Financial Performance - In 2021, the company achieved operating revenue of RMB 15.904 billion, a year-on-year increase of approximately 17.62%[15] - The net profit attributable to shareholders of the listed company was RMB 1.328 billion, representing a year-on-year growth of about 18.57%[15] - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 1.225 billion, with a year-on-year increase of approximately 26.72%[15] - The company's operating revenue for 2021 was approximately CNY 15.90 billion, representing a year-on-year increase of 17.62% compared to CNY 13.52 billion in 2020[40] - The net profit attributable to shareholders for 2021 was approximately CNY 1.33 billion, an increase of 18.57% from CNY 1.12 billion in 2020[40] - The basic earnings per share for 2021 was CNY 0.6864, reflecting a growth of 19.31% compared to CNY 0.5753 in 2020[41] - The total assets of the company at the end of 2021 were approximately CNY 31.10 billion, a 10.47% increase from CNY 28.16 billion at the end of 2020[40] - The net cash flow from operating activities for 2021 was approximately CNY 2.56 billion, a decrease of 15.27% from CNY 3.02 billion in 2020[40] - The company reported a weighted average return on equity of 11.50% for 2021, an increase of 1.09 percentage points from 10.41% in 2020[41] - The company's net assets attributable to shareholders at the end of 2021 were approximately CNY 11.82 billion, a 6.53% increase from CNY 11.10 billion at the end of 2020[40] Research and Development - Research and development investment increased significantly from RMB 609 million in 2016 to RMB 1.850 billion in 2021, tripling over five years[17] - The company is advancing the development of the recombinant novel coronavirus fusion protein vaccine (V-01) and is actively promoting its market launch[18] - The establishment of the Health元 Biopharmaceutical Research Institute in 2021 created six major R&D platforms, enhancing the company's innovation capabilities[18] - The company’s R&D pipeline saw major advancements, with multiple innovative drugs completing Phase III clinical trials, including Tobramycin inhalation solution and Triptorelin acetate microspheres[50] - The company established strategic partnerships to leverage AI technology in synthetic biology, enhancing its innovation capabilities and product pipeline[51] - The company is focusing on innovative research and development, particularly in inhalation delivery and antibody technology, to enhance its competitive edge[75] - The company has a diverse pipeline of drugs, including treatments for prostate cancer and type 2 diabetes, showcasing its broad therapeutic focus[150] - The company aims to enhance its R&D capabilities and become a leading innovative pharmaceutical enterprise in China[117] - The total R&D investment for the reporting period was CNY 184,981.56 million, an increase of 46.75% year-on-year, representing 11.63% of total revenue[156] - The company's R&D investment accounted for 9.17% of total net assets, indicating a strong commitment to innovation[156] Marketing and Sales Strategy - The company is shifting towards digital marketing, exemplified by the "Who is the Strongest Lung" challenge on Douyin, aiming to enhance patient engagement and education[19] - The company’s marketing strategy included a strong emphasis on digital marketing through platforms like Douyin and WeChat, improving brand visibility and patient engagement[53] - The sales team will enhance its capabilities and expand its coverage, focusing on key hospitals and improving brand recognition through digital marketing strategies[187] - The company will deepen marketing reforms in the health food and OTC segments, leveraging digital marketing to enhance brand visibility and user engagement[189] - The company reported a significant increase in sales from prescription drugs, driven by the successful launch of three inhalation products selected for national procurement[187] Social Responsibility and Community Engagement - In 2021, the company donated approximately RMB 10 million in cash and RMB 10 million worth of medicines to aid disaster relief efforts in Henan Province[21] - The company emphasizes its commitment to social responsibility and aligns its strategies with national development plans, particularly the "Healthy China" initiative[21] - The company has actively engaged in collaborations with partners like Lizhu Group to enhance its public health initiatives[20] - The company is committed to fulfilling its social responsibilities in the context of the pandemic[200] Product Development and Innovation - The company is focused on developing next-generation product matrices to further strengthen its market position and future growth prospects[22] - The company has successfully bid for three inhalation products in the fifth batch of national centralized procurement, making quality domestic inhalation preparations more accessible to the public[20] - The company aims to accelerate the launch of the Tobramycin inhalation solution and plans to enter the national medical insurance list in 2022[186] - The company is in the clinical stage for several key products, including the recombinant COVID-19 vaccine and humanized anti-PD-1 monoclonal antibody for late-stage solid tumors[145] - The company is actively pursuing regulatory approvals for multiple drugs to enhance its market presence[146] Financial Investments and Acquisitions - The company has initiated a new round of secondary market repurchase amounting to RMB 300 million to RMB 600 million, reflecting confidence in its intrinsic value[16] - The company made a strategic investment of RMB 724 million to acquire a 40% stake in Tianjin Tongrentang, enhancing its presence in the traditional Chinese medicine sector[164] - The company invested RMB 20 million in Beijing Yingfeizhi Pharmaceutical Technology Co., acquiring an 11.76% stake, focusing on AI-enabled drug design[169] Challenges and Market Risks - The company faces market risks due to intensified competition and price reductions in the pharmaceutical industry, leading to potential price wars[195] - The company acknowledges the high risks associated with new drug development and aims to strengthen its R&D innovation system and market evaluation processes[198] - The company has been impacted by the COVID-19 pandemic, with a decline in hospital visits affecting product sales, but vaccination efforts are ongoing[199] - Future impacts will depend on global pandemic control measures, duration, and the company's response[200] Operational Efficiency and Management - The company implemented a refined management structure to enhance operational efficiency and risk control, establishing five management centers[56] - In 2022, the company plans to enhance organizational structure and internal control to improve management efficiency and promote lean management[191] - The company is actively managing raw material supply risks by selecting qualified suppliers and conducting thorough audits to ensure product quality[197]

Group 1: Event Details - Health元药业集团 will participate in the "Communicating Value, Creating a Good Ecosystem" online investor reception day on November 30, 2021, from 14:00 to 17:00 [2] - The event will be hosted on the online platform provided by Shenzhen Panorama Network Co., Ltd., allowing investors to join via the "Panorama Roadshow" website or WeChat [2] Group 2: Company Representatives - The company's representatives, including Mr. Qiu Qingfeng (Vice President and CFO) and Mr. Zhao Fongguang (Vice President and Board Secretary), will engage with investors through online text communication [2] - The company encourages widespread participation from investors during the event [2] Group 3: Commitment to Transparency - The Board of Directors of Health元药业集团 guarantees the announcement's content is free from false records, misleading statements, or significant omissions, taking individual and joint responsibility for its authenticity, accuracy, and completeness [2]

Financial Performance - In 2020, the net profit of the parent company reached RMB 581,215,613.09, with a legal surplus reserve of 10% amounting to RMB 58,121,561.31[5] - The total distributable profit for the year was RMB 564,932,141.19, with a proposed cash dividend of RMB 1.50 per 10 shares[5] - The company reported a retained earnings balance of RMB 316,018,713.39 at the end of the year[5] - The company's operating revenue for 2020 was CNY 13.52 billion, an increase of 12.87% compared to CNY 11.98 billion in 2019[25] - The net profit attributable to shareholders for 2020 was CNY 1.12 billion, representing a growth of 25.28% from CNY 894.35 million in 2019[25] - The net cash flow from operating activities reached CNY 3.02 billion, up 30.81% from CNY 2.31 billion in the previous year[25] - The total assets of the company at the end of 2020 were CNY 28.16 billion, reflecting a 10.69% increase from CNY 25.44 billion in 2019[25] - The weighted average return on equity increased to 10.41% in 2020, up from 8.98% in 2019, indicating improved profitability[26] - The company reported a net profit of RMB 581,215,613.09 for the 2020 fiscal year, after accounting for a 10% legal surplus reserve[181] Risks and Compliance - There were no significant risks that materially affected the company's operations during the reporting period[7] - The company has not engaged in non-operational fund occupation by controlling shareholders or related parties[7] - The company has maintained compliance with decision-making procedures regarding external guarantees[7] - The report includes a forward-looking statement risk disclaimer, indicating that future plans do not constitute a commitment to investors[6] - The company has outlined various risks it may face, including industry policy risks and market risks, in the operational discussion section[9] - The company is committed to addressing policy risks by closely monitoring industry dynamics and enhancing its R&D efforts to meet regulatory requirements[168] Research and Development - The company focuses on innovative drugs and high-barrier complex formulations, enhancing its R&D in respiratory, psychiatric, and oncology products[40] - The company has made significant investments in R&D, enhancing its competitive edge through the introduction of experienced professionals and innovative talent[47] - The company’s R&D investment totaled RMB 126,052.67 million, an increase of 18.25% year-on-year, representing 9.32% of total operating revenue and 6.55% of total net assets, which is relatively high compared to industry peers[135] - The company has prioritized several products for expedited review, including injectable dantrolene sodium and budesonide inhalation suspension, to accelerate market entry[137] - The company is committed to research and development in the field of biopharmaceuticals, with a focus on innovative therapies for severe diseases[128] Product Development and Market Strategy - The company has launched new products such as "舒坦琳" and "丽舒同" to expand its inhalation preparation product line[34] - The company aims to become a leading player in the domestic inhalation preparation market with a growing product line[34] - The company is actively expanding its online sales channels and collaborating with new social e-commerce platforms to boost sales[109] - The company is transitioning from bulk raw materials to high-end specialty raw materials and from domestic to international markets[106] - The company has established a digital expansion department to enhance its digital marketing platform and brand building efforts[66] Corporate Governance and Shareholder Relations - The company has a cash dividend policy that ensures at least 10% of the distributable profit is allocated for cash dividends each year[179] - The company is committed to maintaining a stable and continuous profit distribution policy to ensure reasonable returns for investors[179] - The actual controller and shareholders committed to not engaging in any business that competes with the company, ensuring no direct or indirect competition in the same industry[189] - The commitments are intended to last indefinitely, ensuring long-term protection against competitive conflicts[189] - The company will strictly adhere to the regulations regarding the use of raised funds from the share issuance, ensuring dedicated accounts and personnel for fund management[191] Sales and Marketing - The company has established 28 provincial branches and 129 offices nationwide, maintaining long-term partnerships with approximately 102 primary distributors, covering over 190,000 terminal points[142] - The sales expenses for market promotion and advertising were RMB 347,602.29 million, representing 88.22% of total sales expenses[145] - The company employs a direct sales model for raw materials and intermediates, primarily targeting large manufacturing enterprises, with exports to nearly 40 countries and regions[140] - The company aims to optimize its sales channels and improve expense efficiency to enhance profitability in the future[147] Financial Management - The total cost of materials was 3,089.08 million yuan, which constituted 63.38% of the total costs, up from 60.53% the previous year[82] - The total sales expenses were 3,940.34 million yuan, showing a slight decrease of 0.55% compared to the previous year[87] - The company reported a decrease in depreciation expenses by 16.96%, totaling 276.18 million yuan[82] - The company’s total assets at the end of the reporting period included CNY 28,328,748.72 in trading financial assets, which increased by 56.30% from the previous period[96] Strategic Partnerships and Investments - The company invested RMB 70,091,000 to acquire a 7.82% stake in Jiangsu New Element Pharmaceutical Technology Co., Ltd., focusing on innovative drug development for metabolic diseases and tumors[149] - The company signed an investment agreement with Jiangsu Baining Yingchuang Medical Technology Co., Ltd., investing RMB 30 million for a 10% stake in the company, which specializes in high-end medical devices[152] - The company plans to invest RMB 64,600 million in the overall relocation and expansion project of Sichuan Guangda Pharmaceutical, with government subsidies totaling RMB 9,855 million received[150] Stock Options and Incentives - The company has a stock option incentive plan initiated in 2018, with a total of 11,724,000 options available for exercise during the first exercise period[198] - As of March 31, 2020, the cumulative number of exercised options reached 8,887,186 shares, accounting for 75.80% of the total options available for the first exercise period[198] - The company adjusted the exercise price of the stock options due to profit distribution, with the first grant price adjusted to RMB 7.89 per share and the reserved grant price adjusted to RMB 10.31 per share[198] - The company’s stock option incentive plan has undergone several adjustments and approvals throughout 2020, reflecting its strategic focus on employee incentives and retention[199]