Financial Performance - For the fiscal year ending December 31, 2022, the company reported a revenue of RMB 3,744.95 million, an increase of 309.83% compared to the previous year[2] - The EBITDA for the same period was RMB 698.43 million, reflecting a growth of 502.63% year-over-year[2] - The net profit attributable to equity holders of the company was RMB 76.60 million, a significant recovery from a loss of RMB 587.65 million in the previous year[2] - Basic earnings per share for the fiscal year was RMB 0.09, compared to a loss per share of RMB 0.67 in the prior year[4] - The gross profit margin improved significantly, with gross profit reported at RMB 2,846.07 million, up from RMB 483.70 million the previous year[4] - The company reported a significant reduction in operating losses, with operating profit of RMB 321.07 million compared to a loss of RMB 423.38 million in the previous year[4] - The company reported a net profit of RMB 76,603 thousand for the year 2022, recovering from a loss of RMB (587,649) thousand in 2021[8] - The group recorded a pre-tax profit of RMB 39.42 million for the year ended December 31, 2022, an increase of RMB 706.60 million compared to a pre-tax loss of RMB 667.18 million for the previous year[70] - The net profit for the group was RMB 49.24 million for the year ended December 31, 2022, an increase of 108.38% from a net loss of RMB 587.72 million for the year ended December 31, 2021[73] Revenue Sources - The total revenue for the year 2022 was RMB 3,744,952,000, a significant increase from RMB 913,788,000 in 2021, representing a growth of approximately 309%[15] - The sales of antiviral drugs reached RMB 3,116,059,000 in 2022, compared to RMB 559,973,000 in 2021, indicating a growth of about 455%[15] - The core product, Kewai (Phosphate Oseltamivir), generated sales of RMB 3,092.71 million, representing a 457.66% increase year-on-year[53] - Kewai (Phosphate Oseltamivir) accounted for 82.58% of total revenue, while other products contributed significantly less, with the next highest being Ertongshu (Bromfenac Tablets) at 2.63%[53] - The sales of Kewai (Phosphate Oseltamivir) granules reached RMB 2,585.15 million, making up 69.03% of total revenue[59] - The sales of Kewai (Phosphate Oseltamivir) capsules were RMB 507.55 million, accounting for 13.55% of total revenue[59] Expenses and Costs - Total expenses for the group reached RMB 1,962.31 million for the year ended December 31, 2022, an increase of 58.67% from RMB 1,236.73 million for the year ended December 31, 2021[67] - Distribution costs increased by 133.21% to RMB 1,216.59 million, primarily due to increased marketing costs associated with higher product sales volume[68] - R&D expenses totaled RMB 199.24 million, accounting for 5.32% of revenue, a decrease of 19.08% year-on-year[69] - The sales cost for the year was RMB 898.88 million, a 109.00% increase from RMB 430.09 million in the previous year, mainly due to increased sales volume of Kewai[64] Assets and Liabilities - Total assets as of December 31, 2022, were RMB 6,949.02 million, down from RMB 9,303.52 million the previous year[6] - The company’s cash and cash equivalents amounted to RMB 923.54 million, compared to RMB 1,131.12 million in the previous year[6] - The company’s total liabilities decreased to RMB 879,018 thousand from RMB 879,018 thousand, reflecting a stable financial position[7] - The company has a total of RMB 1,718,222,000 in financial liabilities measured at amortized cost as of 2022, up from RMB 911,680,000 in 2021[44] Investments and Capital Expenditures - The company invested RMB 290,000,000 in a trust investment plan as part of its financial strategy[34] - Capital expenditures for the year included RMB 853.06 million for construction of facilities, purchase of office equipment, and acquisition of drug production and marketing rights[81] - The company has ongoing applications for property ownership certificates valued at RMB 544,900,000 as of December 31, 2022, up from RMB 415,843,000 in 2021, representing an increase of approximately 30.9%[26] Research and Development - The company will continue to increase R&D investment, focusing on drug development in areas such as anti-infection, endocrine, and metabolic diseases, aiming for clinical application[88] - The company has established a comprehensive R&D system for insulin products, covering both second and third-generation insulin[55] - The company’s R&D investment in the field of diabetes treatment amounted to RMB 39,887.19 thousand for the drug Jiao Guo An Suan Rong Ge Lian Jing, representing 1.07% of revenue[58] Corporate Governance and Shareholder Relations - The company did not declare a final dividend for the fiscal year ending December 31, 2022[4] - The company did not declare or pay dividends for the years ending December 31, 2021, and December 31, 2022[50] - The company has received eight waiver letters from bondholders, allowing them to waive their rights to early redemption of convertible bonds until January 1, 2023[48] Employee and Management - The group employed 4,167 individuals as of December 31, 2022, with total employee costs approximately RMB 612.18 million[83] - The employee age distribution showed that 75.59% were aged between 31 and 50 years, while 21.53% were 30 years or younger[84] - The group’s compensation policy aims to motivate and retain talent, regularly reviewing employee compensation based on industry standards and performance[86] Future Outlook - The company anticipates steady growth in the innovative drug market, supported by favorable government policies and an expanding national medical insurance drug list[51] - The company plans to enhance its product portfolio by continuously launching new products to strengthen market competitiveness[88] - The company aims to improve its scientific and sustainable marketing strategies, promoting core products in tiered hospitals and grassroots medical markets[88]

Financial Performance - The Group's revenue for the year ended December 31, 2021, was RMB 913.79 million, representing a decrease of 61.08% compared to 2020[3]. - Loss attributable to equity shareholders in 2021 (excluding convertible bonds) was RMB 414.92 million, a decrease of 170.30% from a profit of RMB 590.21 million in 2020[4]. - Total comprehensive loss attributable to equity shareholders in 2021 (including convertible bonds) was RMB 587.65 million, down 170% from a profit of RMB 839.46 million in 2020[5]. - Basic and diluted losses per share for 2021 were both RMB 0.67, with no final dividend recommended for the year[6]. - The gross profit margin for 2021 was 52.93%, a significant decline from previous years[9]. - Revenue from the core product, Kewei, reached RMB 554.59 million, a decrease of 73.19% compared to the same period in 2020[63]. - The revenue from anti-viral drugs decreased by 72.97% to RMB 559.97 million in 2021 from RMB 2,071.61 million in 2020[114]. - The revenue from cardiovascular and cerebrovascular drugs increased by 43.98% to RMB 96.15 million in 2021 from RMB 66.78 million in 2020[114]. - The total revenue from the Group's five core products accounted for 78.64% of total revenue during the reporting period[101]. Assets and Liabilities - The total assets of the company as of December 31, 2021, were RMB 10,541.58 million, an increase from RMB 9,561.27 million in 2020[9]. - As of December 31, 2021, the Group's total current assets amounted to RMB 2,057.38 million, a decrease of RMB 1,206.73 million compared to RMB 3,264.11 million for the year ended December 31, 2020[160]. - The Group's total liabilities were RMB 4,520.82 million, and shareholders' equity was RMB 6,020.76 million[150]. - The Group's cash and cash equivalents decreased to RMB 1,131.12 million as of December 31, 2021, from RMB 2,044.97 million as of December 31, 2020[158]. - The gearing ratio as of December 31, 2021, was 53.04%, down from 58.99% as of December 31, 2020[166]. - The quick ratio as of December 31, 2021, was 1.44 times, compared to 0.69 times as of December 31, 2020[166]. Research and Development - The company has established a mature R&D, production, and sales platform, with plans to deepen innovation in antiviral, endocrine, metabolic, and cardiovascular diseases[42]. - The Group's investment in R&D for the year ended December 31, 2021, was RMB 246.24 million, accounting for 26.95% of revenue, a decrease of 75.71% compared to the previous year[133]. - The Group made significant R&D progress in anti-virus and endocrine/metabolic diseases during 2021[72]. - The Group is dedicated to the R&D of insulin products, covering both second and third generations of insulin[74]. - The Group has established a comprehensive R&D system for insulin products, achieving quality standards equivalent to originator drugs, with successful approvals for Recombinant Human Insulin Injection and Insulin Glargine Injection[82]. - The latest progress of insulin products during the Reporting Period indicates ongoing development in this therapeutic area[79]. Product Development and Market Strategy - The company aims to enhance international production standards and quality while expanding marketing and sales coverage to drive business growth and profitability[23]. - The company plans to further develop and enrich its product lines and markets in the future[24]. - The introduction of new products is facilitated by the "Amendments to the Non-Competition Agreement" with Sunshine Lake Pharma, positively impacting future performance[110]. - The Group's product portfolio will be enriched with the approval of generic drug products, providing patients with high-quality and fairly priced medical choices[64]. - The Group signed a revised agreement with Guangdong Dongyangguang Pharmaceutical to introduce more new products based on market demand, positively impacting future performance[65]. - The Group is actively expanding its online pharmacy channel and collaborating with well-known online operators[105]. Sales and Distribution - The company has a distribution network supported by 1,746 professional sales staff across China[15]. - The establishment of four sales teams aims to strengthen market presence across various channels, with a total of 1,746 staff as of December 31, 2021[105]. - Eight products won the bid for national centralized procurement, positively impacting sales expansion and domestic market development[38]. - A total of 13 products from the Group won bids for centralized bulk purchase of drugs by December 31, 2021, which is expected to enhance profitability and expand product channels[60]. Governance and Corporate Strategy - The company is committed to improving its governance level and management systems to enhance competitiveness in both domestic and international markets[31]. - The company aims to become a benchmark pharmaceutical enterprise in China and globally through comprehensive development strategies and strict management systems[44]. - The Group's strategy aligns with the "Healthy China" initiative, aiming to enhance the effectiveness of medical insurance funds and improve access to high-quality drugs[54]. Employee and Operational Insights - The Group had a total of 3,616 employees as of December 31, 2021, with staff costs approximately RMB 356.59 million for the year[186]. - The Group's remuneration policy aims to motivate and retain talent, with regular reviews based on industry standards[192][195]. - Employee benefits include compliance with PRC labor laws and additional welfare programs such as a Corporate Annuity Plan and public facilities[193][196].