Financial Performance - The company's operating revenue for Q1 2023 was CNY 560,317,916.01, representing a year-on-year increase of 32.69%[3] - The net profit attributable to shareholders for Q1 2023 was CNY 3,682,566.68, reflecting a growth of 58.07% compared to the same period last year[3] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 3,452,841.10, an increase of 40.91% year-on-year[3] - The basic earnings per share for Q1 2023 was CNY 0.0065, up by 58.54% from the previous year[3] - The company reported a net profit of CNY 201,783,788.37 for the first quarter of 2023, compared to CNY 186,609,951.83 in the first quarter of 2022, an increase of 8.1%[13] - The net profit for Q1 2023 was approximately ¥3.29 million, compared to ¥2.17 million in Q1 2022, representing a 51.8% increase[17] Assets and Liabilities - The total assets at the end of Q1 2023 were CNY 3,572,512,646.95, a decrease of 0.77% from the end of the previous year[4] - The total assets of the company as of March 31, 2023, were CNY 3,572,512,646.95, a slight decrease from CNY 3,600,184,129.95 at the end of 2022[12] - The total liabilities decreased to CNY 1,975,922,301.14 as of March 31, 2023, from CNY 1,986,099,689.13 at the end of 2022, a reduction of 0.6%[13] - The equity attributable to shareholders at the end of Q1 2023 was CNY 1,553,379,373.18, down by 1.09% compared to the end of the previous year[4] Cash Flow and Investments - The net cash flow from operating activities for Q1 2023 was CNY -92,268,340.56, representing a decrease of 39.29% year-on-year[3] - Cash flow from operating activities showed a net outflow of approximately ¥92.27 million in Q1 2023, an improvement from a net outflow of ¥151.97 million in Q1 2022[19] - Investment activities resulted in a net cash outflow of approximately ¥19.64 million in Q1 2023, compared to a net inflow of ¥63.11 million in Q1 2022[19] Shareholder Information - The company had a total of 62,349 common shareholders at the end of the reporting period[6] - The top shareholder, Zhengzhou Tai Rong Industrial Investment Co., Ltd., held 82,441,168 shares, accounting for 14.37% of the total shares[7] Operational Metrics - The company's cash and cash equivalents decreased to CNY 248,462,111.96 as of March 31, 2023, down from CNY 311,383,783.24 at the end of 2022, a decline of 20.1%[11] - Accounts receivable increased to CNY 744,735,581.99 as of March 31, 2023, compared to CNY 709,294,055.62 at the end of 2022, reflecting a growth of 5.0%[11] - The company's inventory as of March 31, 2023, was CNY 433,230,308.30, down from CNY 450,488,977.16 at the end of 2022, a decrease of 3.8%[11] - Non-current assets totaled CNY 1,589,611,259.02 as of March 31, 2023, compared to CNY 1,568,943,854.70 at the end of 2022, an increase of 1.3%[12] Research and Development - The company incurred research and development expenses of approximately ¥24.19 million in Q1 2023, compared to ¥19.58 million in Q1 2022, marking a 23.5% increase[16] Strategic Initiatives - The company established a pharmaceutical industry fund with a total scale of CNY 400 million, with an initial investment of CNY 120 million completed in January 2023[10] - The company is actively linking with market investment institutions and industry resources to expand its upstream and downstream industrial chain[10] Sales Performance - The company reported a significant increase in sales revenue from goods and services, totaling approximately ¥490.86 million in Q1 2023, compared to ¥355.72 million in Q1 2022, reflecting a 38% increase[18] - Total operating costs for Q1 2023 were approximately ¥558.03 million, up from ¥411.80 million in the same period last year, reflecting a 35.5% increase[16]

证券代码：600222 证券简称：太龙药业 公告编号：临 2023-020 河南太龙药业股份有限公司（以下简称"公司"）已于 2023 年 4 月 7 日发布公司 2022 年度报告，为便于广大投资者更全面深入地了 解公司 2022 年度经营成果、财务状况，公司计划于 2023 年 05 月 10 日下午 15:00-16:30 举行 2022 年度业绩说明会，就投资者关心的问 题进行交流。 一、 说明会类型 本次业绩说明会以视频录播结合网络文字互动的形式召开，公司 河南太龙药业股份有限公司 关于召开 2022 年度业绩说明会的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 投资者可于 2023 年 04 月 28 日(星期五) 至 05 月 09 日(星期 二)16:00 前登录上证路演中心网站首页点击"提问预征集"栏目或 通过公司邮箱 600222@taloph.com 进行提问。公司将在说明会上对投 资者普遍关注的问题进行回答。 会议召开时间：2023 年 05 月 10 日(星期三) 下午 15: ...

Financial Performance - The company's operating revenue for 2022 was CNY 1,960,694,309.41, representing a 22.20% increase compared to CNY 1,604,516,940.00 in 2021[20]. - The net profit attributable to shareholders of the listed company was a loss of CNY 72,140,214.59, a decrease of 1,303.26% from a profit of CNY 5,995,375.55 in 2021[20]. - The net cash flow from operating activities was a negative CNY 124,405,873.93, down 224.84% from CNY 99,655,159.11 in 2021[21]. - The total assets at the end of 2022 were CNY 3,600,184,129.95, a decrease of 4.85% from CNY 3,783,772,407.22 at the end of 2021[21]. - The net assets attributable to shareholders of the listed company decreased by 5.42% to CNY 1,570,479,281.96 from CNY 1,660,509,428.09 at the end of 2021[21]. - Basic and diluted earnings per share were both -0.1283 yuan, reflecting a significant decrease compared to 0.0107 yuan in the previous year[22]. - The weighted average return on equity was -4.31%, down from 0.37% in the previous year, indicating a decline in profitability[22]. - The gross profit margin decreased by 4.77 percentage points to 24.04% compared to the previous year[66]. - The total revenue for the year 2022 was approximately CNY 1.95 billion, with a gross margin of 24.04%, reflecting a decrease of 4.77 percentage points compared to the previous year[69]. Revenue Segments - The company's operating revenue increased by 22.20% year-on-year, with traditional Chinese medicine segment revenue growing by 29.62% and pharmaceutical formulation revenue increasing by 19.04%[22]. - The revenue from traditional Chinese medicine oral liquids increased by 19.88% year-on-year, reaching approximately CNY 514.4 million, but the gross margin decreased by 5.05 percentage points to 44.29%[69]. - The revenue from Chinese herbal pieces grew by 29.62% year-on-year, totaling approximately CNY 942.4 million, with a stable gross margin of 11.92%[69]. - The revenue from pharmaceutical research and development services remained flat, but the gross margin decreased significantly by 15.31 percentage points to 32.05% due to increased project costs[69]. - The company’s revenue from the cardiovascular system segment was 5,089.73 million RMB, with a gross margin of 83.57%, reflecting a decrease of 3.28% from the previous year[100]. - The company’s revenue from the digestive system segment was 1,473.67 million RMB, with a gross margin of 65.36%, showing a slight increase of 0.56% compared to the previous year[100]. Research and Development - The company is focusing on the development of new products and technologies, although specific details were not disclosed in the report[19]. - The company has 191 research projects, with 43 submitted for registration and 16 obtaining production registration certificates[36]. - The company launched 61 new independent research projects in 2022, with 110 projects still in the pipeline[38]. - The company reported a research and development investment of 6.36% of operating revenue, which is lower than the industry average of 10.00%[106]. - The company’s R&D investment amounted to 6,029.68 million RMB at the end of the reporting period, an increase of 4,457.21 million RMB from the beginning of the period[115]. - The company is actively pursuing the introduction of new traditional Chinese medicine products and enhancing its investment in the development of improved new drugs[23]. - The company has established partnerships with well-known universities and research institutions to enhance its research capabilities in traditional Chinese medicine[101]. Market Strategy and Competitiveness - The company plans to enhance its market competitiveness by increasing sales promotion efforts in key regions and investing in the research of classic Chinese medicine formulas[23]. - The company aims to expand its market presence and enhance customer loyalty through deeper service offerings and strategic partnerships in the pharmaceutical sector[54]. - The company is focusing on diversifying its drug research technology platforms and increasing the number of self-initiated projects, which may impact short-term profitability but is expected to yield results in the future[23]. - The company plans to expand its product range and improve brand influence through differentiated marketing strategies and academic promotion[126]. - The company is committed to strengthening its internal control systems and risk management to ensure sustainable growth[125]. Corporate Governance and Management - The company has conducted 5 shareholder meetings and 13 board meetings during the reporting period, ensuring compliance with governance standards[136]. - The company has implemented a third employee stock ownership plan to enhance performance evaluation and incentive mechanisms for management[137]. - The company has a clear organizational structure that operates independently and effectively, adhering to legal and regulatory requirements[139]. - The company has established a compensation and assessment committee under the board to oversee the remuneration of directors and senior management[153]. - The company emphasizes transparency in its remuneration practices, with clear guidelines for performance evaluation and payment schedules[153]. Environmental Responsibility - The company invested 3.22 million yuan in environmental protection during the reporting period[184]. - The company’s subsidiary, Yu Zhong Pharmaceutical Factory, was listed as a key pollutant discharge unit in Zhengzhou for 2022[185]. - The wastewater treatment facility at the company can process 1,000 tons of wastewater daily, utilizing a series of advanced treatment processes to ensure compliance with discharge standards[188]. - The company reported that all major pollutants, including SO2 and nitrogen oxides, from both its facilities met the emission standards[190]. - The company has received its pollution discharge permit as of July 2020, in compliance with national regulations[191]. Social Responsibility - Total charitable contributions amounted to 260,400 RMB, including donations to various charitable organizations and educational funds[200]. - The company donated 100,000 RMB to the Henan Charity Federation and 20,000 RMB to the Tonglu County Charity Federation[200]. - During the pandemic, the company provided anti-epidemic supplies to local communities, demonstrating its commitment to social responsibility[200].

2022 年第三季度报告 证券代码：600222 证券简称：太龙药业 河南太龙药业股份有限公司 2022 年第三季度报告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 公司负责人尹辉、主管会计工作负责人赵海林及会计机构负责人（会计主管人员）胡志权保 证季度报告中财务信息的真实、准确、完整。 第三季度财务报表是否经审计 □是 √否 一、 主要财务数据 单位：元 币种：人民币 | 项目 | 本报告期金额 | 年初至报告期末 | 说明 | | --- | --- | --- | --- | | | | 金额 | | | 非流动性资产处置损益 | 109,129.93 | 30,343.03 | | | 越权审批，或无正式批准文件，或偶发性的税收返还、 | | | | | 减免 | | | | | 计入当期损益的政府补助，但与公司正常经营业务密切 | | | | | 相 ...

2022 年半年度报告 公司代码：600222 公司简称：太龙药业 河南太龙药业股份有限公司 2022 年半年度报告 1 / 159 2022 年半年度报告 重要提示 五、 董事会决议通过的本报告期利润分配预案或公积金转增股本预案 无 六、 前瞻性陈述的风险声明 √适用 □不适用 本报告中所涉及的未来计划、发展战略等前瞻性描述不构成公司对投资者的实质承诺，敬请 投资者注意投资风险。 七、 是否存在被控股股东及其关联方非经营性占用资金情况 否 八、 是否存在违反规定决策程序对外提供担保的情况？ 否 九、 是否存在半数以上董事无法保证公司所披露半年度报告的真实性、准确性和完整性 否 十、 重大风险提示 公司已在本报告中详细描述公司可能面临的风险，敬请投资者予以关注，具体详见本报告第 三节管理层讨论与分析之五、（一）可能面对的风险。 十一、 其他 □适用 √不适用 2 / 159 一、 本公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的真实性、准确性、 完整性，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 二、 公司全体董事出席董事会会议。 三、 本半年度报告未经审计。 四、 ...

证券代码：600222 证券简称：太龙药业 编号：临 2022-036 河南太龙药业股份有限公司 关于参加河南辖区上市公司 2022 年投资者 网上集体接待日活动的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 为进一步加强投资者的互动交流，河南太龙药业股份有限公司定 于 2022 年 5 月 30 日（周一）15:30-17:00 参加在全景网举办的"真 诚沟通 传递价值"河南辖区上市公司 2022 年投资者网上集体接待日 活动，本次活动将采用网络远程的方式举行，投资者可登录"全景·路 演天下"（http://rs.p5w.net）参与本次互动交流。 出席本次网上集体接待日活动的人员有：公司董事长尹辉先生、 总经理罗剑超先生、董事会秘书冯海燕女士、财务负责人赵海林先生 （如有特殊情况，参会人员将可能进行调整），欢迎广大投资者积极 参与。 特此公告。 河南太龙药业股份有限公司董事会 2022 年 5 月 26 日 ...

Financial Performance - The company's operating revenue for Q1 2022 was CNY 422,282,414.89, representing a year-on-year increase of 1.52%[5] - The net profit attributable to shareholders of the listed company was CNY 2,329,695.73, showing a significant decrease of 91.33% compared to the same period last year[5] - The basic earnings per share (EPS) was CNY 0.0041, down 91.48% year-on-year[6] - Total revenue for Q1 2022 was CNY 422,282,414.89, a slight increase of 0.78% compared to CNY 415,958,437.10 in Q1 2021[22] - Net profit for Q1 2022 was CNY 2,166,570.19, a significant decrease of 91.86% from CNY 26,632,438.79 in Q1 2021[23] - The company's operating profit for Q1 2022 was CNY 2,976,218.24, down from CNY 30,641,135.93 in Q1 2021, indicating a decline of 90.31%[23] - Basic and diluted earnings per share for Q1 2022 were CNY 0.0041, down from CNY 0.0481 in Q1 2021, a decline of 91.49%[24] - Other comprehensive income for Q1 2022 was negative CNY 4,641,036.70, contrasting with a positive CNY 196,461,366.30 in Q1 2021[24] Assets and Liabilities - The total assets at the end of the reporting period were CNY 3,789,529,131.70, a slight increase of 0.15% from the end of the previous year[6] - The total assets as of Q1 2022 amounted to CNY 3,789,529,131.70, slightly up from CNY 3,783,772,407.22 at the end of Q1 2021[21] - Total liabilities for Q1 2022 were CNY 1,884,367,020.68, down from CNY 2,006,135,829.69 in Q1 2021, a decrease of 6.09%[21] - The company's total equity increased to CNY 1,905,162,111.02 in Q1 2022, compared to CNY 1,777,636,577.53 in Q1 2021, marking an increase of 7.16%[21] Cash Flow - The net cash flow from operating activities was negative at CNY -151,971,688.24, indicating a significant cash outflow[5] - Cash inflow from operating activities for Q1 2022 was $363.89 million, up from $312.19 million in Q1 2021, representing a 16.5% increase[26] - Net cash outflow from operating activities for Q1 2022 was -$151.97 million, compared to -$43.52 million in Q1 2021, indicating a significant decline[27] - Cash inflow from investment activities for Q1 2022 was $591.64 million, a substantial increase from $162.82 million in Q1 2021, marking a 263.5% rise[27] - Cash inflow from financing activities for Q1 2022 was $102.20 million, down from $165.15 million in Q1 2021, showing a decrease of 38.1%[27] - The ending cash and cash equivalents balance for Q1 2022 was $214.11 million, down from $493.69 million in Q1 2021, indicating a decline of 56.7%[27] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 50,264[10] - The company’s major shareholder changed to Zhengzhou Tai Rong Industrial Investment Co., Ltd., which acquired 82,441,168 shares, accounting for 14.37% of the total share capital[13] - The company’s board of directors and supervisory board were restructured on February 25, 2022, with a new chairman elected[13] - The company’s repurchase account held 10,846,107 shares, representing 1.89% of the total shares as of the reporting period[12] Expenses and Investments - The decline in net profit was primarily due to the sales restrictions on four categories of drugs, leading to decreased revenue and gross profit[8] - The company faced increased sales expenses as it intensified market promotion for other product lines[8] - Research and development expenses increased to CNY 19,581,712.93 in Q1 2022, compared to CNY 14,409,179.35 in Q1 2021, reflecting a growth of 36.06%[23] - Non-recurring gains and losses amounted to a net loss of CNY -120,616.38 after tax adjustments[8] - The company received financial support of up to 1.2 billion RMB from its indirect controlling shareholder, with the first tranche of 419 million RMB already received[15] - The company’s long-term equity investments stood at 15,473,270.37 RMB as of March 31, 2022, slightly down from 15,724,611.04 RMB at the end of 2021[17] - The company’s total liabilities and equity structure will be impacted by the recent changes in major shareholders and financial support arrangements[13][15]

Financial Performance - In 2021, the company achieved a net profit attributable to shareholders of RMB 5,995,375.55, a decrease of 79.50% compared to RMB 29,240,862.39 in 2020[5]. - The company's operating revenue for 2021 was RMB 1,604,516,940.00, representing a year-on-year increase of 13.23% from RMB 1,417,097,311.59 in 2020[21]. - The net cash flow from operating activities increased by 35.72% to RMB 99,655,159.11 in 2021, compared to RMB 73,427,546.30 in 2020[21]. - The total assets of the company as of the end of 2021 were RMB 3,783,772,407.22, an increase of 11.64% from RMB 3,389,394,715.08 at the end of 2020[21]. - The net profit after deducting non-recurring gains and losses was RMB 36,179,012.56, a significant increase of 159.11% compared to RMB 13,962,693.07 in 2020[21]. - Basic earnings per share (EPS) fell by 80.00% to RMB 0.0107, while diluted EPS remained the same[22]. - The weighted average return on equity (ROE) decreased by 1.73 percentage points to 0.37%[22]. - The company reported a significant loss of RMB 30.18 million from non-recurring gains and losses, impacting overall profitability[27]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 0.10 per share, totaling RMB 5,630,401.76, which accounts for 93.91% of the net profit attributable to shareholders for 2021[5]. - For the 2021 fiscal year, the company plans to distribute a cash dividend of CNY 0.10 per share (including tax), amounting to CNY 5,630,401.76, which represents 93.91% of the net profit attributable to shareholders of the parent company[172]. Business Growth and Strategy - The company's operating revenue increased by 13.23% year-on-year, driven by a 35.74% growth in pharmaceutical R&D services and a 19.31% increase in traditional Chinese medicine products[23]. - The company is focusing on expanding its market presence and enhancing brand promotion for its traditional Chinese medicine products[23]. - The company is actively expanding its market presence by integrating existing traditional Chinese medicine products and increasing marketing investments in targeted product combinations[34]. - The company aims to enhance product quality through strict adherence to production standards and quality management practices[49]. - The company is committed to expanding its market presence and enhancing brand influence through strategic partnerships and marketing initiatives[56]. Research and Development - The company has 906 personnel in the R&D team, with 23.62% holding master's or doctoral degrees, indicating a strong talent pool[36]. - The company has established multiple platforms for drug research, focusing on high-end formulations and innovative drug research, including preclinical and clinical trial services[57]. - The company has initiated 56 new research projects in high-end generic and innovative drugs, bringing the total number of ongoing projects to 267[103]. - The company is focusing on high-barrier therapeutic areas such as cardiovascular, anti-tumor, and digestive system drugs, aligning R&D efforts with market demand[103]. - The company is conducting clinical research on TLZ0005, a new drug for breast disease, which is currently in the clinical research phase[104]. Environmental Responsibility - The company was listed as a key pollutant discharge unit in Zhengzhou for 2021, with strict adherence to national standards for pollutant treatment and discharge[184]. - No environmental pollution incidents occurred during the reporting period, and the company did not face any administrative penalties from environmental protection authorities[185]. - The company has implemented a comprehensive environmental monitoring plan, with third-party testing confirming that all pollutants are within regulatory limits[192]. - The company emphasizes a low-carbon production philosophy, advocating for resource conservation and green practices among employees[197]. Governance and Management - The governance structure of the company is robust, ensuring compliance with laws and regulations while protecting shareholder interests[134]. - The company maintains transparent communication with investors, ensuring their rights are protected and fostering good investor relations[136]. - The company completed the election of the ninth board of directors and the ninth supervisory board on February 25, 2022, with new appointments including Yin Hui as chairman and Luo Jianchao as general manager[143]. - The company has proposed to allocate profits for the year 2020, indicating a focus on shareholder returns[139]. - The company has established a comprehensive human resources management system, including salary and welfare, performance evaluation, training management, and promotion systems[169]. Market Trends and Industry Insights - The Chinese CRO market is expected to grow at a compound annual growth rate (CAGR) of 20.22% from 2020 to 2030, reaching a market size of approximately 329.2 billion yuan by 2030[42]. - The global CRO market is projected to reach $168.9 billion by 2030, with a CAGR of 9.95% from 2020 to 2030[42]. - The pharmaceutical manufacturing industry achieved operating revenue of 2,928.85 billion yuan in 2021, growing by 20.1% year-on-year, indicating a robust industry trend[40]. - The ongoing reforms in the medical insurance system are expected to further support the development of TCM services and products[47]. Community Engagement - The company donated over 1.5 million yuan worth of medicines to support disaster relief efforts following severe flooding[198]. - The company aims to support rural economic development by promoting standardized planting techniques and processing projects for traditional Chinese medicine[199].

Financial Performance - The company's operating revenue for Q3 2021 was ¥366,001,686.59, representing a 15.26% increase compared to ¥317,472,513.26 in the same period last year[4] - The net profit attributable to shareholders was ¥1,117,516.22, a significant decrease of 170.59% from ¥1,321,298.24 in the previous year[4] - The net profit after deducting non-recurring gains and losses was ¥2,970,618.20, showing a 164.17% increase from a loss of ¥3,964,416.62 in the same period last year[4] - Total revenue for the first three quarters of 2021 reached ¥1,117,873,585.28, an increase of 15.8% compared to ¥965,315,174.14 in the same period of 2020[23] - Net profit for the third quarter of 2021 was ¥29,135,082.76, compared to ¥23,451,461.66 in the same quarter of 2020, representing a growth of 24.0%[24] - The company reported a total comprehensive income of ¥152,478,384.04 for the third quarter of 2021, compared to ¥209,585,308.49 in the same quarter of 2020, a decrease of 27.2%[25] Cash Flow and Liquidity - The net cash flow from operating activities increased by 227.22%, reaching ¥63,005,957.11 compared to ¥21,383,911.63 in the previous year[4] - Cash inflow from operating activities for the first three quarters of 2021 was CNY 1,192,818,670.20, an increase of 19.5% compared to CNY 998,252,098.80 in the same period of 2020[27] - Net cash flow from operating activities in Q3 2021 was CNY 63,005,957.11, significantly up from CNY 19,255,063.59 in Q3 2020, representing a growth of 227.5%[28] - The ending cash and cash equivalents balance for Q3 2021 was CNY 536,222,847.19, compared to CNY 463,493,644.76 at the end of Q3 2020, reflecting a year-over-year increase of 15.7%[28] Assets and Liabilities - Total assets at the end of the reporting period were ¥3,857,651,202.83, reflecting a 13.82% increase from ¥3,389,394,715.08 at the end of the previous year[5] - Total liabilities as of Q3 2021 amounted to ¥2,133,844,838.86, compared to ¥1,858,823,901.11 in Q3 2020, indicating an increase of 14.8%[20] - The company's total assets increased to ¥3,857,651,202.83 in Q3 2021, up from ¥3,389,394,715.08 in Q3 2020, marking a growth of 13.8%[20] - The total liabilities amounted to approximately $1.86 billion, with a slight increase of $44.47 million compared to the previous period[32] Shareholder Equity - The equity attributable to shareholders increased by 11.57%, amounting to ¥1,621,639,527.76 compared to ¥1,453,415,199.81 at the end of the previous year[5] - The company's equity attributable to shareholders reached ¥1,621,639,527.76 in Q3 2021, up from ¥1,453,415,199.81 in Q3 2020, reflecting an increase of 11.6%[20] - Total equity reached approximately $1.53 billion, with the equity attributable to shareholders amounting to approximately $1.45 billion[32] Investments and Acquisitions - The company completed the acquisition of a 33.95% stake in Ta Long Health Industry Investment Co., Ltd., increasing its ownership to 80.40%, which allows for control over the company[5] - The company invested RMB 2,090,000 to acquire 95% of Zhengzhou Pairui Pharmaceutical Co., Ltd. to develop small molecule CDMO business[14] - The company established a wholly-owned subsidiary, Zhengzhou Weixian Pharmaceutical Technology Co., Ltd., with an investment of RMB 3,000,000 to enhance its drug research and registration capabilities[14] Inventory and Assets Management - The total inventory increased to RMB 404,567,769.44 from RMB 348,143,680.47, reflecting a rise of approximately 16.1%[18] - Long-term equity investments rose to RMB 40,678,587.06 from RMB 19,633,703.01, marking an increase of about 106.5%[18] - The company’s goodwill remained stable at RMB 286,492,789.75, unchanged from the previous period[18] Financial Standards and Compliance - The company adopted new leasing standards starting in 2021, which adjusted the financial statements accordingly, impacting the balance sheet figures[29] - The company adopted the new leasing standards effective January 1, 2021, which is not expected to significantly impact net profit, total assets, or net assets[33]

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 751.87 million, representing a 16.07% increase compared to CNY 647.76 million in the same period last year[18]. - The net profit attributable to shareholders for the first half of 2021 was CNY 27.18 million, a slight increase of 1.62% from CNY 26.75 million in the previous year[18]. - The basic earnings per share for the first half of 2021 were CNY 0.0485, a decrease of 1.02% from CNY 0.0490 in the same period last year[20]. - The weighted average return on net assets for the first half of 2021 was 1.72%, down by 0.21 percentage points from 1.93% in the previous year[20]. - Revenue increased by 16.07% year-on-year, driven by the gradual release of capacity in drug research and development services, with drug formulation services revenue decreasing by 12.14%[21]. - Drug research and development services revenue grew by 65.61%, while traditional Chinese medicine (TCM) revenue increased by 30.62%[21]. - The revenue from the pharmaceutical formulation business was 241.40 million yuan, a year-on-year decrease of 12.14% due to the decline in demand for pandemic-related products[42]. - The revenue from the Chinese herbal pieces business reached 333.01 million yuan, a year-on-year increase of 30.62%[43]. - The pharmaceutical research and development service segment reported revenue of 135.68 million yuan, with a significant year-on-year growth[44]. Cash Flow and Investments - The net cash flow from operating activities decreased significantly by 58.76% to CNY 7.37 million, down from CNY 17.88 million in the same period last year[18]. - The company’s investment activities generated a net cash flow of 330.53 million yuan, a 162.25% increase compared to the previous year[47]. - The company’s cash flow from operating activities decreased by 58.76% to 73.74 million yuan, attributed to increased project expenditures[47]. - The company’s cash flow from financing activities resulted in a net outflow of RMB 172,346,391.25, contrasting with a net inflow of RMB 38,409,602.54 in the same period last year[132]. - The total cash and cash equivalents at the end of the first half of 2021 were RMB 355,396,594.61, a decrease from RMB 396,357,422.29 at the end of the first half of 2020[132]. Assets and Liabilities - The total assets of the company at the end of the reporting period were CNY 3.66 billion, reflecting a 7.86% increase from CNY 3.39 billion at the end of the previous year[19]. - The total liabilities as of June 30, 2021, were CNY 1,200,000,000.00, compared to CNY 1,100,000,000.00 at the end of 2020, indicating an increase of about 9.09%[117]. - The company reported a total equity of CNY 1,200,000,000.00, unchanged from the previous period, maintaining a stable equity position[117]. - The total liabilities decreased to ¥1,055,888,867.17 from ¥1,211,910,813.37, a reduction of 12.88%[124]. - The total equity increased to ¥1,433,302,283.83, up 3.00% from ¥1,389,796,721.54 in the previous year[124]. Research and Development - The company’s R&D expenses increased by 8.60% to 28.55 million yuan, reflecting ongoing investment in innovation[47]. - Research and development expenses for the first half of 2021 were ¥28,550,211.51, slightly higher than ¥26,289,026.05 in the same period of 2020[126]. - The company is focusing on expanding its TCM production and sales, enhancing upstream TCM material planting bases, and improving quality traceability systems[25]. - The drug research and development services segment aims to provide comprehensive technical services to pharmaceutical companies, helping to reduce R&D risks and shorten development cycles[25]. Governance and Compliance - The company did not report any non-operating fund occupation by controlling shareholders or related parties during the reporting period[5]. - There were no significant changes in the company's governance structure or major financial indicators during the reporting period[15]. - The company has established measures to prevent conflicts of interest and protect shareholder rights in related transactions[96]. - The company has committed to strictly adhering to the decision-making procedures for related party transactions and timely information disclosure obligations[100]. Environmental Responsibility - The company has not experienced any environmental pollution incidents or received administrative penalties during the reporting period[76]. - The wastewater treatment facility at the company processes 1,000 tons of wastewater daily, utilizing a series of advanced treatment processes to ensure compliance with discharge standards[79]. - The company has implemented measures to reduce carbon emissions, aligning with national goals to peak carbon emissions by 2030 and achieve carbon neutrality by 2060[89]. - The company adheres to strict environmental management practices, emphasizing sustainable development and ecological responsibility[88]. Market Position and Recognition - The company has been recognized as one of the top 100 pharmaceutical companies in China and has maintained a strong market position in the traditional Chinese medicine sector[35]. - The company has established a nationwide marketing network for drug formulation sales, leveraging partnerships with distributors and retail chains to enhance brand influence[27]. - The company has a strong brand presence, with its trademark recognized as a famous Chinese trademark and its products receiving high recommendation rates from pharmacy staff[36]. Risks and Challenges - The company has outlined potential risks in its management discussion and analysis section, urging investors to pay attention to these risks[5]. - The company faces risks related to raw material prices and supply, influenced by various factors such as planting area and climate, which can significantly impact operational costs[62]. - Accounts receivable have increased due to business expansion, raising operational costs and potential bad debt risks, prompting the company to enhance internal controls and cash flow management[63].