155122.12 149210.35 168694.08
(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
189 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
2. Changes in share of owners' equity in subsidiaries and still control the subsidiaries
√Applicable □N/A
(1) Explanation of changes in the ownership interest in subsidiaries
√Applicable □N/A
A. The Company’s controlled subsidiary Livzon Group originally held a 55.13% equity
interest in Zhuhai Livzon Biopharmaceutical Technology Co. Ltd. (珠海市丽珠生物医药科技有
限公司) (“Livzon Biopharmaceutical Technology”).On 17 November 2023 Livzon Group and Livzon Biopharmaceutical Technology entered into
the Capital Increase Agreement in relation to Zhuhai Livzon Biopharmaceutical Technology Co.Ltd. pursuant to which the registered capital of Livzon Biopharmaceutical Technology was
increased from RMB889023284.00 to RMB1095472334.00. Livzon Group subscribed in cash
for the newly increased registered capital of RMB206449050.00 which shall be fully paid by 31
December 2028. The subscription consideration amounted to RMB1000000000.00 with the
portion exceeding the subscribed registered capital credited to capital reserve.On 26 March 2025 Livzon Group and Livzon Biopharmaceutical Technology entered into
another Capital Increase Agreement in relation to Zhuhai Livzon Biopharmaceutical Technology
Co. Ltd. pursuant to which the registered capital of Livzon Biopharmaceutical Technology was
increased from RMB1095472334.00 to RMB1301921384.00. Livzon Group shall fully pay the
newly subscribed registered capital of RMB206449050.00 within 24 months after completion of
the industrial and commercial registration for this capital increase. The subscription consideration
amounted to RMB1000000000.00 with the portion exceeding the subscribed registered capital
credited to capital reserve.During the current period Livzon Group paid capital contributions totaling
RMB130000000.00. The capital increase during the current period resulted in an increase of
RMB48299252.09 in minority interests at the level of Livzon Group’s consolidated financial
statements with a corresponding decrease in capital reserve.B. Livzon Group reached an agreement with the minority shareholders in respect of the relevant
equity interests in Shanghai Livzon Pharmaceutical Manufacturing Co. Ltd. (上海丽珠制药有限
公司) (“Shanghai Livzon”) resulting in a corresponding increase in capital reserve.
(2) Effect of the transactions on minority interest and equity attributable to the owners of
the parent company
√Applicable □N/A
Unit: Yuan Currency: RMB
Item LivzonBio
Acquisition cost
– Cash 130000000.00
Total acquisition cost 130000000.00
190 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Item LivzonBio
Less: Difference in net assets shares of subsidiaries
81700747.91
calculated based on the proportion of equity acquired
Difference
Of which: adjustment in capital reserve 48299252.09
Item Shanghai Livzon
Acquisition cost
– Cash
Total acquisition cost
Less: Difference in net assets shares of subsidiaries
163812060.16
calculated based on the proportion of equity acquired
Difference
Of which: adjustment in capital reserve -163812060.16
3. Changes in the scope of consolidation
(1) Business combinations not under common control
√Applicable □N/A
a) Business combinations not under common control during the current period
√Applicable □N/A
Unit: Yuan Currency: RMB
Propor Basis for Revenue of Net profit of Cash flows of
Method
Time of tion of determini acquiree from acquiree from acquiree from
Name of Cost of obtaining of Purchase
obtaining equity ng the purchase the purchase the purchase
acquiree equity obtainin date
equity obtain purchase date to the end date to the end date to the end
g equity
ed (%) date of the Period of the Period of the Period
Completi
Imexpharm Tender on of
2026.5.81549439204.7267.882026.5.896842789.28-14085391.8231082660.27
Corporation offer asset
delivery
b) Consideration and goodwill
√Applicable □N/A
Unit: Yuan Currency: RMB
Consideration for the business combination Imexpharm Corporation
– Cash 1549439204.72
Total consideration for the business combination 1549439204.72
Less: fair value of the identifiable net assets acquired 579822707.84
Goodwill / amount by which the consideration is less than
969616496.88
the fair value of the identifiable net assets acquired
Method for determining the fair value of the consideration:
√Applicable □N/A
The consideration was determined based on the tender offer price of VND57400 per share of
Imexpharm Corporation multiplied by the number of shares acquired in this acquisition after
deducting the declared but unpaid dividends receivable attributable to the target shares and was
translated into RMB at the spot exchange rate on the acquisition date.Completion of performance commitments:
□Applicable √N/A
Principal reasons for the formation of significant goodwill:
191 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
√Applicable □N/A
The difference between the consideration and the Company's share of the fair value of the
identifiable net assets of Imexpharm Corporation at the acquisition date was recognized as goodwill.c) Identifiable assets and liabilities of the acquiree at the acquisition date
√Applicable □N/A
Unit: Yuan Currency: RMB
Imexpharm Corporation
Fair value at the Carrying amount at the
acquisition date acquisition date
Assets:
Cash and cash equivalents 123367000.50 123367540.73
Accounts receivable 98218754.45 98218754.45
Prepayments 15107237.44 15107237.44
Other receivables 2590834.96 2590834.96
Inventories 226165834.03 175371844.58
Other current assets 1711313.75 1711313.75
Long-term equity investments 91289540.16 33449816.55
Fixed assets 306657709.72 177101394.83
Construction in progress 4733815.83 4733815.83
Right-of-use assets 146934751.11 78981991.81
Intangible assets 23550037.75 13972715.88
Long-term deferred expenses 5313635.37 5313635.37
Deferred tax assets 7348050.36 7348050.36
Other non-current assets 309808.91 316101.43
Liabilities:
Borrowings 22391643.70 22391643.70
Accounts payable 27834778.09 27834778.09
Contract liabilities 7935582.84 7935582.84
Employee benefits payable 7167229.37 7167229.37
Taxes payable 2603950.93 2603950.93
Other payables 47477043.37 47477043.37
Non-current liabilities due within one
410533.23410533.23
year
Long-term borrowings 26000000.00 26000000.00
Lease liabilities 1691705.71 1691705.71
Non-current employee benefits payable 3936009.48 3936009.48
Deferred tax liabilities 49756245.83
Other non-current liabilities 1905758.77 1905758.77
Net assets 854187843.02 588230812.48
Less: non-controlling interests 274365135.18 188939736.97
Net assets acquired 579822707.84 399291075.51
Method for determining the fair value of identifiable assets and liabilities:
At the acquisition date the identifiable assets and liabilities of Imexpharm Corporation were
assessed and recognized using the asset-based approach (asset-based valuation method).
(2) Business combinations under common control
□Applicable √N/A
(3) Reverse acquisition
□Applicable √N/A
(4) Disposal of subsidiaries
192 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Whether there were any transactions or events during the current period that resulted in the loss of
control over subsidiaries during the current period
√Applicable □N/A
Unit: Yuan Currency: RMB
Percentage Difference between the
of equity Method of Basis for disposal consideration and
Disposal
Date of interest disposal at determining the share of the subsidiary’s
Name of consideration at the
loss of disposed of the date of the date of net assets attributable to the
subsidiary date of loss of
control at the date of loss of loss of disposed investment at the
control
loss of control control consolidated financial
control (%) statements level
Fluffy Buddy Passive
Animal dilution
Health due to
(Guangdong) partial Completion
Co. Ltd. (毛 2026.4.2 51450000.00 52.56 disposal of asset -
孩子动物保 and third- delivery
健(广东)有限 party
capital
公司)
increases
(Continued)
Fair value of Methods and key Amount of other
Percentage Carrying amount the remaining assumptions used to comprehensive
of of the remaining equity interest Gain or loss determine the fair income related to
remaining equity interest at at the date of arising from the value of the the original
Name of equity the date of loss of loss of control remeasurement remaining equity equity investment
subsidiary interest at control at the at the of the remaining interest at the date in the subsidiary
the date of consolidated consolidated equity interest at of loss of control at transferred to
loss of financial financial fair value the consolidated investment
control (%) statements level statements financial statements income or
level level retained earnings
Fluffy Buddy Based on the fair
Animal Health value of the
(Guangdong) identifiable net
Co. Ltd. (毛 assets as of October
孩子动物保健 47.44 76812739.46 78566909.02 1754169.56 31 2025 (the 0.00
(广东)有限公 valuation date)
carried forward to
司)
the date of loss of
control.
(5) Changes in the scope of consolidation due to other reasons
The following describes changes in the scope of consolidation resulting from other reasons (e.g.newly established subsidiaries liquidated subsidiaries etc.) and the related circumstances:
√Applicable □N/A
(1) Additions
* In February 2026 the Company contributed RMB400000000.00 and RMB500000000.00
to establish CICC Fund Yuanhe No. 1 Single Asset Management Plan (中金基金元和 1 号单一资
产管理计划) and CITIC Securities Asset Management Jianying No. 1 Single Asset Management
Plan (中信证券资管健盈 1 号单一资产管理计划) respectively and held all the units of the above
asset management plans. In the same month Livzon Group a subsidiary of the Company
contributed RMB1010000000.00 and RMB800000000.00 to establish CITIC Securities Asset
Management Zhuyao Linghang No. 1 Single Asset Management Plan (中信证券资管珠曜领航 1
号单一资产管理计划) and CICC Fund Tianying No. 1 Single Asset Management Plan (中金基金
193 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
添盈 1 号单一资产管理计划) respectively and held 100% of the units of the respective asset
management plans.* In April 2026 Hong Kong Health Pharmaceutical Industry Company Limited (香港健康药
业有限公司) a subsidiary of the Company established Joincare Wellness Limited (健康元康健有
限公司) in Hong Kong with a registered capital of HKD10000 in which it holds a 100% equity
interest.
(2) Reductions
Henan Joincare Bio-Pharmaceutical Research Institute Co. Ltd. (河南省健康元生物医药研究
院有限公司) a subsidiary of the Company completed its liquidation and deregistration procedures
in June 2026.
4. Interests in joint arrangements or associates
√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
Unit: Yuan Currency: RMB
Closing balance / Current-period
amount
Item
Tianjin Tongrentang Group Co.Ltd.Owners’ equity attributable to parent company 915838970.71
Share of net assets by shareholding 366335588.28
Adjustments
Including: Goodwill 498457683.68
Unrealized profit from internal transactions
Others
Carrying amount of equity investments in associates 864793271.96
Operating revenue 566830460.18
194 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Closing balance / Current-period
amount
Item
Tianjin Tongrentang Group Co.Ltd.Dividends received from associates during the
0.00
current year
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 consider 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
781690514.69667259799.34
investment
The following amount are calculated on the basis of shareholding ratio
Net profit 6736137.05 2158558.89
Other comprehensive
11261.322410.36
income
Total comprehensive income 6747398.37 2160969.25
(5) Description of significant restrictions on the ability of joint ventures or associates to
transfer funds to the company
□Applicable √N/A
VIII. Government grants
1. Government grants based on amounts receivable at the end of the Reporting Period
□Applicable √N/A
Reasons for not receiving the projected amount of government grants at the projected point in time
□Applicable √N/A
2. Liability items involving government grants
√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
301447805.903159700.000.0015430901.520.00289176604.38
income assets
Deferred Related to
26396662.52450000.000.0022380.780.0026824281.74
income income
195 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Total 327844468.42 3609700.00 0.00 15453282.30 0.00 316000886.12
3. Government grants recognized in current profit or loss
Unit: Yuan Currency: RMB
Category For the Period For the previous period
Related to assets 15430901.52 31779020.73
Related to income 31349978.54 36660019.43
Total 46780880.06 68439040.16
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 and Human Resources and Social Security Bureau) which provide subsidies
to the Company and its subsidiaries for projects concerning business operations research and
development technological transformation technological innovation export credit insurance job
stabilization and other areas.Other descriptions
(1) Government grants recognized in profit or loss for the current period under the gross method
Amount charged to Amount charged to
Line items in the statement
Category profit or loss for the profit or loss for the
of profit or loss
prior period current period
Government
grants related to 31779020.73 15430901.52 Other income
assets
Government
grants related to 36660019.43 31349978.54 Other income
income
Total 68439040.16 46780880.06
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 and Human Resources and Social Security Bureau) which provide subsidies
to the Company and its subsidiaries for projects concerning business operations research and
development technological transformation technological innovation export credit insurance job
stabilization and other areas.
(2) Government grants offsetting related costs under the net method
None.
(3) Government grants refunded this year
None.IX. 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 other non-
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 lease liabilities and other non-current
196 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
liabilities. 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 within a limited
range.
1. Management objectives and policies of risks
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 minimize 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 is still
exposed to certain foreign exchange risks. Considering 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 to minimize its risks.Financial assets and liabilities in foreign currencies held by the Company expressed in
Renminbi are stated below:
197 / 227Joincare Pharmaceutical Group Interim Report 2026
* As at 2026.06.30
Unit: 1000 Yuan
Item HKD EUR USD MOP JPY GBP MYR IDR SGD PHP VND
Financial assets in
314237.371954.573268600.225269.478562.7415.24117.3070589.041701.87277.01130402.17
foreign currency —
Cash and bank balances 77540.47 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Financial assets held for
0.00737.87689889.980.003387.830.000.000.000.000.00117882.68
trading
Accounts receivable 13100.60 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Dividends receivable 5019.29 32.06 0.00 0.00 0.00 0.00 0.00 0.00 0.00 14.56 2340.36
Other receivables 0.00 0.00 109655.49 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other current assets 1981595.49 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other equity instruments
7730.100.000.000.000.000.000.000.000.000.00272.93
investment
Other non-current assets 2399223.32 2724.50 4068145.69 5269.47 11950.57 15.24 117.30 70589.04 1701.87 291.57 250898.14
Subtotal:
Financial liabilities in
0.000.000.000.000.000.000.000.000.000.0024670.50
foreign currency —
Short-term borrowings 0.00 496.26 13080.49 0.00 458.33 0.00 0.00 31.58 0.00 0.00 12806.88
Accounts payable 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 23932.99
Other payables 52.19 615.52 99149.10 0.00 0.00 0.00 12.38 1067.43 0.00 6.81 25664.89
Long-term borrowings 0.00 0.00 729127.15 0.00 0.00 0.00 0.00 0.00 0.00 0.00 25900.00
Subtotal: 52.19 1111.78 841356.74 0.00 458.33 0.00 12.38 1099.01 0.00 6.81 112975.26
* As at 2025.12.31
Unit: 1000 Yuan
Item HKD EUR USD MOP JPY GBP MYR IDR SGD PHP
Financial assets in foreign
currency —
Cash and bank balances 21240.58 3544.58 5 474359.27 5 523.28 2 4323.61 15.95 126.28 1 42465.97 1 765.96 527.15
Financial assets held for trading 65521.93 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Accounts receivable 0.00 179.85 583401.96 0.00 4641.18 0.00 0.00 0.00 0.00 0.00
Other receivables 2633.52 33.99 0.00 0.00 0.00 0.00 0.00 0.00 0.00 15.38
Dividends receivable 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other equity instruments
132140.410.000.000.000.000.000.000.000.000.00
investment
Other non-current assets 8038.66 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Subtotal: 229575.10 3758.42 6 057761.23 5 523.28 2 8964.79 15.95 126.28 1 42465.97 1 765.96 542.53
Financial liabilities in foreign
currency—
Accounts payable 0.00 46.66 228.52 0.00 1382.97 0.00 0.00 34.65 0.00 0.00
Other payables 54.27 595.65 100167.49 0.00 0.00 0.00 12.82 784.85 0.00 1.37
Long-term borrowings 0.00 0.00 726850.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Subtotal: 54.27 642.31 827246.01 0.00 1382.97 0.00 12.82 819.50 0.00 1.37
As of 30 June 2026 in respect of the Company's various foreign currency financial assets and financial
liabilities denominated in Hong Kong dollars U.S. dollars Euros Japanese Yen Macau Patacas and other
foreign currencies if the Renminbi appreciated or depreciated by 5% against the above foreign currencies
with all other factors held constant the profit of the Company would increase or decrease by approximately
RMB292692.71 thousand (31 December 2025: approximately RMB282017.01 thousand).
(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.
198 / 227Joincare Pharmaceutical Group Interim Report 2026
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 purposes. 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 no major credit risk is expected to exist. In addition the provision made
on the impairment of accounts receivables and other receivables is adequate to manage the credit risk.Among the accounts receivables of the Company the accounts receivable of the top five customers
accounted for 11.18% (31 December 2025: 9.37%); among the other receivables of the Company the other
receivables of the top five customers accounted for 38.27% (31 December 2025: 54.50%).
(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.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:
* As at 2026.06.30
Item Within a year 1-2 years 2-5 years Over 5 years Total
Financial assets:
Cash and bank balances 11558953714.96 0.00 0.00 0.00 11558953714.96
Financial assets held for
644477284.660.000.000.00644477284.66
trading
Notes receivable 1070737720.24 0.00 0.00 0.00 1070737720.24
Accounts receivable 2476239965.62 0.00 0.00 0.00 2476239965.62
Other receivables 77184000.76 0.00 0.00 0.00 77184000.76
Non-current assets due
525916708.480.000.000.00525916708.48
within one year
199 / 227Joincare Pharmaceutical Group Interim Report 2026
Item Within a year 1-2 years 2-5 years Over 5 years Total
Other current assets 164765765.55 0.00 0.00 0.00 164765765.55
Other non-current assets 0.00 30557506.85 8524028.66 0.00 39081535.51
Subtotal: 16518275160.27 30557506.85 8524028.66 0.00 6557356695.78
Financial liabilities:
Short-term borrowings 3495815777.99 0.00 0.00 0.00 3495815777.99
Financial liabilities held
410080.560.000.000.00410080.56
for trading
Notes payable 1137315224.65 0.00 0.00 0.00 1137315224.65
Accounts payable 724582732.32 0.00 0.00 0.00 724582732.32
Other payables 3540554724.15 0.00 0.00 0.00 3540554724.15
Non-current liabilities
91737557.100.000.000.0091737557.10
due within one year
Lease liabilities 0.00 9657677.02 9637857.14 214732.88 19510267.04
Long term borrowings 0.00 31156650.00 25900000.00 726850000.00 783906650.00
Other non-current
0.000.001898428.930.001898428.93
liabilities
Subtotal: 8990416096.77 40814327.02 37436286.07 727064732.88 9795731442.74
* As at 2025.12.31
Item Within a year 1-2 years 2-5 years Over 5 years Total
Financial assets:
Cash and bank balances 13610715754.64 0.00 0.00 0.00 13610715754.64
Financial assets held for
1694102766.690.000.000.001694102766.69
trading
Notes receivable 1636435183.16 0.00 0.00 0.00 1636435183.16
Accounts receivable 2722328581.17 0.00 0.00 0.00 2722328581.17
Other receivables 69355886.15 0.00 0.00 0.00 69355886.15
Non-current assets due
880840324.510.000.000.00880840324.51
within one year
Other non-current assets 0.00 496893819.63 8251101.00 0.00 505144920.63
Subtotal: 20613778496.32 496893819.63 8251101.00 0.00 21118923416.95
Financial liabilities:
Short-term borrowings 2240000000.00 0.00 0.00 0.00 2240000000.00
Financial liabilities held
487431.050.000.000.00487431.05
for trading
Notes payable 1295877244.31 0.00 0.00 0.00 1295877244.31
Accounts payable 691432568.22 0.00 0.00 0.00 691432568.22
Other payables 3392845948.69 0.00 0.00 0.00 3392845948.69
Non-current liabilities
373229691.100.000.000.00373229691.10
due within one year
Lease liabilities 0.00 11950636.84 9954496.40 0.00 21905133.24
Long term borrowings 0.00 785432705.59 59983893.45 726850000.00 1572266599.04
Subtotal: 7993872883.37 797383342.43 69938389.85 726850000.00 9588044615.65
Capital management
200 / 227Joincare Pharmaceutical Group Interim Report 2026
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 2026 the Company’s gearing ratio is 31.57% (31 December 2025: 31.19%).
2. Hedging
(1) The Company conducts hedging operations for risk management
□Applicable √N/A
Other descriptions
□Applicable √N/A
(2) The Company conducts qualifying hedging operations and applies hedge accounting
□Applicable √N/A
Other descriptions
□Applicable √N/A
(3) The Company conducts hedging operations for risk management expects to achieve its risk
management objectives but does not apply hedge accounting
□Applicable √N/A
Other descriptions
□Applicable √N/A
3. Transfer of financial assets
(1) Classification of transfer methods
Unit: Yuan Currency: RMB
Nature of Amount of
Transfer Termination of Judgment basis for
transferred transferred financial
methods recognition status termination of recognition
financial assets assets
The contract right to receive
Bill
Notes receivable 78117752.12 Derecognized cash flows from the financial
endorsement
assets is terminated
Discounting Notes receivable 179341662.20 Derecognized Without recourse
Factoring Accounts receivable 15079225.53 Derecognized Without recourse
201 / 227Joincare Pharmaceutical Group Interim Report 2026
(2) Financial assets derecognized due to transfer
Unit: Yuan Currency: RMB
Gains or losses related to
Item Transfer methods Derecognition amount
termination confirmation
Notes receivable Endorsement 78117752.12 0.00
Notes receivable Discounting 179341662.20 482757.09
Accounts
Transfer 15079225.53 0.00
receivable
(3) Transferred financial assets with continued involvement
□Applicable √N/A
Other descriptions:
√Applicable □N/A
As of 30 June 2026 the carrying amount of bank acceptance bills endorsed to suppliers for settling
accounts payable which were not yet due was RMB78117752.12 (31 December 2025:
RMB65584129.67). There were no commercial acceptance bills endorsed to suppliers for settling accounts
payable that were not yet due (30 June 2025: RMB0.00). As of 30 June 2026 the maturity of these endorsed
bank acceptance bills ranged from one to six months. In accordance with the relevant provisions of the
Negotiable Instruments Law if the accepting bank refuses payment the holder has the right to claim against
the Company (“continued involvement”). The Company considers that it has transferred substantially all the
risks and rewards of these bank acceptance bills and therefore derecognizes their carrying amounts together
with the carrying amounts of the associated accounts payable settled. The maximum loss arising from
continued involvement or repurchase as well as the undiscounted cash flows equals the carrying amount of
the bank acceptance bills. The Company considers that the fair value of the continued involvement is not
significant.During the Period from January to June 2026 the Company did not recognize any gain or loss on the
dates of transfer of the bills. No income or expense has been recognized either for the current period or
cumulatively in relation to continued involvement in derecognized financial assets. Endorsements occurred
approximately evenly throughout the Period.X. Fair value
1.Closing balance of the fair value of assets and liabilities measured at fair value
√Applicable □N/A
Unit: Yuan Currency: RMB
Closing balance of fair value
Level 2 fair
Item Level 1 fair value Level 3 fair value
value Total
measurement measurement
measurement
I. Recurring fair value measurement
(Ⅰ)Financial assets held for trading 343176575.37 789401.15 300511308.14 644477284.66
1. Financial assets at fair value through
profit or loss
(1) Debt instruments investment
202 / 227Joincare Pharmaceutical Group Interim Report 2026
(2) Equity instruments investment 86809162.42 0.00 0.00 86809162.42
(3) Derivative financial assets 0.00 789401.15 0.00 789401.15
(4) Funds 256367412.95 0.00 0.00 256367412.95
(5) Structured deposits 0.00 0.00 300511308.14 300511308.14
2. Financial assets designated as at
fair value through profit or loss
(1) Debt instruments investment
(2) Equity instruments investment
(II) Other debt investments
(III) Other investments in equity
2064415050.040.00937124119.873001539169.91
instruments
(IV) Investment properties
1. Land use rights held for lease
2. Buildings held for lease
3. Land use rights held for and
intended to be transferred after
appreciation
(V) Biological asset
1. Consumable biological assets
2. Productive biological assets
Total assets measured at fair value on a
2407591625.41789401.151237635428.013646016454.57
recurring basis
(VI) Financial liabilities held for trading 0.00 410080.56 0.00 410080.56
1. Financial liabilities at fair value
through profit or loss
Including: Issued tradable bonds
Derivative financial liabilities 0.00 410080.56 0.00 410080.56
Others
2. Financial liabilities designated as at
fair value through profit or loss
Total liabilities measured at fair value
0.00410080.560.00410080.56
on a recurring basis
II. Non-recurring fair value
measurement
(Ⅰ) Assets held-for-sale 0.00 0.00 0.00 0.00
Total assets measured at fair value on a
0.000.000.000.00
non-recurring basis
Total liabilities measured at fair value
0.000.000.000.00
on a non-recurring basis
2. Basis for determining the market prices of items subject to recurring and non-recurring Level 1
fair value measurements
√Applicable □N/A
During the Period from January to June 2026 there were no transfers between Level 1 and Level 2 in
the fair value measurement of the Company’s financial assets and financial liabilities nor were there any
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.
203 / 227Joincare Pharmaceutical Group Interim Report 2026
3.Qualitative and quantitative information on the valuation techniques and significant inputs used
for items subject to recurring and non-recurring Level 2 fair value measurements
√Applicable □N/A
Fair value at the End
Item Valuation techniques
of the Period
Calculated and determined based on the quoted forward
Derivative financial assets 789401.15
exchange rate corresponding to the expiring contract
Calculated and determined based on the quoted forward
Derivative financial liabilities 410080.56
exchange rate corresponding to the expiring contract
4.Qualitative and quantitative information on the valuation techniques and significant inputs used
for items subject to recurring and non-recurring Level 3 fair value measurements
√Applicable □N/A
Fair value at the End of
Item Valuation techniques
the Period
Financial assets held for trading – structured deposits 300511308.14 Expected returns
Other equity instrument investments – other unlisted
253910700.00 Market approach
equity interest
Other equity instrument investments – other unlisted
89500000.00 Income approach
equity interest
Other equity instrument investments – other unlisted Price of the latest financing
74556765.09
equity interest round
Other equity instrument investments – other unlisted
456514797.23 Net asset value
equity interest
Other equity instrument investments – other unlisted
62641857.55 Cost
equity interest
204 / 227Joincare Pharmaceutical Group Interim Report 2026
5.Reconciliation table for fair value measurement classified as the Level 3 of the fair value hierarchy
√Applicable □N/A
Total profit or loss for the For assets
Buy issue sell and settle
Period held at the
End of the
Reporting
Period the
Transfer Transfer
Item(Curren change in
2025.12.31 to Level out of Recorded in 2026.6.30
t year)
3 Level 3 Recorded in other
unrealized
Buy Issue Sell Settle
profit or loss comprehensive gains or
income losses in the
Period
recognized in
profit or loss
Financial
assets held for 1611850215.33 0.00 0.00 6881128.66 0.00 3715000000.00 0.00 0.00 5033220035.85 300511308.14 -2538907.19
trading
Other equity
instruments 932988228.68 0.00 0.00 590968.83 7099652.80 0.00 0.00 0.00 3554730.44 937124119.87 0.00
investment
Total 2544838444.01 0.00 0.00 7472097.49 7099652.80 3715000000.00 0.00 0.00 5036774766.29 1237635428.01 -2538907.19
205 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
6. In case of transfers among levels for the current period explain the transfer reasons and
policies for determining transfer time point for continuous fair value measurement items
√Applicable □ N/A
From January to June 2026 there were no transfers between Level 1 and Level 2 and no
transfers into or out of Level 3 in the measurement of the fair value of the Company's financial
assets and financial liabilities.
7.Changes in valuation techniques for the current period and reasons for changes
□Applicable √ N/A
8.Fair value of financial assets and liabilities not measured at fair value
□Applicable √ N/A
9.Others
□Applicable √ N/A
XI. Related parties and related party transactions
1. Information of parent company
√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 80000000.00 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 2025.12.31 2026.06.30
the Period the Period
Shenzhen Baiyeyuan Investment
80000000.000.000.0080000000.00
Co. Ltd.
(2) Shares of the company held by the parent company and its changes
Name of parent Increase for Decrease for
2025.12.31 Ratio 2026.06.30 Ratio
company the Period the Period
Shenzhen
Baiyeyuan
895653653.0048.96%0.000.00895653653.0048.96%
Investment Co.Ltd.The ultimate controller of the Company: Zhu Baoguo
2. Subsidiaries of the Company
Details of subsidiaries refer to Note
√Applicable □N/A
Please refer to Note Ⅶ.1 for the details of subsidiaries.
3. Joint ventures and associates of the Company
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 and Note VII.4.
206 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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
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
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)
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)
Fluffy Buddy Animal Health (Guangdong) Co. Ltd. (毛孩子动物保健 Associates(广东）有限公司)
Agimexpharm Associates
Jiaozuo Jinguan Jiahua Electric Power Co. Ltd. (焦作金冠嘉华电力
Associates
有限公司)
Feellife Health Inc. (深圳来福士雾化医学有限公司) Associates
Other descriptions
□Applicable √ N/A
4. Other related parties of the Company
√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 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
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
Businesses controlled by close
Zhuhai Pu Xiaoying Enterprise Management Co. Ltd. (珠海市蒲小英
family members of Livzon Group’s
企业管理有限公司)
directorZhuhai 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
An entity controlled by a close
Shenzhen Xinyou Maohai Investment Partnership (Limited
family member of a director of
Partnership) (深圳市心有毛孩投资合伙企业（有限合伙）)
Livzon Group
207 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Directors supervisors and other senior management personnel Key management personnel
5. Related party transactions
(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
广东蓝宝制药 Raw Pharmaceutical Co. Ltd. ( 48849.56 830442.49
materials
有限公司)
Finished
Agimexpharm 1117876.59 0.00
goods
Jiaozuo Jinguan Jiahua Electric Power Electricity
120157512.02 300000000 No 132128548.07
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 Finished products water
26349135.5517634391.44
东蓝宝制药有限公司) electricity and power
Zhuhai Sanmed Gene Diagnostics Ltd. (珠海市圣美基 Power and modern
124199.86107016.26
因检测科技有限公司) services
Zhuhai Sanmed Biotech Inc. (珠海圣美生物诊断技术 Power and modern
293322.61293731.44
有限公司) services
Fluffy Buddy Animal Health (Guangdong) Co. Ltd.Finished products 284817.35 0.00(毛孩子动物保健(广东）有限公司)
Agimexpharm Finished products 129705.22 0.00
Zhuhai Hengqin Weisheng Precision Medicine
Technology Co. Ltd. (珠海横琴维胜精准医学科技有 Modern services 0.00 418223.89
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:
□Applicable √ N/A
Descriptions of related management/outsourcing
□Applicable √ N/A
(3) Related party leases
208 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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
Buildings 80081.18 80081.18
物诊断技术有限公司)
Zhuhai Sanmed Gene Diagnostics Ltd. (珠
Buildings 92779.98 92779.98
海市圣美基因检测科技有限公司)
Fluffy Buddy Animal Health (Guangdong)Co. Ltd. (毛孩子动物保健(广东）有限公 Buildings 683486.21 0.00
司)
Shenzhen Baiyeyuan Investment Co. Ltd.Buildings 9445.88 9445.88
(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 Buildings 9360.00 9360.00
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: 10000 Yuan Currency: RMB
Whether the
Name of Guarantee Actual date of Guarantee
guarantee has been
guaranteed party amount event maturity date
fully performed
Jinguan Electric
5000.00 2025/8/27 2026/7/9 No
Power
Jinguan Electric
4840.00 2025/10/13 2026/10/13 No
Power
Jinguan Electric
3000.00 2025/12/25 2026/7/10 No
Power
Jinguan Electric
3000.00 2025/11/27 2026/11/27 No
Power
Jinguan Electric
800.00 2025/11/27 2026/11/27 No
Power
Jinguan Electric
800.00 2025/11/28 2026/11/27 No
Power
Jinguan Electric
5000.00 2026/1/22 2027/1/22 No
Power
Jinguan Electric
4703.60 2026/6/22 2027/1/31 No
Power
Jinguan Electric
519.62 2026/6/29 2027/6/29 No
Power
The Company as the guaranteed party
□Applicable √ N/A
Descriptions of guarantees with related parties
√Applicable □N/A
209 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
* On 6 June 2025 the Proposal on the Provision of Guarantees by the Company and Its
Controlled Subsidiary Jiaozuo Joincare for the Loans of Jinguan Electric Power was considered and
approved at the Company’s 2024 Annual General Meeting. The Company and its controlled
subsidiary Jiaozuo Joincare jointly provided a revolving guarantee facility for the loans of Jinguan
Electric Power with an outstanding balance not exceeding RMB450 million (inclusive) (the specific
guarantor(s) to be specified in each guarantee contract). The facility is valid from the date on which
the guarantee proposal was approved at the Company’s general meeting until 31 December 2028.As at 30 June 2026 the Company had provided guarantees for loans of Jinguan Electric Power
comprising RMB130.00 million from China CITIC Bank Shenzhen Branch RMB48.40 million
from China Zheshang Bank Shenzhen Branch RMB51.1962 million from Nanyang Commercial
Bank Shenzhen Branch and RMB47.0360 million from China Everbright Bank Shenzhen Branch
amounting to RMB276.6322 million in aggregate.To safeguard the guaranteed loans Jinguan Electric Power provided counter-guarantees in
respect of all the above guarantees provided by the Company using its own assets. Jinguan Electric
Power also undertook to unconditionally provide mutual guarantees for the Company or any
controlled subsidiary designated by the Company when deemed necessary by the Company up to
an aggregate amount of RMB450 million (inclusive).* As another shareholder of Livzon MABPharm Inc. (珠海市丽珠单抗生物技术有限公司)
the Company issued a Counter-Guarantee Commitment Letter undertaking to assume joint and
several guarantee liability for 26.84% of Livzon Group’s guarantee obligations in respect of Livzon
MABPharm Inc. The guarantee period will expire on the date on which the Company’s guarantee
obligations terminate.* Zhuhai Zhong Hui Yuan Investment Partnership (Limited Partnership) (珠海中汇源投资
合伙企业（有限合伙） ) another shareholder of Livzon Group Xinbeijiang Pharmaceutical
Manufacturing Inc. (丽珠集团新北江制药股份有限公司 ) issued a Counter-Guarantee
Commitment Letter undertaking to assume joint and several counter-guarantee liability for 8.44%
of all guarantees provided by Livzon Group for Livzon Xinbeijiang.
(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: 10000 Yuan Currency: RMB
Amount for the current Amount for the prior
Item
period period
Remuneration of key
1382.68989.88
management personnel
210 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
(8) Other related transactions
√Applicable □N/A
* Equity Transfer and Capital Increase of Fluffy Buddy Animal Health (Guangdong) Co.Ltd.Fluffy Buddy Animal Health (Guangdong) Co. Ltd. (毛孩子动物保健（广东）有限公司)
(“Fluffy Buddy”) was a controlled subsidiary of Livzon Pharmaceutical Group Inc. (丽珠医药集
团股份有限公司) (“Livzon Group”) a controlled subsidiary of the Company. Prior to the
Transaction the Company directly held a 49% equity interest in Fluffy Buddy while Livzon Group
directly held the remaining 51% equity interest.On 30 December 2025 the Company Livzon Group Shenzhen Xinyou Maohai InvestmentPartnership (Limited Partnership) (深圳市心有毛孩投资合伙企业(有限合伙）)(“Xinyou Maohai”)
and Fluffy Buddy entered into the Agreement on Capital Subscription and Equity Transfer. The
Proposal on the Connected Transaction Concerning the Equity Transfer and Capital Increase and
Expansion of a Subsidiary was considered and approved at the 14th meeting of the 9th session of the
board of directors of the Company. Pursuant to the agreement the Company agreed to transfer its
49% equity interest in Fluffy Buddy corresponding to RMB98 million of Fluffy Buddy’s registered
capital of which RMB73.5 million had been paid and RMB24.5 million remained unpaid to Xinyou
Maohai for a consideration of RMB51.45 million (the “Transfer”). Concurrently Xinyou Maohai
agreed to subscribe for an additional RMB15 million of registered capital in Fluffy Buddy for a
subscription amount of RMB15 million (the “Capital Increase”; the Transfer and the Capital
Increase are collectively referred to as the “Transaction”). Livzon Group agreed to waive its right
of first refusal in respect of the Transfer and its pre-emptive subscription right in respect of the
Capital Increase while the Company agreed to waive its pre-emptive subscription right in respect
of the Capital Increase.As of 2 April 2026 Xinyou Maohai had completed the acquisition of the equity interest and
the Capital Increase and acquired a 52.56% equity interest in Fluffy Buddy. The Company ceased
to hold any direct equity interest in Fluffy Buddy while Livzon Group’s equity interest in Fluffy
Buddy was diluted to 47.44%. As a result Livzon Group lost control of Fluffy Buddy which
therefore ceased to be included in the scope of consolidation of the Company’s financial statements.
6. Receivables and payables with related parties
(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 7943176.64 0.00 0.00 0.00
receivable
制药有限公司)
211 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Guangdong Blue Treasure
Accounts
Pharmaceutical Co. Ltd. (广东蓝宝 19243200.00 192432.00 24786400.00 260257.20
receivable
制药有限公司)
Accounts
Agimexpharm 997848.74 288.61 0.00 0.00
receivable
Accounts Zhuhai Sanmed Biotech Inc. (珠海
206205.622062.06202591.252066.43
receivable 圣美生物诊断技术有限公司)
Zhuhai Sanmed Biotech Inc. (珠海
Prepayments 211200.00 0.00 211200.00 0.00
圣美生物诊断技术有限公司)
Feellife Health Inc. (深圳来福士雾
Prepayments 1017650.00 0.00 1048580.00 0.00
化医学有限公司)
Other Feellife Health Inc. (深圳来福士雾
0.000.0042000.000.00
receivables 化医学有限公司)
Guangdong Blue Treasure
Other
Pharmaceutical Co. Ltd. (广东蓝宝 1135828.34 11358.28 1143746.92 11437.47
receivables
制药有限公司)
Fluffy Buddy Animal Health
Other
(Guangdong) Co. Ltd. (毛孩子动 80985.14 809.85 0.00 0.00
receivables
物保健（广东）有限公司)
(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
Guangdong Blue Treasure Pharmaceutical Co.Notes payable 496800.00 607200.00
Ltd. (广东蓝宝制药有限公司)
Jiaozuo Jinguan Jiahua Electric Power Co. Ltd.Notes payable 68450000.00 77900000.00
(焦作金冠嘉华电力有限公司)
Accounts Jiaozuo Jinguan Jiahua Electric Power Co. Ltd.
24028635.6223120551.90
payable (焦作金冠嘉华电力有限公司)
Accounts Guangdong Blue Treasure Pharmaceutical Co.
0.00441600.00
payable Ltd. (广东蓝宝制药有限公司)
Accounts
Agimexpharm 637825.95 0.00
payable
Other Guangdong Blue Treasure Pharmaceutical Co.
1000.000.00
payables Ltd. (广东蓝宝制药有限公司)
(3) Other items
□Applicable√N/A
7. Commitments with related parties
□Applicable√N/A
8. Others
□Applicable√N/A
XII. Share-based payment
1. Various equity instruments
(1) Detailed information
□Applicable √N/A
(2) Stock options or other equity instruments outstanding at the end of the Period
□Applicable √N/A
212 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
2. Equity settled share-based payments
√Applicable □N/A
Unit: Yuan Currency: RMB
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
Basis for determining the number of vesting Determine according to the vesting
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
222361222.22
in equity recorded in capital reserve
Total expenses recognized during the current
0.00
period for equity-settled share-based payments
3. Cash settled share-based payments
□Applicable √N/A
4. Information on cash-settled share-based payments
□Applicable √N/A
5. Modification and termination of share-based payments
□Applicable √N/A
6. Other description:
□Applicable √N/A
XIII. Commitments and contingencies
1. Significant commitments
√Applicable □N/A
Significant commitments to outsiders as of the balance sheet date and their nature and amount
Capital commitments entered into but
not recognized in the financial Closing balance Beginning balance
statements
Commitments in relation to acquisition of
280915426.77265349638.93
long-term assets
Commitments in relation to research and
723431166.93864759312.57
development expenditures
Commitments in relation to acquisition of
0.001845730873.77
equity interests
2. Contingencies
(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
213 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
3. Others
√Applicable □N/A
As at 30 June 2026 the capital expenditure commitments and other commitments of the
Company have been fulfilled in accordance with the commitments made previously.XIV. Events after the Balance Sheet Date
1. Significant non-adjusting events
□Applicable √N/A
2. Profit distribution
□Applicable √N/A
3. Sales returns
□Applicable √N/A
4. Descriptions of other events after the balance sheet date
□Applicable √N/A
XV. Other significant events
√Applicable □N/A
1.The Company
The respective holders’ meetings of the Phase I and Phase II Share Ownership Schemes under
the Medium to Long-term Business Partner Share Ownership Scheme were convened at which the
relevant proposals on extending the duration of each respective Share Ownership Scheme were
considered and approved. The Phase I Share Ownership Scheme holds 2430800 A Shares of the
Company and its duration was extended by 12 months to 3 August 2027. The Phase II Share
Ownership Scheme holds 6275372 A Shares of the Company and its duration was extended by 12
months to 7 June 2027.
2.Livzon Group
At the third meeting of the holders of the Second Phase Ownership Scheme under the Medium
to Long-term Business Partner Share Ownership Scheme the Proposal on Adjusting Relevant Terms
of and Extending the Duration of the Second Phase Ownership Scheme was considered and
approved. It was agreed that the duration of the Second Phase Ownership Scheme which holds
2057711 A Shares of Livzon Group would be extended by 12 months to 12 August 2027.
As at 30 June 2026 other than the matters disclosed above the Company had no other
significant matters requiring disclosure.XVI. Net current assets and total assets minus current liabilities
1. Net current assets
Item 2026.6.30 2025.12.31
Current assets 19331024324.01 23160168339.65
Less: Current liabilities 9529135937.73 8855914927.12
214 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Net current assets 9801888386.28 14304253412.53
2. Total assets minus current liabilities
Item 2026.6.30 2025.12.31
Total assets 34715790522.32 35414299308.64
Less: Current liabilities 9529135937.73 8855914927.12
Total assets minus current liabilities 25186654584.59 26558384381.52
XVII. Notes to the Key Components of Financial Statements item of the Parent Company
1. Notes receivable
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 140440440.58 0.00 140440440.58 138080748.46 0.00 138080748.46
bills
Commercial
acceptance 0.00 0.00 0.00 0.00 0.00 0.00
bill
Total 140440440.58 0.00 140440440.58 138080748.46 0.00 138080748.46
（1）Notes receivable pledged at the end of the Period
Category Amount pledged at the End of the Period
Bank acceptance bills 65409041.90
（2）Notes receivable endorsed or discounted to other parties but not yet expired at balance sheet
date
Amount derecognized at Amount not derecognized
Category
the End of the Period at the End of the Period
Bank acceptance bills not yet
0.00--
mature but already endorsed
Bank acceptance bills not yet
0.00--
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
Balance at the End of the Period Balance at the Beginning of the Period
Provision
Provision for Provision for
Book balance Book Book balance for
Category bad debts bad debts
balance bad debts
Percentage Percentage Amount Percentage Percentage Carrying
Amount Amount Amount Amount
(%) (%) (%) (%) value
Provision for bad
debt on an 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
individual basis
Provision for bad
debt on a portfolio 140440440.58 100.00 0.00 0.00 140440440.58 138080748.46 100.00 0.00 0.00 138080748.46
basis
Including:
Bank
140440440.58100.000.000.00140440440.58138080748.46100.000.000.00138080748.46
acceptance bills
Total 140440440.58 100.00 0.00 0.00 140440440.58 138080748.46 100.00 0.00 0.00 138080748.46
215 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
（5）There are no provisions for bad debt made recovered or reversed during the Period.
（6）There are no bills receivables actually written-off for the Period.
2. Accounts receivables
(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 121396068.27 134326854.46
1-2 years 419436.49 7494598.11
2-3 years 523097.14 1307887.57
3-4 years 186045.28 236936.53
4-5 years 208972.75 212029.38
Over 5 years 7522739.93 7459143.43
Total 130256359.86 151037449.48
(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 individual
basis 426373.39 0.33 426373.39 100.00 0.00 426373.39 0.28 426373.39 100.00 0.00
Including:
Receivables from
domestic 426373.39 0.33 426373.39 100.00 0.00 426373.39 0.28 426373.39 100.00 0.00
customers
Provision for bad
debts on portfolio
basis 129829986.47 99.67 8793111.08 6.77 121036875.39 150611076.09 99.72 9466090.56 6.29 141144985.53
Including:
Receivables from
domestic 129829986.47 99.67 8793111.08 6.77 121036875.39 150611076.09 99.72 9466090.56 6.29 141144985.53
customers
Total 130256359.86 100.00 9219484.47 7.08 121036875.39 151037449.48 100.00 9892463.95 6.55 141144985.53
Provision for bad debts on individual item:
√Applicable □N/A
Unit: Yuan Currency: RMB
Name Balance at the End of the Period
216 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Provision Expected
Reason for provision
Book balance for bad credit loss rate
made
debts (%)
Purchase of Likelihood of recovery is
426373.39426373.39100.00
goods expected to be low
Total 426373.39 426373.39 100.00 /
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 121396068.27 1258642.74 1.04
1-2 years (inclusive of 2
419436.4920971.825.00
years)
2-3 years (inclusive of 3
523097.14156929.1430.00
years)
3-4 years (inclusive of 4
186045.2893022.6450.00
years)
4-5 years (inclusive of 5
208972.75167178.2080.00
years)
Over 5 years 7096366.54 7096366.54 100.00
Total 129829986.47 8793111.08 6.77
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
217 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
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
9892463.95-110880.430.00562099.050.009219484.47
receivables
Total 9892463.95 -110880.43 0.00 562099.05 0.00 9219484.47
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
Unit: Yuan Currency: RMB
Item Write-off amount
Accounts receivable written off 562099.05
Of which: significant write-offs of accounts receivable
□Applicable √N/A
Notes on the write-offs of accounts receivable
□Applicable √N/A
(5) The top five balances of accounts receivable by debtors as at the end of the Period
√Applicable □N/A
Unit: Yuan Currency: RMB
Proportion of
the total
Closing balance of
Closing
Closing balance Closing balances of accounts
balance of the
Unit name of accounts balance of accounts receivable and
bad debt
receivable contract assets receivable and contract assets
reserve
contract assets at the end of
the Period
（%）
Unit 1 9948690.97 0.00 9948690.97 7.64 99486.91
Unit 2 7222833.31 0.00 7222833.31 5.55 72228.33
Unit 3 5652292.61 0.00 5652292.61 4.34 56522.93
Unit 4 4450485.91 0.00 4450485.91 3.42 44504.86
Unit 5 3915811.34 0.00 3915811.34 3.01 39158.11
Total 31190114.14 0.00 31190114.14 23.95 311901.14
As of 30 June 2026 the total amount of the top five debtors in closing balance is RMB
31190114.14 accounting for 23.95% of the total amount of closing balance of accounts receivable
and the corresponding closing balance of provision for bad debts is total RMB311901.14.Other descriptions:
√Applicable □N/A
1. The company has no accounts receivable terminated for recognition due to the transfer of
financial assets.
2. The company has no amounts of assets and liabilities formed by the transfer of accounts
receivable and continued involvement.
3. Other receivables
Line items
218 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
√Applicable □N/A
Unit: Yuan Currency: RMB
Balance at the End of the Balance at the Beginning of
Item
Period the Period
Dividends receivable 424999500.00 769999500.00
Other receivables 271763605.30 271463465.70
Total 696763105.30 1041462965.70
Dividends receivable
(1) 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 374999500.00 374999500.00
Fenglei Electric Power 20000000.00 20000000.00
Joincare Haibin 30000000.00 375000000.00
Total 424999500.00 769999500.00
(2) Significant dividends receivable with an aging of more than one year
□Applicable √N/A
(3) Disclosure by category of bad debt provision method
□Applicable √N/A
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 130987386.86 133454592.50
1-2 years 5728241.93 137971043.12
2-3 years 135903609.47 187880.86
3-4 years 165267.77 132664.47
4-5 years 46000.00 81017.16
Over 5 years 16901634.15 17483941.07
Total 289732140.18 289311139.18
(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
264216806.64263942510.66
within the scope of combination
Treasury bonds and security deposits 16042449.77 16042449.77
External entities balances 166185.33 0.00
Security deposits 5386005.38 6312311.57
Others 3920693.06 3013867.18
Total 289732140.18 289311139.18
(3) Provision made for bad debts
√Applicable □N/A
Unit: Yuan Currency: RMB
First stage Second stage Third stage Total
219 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Expected credit Expected credit
Expected credit losses over the losses over the
Provision for bad
losses over the lifetime (without lifetime (with
debts
next 12 months impairment of impairment of
credit) credit)
Balance at the
0.001805223.7116042449.7717847673.48
Beginning of the Period
Movement of beginning
balance during the 0.00 0.00 0.00 0.00
Period
-- Transferred to
0.000.000.000.00
Second stage
-- Transferred to third
0.000.000.000.00
stage
-- Reversal to second
0.000.000.000.00
stage
-- Reversal to first stage 0.00 0.00 0.00 0.00
Provisions made for the
0.00120861.400.00120861.40
Period
Reversals for the Period 0.00 0.00 0.00 0.00
Write-off for the Period 0.00 0.00 0.00 0.00
Other changes 0.00 0.00 0.00 0.00
Balance at the End of
0.001926085.1116042449.7717968534.88
the Period
Basis for division of each stage and provision ratio for bad debts
Provisions for bad debts
As at the end of the Period provision for bad debts in first stage:
Expected credit
Provision for Carrying
Category Book balance losses rate over the Reason
bad debts value
next 12 months (%)
Provision for bad debts on
264216806.640.000.00264216806.64
portfolio basis
Other receivables of each
Expected to be
company within the scope 264216806.64 0.00 0.00 264216806.64
recovered
of combination
Total 264216806.64 0.00 0.00 264216806.64
As at the end of the Period provision for bad debts in second stage:
Expected credit
Book Provision for Carrying
Category losses rate over Reason
balance bad debts value
the lifetime (%)
Provision for bad debts on
9472883.7720.331926085.117546798.66
portfolio basis
Receivables of security
5386005.3832.911772685.043613320.34
deposits and rental fees
Other receivables 4086878.39 3.75 153400.07 3933478.32
Total 9472883.77 20.33 1926085.11 7546798.66
As at the end of the Period provision for bad debts in third stage:
Expected
Book credit losses Provision for Carrying
Category Reason
balance rate over the bad debts value
lifetime (%)
Provision for bad debt on
16042449.77100.0016042449.770.00
individual item
Likelihood of
Government Bonds and
16042449.77 100.00 16042449.77 0.00 recovery is expected
Margin
to be low
Total 16042449.77 100.00 16042449.77 0.00
As at 31 December 2025 provision made for bad debts:
As at 31 December 2025 provision for bad debts in first stage:
220 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Expected credit
Provision
losses rate over Carrying
Category Book balance for bad Reason
the next 12 value
debts
months (%)
Provision for bad debts on
263942510.660.000.00263942510.66
portfolio basis
Other receivables of each
Expected to be
company within the scope of 263942510.66 0.00 0.00 2 63942510.66
recovered
combination
Total 263942510.66 0.00 0.00 2 63942510.66
As at 31 December 2025 provision for bad debts in second stage:
Expected credit
Book Provision for Carrying
Category losses rate over Reason
balance bad debts value
the lifetime (%)
Provision for bad debts on
9326178.7519.361805223.717520955.04
portfolio basis
Receivable for securities
6312311.5728.081772685.044539626.53
deposits and rental fees
Other receivables 3013867.18 1.08 32538.67 2981328.51
Total 9326178.75 19.36 1805223.71 7520955.04
As at 31 December 2025 provision for bad debts in the third stage:
Expected credit
Book Provision for Carrying
Category losses rate over Reason
balance bad debts value
the lifetime (%)
Provision for bad debt on an
16042449.77100.0016042449.770.00
individual basis
Likelihood of
Treasury bonds and Margin 16042449.77 100.00 16042449.77 0.00 recovery is expected
to be low
Total 16042449.77 100.00 16042449.77 0.00
(4) The situation of bad debt provision
□Applicable √N/A
Of which: significant write-offs of other receivables
□Applicable √N/A
Notes on the write-offs of other receivables
□Applicable √N/A
(5) 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
Balance at the total other provision for
Name of entity Nature of receivables End of the Ageing receivables at the bad debts at
Period End of the Period the End of
(%) the Period
Shenzhen Fenglei
Electric Power
Over one
Investment Co. Current account 129956104.29 44.85
year
Ltd. (深圳市风雷电
力投资有限公司)
Jiaozuo Joincare
Biological ProductCo. Ltd.（焦作健 Current account 125000000.00 Within 1 year 43.14康元生物制品有限
公司）
221 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Hua Xia Securities
Treasury bonds and
Co. Ltd. (华夏证券 16042449.77 Over 5 years 5.54
security deposits 16042449.77
股份有限公司)
Joincare
Within 1
(Guangdong)
year:
Special medicine
Current account 5174865.75 900000.00; 1.79
Food Co. Ltd. (健
Over 1 year:
康元(广东)特医食4274865.75
品有限公司)
Shanghai Frontier
Health Within 1
Pharmaceutical year:
Technology Co. Current account 4071836.60 658598.00 1.41
Ltd. (上海方予健康 Over 1 year:
医药科技有限公3413238.60
司)
Total / 280245256.41 / 96.73 16042449.77
(6) Presented in other receivables due to centralized management of funds
□Applicable √N/A
4. Long-term equity investments
√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 4520178312.11 7010047.91 4513168264.20 3693678312.11 7010047.91 3686668264.20
subsidiaries
Investments
43212258.440.0043212258.4478207548.030.0078207548.03
in associates
Total 4563390570.55 7010047.91 4556380522.64 3771885860.14 7010047.91 3764875812.23
222 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
(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 608741654.08 0.00 0.00 0.00 0.00 0.00 608741654.08 0
Haibin Pharma 783054186.38 0.00 0.00 0.00 0.00 0.00 783054186.38 0
Joincare Daily-Use 22506450.65 1610047.91 0.00 0.00 0.00 0.00 22506450.65 1610047.91
Topsino 813552689.31 0.00 0.00 0.00 0.00 0.00 813552689.31 0
Taitai Genomics 37500000.00 0.00 0.00 0.00 0.00 0.00 37500000.00 0
Taitai
105939709.720.000.000.000.000.00105939709.720
Pharmaceutical
Shenzhen Hiyeah 164700000.00 5400000.00 0.00 0.00 0.00 0.00 164700000.00 5400000.00
Fenglei Electric
100763433.060.000.000.000.000.00100763433.060
Power
Jiaozuo Joincare 525000000.00 0.00 0.00 0.00 0.00 0.00 525000000.00 0
Shanghai Frontier 32500000.00 0.00 0.00 0.00 0.00 0.00 32500000.00 0
Taitai Biological 4832950.00 0.00 0.00 0.00 0.00 0.00 4832950.00 0
Joincare Haibin 100000000.00 0.00 0.00 0.00 0.00 0.00 100000000.00 0
Joincare Special
20000000.000.000.000.000.000.0020000000.000
Medicine Food
LivzonBio 294037191.00 0.00 0.00 0.00 0.00 0.00 294037191.00 0
Lijian (Guangdong)
Animal Healthcare 73500000.00 0.00 0.00 73500000.00 0.00 0.00 0.00 0
Co. Ltd.Wuhan Kangli
Health Investment
40000.000.000.000.000.000.0040000.000
Management Co.Ltd.CICC Fund Yuanhe
No. 1 Single Asset 0.00 0.00 400000000.00 0.00 0.00 0.00 400000000.00 0
Management Plan
CITIC Securities
Asset Management
Jianying No. 1 0.00 0.00 500000000.00 0.00 0.00 0.00 500000000.00 0
Single Asset
Management Plan
Total 3686668264.20 7010047.91 900000000.00 73500000.00 0.00 0.00 4513168264.20 7010047.91
223 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
(2) Investment in associates and joint ventures
√Applicable □N/A
Unit: Yuan Currency: RMB
Beginni Change during the Period
Balance of
ng
Adjustme provision
Balance balance Investment Cash
Incre nt in Provision Balance for
at the of profit and Other dividend
Investee ased Decreased other for at the End of impairment
Beginning impair loss under equity or profit Others
invest investment comprehe Impairme the Period at the End
of the Year ment equity changes distribution
ment nsive nt of the
allowan method declared
income Period
ce
Ⅰ Joint
Ventures
Subtotal
Ⅱ Associates
Ningbo
Ningrong
27172506.230.000.000.00-188062.300.000.000.000.000.0026984443.930.00
Biomedical
Co. Ltd.Feellife Health
7613733.720.000.000.00-642506.810.000.000.000.000.006971226.910.00
Inc.Jiangsu
Baining
Yingchuang
34326534.680.000.0034326534.680.000.000.000.000.000.000.000.00
Medical
Technology
Co. Ltd.Shanghai Sheo
Pharmaceutica
9094773.400.000.000.00161814.200.000.000.000.000.009256587.600.00
l Technology
Co. Ltd.Subtotal 78207548.03 0.00 0.00 34326534.68 -668754.91 0.00 0.00 0.00 0.00 0.00 43212258.44 0.00
Total 78207548.03 0.00 0.00 34326534.68 -668754.91 0.00 0.00 0.00 0.00 0.00 43212258.44 0.00
(3) Impairment testing of long-term equity investments
□Applicable √N/A
224 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
5. Operating revenue and operating cost
(1) Operating revenue and operating cost
√Applicable □N/A
Unit: Yuan Currency: RMB
For the Period For the Previous Period
Item
Revenue Cost Revenue Cost
Primary operations 657186104.07 403941539.05 580739605.09 385386857.00
Other operations 23718575.96 7209866.99 13774202.59 7601053.77
Total 680904680.03 411151406.04 594513807.68 392987910.77
(2) Descriptions of operating revenue and operating cost
√Applicable □N/A
Unit: Yuan Currency: RMB
Total
Item
Revenue Cost
Product types
Chemical pharmaceuticals 473605221.26 309324600.88
Healthcare products 22396323.97 16070546.50
Traditional Chinese medicine 161184558.84 78546391.67
Classification by business region
Domestic 657186104.07 403941539.05
Overseas 0.00 0.00
Total 657186104.07 403941539.05
Other descriptions
√Applicable □N/A
Descriptions of other activities
For the Period For the Previous Period
Item
Revenue Cost Revenue Cost
Rental fees 3593579.81 582767.68 4212986.53 812445.35
Technical services 2500000.00 0.00 8490.56 19458.53
Agency operation and
17624996.156627099.319552725.506769149.89
others
Total 23718575.96 7209866.99 13774202.59 7601053.77
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
657186104.07403941539.05580739605.09385386857.00
in time)
(3) Description of performance obligations
□Applicable √N/A
225 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
(4) Description of the transaction price allocated to remaining performance obligations
□Applicable √N/A
(5) Material contract modifications or material adjustments to the transaction price
□Applicable √N/A
6. Investment income
√Applicable □N/A
Unit: Yuan Currency: RMB
For the Previous
Item For the Period
Period
Investment income from long-term equity
341316858.74262551429.80
investments accounted for under the cost method
Investment income from financial assets held for
1936883.190.00
trading during the holding period
Dividend income from other equity instrument
486815.601505811.26
investments
Investment income from disposal of long-term
-13285440.420.00
equity investments
Investment income from associates accounted for
-668754.91420879.56
using the equity method
Investment income from disposal of financial assets
0.00101250.00
held for trading
Total 329786362.20 264579370.62
XVIII Supporting Information
1. Statement of non-recurring profit or loss
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Amount
Gains/losses on disposal of non-current assets 11134514.30
Government grants recognized in profit or loss for the current period
excluding those that are closely related to the Company's normal operating
activities comply with the requirements of national policies are entitled in 46780880.06
accordance with established criteria and have a continuing impact on the
Company's profit or loss
Gains/losses on fair value changes of financial assets and financial liabilities
held by non-financial enterprises and gains/losses on the disposal of financial
23699235.79
assets and financial liabilities excluding effective hedging activities related to
the Company's normal operating activities
226 / 227Joincare Pharmaceutical Group Industry Co. Ltd. Interim Report 2026
Reversal of impairment provisions for receivables that have been individually
0.00
tested for impairment
Other non-operating income and expenses other than the above items -6828062.47
Less: Income tax effects 753191.30
Effects of minority interests (after tax) 30303740.96
Total 43729635.42
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
Other descriptions
□Applicable √N/A
2. Rate of return on net assets and earnings per share
√Applicable □N/A
Weighted average Earnings per share
Profits for the Reporting Period
return on equity (%) Basic EPS Diluted EPS
Net profit attributable to the
4.210.350.35
Company’s ordinary shareholders
Net profit attributable to the parent
company’s shareholders excluding 3.92 0.33 0.33
non-recurring profit or loss
3. Differences in accounting data under domestic and foreign accounting standards
□Applicable √N/A
4. Others
□Applicable √N/A
Chairman: Zhu Baoguo
Date of Submission Approved by the Board: 24 August 2026
Revised information
□Applicable √N/A
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