Financial Performance - For the fiscal year ending December 31, 2021, the company reported total revenue of approximately RMB 5.00 billion, an increase of about 10.9% compared to the previous year[12]. - The company achieved a net profit of approximately RMB 1.50 billion, a significant increase of about 125.6% compared to the previous year[12]. - The total revenue for the year ended December 31, 2021, was approximately RMB 5.00 billion, with innovative drug revenue reaching RMB 3.12 billion, a 53.8% increase from RMB 2.03 billion in 2020[23]. - Revenue from the top five customers accounted for 14.1% of total revenue, with the largest customer contributing 3.9%[93]. - Sales revenue from the oncology product portfolio reached approximately RMB 1.2 billion, accounting for about 24.0% of the total revenue for the year ended December 31, 2021[29]. - Sales revenue from the autoimmune product portfolio amounted to approximately RMB 892 million, representing about 17.8% of the total revenue for the year ended December 31, 2021[37]. - The sales revenue from other pharmaceutical products, including Shufutan® and Zailin®, reached approximately RMB 958 million, accounting for about 19.2% of the total revenue for the year ended December 31, 2021[40]. Innovative Drug Development - The revenue from innovative drugs reached approximately RMB 3.12 billion, representing a growth of about 53.8% year-over-year, and accounted for 62.4% of total revenue, a historical high[10]. - The company is currently conducting 20 registration clinical studies for 17 potential innovative drugs, with 6 new Phase III trials initiated in 2021[10]. - The innovative drug pipeline continues to expand, with more clinical candidates entering trials and achieving encouraging progress[17]. - The company has established R&D innovation centers in Shanghai, Nanjing, and Boston, with a pipeline of nearly 60 innovative drugs under development[13]. - The company successfully launched the innovative drug Envidat® in November 2021, contributing to new business growth[10]. - The innovative drug "Xianbixin" received widespread recognition for its efficacy and safety in its first full year post-launch[17]. - The company achieved significant milestones in 2021, including the approval of clinical trials for multiple drugs, such as "Xianbixin" and "Endu," which is the world's first subcutaneous PD-(L)1 injection[19]. Research and Development - Research and development expenses were approximately RMB 1.42 billion, accounting for about 28.3% of total revenue, which is an increase of approximately 24.1% year-over-year[12]. - The company has nearly 60 innovative drug development projects in its pipeline, with 20 projects in clinical stages, including 7 in Phase III, 5 in Phase II, and 8 in Phase I as of December 31, 2021[42]. - The company filed 223 new patent applications during the year, including 210 invention patents, and has accumulated 199 granted invention patents as of December 31, 2021[48]. - The company is committed to maintaining high-intensity and sustainable R&D investments to support its growth strategy[17]. - The company aims to enhance its core competitiveness in strategic execution, innovative drug projects, and commercialization efforts[17]. Market and Strategic Focus - The Chinese pharmaceutical market has been rapidly developing due to a large patient base and unmet clinical needs, with regulatory accelerations and expanded medical insurance coverage driving innovation[19]. - The company plans to focus on differentiated innovation in 2022, emphasizing both operational performance and organizational capabilities[17]. - The company aims to enhance its commercialization capabilities and product coverage through continuous training and professional development of its marketing team[13]. - The group aims to increase the proportion of revenue from innovative drugs and enhance its R&D capabilities and overall competitiveness[76]. - The group will continue to focus on the development of COVID-19 treatment drugs, accelerating the R&D process in response to the pandemic[76]. Financial Position and Capital Management - As of December 31, 2021, the company had cash and cash equivalents of approximately RMB 973 million, down from RMB 3.27 billion in 2020, and bank loans of approximately RMB 1.53 billion, reduced from RMB 3.07 billion in 2020[68]. - The company's debt-to-asset ratio improved to approximately 36.4% as of December 31, 2021, compared to 51.2% in 2020, indicating a stronger financial position[68]. - The group plans to allocate 60% of the net proceeds from its IPO, approximately HKD 2,107.85 million, towards ongoing R&D in strategic therapeutic areas by 2027[86]. - The board declared a final dividend of RMB 0.15 per share, totaling approximately RMB 394.244 million, subject to shareholder approval[80]. - The company has not issued any debt securities during the fiscal year ending December 31, 2021[90]. Employee and Governance - As of December 31, 2021, the group had a total of 6,182 full-time employees, with employee costs amounting to approximately RMB 1.465 billion[73]. - The group has established a training academy to provide regular training for employees, including onboarding and skills training[73]. - The board of directors includes a mix of executive, non-executive, and independent non-executive members, ensuring diverse governance[131]. - The company has confirmed the independence of all independent non-executive directors according to the listing rules, reinforcing governance standards[135]. - The company has purchased liability insurance for its directors and senior management, ensuring protection against potential claims[129]. Related Party Transactions - The actual transaction amount under the property lease and comprehensive service framework agreement for the year ended December 31, 2021, was approximately RMB 49 million, against an annual cap of RMB 56 million[144]. - The actual transaction amount under the sales and distribution framework agreement with Xiansheng Jiangsu for the year ended December 31, 2021, was approximately RMB 3 million, against an annual cap of RMB 22 million[145]. - The actual transaction amount under the Xiangrui promotion service framework agreement for the year ended December 31, 2021, was approximately RMB 57 million, against an annual cap of RMB 110 million[147]. - Independent non-executive directors confirmed that the ongoing related party transactions were conducted in the ordinary course of business and on normal commercial terms[154]. - The auditor issued an unqualified opinion regarding the ongoing related party transactions, confirming compliance with the company's pricing policy and regulatory agreements[155]. Risks and Challenges - The company faces significant risks related to competition and the rapidly changing pharmaceutical industry[98]. - The development of innovative drugs is time-consuming and costly, with uncertain outcomes, which may hinder the achievement of product development milestones and regulatory approvals[101]. - The company may encounter challenges in maintaining sales volume, pricing levels, and profit margins for its main products[99]. - Supply chain risks exist due to reliance on certain raw materials and pharmaceuticals, which may face shortages or price increases[103]. - The ongoing COVID-19 pandemic may continue to adversely affect the company's business performance and financial condition[111].

Financial Performance - For the six months ended June 30, 2021, the company recorded revenue of approximately RMB 2.12 billion, representing a year-on-year growth of about 10.1%[8] - The company's profit for the period was approximately RMB 555 million, reflecting a substantial increase of approximately 200.2% year-on-year[8] - Basic earnings per share were approximately RMB 0.21, an increase of about 162.5% compared to the same period last year[8] - Revenue for the six months ended June 30, 2021, was RMB 2,120,002 thousand, representing an increase of 10.1% from RMB 1,925,413 thousand in the same period of 2020[54] - Gross profit for the same period was RMB 1,663,025 thousand, up from RMB 1,537,283 thousand, indicating a gross margin improvement[54] - Operating profit increased significantly to RMB 556,106 thousand, compared to RMB 297,851 thousand in the prior year, reflecting a growth of 86.7%[54] - Net profit for the period was RMB 554,895 thousand, a substantial rise from RMB 184,835 thousand, marking an increase of 200.5%[55] - Total comprehensive income for the period was RMB 721,580 thousand, compared to RMB 321,445 thousand in the same period last year[55] Revenue Breakdown - Innovative drug revenue reached approximately RMB 1.22 billion, a significant increase of approximately 56.8% compared to the same period last year, accounting for 57.6% of total revenue[7] - Revenue from central nervous system disease products reached approximately RMB 595 million, representing about 28.1% of total revenue[13] - Revenue from oncology products reached approximately RMB 553 million, accounting for about 26.1% of total revenue for the six months ended June 30, 2021[14] - Revenue from autoimmune disease products amounted to approximately RMB 317 million, representing about 15.0% of total revenue for the six months ended June 30, 2021[15] - Revenue from other therapeutic areas reached approximately RMB 480 million, making up about 22.6% of total revenue for the six months ended June 30, 2021[16] Research and Development - Research and development expenses amounted to approximately RMB 627 million, up about 38.0% year-on-year, representing approximately 29.6% of total revenue[8] - The company has nearly 60 innovative drug projects in its pipeline, with 11 products currently in clinical research stages[7] - The company achieved 5 new key registrations and 1 Phase I clinical trial initiation during the reporting period[7] - The clinical research team has expanded to over 200 members, enhancing the company's drug development capabilities[17] - The company is actively pursuing new indications for existing products, such as the expansion of Ailamod for Sjögren's syndrome[15] Clinical Trials and Approvals - The company achieved the first patient enrollment (FPI) for seven clinical trials during the reporting period, including trials for "Trilaciclib" and "Cevatuzumab" for various cancers[11] - The company received multiple clinical trial approvals from the NMPA for new drugs, including "SIM0307" for acute ischemic stroke and "SIM0395" for glioblastoma[10][11] - The company plans to conduct a randomized, controlled, double-blind Phase III clinical study for "Endu" in treating malignant pleural effusion[10] - The company has received NMPA approval for clinical trials of its new drug, Cevacizumab, for malignant solid tumors, with the first patient enrolled in a Phase III trial for ovarian cancer on June 11, 2021[23] Financial Position - As of June 30, 2021, the company reported cash and cash equivalents of approximately RMB 1.285 billion, down from RMB 3.270 billion as of December 31, 2020[28] - The company's bank loan balance as of June 30, 2021, was approximately RMB 1.962 billion, a decrease from RMB 3.068 billion as of December 31, 2020[28] - The company's debt-to-asset ratio improved to approximately 43.0% as of June 30, 2021, compared to 51.2% as of December 31, 2020[28] - The company reported a significant decrease in long-term bank loans due within one year, from RMB 1,231,450 thousand at the end of 2020 to zero as of June 30, 2021[91] - The company’s total equity as of June 30, 2021, was RMB 5,641,320 thousand, an increase from RMB 5,335,724 thousand as of December 31, 2020[61] Shareholder Information - The total number of issued shares as of June 30, 2021, was 2,608,641,618 shares[35] - Mr. Ren Junsheng holds 2,035,922,965 shares, representing approximately 78.05% of the company's equity[34] - The company approved the 2021 Restricted Share Unit Plan on May 20, 2021, to provide equity ownership opportunities to existing or new directors, senior management, and employees, with a total of 10,937,000 restricted share units granted as of July 16, 2021, representing approximately 0.42% of the total issued shares[43] Corporate Governance - The company has adhered to the Corporate Governance Code from January 1, 2021, to June 30, 2021, ensuring high standards of ethics, transparency, and accountability[44] - The Chairman and CEO positions are not separated, with the current CEO also serving as Chairman, which the board believes ensures consistent leadership[44] - The company has confirmed compliance with the standard code for securities transactions by directors from January 1, 2021, to June 30, 2021[46] Market Presence and Strategy - The company has expanded its market presence, with "Xianbixin" being sold in approximately 1,500 medical institutions across 30 provinces and municipalities in China[13] - The company emphasizes open innovation and collective efforts to meet unmet clinical needs[32] - The company is committed to investing in innovative drug R&D with a focus on delivering more effective medications to patients[32] Other Financial Metrics - The company reported a net cash outflow from operating activities of RMB 522,831 thousand for the six months ended June 30, 2021, compared to an outflow of RMB 227,658 thousand in the same period of 2020[62] - The company’s investment activities resulted in a net cash outflow of RMB 621,439 thousand for the six months ended June 30, 2021, contrasting with a net inflow of RMB 496,173 thousand in the same period of 2020[62] - The company reported a significant increase in other comprehensive income, with a total of RMB 179,150 thousand for the six months ended June 30, 2021, compared to a loss of RMB 20,277 thousand in the previous year[61]

Financial Performance - For the year ended December 31, 2020, the company recorded revenue of approximately RMB 4.509 billion, a decrease of about 10.5% compared to the previous year[7]. - The company achieved a profit of approximately RMB 664 million for the year, a decrease of about 33.8% compared to the previous year[7]. - The earnings per share for the year was approximately RMB 0.28, a decrease of about 34.9% compared to the previous year[7]. - The company recorded a revenue of approximately RMB 4.509 billion for the year, a decrease of about 10.5% compared to the previous year[20]. - The net profit for the year was approximately RMB 664 million, representing a decline of about 33.8% year-on-year[20]. - The earnings per share were approximately RMB 0.28, down by about 34.9% compared to the previous year[20]. Revenue Breakdown - Innovative drug sales accounted for 45.1% of total revenue as of December 31, 2020, up from 32.9% in 2019 and 25.5% in 2018[6]. - The innovative drug revenue for the year was approximately RMB 2.029 billion, an increase of about 22.5% compared to the previous year[7]. - Revenue from the oncology product portfolio reached approximately RMB 1.255 billion, accounting for about 27.8% of the total revenue[22]. - Revenue from central nervous system disease products reached approximately RMB 704 million, accounting for about 15.6% of total revenue[24]. - Revenue from autoimmune disease products amounted to approximately RMB 1.119 billion, representing about 24.8% of total revenue[25]. - Revenue from other therapeutic areas reached approximately RMB 1.152 billion, making up about 25.6% of total revenue[26]. Research and Development - Research and development costs were approximately RMB 1.142 billion, an increase of about 59.4% year-over-year, representing 25.3% of total revenue[7]. - The company had over 50 innovative drug development projects in its pipeline as of December 31, 2020, with more than 20 new projects initiated during the year[6]. - The company received approval for six new drug clinical trial applications during the year, with one pending approval and eleven projects in clinical development[6]. - R&D investment increased by approximately 59.4% year-on-year, with over 900 personnel in the R&D team and more than 50 innovative drug pipeline projects[10]. - The company is committed to its mission of providing patients with more effective medications and plans to attract more talented scientists to its R&D team[15]. Product Launches and Approvals - The company launched two new drugs in 2020, including a new class drug and an imported registered drug, which are expected to benefit more stroke patients[6]. - The company successfully launched two new drugs in 2020: Xianbixin (Edaravone and Dexamethasone Injection) and Enruishu (Abatacept Injection), with Xianbixin included in the National Medical Insurance Catalog[10]. - The company launched the innovative drug Xianbixin, which is the only new drug approved for the treatment of stroke globally in the past five years[18]. - The company’s product, Enruishu, became the first and only approved CTLA4-Fc fusion protein for rheumatoid arthritis in China[18]. - The company signed a licensing agreement with G1 Therapeutics for the innovative drug Trilaciclib, which received breakthrough therapy designation from the FDA[19]. Market Strategy and Expansion - The company is focused on expanding its market presence and enhancing its research capabilities to drive future growth[6]. - The company aims to continue expanding its commercialization team to enhance market coverage for innovative products and improve patient access to effective medications[15]. - The sales team expanded to approximately 4,000 personnel by the end of 2020, an increase of about 1,100 from June 30, 2020, supporting the marketing of innovative drug products[11]. - The company is pursuing strategic collaborations for high-value innovative drug projects, including partnerships for Trilaciclib and KN035, which have received regulatory attention[10]. Financial Position and Cash Flow - As of December 31, 2020, the group had net cash inflow from operating activities of approximately RMB 97 million, with capital expenditures of about RMB 353 million primarily for building facilities and purchasing necessary equipment[31]. - The group had cash and cash equivalents of approximately RMB 3.27 billion as of December 31, 2020, an increase from RMB 355 million as of December 31, 2019[31]. - The group's bank loan balance was RMB 3.068 billion as of December 31, 2020, compared to RMB 2.783 billion as of December 31, 2019, with RMB 1.793 billion due within one year[31]. - The group’s profit attributable to equity shareholders for the year ended December 31, 2020, was approximately RMB 670 million, exceeding the profit forecast by about 39.5% due to increased unrealized gains from financial assets measured at fair value[30]. Corporate Governance - The board consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors as of December 31, 2020[126]. - The company emphasizes effective internal control measures and compliance with legal regulations to enhance transparency and accountability to shareholders[122]. - The board is responsible for leading and controlling the company, overseeing business strategies and performance, and ensuring effective risk management systems are in place[124]. - The company has adopted the standard code for securities trading by directors, confirming compliance since the listing date until December 31, 2020[123]. - The independent auditor confirmed that there were no matters that would lead them to believe the disclosed continuing connected transactions were not approved by the board[84]. Risks and Challenges - The company faces significant risks in a competitive environment, including the inability to effectively compete with current and future competitors[51]. - The development of innovative drugs is time-consuming and costly, with uncertain outcomes that may hinder the achievement of research and development milestones[53]. - The company may struggle to maintain sales, pricing levels, and profit margins for its key products due to various factors[51]. - The company may experience adverse effects on cash flow and operations if there are delays in collecting payments from distributors[57]. - The company acknowledges that the long-term spread of COVID-19 may have a significant adverse impact on its business performance and financial condition[60]. Shareholder Information - The company has a total of 2,608,641,618 shares issued as of December 31, 2020[112]. - The largest shareholder, Mr. Ren Junsheng, holds 2,035,922,965 shares, representing 78.05% of the total issued shares[106]. - Shareholders have the right to propose resolutions at the annual general meeting, subject to specific requirements regarding the number of voting rights[166]. - The company will suspend share transfer registration from June 22, 2021, to June 25, 2021, to determine shareholder eligibility for the annual general meeting[117]. Audit and Compliance - The consolidated financial statements for the year ended December 31, 2020, were audited by KPMG, which is eligible for reappointment at the upcoming annual general meeting[119]. - The auditor's goal is to obtain reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error[199]. - The board must assess the group's ability to continue as a going concern and disclose any related matters[198]. - The auditor must maintain professional skepticism and exercise professional judgment throughout the audit process[199]. - The company has engaged an independent third party to conduct annual reviews of internal controls and provide recommendations for improvement[165].