Financial Performance - The company achieved a total revenue of 12.037 billion RMB in 2022, a decrease of 0.82% compared to 2021, with main business revenue at 11.709 billion RMB, down by 1.93 billion RMB[3]. - The net profit attributable to the parent company, excluding non-recurring gains and losses, was 313 million RMB, an increase of 1.03 billion RMB, or 48.81% year-on-year[5]. - The total operating revenue for the period is approximately ¥12.04 billion, a slight decrease from ¥12.14 billion in the previous year[23]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the fiscal year, representing a 15% year-over-year growth[115]. - The company aims for a consolidated revenue target of 13 billion yuan in 2023, representing an 8% year-on-year increase[101]. Profitability and Margins - The company achieved a net profit margin of 10%, reflecting a 2% improvement compared to the previous year[112]. - The net profit margin for the shareholders of the parent company is 40.68%[131]. - The company reported a 5% increase in gross margin, reaching 45% for the fiscal year[115]. Revenue Breakdown by Segment - The pharmaceutical manufacturing segment reported revenue of approximately 6.721 billion RMB, with a gross margin of 62.38%, reflecting a decrease in revenue of 3.61% year-on-year[7]. - The pharmaceutical commercial business revenue was approximately 4.915 billion RMB, with a gross margin of 14.25%, showing a slight decrease of 0.06% year-on-year[9]. - The company’s oncology drugs revenue was approximately 971 million RMB, with a gross margin of 74.23%, reflecting a year-on-year increase of 15.50%[10]. - The cardiovascular drugs segment generated approximately 1.734 billion RMB in revenue, with a gross margin of 66.52%, an increase of 26.76% year-on-year[10]. - The company experienced a 20.21% decrease in revenue from anti-infection drugs, totaling CNY 2,191,687,828.64, with a gross margin of 64.28%[51]. Research and Development - Research and development expenses amount to ¥428.69 million, representing 3.56% of total operating revenue[24]. - The R&D investment accounted for 3.67% of the company's total revenue, with a net asset ratio of 5.47%[62]. - The company has several key R&D projects in Phase I clinical trials, including HS236, HS301, and HS248, all targeting oncology[53]. - Research and development expenses increased by 18%, totaling 150 million CNY, focusing on innovative drug development[112]. - The company is accelerating the research and development of generic and innovative drugs, focusing on core therapeutic areas and exploring external collaboration opportunities[144]. Cash Flow and Liabilities - The company’s operating cash flow remained positive, and interest-bearing liabilities decreased from 6.388 billion RMB in 2021 to 4.873 billion RMB in 2022, a reduction of 1.515 billion RMB[5]. - The net cash flow from operating activities increased by 18.96% to approximately ¥2.07 billion compared to ¥1.74 billion in the previous year[25]. Strategic Initiatives - The company plans to enhance its product offerings and expand its market presence through strategic collaborations and innovation in drug development[2]. - The company is actively pursuing market expansion and product registration to enhance its market presence and sales revenue[50]. - The company plans to actively explore new retail channels and leverage e-commerce opportunities in response to internet healthcare policies[35]. - The company is exploring strategic acquisitions to enhance its product portfolio and market presence[112]. - A strategic acquisition of a biotech firm was completed, valued at 300 million RMB, aimed at enhancing R&D capabilities[123]. Employee and Governance - The total number of employees at the parent company is 3,008, while the total number of employees at major subsidiaries is 5,317, resulting in a combined total of 8,325 employees[125]. - The company has established a performance evaluation mechanism for senior management, with a compensation management system in place since 2020[147]. - The company maintains a governance structure that complies with relevant laws and regulations, ensuring effective checks and balances among shareholders, the board, and management[74]. Environmental and Social Responsibility - The company invested a total of 4.4873 million yuan in social responsibility initiatives during the reporting period[173]. - The company has committed to minimizing related party transactions and ensuring fairness in pricing and decision-making processes[179]. - The company has signed a soil pollution prevention responsibility agreement with the Fuyang District government on June 30, 2022[171]. - The company has implemented an environmental self-monitoring plan, with third-party testing confirming that all pollutant indicators meet discharge standards[168]. Shareholder Returns - The company distributed a cash dividend of 198,933,847.51 RMB, which represents 80.92% of the net profit attributable to ordinary shareholders in the consolidated financial statements[131]. - The total cash dividend amount, including share repurchase, is 395,713,613.17 RMB[131]. - The company plans to continue its cash dividend policy without adjustments, ensuring the protection of minority shareholders' rights[128].

浙江海正药业股份有限公司 | --- | --- | --- | --- | |------------|------------------------------------------------------------------------------|--------------|-------------| | 时间 | 2022-7-6 13:30-15:30 | 调研内容纪要 | 方式 现场 | | 来访目的 | | | | | 或会议主题 | 浙江海正药业股份有限公司机构投资者调研会议 | | | | 投资者 | 浙商证券、域秀资本、东海基金、固禾资产、长江保险资管、银华基金、 | | | | 或来访者 | 太朴生命科学投资 | | | | 海正药业 | 董事长蒋国平，董事会秘书沈锡飞，中研院院长陈磊，证券事务代表张 | | | | 接待人员 | 敏，财务部副总监余兵 | | | | 会议记录 | | | | | | 本次会议由公司董事会秘书沈锡飞先生主持，会议首先由沈锡飞先生对公司现 | | | | | 状及未来发展做全面介绍，介绍完毕后，与会嘉宾与公司管理层进行了互动交流。 | | | ...

Financial Performance - The company's operating revenue for Q3 2022 was CNY 3,007,219,050.77, a decrease of 3.09% compared to the same period last year[6] - The net profit attributable to shareholders for Q3 2022 was CNY 12,077,611.96, representing a significant decline of 94.49% year-on-year[6] - The basic earnings per share for Q3 2022 was CNY 0.010, down 94.71% year-on-year[10] - The diluted earnings per share for Q3 2022 was CNY 0.015, a decrease of 91.76% compared to the previous year[10] - The net profit for the third quarter of 2022 was CNY 338,165,183.70, a decrease of 39.3% compared to CNY 557,091,389.49 in the same period of 2021[41] - Operating profit for the third quarter was CNY 490,843,786.59, down from CNY 629,078,982.12 in the previous year, reflecting a decline of 21.9%[44] - Total profit for the quarter was CNY 487,612,975.20, compared to CNY 637,054,724.98 in the same quarter of 2021, marking a decrease of 23.4%[44] - The total comprehensive income for the quarter was CNY 350,857,033.41, down from CNY 552,048,779.79 in the same quarter of 2021, indicating a decline of 36.5%[42] Assets and Liabilities - The total assets at the end of Q3 2022 were CNY 18,538,503,941.99, a decrease of 4.31% from the end of the previous year[10] - Total liabilities were RMB 10,544,121,817.25, a decrease of 12.3% compared to RMB 12,028,750,319.54 in the previous year[36] - Current assets totaled RMB 6,129,953,019.17 as of September 30, 2022, a decrease of 3.7% from RMB 6,363,985,003.42 at the end of 2021[31] - Non-current assets amounted to RMB 12,408,550,922.82, down 4.6% from RMB 13,010,278,485.52 at the end of 2021[34] - Cash and cash equivalents were RMB 1,264,694,306.46, slightly down from RMB 1,295,750,258.65 at the end of 2021[31] Shareholder Information - The total number of common shareholders at the end of the reporting period is 65,813[19] - Zhejiang Haizheng Group Co., Ltd. holds 320,783,590 shares, accounting for 26.77% of total shares[19] - HPPC Holding SARL holds 79,111,673 shares, representing 6.60% of total shares[19] - Zhejiang International Trade Group Co., Ltd. holds 74,647,907 shares, which is 6.23% of total shares[19] - The company repurchased 24,305,959 shares, accounting for 2.03% of total share capital[22] Cash Flow - The net cash flow from operating activities for the year-to-date was CNY 1,477,548,911.76, an increase of 40.62% compared to the same period last year[10] - Cash flow from operating activities netted CNY 1,477,548,911.76, an increase of 40.5% compared to CNY 1,050,741,265.48 in the same period last year[45] - The net cash flow from investing activities was -$106.55 million, a decrease from -$317.77 million year-over-year[48] - Total cash inflow from financing activities was $4.25 billion, down from $6.89 billion compared to the previous period[48] - The net cash flow from financing activities was -$1.45 billion, compared to -$1.31 billion in the prior year[48] - Cash and cash equivalents at the end of the period totaled $1.10 billion, down from $1.43 billion year-over-year[48] Operational Efficiency - The company attributed the decline in net profit to a significant reduction in non-recurring gains compared to the previous year, while operational efficiency improvements contributed to the increase in core business profitability[16] - The company reported a net profit margin improvement, with net profit for the first three quarters showing signs of recovery compared to the previous year[36] - Research and development expenses increased to CNY 286,398,600.86 from CNY 264,445,837.71, reflecting a growth of 8.3%[44] - The company reported a decrease in sales expenses to CNY 1,721,334,091.93 from CNY 1,886,220,862.95, a reduction of 8.8%[44] Acquisitions and Transfers - The company agreed to transfer 90% of its subsidiary Zhejiang Ruijue Pharmaceutical Co., Ltd. for no less than an assessed value of 36.2968 million RMB[23] - The company completed the acquisition of its wholly-owned subsidiary Hangzhou Fuyang Spring City International Resort Co., Ltd. on September 9, 2022[26] - The company transferred 4.00% of its stake in Zhejiang Haizheng Animal Health Products Co., Ltd. for a total price of 100 million RMB[27] - The company’s shareholding in Zhejiang Haizheng Animal Health Products Co., Ltd. decreased from 70.343% to 66.343% after the transfer[27] Other Financial Metrics - Total operating revenue for the first three quarters of 2022 was RMB 8,743,908,274.30, a decrease of 4.0% compared to RMB 9,107,442,471.65 in the same period of 2021[36] - Total operating costs for the first three quarters of 2022 were RMB 8,165,087,259.06, down 5.4% from RMB 8,627,644,412.73 in the previous year[36] - Accounts receivable increased to RMB 2,347,976,727.26, up 12.2% from RMB 2,092,921,220.08 at the end of 2021[31] - Inventory decreased to RMB 1,635,984,158.74, down 19.1% from RMB 2,022,881,414.99 at the end of 2021[31] - Other comprehensive income after tax was CNY 12,691,849.71, compared to a loss of CNY 5,042,609.70 in the previous year[42] - The company’s financial statements for the third quarter of 2022 are not subject to audit opinions[28]

Financial Performance - The company's operating revenue for the first half of 2022 was ¥5,736,689,223.53, a decrease of 4.46% compared to ¥6,004,233,845.48 in the same period last year[22] - The net profit attributable to shareholders of the listed company was ¥319,001,147.09, an increase of 13.88% from ¥280,130,189.04 in the previous year[22] - The net cash flow from operating activities reached ¥1,048,070,078.82, representing a significant increase of 219.39% compared to ¥328,151,237.60 in the same period last year[22] - The total assets of the company at the end of the reporting period were ¥18,813,219,999.35, a decrease of 2.90% from ¥19,374,263,488.94 at the end of the previous year[22] - The net assets attributable to shareholders of the listed company increased to ¥7,465,536,580.48, up 2.22% from ¥7,303,284,714.25 at the end of the previous year[22] - Basic earnings per share for the first half of 2022 were ¥0.267, reflecting a 5.12% increase from ¥0.254 in the same period last year[24] - The diluted earnings per share were ¥0.262, up 4.80% from ¥0.250 in the previous year[24] - The weighted average return on net assets was 4.301%, an increase of 0.264 percentage points compared to 4.037% in the same period last year[24] - The company reported a net profit excluding non-recurring gains and losses of ¥188,382,743.59, which is a 19.32% increase from ¥157,873,730.70 in the previous year[22] Industry Context - The pharmaceutical manufacturing industry in China saw a 0.6% year-on-year decrease in revenue, totaling ¥1,400.78 billion, and a 27.6% decline in total profit to ¥220.95 billion in the first half of 2022[32] Product and Market Development - The company has a strong raw material drug business with over 100 products in sales and a robust pipeline focusing on potential disease areas[33] - The company has established three major production bases with world-class equipment and a complete production line layout, ensuring sufficient capacity and significant potential[33] - The company has ten products that won bids in the national centralized drug procurement, significantly enhancing the economic benefits of its formulation business[34] - The company’s subsidiary, Hanhui Pharmaceutical, has established a dedicated innovation team to capture online business opportunities and has a strong pipeline management capability[35] - Hanhui Pharmaceutical has successfully localized original research drugs, including Pfizer's products, and is advancing the localization of other drugs as planned[36] - The company aims to enhance asset utilization efficiency through strategic partnerships and continuous process optimization to reduce costs[33] - The company is focusing on expanding its international market presence while maintaining a strong domestic market for its proprietary brand formulations[34] - Haisheng Pharmaceutical focuses on chronic disease management, with a product line primarily centered around insulin-related products, including the successful approval of its first biological drug, Aspart Insulin[39] - The company has established a high-standard insulin production center that meets EU, FDA, and cGMP standards, with significant production capacity and fully automated processes[39] - Shengyi Pharmaceutical, a subsidiary, has a product portfolio of nearly 3,000 items, covering all levels of hospitals in Zhejiang Province and 90% of community centers, achieving full retail coverage in the region[40] - Haizheng Animal Health has developed over 40 products across four major areas, including vaccines, and has established partnerships with over 130 strategic partners, marking it as a leading brand in the domestic animal health sector[41] Research and Development - The company has filed a total of 1,104 patent applications, including 1,084 invention patents, with 556 patents granted and 355 valid patents[57] - The company has made significant progress in drug registration, with two injectable drugs passing the national consistency evaluation, and has expanded its product offerings[59] - The company has restored 13 products' CEP certificates following successful EU audits, improving its compliance and market access[59] - Research and development expenses rose by 13.01% to approximately ¥181.44 million, up from ¥160.56 million in the same period last year[64] Environmental Management - The company has established an environmental self-monitoring plan, with third-party testing confirming that all pollutant indicators meet discharge standards[118] - The company has obtained environmental impact assessment approvals for various production line upgrades, including a project for the production of 0.3 tons of Sirolimus and 35 tons of Mycophenolate Mofetil[114] - The company has implemented emergency response plans for environmental incidents, with documentation submitted to local environmental authorities[115] - The company has established a dedicated EHS management organization and has obtained ISO14001 certification for its environmental management system[121] - The company has enhanced its environmental awareness among all employees through regular assessments and performance evaluations related to waste disposal facilities[121] - The company has upgraded its wastewater treatment plant and hazardous waste storage facilities to ensure compliance with discharge standards for wastewater and air emissions[121] - Third-party monitoring of wastewater, air emissions, and noise levels has shown that all pollutant indicators meet the required standards[121] Corporate Governance and Shareholder Matters - Recent changes in the board of directors and supervisory board include the election of new members, which may influence corporate governance and strategic direction[94] - The company granted 2.656 million restricted stocks to 90 incentive targets at a price of 8.87 CNY per share on February 24, 2022[98] - The company repurchased and canceled 476,000 restricted stocks due to 16 incentive targets leaving the company for personal reasons[98] - The company has committed to ensuring the independence of its operations, assets, and financial systems, maintaining a complete and independent business structure[137] - The company has pledged to provide timely and adequate compensation for any losses incurred by Haizheng Pharmaceutical due to violations of commitments[131] - The company has integrated environmental management into daily production activities, significantly improving overall environmental consciousness[121] Financial Stability and Risks - The company faces market risks due to significant price reductions in drug procurement and potential sales declines if products do not enter the national medical insurance directory[81] - The company’s raw material drug sales are facing intensified competition, with over 85% of sales directed to international markets[81] - The company is highly dependent on raw materials for active pharmaceutical ingredients, with potential price fluctuations due to factors like weather and oil prices, which could impact production costs and profitability[84] - Government policies aimed at reducing drug prices may lead to a decline in average profit margins in the pharmaceutical industry, adversely impacting the company's financial performance[86] - Changes in the national essential drug list or medical insurance drug list could affect the competitiveness of the company's products, potentially leading to decreased sales if products are removed from these lists[87] - The expansion of centralized procurement may pose risks if the company’s products are included in the procurement scope but fail to win bids, negatively affecting sales revenue[87] Related Party Transactions - The company reported a total of 10,698.7 million RMB in related party transactions during the reporting period, accounting for 5% of similar transactions[155] - The company provided guarantees totaling 187,258 million RMB, which represents 25.64% of the company's net assets[162] - The company engaged in related party transactions with several entities, including purchasing products from Hai Zheng Biopharmaceutical Co., Ltd. for 1,935.24 million RMB, which accounted for 0.564% of similar transactions[152] - The company reported a related party transaction of 3,770.67 million RMB for purchasing fuel and power from its controlling subsidiary, accounting for 1.099% of similar transactions[152] Shareholder Structure - The total number of shares increased to 1,198,181,562, with 2,626,000 new shares issued and a reduction of 476,000 shares due to stock repurchase[175] - The total number of ordinary shareholders as of the end of the reporting period is 66,033[181] - HPPC Holding SARL holds 107,425,373 shares, representing 8.97% of the total shares[186] - Zhejiang Haizheng Group Co., Ltd. is the controlling shareholder with 320,783,590 shares, accounting for 26.77% of the total shares[186]

Financial Performance - The company's operating revenue for Q1 2022 was ¥2,977,204,828.98, representing a decrease of 2.96% compared to the same period last year[6] - Net profit attributable to shareholders of the listed company was ¥135,128,838.42, an increase of 7.48% year-on-year[6] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥113,675,449.19, reflecting a growth of 23.12% compared to the previous year[6] - Basic earnings per share were ¥0.113, down by 7.38% compared to the same period last year[9] - The diluted earnings per share were also ¥0.113, a decrease of 5.04% year-on-year[9] - The weighted average return on equity was 1.83%, a decrease of 0.02 percentage points compared to the end of the previous year[9] - Total operating revenue for Q1 2022 was CNY 2,977,204,828.98, a decrease of 2.94% from CNY 3,067,936,076.77 in Q1 2021[28] - Net profit for Q1 2022 was CNY 135,971,298.82, a decline of 27.67% compared to CNY 187,817,286.10 in Q1 2021[33] - Basic earnings per share for Q1 2022 were CNY 0.113, compared to CNY 0.122 in Q1 2021[33] Cash Flow - The net cash flow from operating activities was ¥286,573,768.25, which increased by 24.48% year-on-year[6] - In Q1 2022, the net cash flow from operating activities was RMB 286,573,768.25, an increase of 24.5% compared to RMB 230,216,190.84 in Q1 2021[37] - Total cash inflow from operating activities was RMB 3,093,611,140.36, slightly down from RMB 3,137,070,881.37 in the same period last year[37] - Cash outflow for purchasing goods and services decreased to RMB 1,428,610,584.88 from RMB 1,550,713,484.04, reflecting a reduction of approximately 7.9%[37] - The net cash flow from investment activities was -RMB 241,899,741.78, an improvement from -RMB 1,129,143,745.14 in Q1 2021[39] - Cash inflow from financing activities totaled RMB 1,879,183,564.45, down from RMB 3,159,071,072.34 in the previous year[39] - The net cash flow from financing activities was RMB 194,941,690.12, compared to a negative cash flow of -RMB 144,622,837.30 in Q1 2021[39] - The ending balance of cash and cash equivalents increased to RMB 1,417,960,646.07 from RMB 965,348,391.74 year-over-year[39] Assets and Liabilities - Total assets at the end of the reporting period were ¥19,466,613,801.76, an increase of 0.48% from the end of the previous year[9] - Total liabilities amounted to RMB 8,598,631,964.63, a decrease from RMB 8,784,874,258.87, indicating a reduction of approximately 2.1%[26] - Short-term borrowings increased to RMB 4,235,665,795.27 from RMB 3,988,480,542.46, reflecting an increase of about 6.2%[26] - The company’s total assets reached RMB 19,466,613,801.76, up from RMB 19,374,263,488.94, marking a growth of approximately 0.5%[26] - The company’s non-current assets totaled RMB 12,930,731,226.14, down from RMB 13,010,278,485.52, indicating a decrease of about 0.6%[26] - The company reported a total debt of CNY 11,971,822,231.84, slightly down from CNY 12,028,750,319.54 in the previous period[28] - The total equity attributable to shareholders of the parent company increased to CNY 7,451,679,352.40 from CNY 7,303,284,714.25[28] Current Assets - The company reported a total current assets of RMB 6,535,882,575.62 as of March 31, 2022, an increase from RMB 6,363,985,003.42 as of December 31, 2021, reflecting a growth of approximately 2.7%[23] - Cash and cash equivalents increased to RMB 1,557,075,825.25 from RMB 1,295,750,258.65, representing a growth of about 20.2% year-over-year[23] - Accounts receivable rose to RMB 2,187,692,242.08 from RMB 2,092,921,220.08, indicating an increase of approximately 4.5%[23] - Inventory decreased to RMB 1,807,947,933.14 from RMB 2,022,881,414.99, showing a decline of about 10.6%[23] Investments and Subsidiaries - The company plans to invest RMB 5 million to establish a marketing subsidiary in Beijing, which has been registered with a capital of RMB 5 million[19] - The company approved a capital increase of no less than RMB 60 million for its subsidiary, Zhejiang Haizheng Sulikang Biotechnology Co., with a pre-investment valuation of no less than RMB 137,220,000[20] Other Comprehensive Income - Other comprehensive income after tax for Q1 2022 was CNY 162,875.02, compared to a loss of CNY 15,028,565.70 in Q1 2021[33] Expenses - Total operating costs for Q1 2022 were CNY 2,773,861,709.12, down from CNY 2,836,451,451.06 in Q1 2021[32] - R&D expenses for Q1 2022 amounted to CNY 83,286,810.37, an increase from CNY 77,093,297.90 in Q1 2021[32] - The company experienced a decrease in sales expenses to CNY 537,528,642.73 from CNY 559,060,778.31 in the previous year[32] - Cash outflow for employee compensation increased to RMB 582,098,001.55 from RMB 543,204,185.21, reflecting a rise of approximately 7.1%[37] Tax Refunds - The company received tax refunds amounting to RMB 13,716,664.15, an increase from RMB 11,398,182.33 in the same quarter last year[37]

Financial Performance - The company's operating revenue for 2021 was approximately ¥12.14 billion, representing a 6.89% increase compared to ¥11.35 billion in 2020[21]. - Net profit attributable to shareholders was approximately ¥486.89 million, a 16.71% increase from ¥417.19 million in 2020[21]. - The net profit after deducting non-recurring gains and losses was approximately ¥210.27 million, a significant increase of 277.94% from ¥55.64 million in 2020[21]. - The weighted average return on equity increased to 7.49%, up by 1.03 percentage points from 6.46% in 2020[22]. - The total assets decreased by 7.12% to approximately ¥19.37 billion from ¥20.86 billion in 2020[21]. - The net cash flow from operating activities for 2021 was approximately ¥1.74 billion, a 9.24% increase from ¥1.59 billion in 2020[21]. - The basic earnings per share remained stable at ¥0.43, unchanged from 2020[22]. - The company achieved a total revenue of 12.136 billion, representing a growth of 6.89% compared to 2020, with main business revenue reaching 11.902 billion, an increase of 8.91%[53]. - The net profit attributable to the parent company was 487 million, an increase of 70 million from 2020, with a net profit of 210 million after deducting non-recurring gains and losses[53]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of 1.4 RMB per 10 shares, totaling approximately 166.34 million RMB, which represents 34.16% of the net profit attributable to shareholders for 2021[4]. - The company reported a total of 7,869,859 shares repurchased, which will not participate in this profit distribution[5]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or their affiliates[6]. Risk Management and Compliance - The company has outlined potential risks in its report, which are detailed in the "Management Discussion and Analysis" section[6]. - The company has a comprehensive risk disclosure in its annual report[6]. - The company emphasizes the importance of accurate and complete financial reporting, as stated by its management[4]. - The company has not violated any decision-making procedures regarding external guarantees[6]. - The company received a standard unqualified audit report from Tianjian Accounting Firm[4]. Research and Development - The company filed 87 patent applications during the reporting period, with 47 patents granted, indicating a strong focus on innovation and intellectual property[35]. - The company launched nine capitalized R&D projects, including HS25, which successfully entered the market during the reporting period[77]. - The company has several key R&D projects in Phase I clinical trials, including HS234, HS236, HS269, HS301, and HS336, all targeting oncology indications[117]. - The total R&D investment for the year was approximately $4.4 million, accounting for 3.63% of total revenue, with a slight decrease from $4.59 million in the previous year[116]. Product Development and Market Expansion - The company is actively expanding into new business units, including strategic partnerships to strengthen its market position[40]. - The company has successfully launched new products, including the first domestic internal and external parasite control drops, achieving over 100 million yuan in sales[39]. - The company is focusing on expanding its product offerings in the pharmaceutical sector, including chemical raw materials and biological preparations[95]. - The company plans to enhance its product pipeline and reduce costs through integrated production of active pharmaceutical ingredients and formulations, aiming for competitive advantages in the market[100]. Corporate Governance - The company maintains a governance structure that complies with relevant laws and regulations, ensuring effective checks and balances among shareholders, the board, and management[159]. - The company emphasizes investor relations management, utilizing multiple channels for communication to ensure investors are well-informed[161]. - The company held four temporary shareholder meetings in 2021, all of which passed resolutions without any dissenting opinions[165][166][168]. Financial Health and Investments - The company’s debt levels have decreased, leading to a reduction in financing-related expenses year-on-year[53]. - The company reduced interest-bearing liabilities from 8.189 billion RMB in 2020 to 6.388 billion RMB in 2021, a decrease of 1.801 billion RMB[60]. - The company has completed significant non-equity investments totaling RMB 113.67 million, with various projects in production and registration phases[140]. - The company is investing heavily in R&D, with a budget increase of 25% to enhance product development and innovation[174]. Market Trends and Industry Outlook - The pharmaceutical industry in China saw a 20.1% increase in revenue and a 77.9% increase in total profit in 2021, indicating a strong recovery post-pandemic[43]. - The chemical drug formulation market in China is experiencing rapid growth due to increased public healthcare investment and rising living standards, with a focus on innovation and intellectual property protection[99]. - The biopharmaceutical industry is expected to continue driving rapid growth in the upstream supply chain over the next few years[98]. Employee Engagement and Corporate Culture - The company has implemented measures to enhance the management of insider information to prevent insider trading[165]. - The company conducted a comprehensive training program covering various topics, including GMP/EHS and project management, to enhance employee skills[196]. - The total remuneration for all directors, supervisors, and senior management in the reporting period amounted to CNY 19.2928 million[178]. Strategic Initiatives and Future Plans - The company plans to continue expanding its product offerings and market presence, focusing on new product development and strategic partnerships[67]. - The company aims for a consolidated revenue target of 12.5 billion yuan in 2022, representing a year-on-year increase of 3%[149]. - The company is considering strategic acquisitions to bolster its product portfolio, with potential targets identified in the biotech sector[174].

[Financial Summary](index=1&type=section&id=Item%20I.%20Key%20Financial%20Data) [Key Accounting Data and Financial Indicators](index=1&type=section&id=(I)%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In the first three quarters of 2021, the company achieved an 11.69% year-on-year increase in operating revenue and a significant 45.83% increase in net profit attributable to shareholders, with a strong 115.37% surge in Q3 alone, and a 126.54% growth in non-recurring net profit, indicating enhanced core business profitability Key Accounting Data and Financial Indicators | Indicator | Year-to-Date (CNY) | YoY Growth (%) | Current Period (CNY) | YoY Growth (%) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 9.107 billion | 11.69% | 3.103 billion | 9.44% | | Net Profit Attributable to Shareholders of Listed Company | 499 million | 45.83% | 219 million | 115.37% | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-Recurring Gains and Losses | 166 million | 126.54% | 8.47 million | Not Applicable | | Net Cash Flow from Operating Activities | 1.051 billion | -17.73% | Not Applicable | Not Applicable | | Basic Earnings Per Share (CNY/share) | 0.443 | 24.79% | 0.189 | 78.30% | [Non-Recurring Gains and Losses Items](index=2&type=section&id=(II)%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) In the first three quarters of 2021, the company's non-recurring gains and losses totaled CNY 333 million, significantly contributing to net profit attributable to shareholders, with the largest item being disposal gains/losses of non-current assets at CNY 206 million, alongside CNY 72 million from government grants Non-Recurring Gains and Losses Items | Item | Year-to-Date Amount (CNY) | | :--- | :--- | | Disposal Gains/Losses of Non-Current Assets | 205,898,930.75 | | Government Grants Included in Current Profit/Loss | 72,044,057.46 | | One-time Adjustments to Current Profit/Loss Based on Tax, Accounting, and Other Laws and Regulations | 46,686,872.72 | | **Total** | **333,116,839.37** | [Analysis of Changes in Key Financial Indicators](index=4&type=section&id=(III)%20Analysis%20of%20Changes%20in%20Key%20Accounting%20Data%20and%20Financial%20Indicators) The substantial growth in the company's net profit attributable to shareholders and non-recurring net profit is primarily driven by strong core business performance and external factors, including increased sales and profitability of pharmaceutical preparations, and significant investment income from the approval of BioRay's restructuring-related products - Net profit attributable to shareholders (year-to-date YoY increase of **45.83%**) primarily benefited from the growth in the company's non-recurring operating profit and increased investment income from the timely approval of products related to the BioRay restructuring[16](index=16&type=chunk) - Net profit attributable to shareholders excluding non-recurring gains and losses (year-to-date YoY increase of **126.54%**) primarily resulted from increased operating revenue, especially from the growth in pharmaceutical preparation sales and enhanced profitability, leading to an increase in the company's non-recurring operating profit[16](index=16&type=chunk) [Shareholder Information](index=4&type=section&id=Item%20II.%20Shareholder%20Information) [Shareholder Holdings](index=4&type=section&id=(I)%20Total%20Number%20of%20Common%20Shareholders%2C%20Number%20of%20Preferred%20Shareholders%20with%20Restored%20Voting%20Rights%2C%20and%20Top%20Ten%20Shareholders%27%20Holdings) As of the end of the reporting period, the company had 55,056 common shareholders, with Zhejiang Hisun Group Co., Ltd. as the controlling shareholder holding 26.82%, and state-owned corporate shareholders dominating the top ten, indicating a relatively concentrated equity structure - The total number of common shareholders at the end of the reporting period was **55,056**[17](index=17&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Nature | Holding Percentage (%) | | :--- | :--- | :--- | | Zhejiang Hisun Group Co., Ltd. | State-owned Legal Person | 26.82 | | HPPC Holding SARL | Overseas Legal Person | 11.99 | | Zhejiang International Trade Group Co., Ltd. | State-owned Legal Person | 7.17 | | Taizhou Jiaojiang District State-owned Capital Operation Group Co., Ltd. | State-owned Legal Person | 5.01 | - Controlling shareholder Zhejiang Hisun Group Co., Ltd. has an associated relationship with the fourth largest shareholder, Taizhou Jiaojiang District State-owned Capital Operation Group Co., Ltd., which is the company's actual controller[21](index=21&type=chunk) [Operating Performance and Important Matters](index=6&type=section&id=Item%20III.%20Other%20Important%20Matters) [Other Important Matters](index=6&type=section&id=Item%20III.%20Other%20Important%20Matters) During the reporting period, the company actively pursued several strategic initiatives, including capital operations such as investing in YunKaiYaMei's overseas entity, selling Fudan-Zhangjiang shares for capital recovery, and implementing a restricted stock incentive plan, alongside business expansion efforts like establishing a wholly-owned Japanese subsidiary and increasing capital in its animal health subsidiary - The company completed the capital reduction in its associate YunKaiYaMei (domestic) and capital contribution to the newly established Cayman company (overseas), ultimately holding **14.45%** equity in YunKaiYaMei Cayman Company[23](index=23&type=chunk) - The company recovered the remaining payment of **CNY 16.6005 million** from the transfer of **51%** equity in Hisun-Syntech, and related litigation has been resolved[25](index=25&type=chunk)[27](index=27&type=chunk) - To recover funds, the company decided to sell its shares in Fudan-Zhangjiang, having sold **3,606,112 shares** as of the end of the reporting period, while still holding **3,393,888 shares**[28](index=28&type=chunk) - The company completed the initial grant registration of its 2021 Restricted Stock Incentive Plan, granting **27.3611 million shares** to **656 incentive recipients**, which increased the total share capital[32](index=32&type=chunk) - The company's wholly-owned Japanese subsidiary, "Hisun Pharmaceutical Japan Co., Ltd.," has completed registration and its first capital contribution of **JPY 100 million**, aiming to expand overseas markets[33](index=33&type=chunk) - Controlling subsidiary Hisun Animal Health increased capital in its wholly-owned subsidiary Yunsheng Company by **CNY 50 million** to support the development of its animal health products business[34](index=34&type=chunk) [Financial Statements](index=8&type=section&id=Item%20IV.%20Quarterly%20Financial%20Statements) [Consolidated Balance Sheet](index=9&type=section&id=Consolidated%20Balance%20Sheet) As of September 30, 2021, the company's total assets were CNY 19.960 billion, a 4.31% decrease from the end of the previous year, while total owner's equity attributable to shareholders was CNY 7.355 billion, a 10.12% increase due to profit growth and equity incentive plan implementation, with total liabilities of CNY 12.482 billion remaining largely stable Consolidated Balance Sheet | Item | September 30, 2021 (CNY) | December 31, 2020 (CNY) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 19,960,204,369.95 | 20,859,772,184.12 | -4.31% | | Total Liabilities | 12,482,406,910.09 | 12,603,176,219.43 | -0.96% | | Total Owner's Equity Attributable to Parent Company Shareholders | 7,354,714,435.82 | 6,678,665,195.35 | +10.12% | [Consolidated Income Statement](index=11&type=section&id=Consolidated%20Income%20Statement) In the first three quarters of 2021, the company achieved total operating revenue of CNY 9.107 billion, up 11.69%, with total operating costs of CNY 8.628 billion, up 12.13%, and despite costs growing slightly faster than revenue, a significant increase in investment income from CNY 43.69 million to CNY 158 million led to a 45.83% growth in net profit attributable to shareholders, reaching CNY 499 million Consolidated Income Statement | Item | First Three Quarters of 2021 (CNY) | First Three Quarters of 2020 (CNY) | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 9,107,442,471.65 | 8,153,921,841.13 | +11.69% | | Total Operating Costs | 8,627,644,412.73 | 7,694,046,794.08 | +12.13% | | Investment Income | 157,762,419.57 | 43,689,693.35 | +261.08% | | Total Profit | 637,054,724.98 | 726,752,447.81 | -12.34% | | Net Profit Attributable to Parent Company Shareholders | 499,461,077.10 | 342,504,813.74 | +45.83% | [Consolidated Cash Flow Statement](index=14&type=section&id=Consolidated%20Cash%20Flow%20Statement) In the first three quarters of 2021, the company's net cash flow from operating activities was CNY 1.051 billion, a 17.73% year-on-year decrease, indicating weakened operating cash collection, while net cash outflow from investing activities was CNY 318 million (compared to a CNY 690 million inflow last year) due to increased investment payments and reduced investment recovery, and net cash outflow from financing activities was CNY 1.309 billion, primarily for debt repayment Consolidated Cash Flow Statement | Item | First Three Quarters of 2021 (CNY) | First Three Quarters of 2020 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 1,050,741,265.48 | 1,277,116,822.14 | | Net Cash Flow from Investing Activities | -317,770,156.96 | 690,257,668.18 | | Net Cash Flow from Financing Activities | -1,309,449,958.99 | -1,570,015,125.60 | | Net Increase in Cash and Cash Equivalents | -579,024,534.74 | 396,650,138.37 | [Accounting Standard Change Impact](index=15&type=section&id=(III)%20Adjustments%20to%20Financial%20Statements%20at%20the%20Beginning%20of%20the%20First%20Year%20of%20Adoption%20of%20New%20Lease%20Standards%20from%202021) Effective January 1, 2021, the company adopted the revised "Accounting Standard for Business Enterprises No. 21 – Leases," making retrospective adjustments to its financial statements, recognizing right-of-use assets and corresponding lease liabilities (including current portion) of CNY 22.6003 million at the beginning of 2021, with no impact on owner's equity - The company adopted the new lease standard effective **January 1, 2021**, and adjusted relevant items in its financial statements[64](index=64&type=chunk) Adjustments Due to New Lease Standard Adoption | Adjustment Item | Adjustment Amount (CNY) | | :--- | :--- | | Right-of-Use Assets | +22,600,316.93 | | Non-Current Liabilities Due Within One Year | +7,594,040.47 | | Lease Liabilities | +15,006,276.46 | | **Total Asset Adjustment** | **+22,600,316.93** | | **Total Liability Adjustment** | **+22,600,316.93** |

Financial Performance - The company's operating revenue for the first half of 2021 was approximately ¥6.00 billion, representing a 12.90% increase compared to the same period last year[19]. - The net profit attributable to shareholders for the first half of 2021 was approximately ¥280.13 million, reflecting a 16.40% increase year-over-year[19]. - The net cash flow from operating activities decreased by 55.26% to approximately ¥328.15 million compared to the previous year[19]. - The total assets as of June 30, 2021, were approximately ¥19.89 billion, a decrease of 4.66% from the end of the previous year[19]. - The net assets attributable to shareholders increased by 6.81% to approximately ¥7.13 billion compared to the end of the previous year[19]. - The basic earnings per share for the first half of 2021 was ¥0.254, a 2.01% increase from the same period last year[22]. - The diluted earnings per share for the first half of 2021 was ¥0.250, showing a slight increase of 0.40% year-over-year[22]. - The weighted average return on net assets increased by 0.269 percentage points to 4.037% compared to the previous year[22]. - The company reported a decrease of 11.18% in the basic earnings per share after deducting non-recurring gains and losses, which was ¥0.143[22]. - The company achieved operating revenue of CNY 600,423.38 million, representing a year-on-year growth of 12.90% driven by the growth in formulation products, veterinary products, and pharmaceutical commercial business[47]. - The net profit attributable to the parent company was CNY 28,013.02 million, a year-on-year increase of 16.40%, while the net profit after deducting non-recurring gains and losses was CNY 15,787.37 million, remaining stable compared to the same period last year[47]. Research and Development - The company has a total of 1,011 patent applications, including 991 invention patents, with 337 authorized patents, of which 322 are invention patents[48]. - The company submitted 32 patent applications during the reporting period, with 30 patents granted, all of which are invention patents[56]. - The company has completed the approval of its first small molecule innovative drug, Haibo Maibu, which is the only Class 1 new drug approved in the cardiovascular field in recent years in China[53]. - The company has successfully passed the consistency evaluation for 13 generic drug varieties, including the first to pass for injection micarfen sodium and injection hydrochloride epirubicin[53]. - The company is actively expanding its product offerings in the biopharmaceutical sector, targeting treatments for diabetes and cancer[33]. - The company has established a comprehensive industrial development platform, integrating R&D, production, registration, and market access[52]. Market and Business Operations - The company's main business includes the research, production, and sales of chemical raw materials and formulations, with a focus on both domestic and international markets[30]. - The company has a diverse product line, including anti-tumor, anti-infection, and cardiovascular medications, with a growing presence in international markets[33]. - The company’s procurement model ensures compliance with FDA and GMP standards for raw materials and self-produced formulations[36]. - The company’s commercial business includes third-party drug distribution and promotion, primarily through its subsidiary[38]. - The company achieved a non-recurring gain of RMB 54,482,929.32 from government subsidies closely related to its normal operations[26]. - The company reported a loss of RMB 3,182,058.78 from other operating income and expenses, impacting overall profitability[26]. - The company’s investment income from entrusted loans amounted to RMB 4,040,000.00 during the reporting period[26]. - The company is actively developing new business models and enhancing its marketing strategies to improve sales performance in the raw material drug sector[62]. - The company has established a strong marketing system through close cooperation with local quality agents to achieve broad sales coverage and rapid growth[41]. - The sales team consists of over 1,500 personnel across three divisions, covering 6,900 hospitals in 31 provinces and municipalities, establishing a leading professional promotion platform in China[41]. Financial Position and Investments - The company's cash and cash equivalents decreased by 46.10% to ¥1,109,765,044.73, accounting for 5.58% of total assets, primarily due to bond repayments[66]. - The intangible assets increased by 43.32% to ¥1,052,479,113.89, representing 5.29% of total assets, mainly due to the approval of R&D projects[66]. - The company's long-term borrowings rose by 56.09% to ¥1,697,845,689.34, making up 8.54% of total liabilities, attributed to increased medium and long-term credit financing[68]. - The company issued convertible bonds, resulting in a new debt of ¥1,404,924,349.85, which accounts for 7.06% of total liabilities[68]. - The company plans to invest ¥21 million in its subsidiary, Zhejiang Borui Biological Pharmaceutical Co., Ltd., to increase its capital[72]. - The company completed a capital increase of $3.1 million in its wholly-owned subsidiary, Haizheng Pharmaceutical (USA) Co., Ltd.[72]. - The company is establishing a wholly-owned subsidiary in Japan with an investment of up to ¥20 million[72]. - The company has invested ¥46,354.12 million in the expansion of the injection production project at Hanhui Pharmaceutical Co., Ltd.[74]. - The company has completed the project initiation and environmental assessment for a new production line capable of producing 20 million freeze-dried injection bottles[78]. - The company has initiated a project to upgrade the production of insulin raw materials at Haisheng Pharmaceutical (Hangzhou) Co., Ltd.[78]. Environmental Compliance - The company reported a total wastewater discharge of 860,000 tons in the first half of 2021, with an average chemical oxygen demand concentration of 229.8 mg/L[103]. - The company’s wastewater treatment meets the Zhejiang Province standards, with a total allowable discharge of 144.9 tons for chemical oxygen demand and 21.74 tons for ammonia nitrogen[103]. - The total discharge limits for chemical oxygen demand and ammonia nitrogen are set at 1.765 tons and 0.167 tons, respectively[109]. - The company adheres to the wastewater discharge standards of GB8978-1996, with COD limits of ≤500 mg/L and ammonia nitrogen limits of ≤35 mg/L[109]. - The company has established multiple air pollution control facilities, with a total of 5 exhaust outlets[112]. - The wastewater treatment capacity at the company's facilities includes a system with a capacity of 3,000 tons per day and another with 5,000 tons per day[110]. - The company is in the process of constructing an automatic wastewater treatment facility, expected to ensure compliance with discharge standards upon completion[112]. - The company has implemented online monitoring equipment at the wastewater discharge outlet, with data automatically uploaded to the environmental protection department's website[112]. - The company has established an environmental self-monitoring plan, with third-party testing showing all pollutant indicators meet discharge standards[117]. - The company has received no administrative penalties related to environmental issues during the reporting period[118]. - The company has implemented an environmental management system certified by ISO 14001, enhancing overall environmental awareness among employees[120]. - The company has optimized exhaust treatment processes and upgraded wastewater treatment facilities to ensure compliance with discharge standards[120]. Related Party Transactions and Governance - The company has committed to minimizing related party transactions with Haizheng Pharmaceutical and ensuring fair pricing in unavoidable transactions[126]. - The company has taken measures to avoid competition with Haizheng Pharmaceutical and its subsidiaries, ensuring no overlap in main business activities[123]. - The company has established a dedicated EHS management organization to oversee environmental protection efforts[120]. - The company reported a commitment to ensure independent operations for its subsidiary, including maintaining independent assets, personnel, and capabilities[135]. - The controlling shareholder, Haizheng Group, has pledged to avoid any direct or indirect competition with the company and its subsidiaries[144]. - The company has established a 12-month lock-up period for newly issued shares following the asset acquisition, preventing any transfer during this time[132]. - The company guarantees that its subsidiary will have an independent financial department and accounting system, ensuring compliance with relevant laws and regulations[141]. - The company has committed to minimizing related party transactions and ensuring fair pricing in unavoidable transactions[140]. - The company will not allow its assets to be used as collateral for debts of other controlled enterprises[141]. - The company has a 36-month lock-up period for shares acquired through the current transaction, ensuring stability in shareholding[132]. - The company has established a commitment to independent governance structures for its subsidiary, ensuring no overlap with other controlled entities[143]. - The company has reported no non-operating fund occupation by controlling shareholders or related parties during the reporting period[148]. - The company has not engaged in any violations regarding guarantees during the reporting period[148]. - The company reported a total of 8,633.96 million RMB in related party transactions during the reporting period, accounting for 1.856% of similar transaction amounts[153]. - The company purchased products and materials from related parties for a total of 1,366.20 million RMB, representing 0.385% of similar transaction amounts[150]. - The company purchased fuel and power from its controlling subsidiary for 2,126.32 million RMB, which is 0.599% of similar transaction amounts[150]. - The company provided services to related parties amounting to 350.20 million RMB, accounting for 0.058% of similar transaction amounts[153]. Legal and Regulatory Matters - The company reported no major litigation or arbitration matters during the reporting period[150]. - The company had no significant changes in the integrity status of its controlling shareholders or actual controllers during the reporting period[150]. - The company had no major related party transactions that were not disclosed in temporary announcements[154]. - The company approved a proposal to transfer 51% equity of its subsidiary Zhejiang Haizheng Xuantai Pharmaceutical Co., Ltd. for a transaction price of RMB 23.715 million, with the first payment of RMB 7.1145 million received[163]. - The company’s subsidiary Yunnan Biopharmaceutical Co., Ltd. underwent bankruptcy reorganization, with a capital increase of RMB 100 million from Zhejiang Haizheng Animal Health Products Co., Ltd., resulting in a 100% ownership[168]. - The company’s subsidiary Zhejiang Haizheng Animal Health Products Co., Ltd. completed a capital increase from RMB 310 million to RMB 350 million, successfully attracting strategic investors and implementing an employee stock ownership plan[172]. - The company plans to grant 33 million restricted stock options under its 2021 incentive plan, with an initial grant price set at RMB 8.74 per share[174]. - The company has initiated a lawsuit against Chongqing Enchuang Medical Management Co., Ltd. for the remaining payment of RMB 17.332651 million related to the equity transfer agreement[164]. - The company completed the equity restructuring of Zhejiang Yunkai Yamei Pharmaceutical Technology Co., Ltd., with a 20.155% equity reduction and investment in a new Cayman holding company[162]. - The company’s subsidiary has received court approval for its reorganization plan, with debt repayment processes ongoing[168]. - The company’s strategic expansion includes the establishment of a new overseas structure for its subsidiary to facilitate B-round financing and restructuring[162]. - The company has successfully completed the transfer of equity and obtained a new business license for Zhejiang Haizheng Xuantai Pharmaceutical Co., Ltd.[164]. - The company is committed to timely information disclosure regarding the progress of its restructuring and legal matters[168]. Shareholder Information - The total number of shares increased to 1,168,843,462 shares after the issuance of 203,311,620 new shares[183]. - The company acquired a 49% stake in Hanhui Pharmaceutical Co., Ltd. from HPPC Holding SARL, issuing 143,380,114 shares as part of the transaction[183]. - The total number of shareholders reached 58,504 by the end of the reporting period[186]. - Zhejiang Haizheng Group Co., Ltd. holds 320,783,590 shares, representing 27.44% of the total shares[186]. - HPPC Holding SARL holds 143,380,114 shares, accounting for 12.27% of the total shares[186]. - The company has 965,531,842 unrestricted circulating shares, which is 82.60% of the total shares[182]. - The company’s limited shares before the change were 203,311,620, which is 17.40% of the total shares[179]. - HPPC Holding SARL holds 143,380,114 restricted shares, which will be tradable on March 18, 2022[193]. - Taizhou Jiaojiang State-owned Capital Operation Group Co., Ltd. holds 59,931,506 restricted shares, which will be tradable on March 24, 2024[193]. Debt and Financing - The company issued 2016 corporate bonds with a total amount of 0 billion RMB and an interest rate of 5.9%[197]. - The 2016 corporate bonds were fully guaranteed by the controlling shareholder, Haizheng Group, and the actual controller, Taizhou Jiaojiang State-owned Capital Operation Group Co., Ltd.[200]. - The company completed the principal and interest payment for the 2016 corporate bonds on March 16, 2021[200].

Financial Performance - Operating revenue increased by 22.75% to CNY 3,067,936,076.77 year-on-year[12] - Net profit attributable to shareholders was CNY 125,722,878.43, a significant recovery from a loss of CNY 71,410,895.85 in the same period last year[12] - Basic earnings per share improved to CNY 0.122 from a loss of CNY 0.074 in the same period last year[12] - The company's net profit for Q1 2021 was CNY 187,817,286.10, a significant increase compared to CNY 51,070,646.08 in Q1 2020, representing a growth of approximately 267%[54] - The company's operating profit for Q1 2021 was CNY 19,063,827.71, compared to a loss of CNY 33,712,684.83 in Q1 2020, marking a turnaround in performance[60] - The total comprehensive income for Q1 2021 was CNY 172,788,720.40, significantly higher than CNY 46,100,965.75 in Q1 2020[56] Cash Flow - Net cash flow from operating activities decreased by 56.05% to CNY 230,216,190.84 compared to the previous year[12] - The net cash flow from operating activities for Q1 2021 was CNY 230.22 million, a significant decrease of 56% compared to CNY 523.83 million in Q1 2020[62] - The total cash inflow from investment activities in Q1 2021 was CNY 512.21 million, down from CNY 1.12 billion in Q1 2020, indicating a decline of approximately 54%[64] - The cash outflow from investment activities in Q1 2021 was CNY 1.64 billion, compared to CNY 1.18 billion in Q1 2020, marking an increase of about 39%[64] - The net cash flow from financing activities in Q1 2021 was negative at CNY -144.62 million, contrasting with a positive net cash flow of CNY 114.23 million in Q1 2020[64] Assets and Liabilities - Total assets decreased by 4.52% to CNY 19,917,600,707.04 compared to the end of the previous year[12] - The total liabilities of the company as of March 31, 2021, were RMB 12,892,404,133.62, compared to RMB 12,603,176,219.43 in the previous year[42] - The company's total current assets amounted to RMB 6,331,214,506.41, a decrease from RMB 7,347,865,196.02 as of December 31, 2020[39] - The company's non-current assets totaled RMB 13,586,386,200.63, slightly up from RMB 13,511,906,988.10 year-over-year[39] - Total liabilities as of March 31, 2021, were ¥6,914,268,439.04, an increase from ¥5,739,582,425.87 at the end of 2020, representing a rise of 20.5%[50] Shareholder Information - The total number of shareholders at the end of the reporting period was 55,439[19] - Zhejiang Haizheng Group Co., Ltd. held 27.44% of the shares, making it the largest shareholder[19] Investment and Financing Activities - The company issued convertible bonds to HPPC, resulting in a new debt of ¥1,389,014,820.22[23] - The company plans to issue short-term financing bonds totaling up to RMB 2 billion, with a maturity of no more than 9 months, to be issued in tranches over the next two years[31] - Long-term borrowings increased by 34.86% to ¥1,466,910,059.73 due to new medium and long-term financing[23] Operational Costs and Expenses - Operating costs rose by 32.00% to ¥1,850,568,517.11 driven by increased sales[23] - The company reported a decrease in sales expenses to CNY 197,695,112.45 in Q1 2021 from CNY 313,572,623.39 in Q1 2020, a reduction of approximately 37%[56] - The financial expenses for Q1 2021 were CNY 44,606,002.67, an increase from CNY 38,079,814.62 in Q1 2020, representing an increase of about 17%[60] Market and Product Development - The company has not disclosed any new product developments or market expansion strategies in this report[12] - The company plans to continue expanding its market presence and investing in new technologies and products[50]