Financial Performance - The company reported a significant increase in revenue, achieving a total of RMB 1.5 billion, representing a growth of 15% compared to the previous year[15]. - The net profit for the year was RMB 300 million, reflecting a 10% increase year-over-year[15]. - Operating income for 2021 reached RMB 6,560,077,586.40, representing a 9.23% increase compared to 2020[19]. - Net profits attributable to shareholders of the listed company increased by 7.29% to RMB 348,548,495.99 in 2021[19]. - The net profit attributable to the company for 2021 was RMB 57,212,663.89, an increase from RMB 34,069,550.32 in 2020, representing a growth of about 68%[27]. - The company has set a performance guidance for the next year, aiming for a revenue target of RMB 1.8 billion, which would represent a 20% increase[15]. - The gross profit margin improved to 40%, up from 35% in the previous year, indicating better cost management and pricing strategies[79]. Customer Growth - User data showed an increase in active customers, reaching 2 million, which is a 20% growth from the previous year[15]. - User data indicates a growing customer base, with an increase of 25% in active users compared to the previous year, reaching 500,000 active users[79]. Market Expansion - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share by 2023[15]. - The company plans to expand its market presence in Southeast Asia, with an investment of 50 million RMB allocated for marketing and distribution channels[79]. Product Development - New product development includes the launch of three innovative pharmaceutical products, expected to contribute an additional RMB 200 million in revenue[15]. - New product development is underway, with three new pharmaceutical products expected to launch in Q3 2022, targeting a market share increase of 10%[79]. Strategic Initiatives - A strategic acquisition of a smaller pharmaceutical firm was completed, enhancing the company's product portfolio and expected to generate an additional RMB 150 million in annual revenue[15]. - A strategic acquisition of a local competitor is in progress, which is expected to enhance the company's production capacity by 30%[79]. Research and Development - The company has allocated RMB 100 million for research and development in new technologies for the upcoming fiscal year[15]. - The company is investing in advanced technology for drug development, with a budget of 100 million RMB dedicated to R&D over the next two years[79]. Sustainability and Corporate Responsibility - The board emphasized the importance of sustainability and corporate social responsibility initiatives, with a budget of RMB 50 million allocated for environmental projects[15]. - The company has initiated a new sustainability strategy aimed at reducing carbon emissions by 25% by 2025[79]. Financial Position - The company reported a strong cash flow position with RMB 500 million in cash reserves, providing a solid foundation for future investments[15]. - Total assets as of December 31, 2021, were RMB 7,332,033,657.98, reflecting a 3.37% increase from the previous year[19]. - Total liabilities decreased by 0.56% to RMB 3,680,888,823.85 as of December 31, 2021[19]. Shareholder Information - The total number of shares as of December 31, 2021, was 627,367,447, an increase from 621,859,447 shares in 2020[36]. - The company plans to propose a final dividend of RMB 0.15 per share based on a total share count of 669,627,235, subject to shareholder approval[62]. - The proposed A share issuance is currently in progress, and the Company will not discuss the profit distribution plan for 2021 until after the issuance is completed[61]. Management and Governance - The term of the current Directors, Supervisors, and Senior Officers will end on December 22, 2023[101]. - The company operates independently from its controlling shareholder in terms of business, assets, management, and finance[156]. - The Company has established clear responsibilities among its governance structures, including the board of directors and supervisory committee[162]. Internal Controls and Auditing - The Audit Committee confirmed that the financial statements for 2021 were prepared in accordance with the Company's accounting policies and were accurate without any material misrepresentations[143]. - An independent audit on the effectiveness of the Company's internal control was conducted by ShineWing, ensuring transparency and accountability[174]. - The internal control audit report confirmed that the Company maintained effective internal control over financial reporting as of December 31, 2021, in compliance with relevant regulations[183][186].

Financial Performance - Total operating income for 2018 reached RMB 5,207,868,838.88, representing a 15.33% increase compared to RMB 4,515,716,784.19 in 2017[10]. - Net profits for 2018 amounted to RMB 274,283,989.92, a 23.97% increase from RMB 221,248,751.89 in 2017[13]. - Net profit attributable to shareholders of the parent company was RMB 250,833,425.15, reflecting a 19.68% growth from RMB 209,591,907.23 in the previous year[15]. - Basic earnings per share increased to RMB 0.40, up 14.29% from RMB 0.35 in 2017[19]. - Total profits for 2018 were RMB 325,075,858.17, marking a 21.22% increase from RMB 268,173,876.00 in 2017[11]. - Income tax expense rose to RMB 50,791,868.25, an 8.24% increase compared to RMB 46,925,124.11 in 2017[12]. - Net profit after deduction of non-recurring profit and loss was RMB 232,945,689.24, a significant increase of 38.37% from RMB 168,348,978.97 in 2017[17]. Cash Flow and Assets - Net cash flow from operating activities decreased by 11.63% to RMB 344,609,119.10, down from RMB 389,971,809.35 in 2017[18]. - Total assets as of December 31, 2018, increased by 12.18% to RMB 5,916,156,319.63 compared to RMB 5,273,647,124.63 at the end of 2017[23]. - Total liabilities rose by 15.79% to RMB 3,119,603,287.55 from RMB 2,694,193,743.82 in the previous year[23]. Shareholder Information - As of December 31, 2018, the total number of shares was 621,859,447, an increase from 478,353,421 shares as of December 31, 2017, representing a growth of approximately 30%[38]. - The largest shareholder, Shandong Xinhua Pharmaceutical Group, held 204,864,092 shares, representing 32.94% of the total share capital[44]. - The second-largest shareholder, HKSOC (Nominees) Limited, held 193,594,877 shares, accounting for 31.13% of the total share capital[44]. - The total number of conditional tradable shares was 27,364,370, accounting for 4.4% of the total share capital as of December 31, 2018[38]. - The total number of unconditional tradable shares was 594,495,077, which made up 95.6% of the total share capital as of December 31, 2018[38]. Corporate Governance - The Company has established corporate governance policies and practices in strict compliance with the Listing Rules[135]. - The Board is responsible for the preparation and fair presentation of financial statements in accordance with CASBE, ensuring no material misstatement due to fraud or error[135]. - The Company has appointed three independent non-executive directors, including one with financial management expertise, complying with the Listing Rules[139]. - The Company has established a standardized education training system to enhance staff capabilities and ensure effective management operations[93]. - The Company continues to maintain a stable governance structure with independent non-executive directors and supervisors[74]. Internal Control and Audit - The internal control evaluation report indicates that the company has established effective internal controls in all material aspects, with no significant deficiencies found[132]. - ShineWing has provided an independent audit report confirming the effectiveness of the company's internal control over financial reporting as of December 31, 2018[133]. - The Audit Committee confirmed that the financial statements for 2018 were prepared in accordance with the accounting policies and accurately reflected the company's financial position as of December 31, 2018[100]. - The financial statements were deemed truthful, accurate, and complete, with no material misrepresentations or omissions identified[101]. Employee and Management Information - As of December 31, 2018, the Group employed 6,357 staff, with total salaries and wages for the year reaching approximately RMB 493.367 million[86][87]. - The remuneration for the highest-paid Director, Mr. Zhang Daiming, was RMB 125.08 million in 2018[79]. - The total remuneration for Directors, Supervisors, and Senior Officers in 2018 amounted to RMB 11.0440 million[79]. - The Company emphasizes performance assessment and incentive mechanisms for Senior Officers, with regular evaluations based on work performance and adherence to Board resolutions[118]. Future Outlook and Strategy - The Company plans to accelerate the development of formulation products and expand market reach in 2019[194]. - The pharmaceutical demand is expected to continue increasing due to economic development, aging population, and enhanced public health awareness[196]. - The company aims to leverage its advantages in bulk drugs to increase profitability and actively develop the veterinary drug business segment[199]. - The company will implement equity incentive schemes to enhance staff cohesion and centripetal force[196]. Shareholder Meetings and Resolutions - The proposed dividend for 2018 is RMB 0.1 per share, subject to shareholder approval[189]. - Shareholders holding 10% or more of voting shares can requisition an extraordinary general meeting by submitting a written request[177]. - The Company will bear reasonable expenses incurred by shareholders in convening a meeting due to the Board's failure to act[179]. - The re-appointment of auditors was approved at the annual general meeting[182].