Financial Performance - Operating revenue for the period reached CNY 202,970,064.64, representing a growth of 17.81% year-on-year[10] - Net profit attributable to shareholders decreased by 69.21% to CNY 20,572,288.09 compared to the same period last year[10] - Basic and diluted earnings per share fell by 71.43% to CNY 0.058[10] - Total profit decreased by 67.22% to ¥25,998,846.87, primarily due to the previous year's gain from the sale of Wuhan Jianmin stock amounting to ¥57,520,000[17] - Net profit for the current period was ¥20,826,390.55, a decrease of 68.9% from ¥67,067,311.04 in the previous period[33] Assets and Liabilities - Total assets increased by 4.48% to CNY 1,721,901,212.86 compared to the end of the previous year[10] - The company's total assets increased to ¥1,721,901,212.86 from ¥1,648,124,060.76 at the beginning of the year[27] - Total liabilities rose to ¥684,682,135.15, compared to ¥626,362,147.62, marking an increase of 9.3%[30] - Other receivables increased by 134.23% to CNY 24,730,751.50 due to increased receivables[16] - Investment properties increased due to the conversion of land use from industrial to commercial and residential[16] Cash Flow - Net cash flow from operating activities improved to -¥1,938,228.23, an increase from -¥4,826,550.60 in the same period last year[18] - Cash inflow from operating activities increased to 10,643,871.41 from 1,437,798.74 in the previous period, indicating improved operational efficiency[41] - Total cash inflow from operating activities was 212,453,009.13, significantly higher than 119,069,503.03 in the previous period, reflecting strong sales performance[41] - Cash outflow for purchasing fixed assets and intangible assets was 166,538,633.62, a substantial increase from 23,652,215.86 in the previous period[39] - Cash flow from financing activities net amount was 42,609,344.50, a decline from 187,329,622.96 in the previous period, indicating reduced financing activity[39] Shareholder Information - The total number of shareholders reached 45,116 at the end of the reporting period[13] - The largest shareholder, Henan Lingrui Group Co., Ltd., holds 14.91% of the shares, totaling 53,267,820 shares[13] - The company's major shareholders have committed to not transferring their shares for 36 months following the issuance of new shares[21] Operational Costs - Total operating costs amounted to ¥178,232,994.96, up from ¥157,484,682.83, reflecting a growth of 13.1%[33] - Sales expenses increased by 31.34% to ¥65,718,984.90 compared to the same period last year[17] - Cash outflow for other operating activities was 68,566,898.28, up from 40,254,793.89 in the previous period, indicating increased operational costs[41] Legal and Compliance - The company has ongoing litigation against investors for breach of contract regarding unpaid subscription funds, with a penalty of 15% of the total subscription amount being sought[20] - The company anticipates a significant decrease in cumulative net profit compared to the same period last year due to the previous year's gains from the sale of available-for-sale financial assets[22] Investment and Growth - The company has ongoing investments in new technologies and market expansion strategies, although specific figures were not disclosed in the call[33]

Dividend and Share Capital - The company plans to distribute a cash dividend of 1.50 RMB per 10 shares, totaling 53,590,036.35 RMB, based on a total share capital of 357,266,909 shares as of December 31, 2013[5]. - The company will increase its share capital by 5 shares for every 10 shares held, resulting in a new total share capital of 535,900,364 shares[5]. - The company plans to distribute cash dividends of 1.00 RMB per 10 shares, totaling 22,905,793.90 RMB for the year 2012, which represents 53.95% of the net profit attributable to shareholders[70]. - The company will issue 5 bonus shares for every 10 shares held, based on a total share capital of 229,057,939 shares after the non-public offering[70]. - The company's total share capital increased to 343,586,909 shares after a capital reserve conversion plan, distributing a cash dividend of 1.00 CNY per 10 shares[96]. Financial Performance - The company achieved operating revenue of CNY 686,974,842.83, a year-on-year increase of 22.09%[24]. - Net profit attributable to shareholders reached CNY 105,367,058.23, reflecting a significant growth of 148.19% compared to the previous year[24]. - The basic earnings per share increased to CNY 0.30, up 114.29% from CNY 0.14 in the previous year[25]. - The total assets of the company amounted to CNY 1,648,124,060.76, representing a growth of 27.33% year-on-year[24]. - The company reported a net profit of CNY 105,367,058.23 for the year, compared to a loss in the previous year, indicating a strong recovery[181]. - The total equity attributable to shareholders increased to CNY 696,968,465.33, up from CNY 409,049,369.54 in the previous year, showing a growth of approximately 70.4%[180]. Cash Flow and Investments - The company reported a net cash flow from operating activities of CNY 127,269,669.71, a substantial increase of 724.59% compared to the previous year[24]. - The total cash flow from financing activities was CNY 209,650,825.74, a significant increase of 932.98% compared to CNY 20,295,787.73 in the previous year[37]. - The company’s investment activities resulted in a net cash outflow of CNY 124,456,323.75, reflecting increased long-term asset investments[42]. - The company raised CNY 208,173,654.19 through a private placement of 28,337,939 shares, aimed at funding the expansion of its oral drug production base[33]. - The company raised CNY 262,483,254.19 from new investments during the year, contributing to its financing activities[177]. Research and Development - The company’s R&D expenditure totaled CNY 28,443,437.18, accounting for 4.14% of operating revenue, with a year-on-year growth of 7.99%[41]. - The company is focusing on product research and development, aiming to expedite the approval of new products such as the thermal adhesive patch[65]. - The company aims to enhance its research and development capabilities to drive innovation in its product offerings[198]. Market and Product Development - The company successfully launched the fentanyl (framework type) transdermal patch in October, expanding its product line[33]. - The company developed new products including hand warmers and waist protectors, enhancing its product portfolio for future growth[33]. - The company’s sales in the Xinyang branch maintained a growth rate of over 20% despite external policy adjustments[32]. - The company has established partnerships with universities for research and development, enhancing its innovation capabilities in the pharmaceutical sector[50]. - The company has identified basic drug sales as a key area for marketing improvement, with products entering the national essential drug list[65]. Corporate Governance and Compliance - The company has received a standard unqualified audit opinion from Da Hua Certified Public Accountants[5]. - The company’s financial report is guaranteed to be true, accurate, and complete by its responsible persons[4]. - The company has not faced any penalties or criticisms from the China Securities Regulatory Commission during the reporting period[89]. - The company ensures timely, accurate, and complete information disclosure, complying with relevant laws and regulations[130]. - The board of directors has established four specialized committees: strategy, nomination, audit, and remuneration and assessment, with clear responsibilities[131]. Risks and Challenges - The company emphasizes the risks associated with forward-looking statements in its annual report[6]. - The company faces risks from drug price reductions and raw material price fluctuations, particularly affecting traditional Chinese medicine production costs[67]. - The company anticipates increased competition due to the implementation of drug procurement tenders and medical insurance cost control measures starting in 2014[67]. - The pharmaceutical industry in China is experiencing a slowdown due to various macroeconomic factors, but the company remains optimistic about future growth opportunities[63]. Employee and Management - The company employed a total of 1,901 staff, including 762 production personnel, 669 sales personnel, and 259 technical personnel[125]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to CNY 4.6158 million[123]. - The company maintains a competitive salary level compared to peers in the industry and regularly adjusts it to ensure competitiveness[125]. - The company has established a fair and transparent performance evaluation and incentive mechanism for senior management, with annual assessments based on actual performance[142]. Social Responsibility - The company actively engages in social responsibility initiatives, including poverty alleviation and environmental protection efforts[71]. - The company has implemented comprehensive technical upgrades to enhance production quality and ensure compliance with GMP standards[71].