Financial Performance - The company's operating revenue for the first half of 2021 was CNY 6,443,263,306.75, representing an increase of 11.97% compared to the same period last year[18]. - The net profit attributable to shareholders of the listed company reached CNY 76,878,698.69, a significant increase of 652.41% year-on-year[18]. - The net profit after deducting non-recurring gains and losses was CNY 84,050,943.55, compared to a loss of CNY 20,173,028.02 in the same period last year, marking a 516.65% improvement[18]. - The net cash flow from operating activities was CNY 22,795,895.99, a turnaround from a negative cash flow of CNY 146,264,993.53 in the previous year, reflecting a 115.59% increase[18]. - Basic earnings per share for the first half of 2021 were CNY 0.14, a 600% increase from CNY 0.02 in the same period last year[19]. - The weighted average return on net assets was 2.35%, an increase of 2.03 percentage points compared to the previous year[19]. - The company achieved a sales revenue of 6.44 billion yuan, an increase of 11.97% compared to 5.75 billion yuan in the same period last year[30]. - The net profit attributable to shareholders reached 76.88 million yuan, a significant increase of 652.41% from 10.22 million yuan in the previous year[28]. - The pharmaceutical industrial segment generated sales revenue of 4.04 billion yuan, up 11.69% from 3.62 billion yuan year-on-year[29]. - The pharmaceutical commercial segment reported sales revenue of 3.80 billion yuan, reflecting a growth of 13.18% compared to 3.35 billion yuan in the same period last year[29]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 13,559,702,685.84, a decrease of 6.39% compared to the end of the previous year[18]. - The total assets decreased from CNY 14.49 billion to CNY 13.56 billion, a decline of approximately 6.43%[98]. - The company's total liabilities decreased from CNY 11.32 billion to CNY 10.32 billion, a decline of approximately 8.83%[98]. - The company's cash and cash equivalents as of June 30, 2021, amount to ¥1,154,970,222.42, a decrease from ¥2,083,981,209.45 on December 31, 2020[96]. - The total current assets decreased to ¥7,031,749,459.53 from ¥8,324,484,257.79 compared to the end of 2020[96]. - The company's retained earnings increased from CNY 491.01 million to CNY 567.89 million, an increase of about 15.67%[98]. - The total owner's equity increased from CNY 3.16 billion to CNY 3.24 billion, an increase of approximately 2.14%[98]. - The total liabilities decreased to ¥2,069,189,878.42 from ¥2,688,116,901.33, a reduction of 22.99% year-over-year[104]. - The total equity decreased to ¥3,452,520,318.95 from ¥3,574,235,380.08, a decline of 3.42% compared to the previous year[104]. Market and Industry Position - The company operates in the pharmaceutical manufacturing industry, with a complete industrial chain including production, sales, and research, comprising 13 manufacturing plants and over 20 commercial companies[21]. - The pharmaceutical industry in China is expected to maintain steady growth due to increasing health demands and government investments in healthcare[24]. - The company is controlled by China National Pharmaceutical Group, ranked 109th in the Fortune Global 500, enhancing its competitive edge in the pharmaceutical sector[25]. - The company focuses on high-quality development in traditional Chinese medicine, leveraging advanced management models and resources from its parent group[25]. - The company aims to strengthen its core competitiveness by focusing on innovation and the complete pharmaceutical industry chain[25]. Research and Development - The company has a strong research and development system, having developed over 40 new drugs and obtained more than 30 national new drug certificates[27]. - The company’s R&D expenses increased by 8.77% to 41.53 million yuan from 38.18 million yuan year-on-year[30]. - The company is enhancing its R&D efforts in anti-tumor drugs, traditional Chinese medicine, and cardiovascular drugs to mitigate R&D risks associated with high costs and lengthy approval processes[40]. Environmental Compliance - The company has four subsidiaries listed as key pollutant discharge units, with specific emissions reported for carbon and wastewater[51]. - The actual carbon emissions from the Fuling Pharmaceutical Plant were reported at 19,954 tCO2e, with no quota assigned for 2021[52]. - The Southwest Pharmaceutical Plant reported an average wastewater discharge of 23.08 mg/L for chemical oxygen demand, well below the permitted limit of 60 mg/L[53]. - The company has invested in pollution control technologies and equipment, enhancing its environmental protection capabilities[66]. - The wastewater treatment facilities at Fuling Pharmaceutical have a combined design capacity of 2,250 tons per day, ensuring compliance with the national wastewater discharge standards[56]. Corporate Governance - The company has undergone significant changes in its board of directors, with multiple resignations from key positions[43]. - The company appointed a new board of directors and management team, with Li Yangchun elected as chairman and Yu Min appointed as general manager[46]. - The company has not disclosed any new equity incentive plans or employee stock ownership plans beyond the first phase already implemented[49]. Social Responsibility - The company developed 46,000 acres of traditional Chinese medicine planting in the first half of 2021, investing 4.1 million yuan to help 1,615 impoverished individuals increase their income[68]. - The company will continue to fulfill its social responsibility as a state-owned enterprise and leverage its advantages in traditional Chinese medicine planting to support rural revitalization strategies[68]. Financial Management - The company has provided guarantees totaling 87,510.50 million to its controlling shareholder, Taiji Group Co., Ltd.[85]. - The company has not completed the performance of guarantees, and there are no overdue guarantees reported[84]. - The company has used up to 70,000 million of idle raised funds to supplement working capital, with a usage period not exceeding 12 months[87].

Financial Performance - The company's operating revenue for the first half of 2020 was CNY 5,754,278,677.98, a decrease of 6.43% compared to the same period last year[15]. - The net profit attributable to shareholders of the listed company was CNY 10,217,627.45, down 88.53% year-on-year[15]. - The net cash flow from operating activities was negative at CNY -146,264,993.53, a decline of 259.34% compared to the previous year[15]. - Basic earnings per share for the first half of 2020 were CNY 0.02, down 87.5% from CNY 0.16 in the same period last year[16]. - The company reported a net profit of ¥444,051,793.42, an increase from ¥433,834,165.97, representing a growth of approximately 2.7%[79]. - The company reported a total comprehensive income of CNY 8,570,612.03, significantly lower than CNY 93,129,727.07 in the previous year[84]. - The company reported a net loss of approximately ¥132.1 million for the first half of 2020, compared to a net loss of about ¥107.0 million in the same period of 2019, indicating a year-over-year increase in losses of approximately 23.5%[86]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 14,159,231,318.57, a slight decrease of 0.18% from the end of the previous year[15]. - The company's total liabilities stood at ¥11,011,050,232.26, slightly up from ¥11,049,139,347.87, showing a marginal increase of about 0.15%[79]. - The company's total equity attributable to shareholders increased to ¥3,186,874,907.88 from ¥3,173,631,366.25, reflecting a growth of approximately 0.42%[79]. - The company's trading financial assets decreased significantly from CNY 543.39 million at the end of 2019 to CNY 172.87 million, representing a decline of approximately 68.2%[77]. - The company's accounts receivable increased to approximately CNY 1.89 billion, up from CNY 1.83 billion at the end of 2019, indicating a growth of about 3.2%[77]. Research and Development - The company has a strong emphasis on research and development, holding 175 national patents and over 50 protected traditional Chinese medicine varieties[18]. - The company’s R&D expenses increased by 93.43% to 38.18 million RMB, reflecting a focus on innovation[24]. - The company has developed over 40 new drugs and received more than 30 national new drug certificates, showcasing its strong research and development capabilities[21]. Market and Industry Trends - The pharmaceutical industry in China is experiencing steady growth, driven by increasing consumer spending and a growing demand for traditional Chinese medicine[19]. - The pharmaceutical market in China is expected to continue growing due to increasing healthcare investments and an aging population[19]. - The company operates a complete pharmaceutical industry chain, including production and sales of traditional Chinese and Western medicines, with over 1,500 product approvals and 75 exclusive products[18]. Operational Strategies - The company has implemented a centralized procurement model to reduce costs while ensuring quality, adhering to GMP standards[19]. - The company’s sales strategy includes both self-operated and agency sales models, with a focus on maintaining stable drug prices and expanding its marketing network[19]. - The company aims to enhance its product offerings and market presence through strategic partnerships and potential acquisitions[19]. Environmental and Social Responsibility - The company invested 505.84 million in poverty alleviation projects, helping 1,012 registered impoverished individuals increase their income[53]. - The company has established a poverty alleviation fund to support targeted assistance in specific counties[52]. - The company’s subsidiaries are listed as key pollutant discharge units, with specific environmental compliance measures in place[58]. Financial Management and Reporting - The company has not reported any significant related party transactions during the reporting period[39]. - The company has a management agreement with subsidiaries, charging a management fee of 5% of the annual net profit of the managed companies[40]. - The company has implemented a new revenue recognition standard effective January 1, 2020, which consolidates existing revenue recognition guidelines into a unified model[67]. Guarantees and Financial Commitments - The company provided a total of guarantees amounting to 1,900 million for Taiji Group, with a guarantee start date of December 10, 2019, and an expiration date of December 9, 2020[43]. - Total guarantees provided by the company, including subsidiaries, amounted to 477,289.92 million, which is 149.77% of the company's net assets[50]. Inventory and Receivables Management - The inventory balance at the end of the period was ¥3,038,419,838.82, with a provision for inventory depreciation of ¥33,047,075.23[186]. - The total accounts receivable balance is CNY 1,956,132,745.06, with a bad debt provision of CNY 68,156,407.93, representing a provision ratio of 3.48%[169]. - The company has recognized a total bad debt provision of CNY 81,196,611.26, which includes CNY 13,040,203.33 for specific provisions and CNY 68,156,407.93 for collective provisions[172].