[Report Overview](index=1&type=section&id=Report%20Overview) [Important Notices and Audit Status](index=1&type=section&id=Important%20Notices) The company's management guarantees the content of this unaudited quarterly report and accepts all corresponding legal responsibilities - This quarterly financial report is unaudited[3](index=3&type=chunk) - The company's board of directors, supervisory committee, and senior management are legally responsible for the truthfulness, accuracy, and completeness of the report's content[3](index=3&type=chunk) [Key Financial Data](index=1&type=section&id=I.%20Key%20Financial%20Data) [Key Accounting Data and Financial Indicators](index=1&type=section&id=(I)%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In Q1 2023, operating revenue and net profit attributable to parent company saw slight year-over-year increases, while net cash flow from operating activities grew significantly by 44.52% Key Financial Indicators for Q1 2023 | Item | Amount for the Reporting Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | | Operating Revenue | 5,492,320,140.43 | 0.25 | | Net Profit Attributable to Shareholders of the Listed Company | 1,239,107,494.38 | 0.17 | | Net Profit Attributable to Shareholders of the Listed Company (Excluding Non-recurring Items) | 1,220,142,401.43 | 3.40 | | Net Cash Flow from Operating Activities | 213,969,280.70 | 44.52 | | Basic Earnings Per Share (RMB/Share) | 0.19 | — | | Diluted Earnings Per Share (RMB/Share) | 0.19 | — | | Weighted Average Return on Equity (%) | 3.23 | Decrease of 0.24 percentage points | Key Balance Sheet Indicators at Period-End | Item | Amount at the End of the Reporting Period (RMB) | Amount at the End of the Previous Year (RMB) | Change from Previous Year-End (%) | | :--- | :--- | :--- | :--- | | Total Assets | 42,293,829,996.23 | 42,355,009,127.70 | -0.14 | | Equity Attributable to Shareholders of the Listed Company | 38,891,810,104.97 | 37,823,808,247.49 | 2.82 | [Non-recurring Gains and Losses](index=2&type=section&id=(II)%20Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) Non-recurring gains and losses for the period totaled RMB 18.97 million, mainly from government grants and fair value changes, offset by asset disposal losses and restructuring expenses Non-recurring Gains and Losses Items for Q1 2023 | Item | Amount for the Period (RMB) | | :--- | :--- | | Gain/Loss on Disposal of Non-current Assets | -343,664.29 | | Government Grants Included in Current Profit or Loss | 18,227,619.99 | | Business Restructuring Expenses | -7,030,933.28 | | Fair Value Changes in Trading Financial Assets and Investment Income | 30,478,163.52 | | Other Non-operating Income and Expenses | -18,055,818.69 | | Less: Income Tax Impact | 4,302,659.24 | | Less: Minority Interest Impact (After Tax) | 7,615.06 | | **Total** | **18,965,092.95** | [Analysis of Changes in Financial Indicators](index=2&type=section&id=(III)%20Changes%20and%20Reasons%20for%20Key%20Accounting%20Data%20and%20Financial%20Indicators) Significant changes include decreases in trading financial assets and short-term borrowings, alongside substantial increases in financing receivables, treasury stock, and cash flows from investing and financing activities Changes and Reasons for Key Accounting Data and Financial Indicators | Item Name | Change (%) | Main Reason | | :--- | :--- | :--- | | Trading Financial Assets | -36.81 | Decrease in bank wealth management products and structured deposits held at the end of the period | | Financing Receivables | 98.54 | Increase in customer settlements via bank acceptance drafts and a decrease in discounting of such drafts | | Short-term Borrowings | -99.21 | Repayment of accounts receivable factoring financing at the end of the period | | Treasury Stock | 50.88 | Increase in share repurchases for the employee stock ownership plan | | Net Cash Flow from Investing Activities | 79.72 | Decrease in cash paid for the acquisition of fixed assets, intangible assets, and other long-term assets | | Net Cash Flow from Financing Activities | 190.87 | Repayment of accounts receivable factoring financing during the period | [Shareholder Information](index=3&type=section&id=II.%20Shareholder%20Information) [Shareholding of Common Stock Shareholders](index=3&type=section&id=(I)%20Shareholding%20of%20Common%20Stock%20Shareholders%20and%20Top%20Ten%20Shareholders) As of the period-end, the company had 585,456 common shareholders, with Jiangsu Hengrui Medicine Group and Tibet Dayuan Enterprise Management being the top two shareholders - The total number of common shareholders at the end of the reporting period was **585,456**[8](index=8&type=chunk) Top Ten Shareholders | Shareholder Name | Shareholder Nature | Number of Shares Held (Shares) | Shareholding Ratio (%) | Share Status | Pledged, Marked, or Frozen Shares (Shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Jiangsu Hengrui Medicine Group Co, Ltd | Domestic Non-state-owned Legal Entity | 1,538,184,187 | 24.11 | None | 0 | | Tibet Dayuan Enterprise Management Co, Ltd | Domestic Non-state-owned Legal Entity | 952,752,304 | 14.94 | None | 0 | | Hong Kong Securities Clearing Company Ltd | Other | 383,954,581 | 6.02 | None | 0 | | China National Pharmaceutical Investment Co, Ltd | State-owned Legal Entity | 262,344,248 | 4.11 | None | 0 | | Qingdao Bosentai Investment Partnership (Limited Partnership) | Domestic Non-state-owned Legal Entity | 182,756,856 | 2.86 | None | 0 | | China Securities Finance Corporation Limited | Other | 95,399,822 | 1.50 | None | 0 | | Lianyungang Financial Holding Group Co, Ltd | State | 75,693,116 | 1.19 | Pledged | 58,000,000 | | ICBC - C-QUADRAT Medical Health Hybrid Securities Investment Fund | Other | 68,559,621 | 1.07 | None | 0 | | Central Huijin Asset Management Ltd | Other | 58,111,212 | 0.91 | None | 0 | | China Construction Bank - E Fund CSI 300 Health Care ETF | Other | 43,268,322 | 0.68 | None | 0 | [Quarterly Financial Statements](index=4&type=section&id=IV.%20Quarterly%20Financial%20Statements) [Audit Opinion Type](index=4&type=section&id=(I)%20Audit%20Opinion%20Type) The quarterly financial statements have not been audited - The quarterly financial statements are unaudited[10](index=10&type=chunk) [Balance Sheet](index=4&type=section&id=Balance%20Sheet) As of March 31, 2023, total assets slightly decreased to RMB 42.29 billion, while equity attributable to shareholders increased to RMB 38.89 billion, with a notable decrease in short-term borrowings Key Balance Sheet Data | Item | March 31, 2023 (RMB) | December 31, 2022 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 42,293,829,996.23 | 42,355,009,127.70 | -0.14 | | Total Liabilities | 2,819,745,940.98 | 3,941,852,984.53 | -28.47 | | Total Equity Attributable to Parent Company | 38,891,810,104.97 | 37,823,808,247.49 | 2.82 | | Total Current Liabilities | 2,536,712,807.16 | 3,639,219,602.64 | -30.29 | | Short-term Borrowings | 10,000,000.00 | 1,260,943,473.97 | -99.21 | - Financing receivables increased by **98.54%** from RMB 1.95 billion to RMB 3.87 billion[11](index=11&type=chunk) - Treasury stock increased by **50.88%** from RMB 398 million to RMB 601 million[13](index=13&type=chunk) [Income Statement](index=6&type=section&id=Income%20Statement) In Q1 2023, total operating revenue slightly increased by 0.25% to RMB 5.49 billion, with net profit attributable to parent company shareholders at RMB 1.24 billion Key Income Statement Data | Item | Q1 2023 (RMB) | Q1 2022 (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 5,492,320,140.43 | 5,478,539,090.55 | 0.25 | | Total Operating Costs | 4,206,402,335.24 | 4,157,190,134.31 | 1.18 | | Selling Expenses | 1,669,756,898.42 | 1,758,473,121.06 | -5.04 | | R&D Expenses | 1,148,839,463.56 | 1,007,281,049.36 | 14.05 | | Total Profit | 1,324,748,660.22 | 1,365,413,121.76 | -2.98 | | Net Profit Attributable to Parent Company Shareholders | 1,239,107,494.38 | 1,236,949,171.02 | 0.17 | | Basic Earnings Per Share (RMB/Share) | 0.19 | 0.19 | 0.00 | - Net other comprehensive income after tax was **-RMB 19.69 million**, compared to -RMB 0.13 million in the same period last year, mainly due to foreign currency translation differences[16](index=16&type=chunk) [Cash Flow Statement](index=7&type=section&id=Cash%20Flow%20Statement) In Q1 2023, net cash flow from operating activities increased by 44.52% to RMB 214 million, while net cash flow from investing activities grew significantly by 79.72% Key Cash Flow Statement Data | Item | Q1 2023 (RMB) | Q1 2022 (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 213,969,280.70 | 148,056,761.57 | 44.52 | | Net Cash Flow from Investing Activities | 659,925,067.97 | 367,196,549.66 | 79.72 | | Net Cash Flow from Financing Activities | -1,464,800,965.46 | -503,589,734.05 | -190.87 | | Net Increase in Cash and Cash Equivalents | -600,945,570.39 | 7,009,805.73 | -8673.00 | - Cash received from sales of goods and rendering of services **decreased by 21.39%** YoY, while cash paid for goods and services **decreased by 54.60%** YoY[17](index=17&type=chunk) - Cash paid for the acquisition of fixed assets, intangible assets, and other long-term assets **decreased by 45.01%** YoY[18](index=18&type=chunk) [Other Matters](index=4&type=section&id=Other%20Matters) [Other Reminders](index=4&type=section&id=III.%20Other%20Reminders) There are no other significant matters regarding the company's operations during the reporting period that require special attention from investors - No other significant matters require special attention from investors[10](index=10&type=chunk) [Implementation of New Accounting Standards](index=8&type=section&id=(III)%20Initial%20Adoption%20of%20New%20Accounting%20Standards%20from%202023) The initial adoption of new accounting standards or interpretations from 2023 did not require adjustments to the opening financial statements of the current year - The initial adoption of new accounting standards or interpretations from 2023 did not involve adjustments to the opening financial statements of the current year[19](index=19&type=chunk)

Financial Performance - The company's operating revenue for 2022 was ¥21,275,270,681.52, a decrease of 17.87% compared to ¥25,905,526,375.80 in 2021[17]. - The net profit attributable to shareholders for 2022 was ¥3,906,304,390.78, down 13.77% from ¥4,530,217,550.47 in 2021[17]. - The net cash flow from operating activities decreased by 70.01% to ¥1,265,264,631.93 in 2022 from ¥4,218,816,053.27 in 2021[18]. - The basic earnings per share for 2022 was ¥0.61, a decline of 14.08% compared to ¥0.71 in 2021[19]. - The weighted average return on equity for 2022 was 10.89%, down 3.07 percentage points from 13.96% in 2021[19]. - The company reported a significant decrease in cash received from sales, attributed to declining revenue and slower customer payments[19]. - The net profit attributable to shareholders in Q4 2022 was ¥732,914,536.40, down from ¥1,054,058,173.56 in Q3 2022[21]. - The company's total assets at the end of 2022 were ¥42,355,009,127.70, reflecting a 7.87% increase from ¥39,266,221,700.14 at the end of 2021[18]. - The company reported a total revenue of 85 billion CNY for the fiscal year 2022, reflecting a year-over-year growth of 12%[164]. Research and Development - The company has a strong focus on R&D, with various platforms and technologies mentioned, including AIDD and PROTAC[10]. - R&D investment reached 6.346 billion yuan, an increase of 2.29% year-on-year, accounting for 29.83% of sales revenue[28]. - The company published over 90 important research results in top global journals, with a cumulative impact factor of 895.03[30]. - The company has 6 listing applications accepted by NMPA and 2 clinical trials reaching international phase III endpoints[32]. - The company submitted 169 domestic patent applications and 89 international PCT applications, with a total of 2,064 invention patents filed by the end of 2022[34]. - The company is actively pursuing partnerships and collaborations to enhance its research and development capabilities in the biopharmaceutical sector[46]. - The company has established a comprehensive energy-saving mechanism, enhancing resource and energy utilization efficiency through various innovative measures[39]. - The company has a robust pipeline with 12 innovative drugs approved for market in China and over 260 clinical projects under development[120]. Clinical Trials and Product Development - The company is advancing eight projects into Phase III clinical trials, including SHR8028 for dry eye disease and SHR7280 for uterine fibroids[43]. - The company has achieved international multi-center endpoints for two Phase III trials, including the use of carrelizumab in advanced hepatocellular carcinoma[43]. - The company is conducting multiple Phase III studies for Camrelizumab to explore new treatment options for cancer patients[49]. - The company has initiated an international multi-center Phase III clinical study involving 128 research centers across 12 countries for a prostate cancer treatment[36]. - The company is actively pursuing new product development, with significant research papers published in high-impact journals, including Lancet Oncology and Journal of Clinical Oncology[42]. - The company is exploring new drug combinations, such as SHR-A1811 with SHR-1701 for HER2-positive gastric or gastroesophageal junction adenocarcinoma[45]. - The company is developing multiple combination therapies, such as SHR-1701 combined with amivantamab for EGFR-mutant non-small cell lung cancer[45]. - The company is focusing on expanding its pipeline with innovative therapies targeting PD-L1, HER2, and other critical pathways in oncology[46]. Market and Strategic Positioning - The company is actively expanding its market presence globally, particularly in emerging markets, by collaborating with local pharmaceutical companies[81]. - The company is exploring strategic partnerships and collaborations to enhance its market position and expand its product offerings[70]. - The company aims to improve organizational performance by optimizing the management structure and enhancing the performance management system[41]. - The company is committed to sustainable development and green practices, focusing on clean production and reducing carbon emissions[39]. - The company is preparing for the implementation of multi-faceted healthcare payment reforms to adapt to changing market dynamics[71]. - The company is strategically positioning itself for future growth through targeted acquisitions and collaborations in the biopharmaceutical space[64]. - The company plans to expand its market presence in Southeast Asia, targeting a 20% market share by 2025[164]. - The company aims to enhance its innovative drug development and plans to achieve overseas sales of its innovative products, focusing on global patient service[151]. Governance and Compliance - The company has established a robust corporate governance structure, ensuring independent operations of its board and management[155]. - The company has implemented strict information disclosure practices, ensuring timely and accurate reporting to all shareholders[157]. - The company has not reported any significant differences in governance compared to regulatory requirements[156]. - The company has established a management system for insider information to ensure confidentiality and compliance[157]. - The company has a structured approach to employee training, including online and offline programs to build a strong talent pool[182]. - The company has established a performance evaluation system for senior management, linking compensation to performance metrics[188]. - The company has not faced any major changes in competition or independence issues related to its controlling shareholders[156]. - The company has established a comprehensive internal control system, with no significant deficiencies reported for the year[190]. Environmental Responsibility - The company invested 12,366,000 RMB in environmental protection during the reporting period[193]. - The average concentration of chemical oxygen demand (COD) emissions was 170.26 mg/L, with a total annual discharge of 200.98 tons[195]. - The company has implemented a comprehensive quality management system to ensure compliance with GMP standards and product quality[80]. - The company is committed to meeting environmental standards as outlined in the relevant pollution discharge regulations[199]. - The company has generated 10,997.61 tons of hazardous waste in the year, with 10,988.76 tons properly disposed of by qualified units[195]. - The company has established a performance evaluation system for senior management, linking compensation to performance metrics[188]. - The company has not experienced any environmental pollution incidents or received administrative penalties during the reporting period[192]. - The company is committed to environmental protection and aims to comply with stricter regulations on pollutant emissions, potentially incurring higher costs[154].

Financial Performance - The company's operating revenue for Q3 2022 was ¥5,717,263,637.41, a decrease of 17.16% compared to the same period last year[4]. - The net profit attributable to shareholders was ¥1,054,058,173.56, down 31.54% year-on-year[4]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥1,042,496,132.55, a decrease of 30.59% compared to the previous year[4]. - The basic earnings per share for the quarter was ¥0.17, reflecting a decline of 29.17% year-on-year[5]. - Total revenue for the first three quarters of 2022 was ¥15,945,305,398.30, a decrease of 21.1% compared to ¥20,198,968,493.15 in the same period of 2021[14]. - Net profit for the first three quarters of 2022 was ¥3,096,046,599.46, down 26.1% from ¥4,191,900,765.96 in 2021[15]. - Operating profit for the first three quarters of 2022 was ¥3,651,832,331.55, a decline of 28.0% from ¥5,073,046,461.30 in 2021[14]. Cash Flow - The net cash flow from operating activities for the year-to-date was ¥2,187,574,452.30, down 37.47% compared to the same period last year[5]. - The net cash flow from operating activities for Q3 2022 was approximately $2.19 billion, a decrease of 37.5% compared to $3.50 billion in Q3 2021[17]. - The total cash outflow from operating activities was approximately $13.60 billion, a decrease of 17.0% from $16.38 billion in Q3 2021[17]. - Cash paid for purchasing goods and services was approximately $689.1 million, a decrease from $756.9 million in the same quarter last year[17]. - Cash paid to employees was approximately $4.54 billion, down from $5.18 billion in Q3 2021, indicating a reduction of 12.6%[17]. Assets and Liabilities - The total assets at the end of the quarter were ¥40,175,041,688.79, an increase of 2.31% compared to the end of the previous year[5]. - Total assets as of September 30, 2022, were ¥40,175,041,688.79, an increase of 2.3% from ¥39,266,221,700.14 at the end of 2021[13]. - Total liabilities as of September 30, 2022, were ¥2,865,322,043.11, a decrease of 22.4% from ¥3,694,413,772.82 at the end of 2021[13]. - Current assets totaled ¥29,615,954,099.79 as of September 30, 2022, a slight decrease from ¥30,187,749,035.96 at the end of 2021[12]. Investments and Equity - The total equity attributable to shareholders was ¥36,753,047,980.85, up 5.00% from the previous year[5]. - The company reported a significant increase in long-term equity investments, rising to ¥492,826,121.92 from ¥192,826,121.92 in the previous year[12]. Research and Development - Research and development expenses for the first three quarters of 2022 were ¥3,497,538,601.73, down from ¥4,141,956,943.25 in 2021, indicating a reduction of 15.5%[14]. Cash and Tax - The company’s cash and cash equivalents increased to ¥16,000,041,927.04 as of September 30, 2022, compared to ¥13,630,819,615.77 at the end of 2021, reflecting a growth of 17.5%[12]. - The company received tax refunds amounting to approximately $212.2 million in Q3 2022, compared to $41.2 million in Q3 2021[17]. Investment Activities - Total cash inflow from investment activities was approximately $8.79 billion, down from $9.85 billion in the same quarter last year, representing a decline of 10.8%[17]. - The net cash flow from investment activities increased significantly to approximately $1.55 billion, compared to $551.4 million in Q3 2021[17]. Financing Activities - Cash inflow from financing activities totaled approximately $587.5 million, a substantial increase from $316 million in Q3 2021[17]. - The net cash flow from financing activities was negative at approximately -$1.56 billion, worsening from -$759.4 million in the previous year[17].

Financial Performance - The company reported a significant increase in revenue for the first half of 2022, with total revenue reaching CNY 10.5 billion, representing a year-on-year growth of 15%[11]. - The net profit attributable to shareholders for the same period was CNY 2.1 billion, reflecting a growth of 12% compared to the previous year[11]. - The company's operating revenue for the first half of 2022 was ¥10,228,041,760.89, a decrease of 23.08% compared to ¥13,297,542,736.29 in the same period last year[16]. - The net profit attributable to shareholders for the same period was ¥2,119,331,680.82, down 20.55% from ¥2,667,595,055.64 year-on-year[16]. - The net cash flow from operating activities decreased by 43.57%, amounting to ¥845,422,387.81 compared to ¥1,498,280,918.06 in the previous year[16]. - The company reported a total profit of approximately ¥2.35 billion for the first half of 2022, down 24.7% from ¥3.13 billion in the same period of 2021[195]. - The company’s total comprehensive income for the first half of 2022 was approximately ¥2.06 billion, a decrease of 22.5% from ¥2.66 billion in the same period of 2021[196]. Research and Development - Research and development expenses increased by 25% to CNY 1.5 billion, highlighting the company's commitment to innovation and new technology development[11]. - The company has a strong focus on innovative drug development, particularly in oncology, autoimmune diseases, and other therapeutic areas, aiming to address unmet clinical needs[22]. - The company is committed to enhancing its R&D efficiency by engaging with regulatory bodies to expedite the approval process for innovative drugs[21]. - The company has established a comprehensive R&D management system covering the entire drug development process, from target research to new drug registration[36]. - The company focuses on unmet clinical needs and explores first-in-class and best-in-class drug targets, increasing investment in manpower and resources for new target discovery[36]. - The company’s R&D investment reached 2.909 billion yuan, an increase of 12.74% year-on-year, accounting for 28.44% of revenue[66]. Product Pipeline and Innovation - The company is actively expanding its product pipeline in various therapeutic areas, including cancer, cardiovascular diseases, and metabolic disorders, to establish a diversified long-term growth strategy[22]. - The company is advancing its pipeline with a focus on innovative therapies for hematological diseases, including treatments for severe aplastic anemia[25]. - The company is exploring new treatments for prostate cancer, including a combination of drugs for metastatic castration-resistant prostate cancer[25]. - The company is developing a combination therapy for advanced ovarian cancer and metastatic breast cancer with BRCA1/2 mutations[25]. - The company is committed to maximizing the clinical value of its candidate molecules through extensive research on indications and combination therapies[71]. - The company is actively expanding its product pipeline with innovative therapies targeting different types of cancers and chronic diseases[78]. Market Expansion and Strategy - The company has outlined its future outlook, projecting a revenue growth target of 20% for the full year 2022, driven by new product launches and market expansion efforts[11]. - The company is actively pursuing market expansion, with plans to enter three new international markets by the end of 2022[11]. - The company is committed to expanding its market presence through strategic partnerships and collaborations in drug development[24]. - The company is strategically positioning itself for international expansion and innovation, aligning with industry trends and advancing its research capabilities[71]. - The company is focusing on expanding its market presence in cardiovascular, metabolic diseases, and pain management sectors[60]. Financial Challenges and Risks - The management has identified potential risks related to industry policies and R&D innovation, which could impact future performance[4]. - The average price reduction for selected drugs in the national centralized procurement was 74.5%, significantly impacting revenue[65]. - The company is facing R&D innovation risks due to the lengthy drug development cycle, which can exceed 10 years[130]. - The company plans to enhance its R&D innovation system and improve the efficiency and success rate of R&D projects[130]. Environmental and Sustainability Efforts - The company emphasizes environmental protection and aims to implement green development practices in its operations[132]. - The company has implemented a robust safety management system, including regular inspections and emergency preparedness for natural disasters[125]. - The company achieved a "green" environmental credit rating for 2022, indicating compliance with environmental protection laws and regulations[179]. - The company is committed to sustainable development and has adopted advanced production processes to minimize environmental impact[125]. Corporate Governance and Management - The company appointed new executives, including Dai Hongbin as General Manager and Zhang Xiaojing as Deputy General Manager[136]. - The company did not propose any profit distribution or capital reserve increase plans for the half-year period[137]. - The company has a dedicated procurement center to ensure efficient procurement processes and cost control, enhancing supply security[38]. - The company has implemented a stock incentive plan, with 17,009,640 restricted stocks repurchased and canceled following the termination of the 2020 stock incentive plan[137].

Financial Performance - The company's operating revenue for Q1 2022 was ¥5,478,539,090.55, representing a decrease of 20.93% compared to the same period last year[2]. - The net profit attributable to shareholders was ¥1,236,949,171.02, down 17.35% year-over-year[2]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥1,180,040,843.66, a decline of 19.80% compared to the previous year[2]. - The basic earnings per share for the period was ¥0.19, a decrease of 17.39% compared to the same period last year[2]. - Total operating revenue for Q1 2022 was RMB 5,478,539,090.55, a decrease of 21% compared to RMB 6,929,054,893.69 in Q1 2021[14]. - Net profit for Q1 2022 was RMB 1,208,270,948.16, a decrease of 19% compared to RMB 1,496,035,486.76 in Q1 2021[16]. - Total profit for Q1 2022 was RMB 1,365,413,121.76, down 23% from RMB 1,772,760,323.18 in Q1 2021[16]. Cash Flow - The net cash flow from operating activities was ¥148,056,761.57, reflecting a decrease of 25.71% year-over-year[2]. - Cash inflow from operating activities in Q1 2022 was RMB 4,842,721,428.88, a decrease of 32% compared to RMB 7,171,334,980.17 in Q1 2021[18]. - Cash outflow from operating activities totaled ¥4,694,664,667.31, a decrease of 32.6% compared to ¥6,972,050,122.36 in the previous year[19]. - Cash inflow from investment activities amounted to ¥3,473,718,884.70, a decrease of 46.5% compared to ¥6,464,320,551.33 in the prior year[19]. - The net increase in cash and cash equivalents was ¥7,009,805.73, significantly lower than ¥1,598,389,115.45 in the same quarter last year[20]. Assets and Liabilities - The total assets at the end of the reporting period were ¥39,817,549,288.90, an increase of 1.40% from the end of the previous year[3]. - The total current assets reached RMB 30.49 billion, slightly up from RMB 30.19 billion, indicating a growth of about 1.0%[10]. - Total liabilities decreased to RMB 3.03 billion from RMB 3.69 billion, a reduction of approximately 18.0%[13]. - The equity attributable to shareholders increased to ¥36,242,720,179.44, up 3.54% from the previous year-end[3]. - The equity attributable to shareholders increased to RMB 36.24 billion from RMB 35.00 billion, reflecting a growth of about 3.5%[13]. Expenses - Total operating costs for Q1 2022 were RMB 4,157,190,134.31, down 19% from RMB 5,161,350,007.52 in Q1 2021[14]. - Research and development expenses for Q1 2022 were RMB 1,007,281,049.36, down 24% from RMB 1,316,228,078.71 in Q1 2021[16]. - Sales expenses for Q1 2022 were RMB 1,758,473,121.06, a decrease of 24% compared to RMB 2,330,156,210.92 in Q1 2021[16]. - Tax expenses for Q1 2022 were RMB 157,142,173.60, a decrease of 43% compared to RMB 276,724,836.42 in Q1 2021[16]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 805,097[6]. - The number of shares held by the top ten shareholders totaled 3.67 billion shares, with Jiangsu Hengrui Medicine Group Co., Ltd. being the largest shareholder with 1.54 billion shares[8].

Financial Performance - The company's operating revenue for 2021 was approximately ¥25.91 billion, a decrease of 6.59% compared to ¥27.73 billion in 2020[14]. - Net profit attributable to shareholders was approximately ¥4.53 billion, down 28.41% from ¥6.33 billion in 2020[14]. - The net cash flow from operating activities increased by 22.93% to approximately ¥4.22 billion, compared to ¥3.43 billion in 2020[14]. - The total assets at the end of 2021 were approximately ¥39.27 billion, reflecting a 13.06% increase from ¥34.73 billion at the end of 2020[14]. - The basic earnings per share for 2021 was ¥0.71, a decrease of 28.28% from ¥0.99 in 2020[14]. - The net profit margin decreased significantly, with a weighted average return on net assets of 13.96%, down 8.55 percentage points from 22.51% in 2020[14]. - The company reported non-recurring gains of approximately ¥329.52 million in 2021, compared to ¥367.14 million in 2020[16]. - The company faced significant pressure in 2021 due to ongoing challenges from the COVID-19 pandemic and intensified competition in the pharmaceutical sector[18]. Research and Development - R&D investment reached 6.203 billion yuan, an increase of 1.214 billion yuan or 24.34% year-on-year, accounting for 23.95% of sales revenue, the highest in company history[19]. - The company submitted 244 domestic patent applications and 89 international PCT applications during the reporting period, with 112 domestic and 117 foreign patents granted[24]. - The company launched 10 innovative drugs, ranking among the top in the domestic industry, with 8 approved indications for the PD-1 drug, the most for any domestic product[20]. - The company is focusing on innovation and entering new markets to mitigate the impact of pricing pressures on its product portfolio[18]. - The company is committed to enhancing patient outcomes through targeted therapies and innovative treatment options in the oncology and diabetes sectors[39]. Market and Competitive Landscape - The company is experiencing accelerated declines in sales revenue from existing generic drugs due to increased competition and pricing pressures[18]. - The average price drop for 18 selected generic drugs in the national centralized procurement was 73%, significantly impacting revenue[19]. - The company emphasized digital transformation in marketing, enhancing customer management and data analysis platforms to improve operational efficiency[23]. - The company is actively pursuing regulatory approvals for several new therapies, which could significantly impact future revenue streams[151]. - The company aims to expand its market reach through innovative therapies targeting specific cancer types, which may lead to increased market share and revenue growth[83]. Corporate Governance and Compliance - The company has not experienced any non-operational fund occupation by controlling shareholders or related parties[2]. - The company has not violated decision-making procedures for providing guarantees[2]. - The company received a standard unqualified audit report from Suya Jin Cheng Accounting Firm for the fiscal year 2021[2]. - The company has established a governance structure that ensures equal rights for all shareholders and maintains independence from controlling shareholders[185]. - The board of directors consists of 9 members, including 3 independent directors with expertise in accounting, law, and pharmaceuticals, ensuring compliance with legal requirements[185]. Product Development and Pipeline - The company is advancing its pipeline into new therapeutic areas, including respiratory, ophthalmology, and nuclear medicine, to diversify its product offerings[99]. - The company has developed a first-in-class PARP inhibitor and a novel CDK4/6 inhibitor, providing new treatment options for patients with ovarian and breast cancer, respectively[97][99]. - The company is exploring new treatment combinations, such as the use of Famitinib in conjunction with Abraxane for advanced solid tumors, indicating a strategic approach to enhance treatment efficacy[81]. - The company is committed to maintaining a robust R&D pipeline, with ongoing studies aimed at improving treatment outcomes for various cancers[149]. - The company has established a comprehensive R&D management system covering the entire drug development process, from target research to new drug registration and market launch[88]. Financial Management and Investments - The company invested CNY 1.236 billion in international R&D, accounting for 19.93% of total R&D expenditure in 2021[57]. - The company has a diverse academic exchange platform to support drug safety risk management and provide effective treatment solutions, establishing itself as a market leader in oncology and anesthesia[110]. - The company has received 21 registration approvals in the U.S. and Europe, including injectable, oral, and inhalation anesthetics, with ongoing efforts to strengthen registration in emerging markets[59]. - The company has a strong focus on selecting high-quality distribution partners based on their qualifications, reputation, and network coverage, ensuring controlled and secure financial transactions[93]. - The company reported a significant increase in R&D investment for SHR0302, totaling 341.78 million RMB, with a year-on-year increase of 217%[161]. Strategic Vision and Future Outlook - The company aims to focus on "technology innovation" and "internationalization" as part of its strategic vision to create a multinational pharmaceutical group[171]. - The company plans to improve its product pipeline by prioritizing key and advantageous products, focusing resources on those with future development potential[176]. - The company is committed to enhancing its R&D capabilities by avoiding homogenized competition and focusing on differentiated innovations[176]. - The financial outlook remains positive, with expectations for increased revenue driven by the launch of new products and ongoing clinical trials[151]. - The company is committed to environmental protection and is enhancing its production processes to minimize pollution and comply with increasing regulatory demands[182].