Financial Performance - The company's operating revenue for the first half of 2018 reached ¥2,403,870,112.11, representing a 37.14% increase compared to ¥1,752,831,341.08 in the same period last year[19]. - The net profit attributable to shareholders for the first half of 2018 was ¥617,532,953.05, up 42.55% from ¥433,198,861.81 in the previous year[19]. - The net profit after deducting non-recurring gains and losses was ¥605,144,106.26, reflecting a 45.15% increase from ¥416,898,055.68 in the same period last year[19]. - Basic earnings per share for the first half of 2018 were ¥1.02, a 41.67% increase from ¥0.72 in the same period last year[20]. - The weighted average return on equity increased to 14.00%, up 2.32 percentage points from 11.68% in the previous year[20]. - The company reported a total operating cost of ¥1,706,600,623.81, which is a 33.7% increase from ¥1,276,303,767.89 in the previous year[131]. - Total comprehensive income for the first half of 2018 was ¥538,058,161.20, compared to ¥420,509,936.89 in the previous year, marking a 27.9% increase[131]. - The company reported a significant decrease in investment income by CNY 315.66 million due to the absence of continued disposals of equity in Tai'er Technology[58]. Assets and Liabilities - The company's total assets increased by 8.09% to ¥6,105,072,280.02 from ¥5,648,277,442.58 at the end of the previous year[19]. - Total liabilities decreased by 32.23% in accounts payable, which stood at 23,270.12 million CNY, up from 16,165.25 million CNY[67]. - The company's total equity investments decreased by 48.50%, from 22,538.00 million CNY to 11,608.15 million CNY[71]. - The company's cash and cash equivalents were restricted due to various guarantees and pledges, totaling 879.73 million CNY[70]. - Total current assets increased to ¥4,708,937,936.97 from ¥4,218,171,847.70, representing a growth of approximately 11.6%[123]. Cash Flow - The company reported a net cash flow from operating activities of -¥62,872,232.92, a significant decrease of 114.12% compared to ¥445,169,044.05 in the same period last year[19]. - The cash flow from operating activities was impacted by a significant increase in cash payments for goods and services, totaling ¥394,220,180.25, compared to ¥182,039,167.38 in the previous period[138]. - The net cash flow from operating activities for the first half of 2018 was ¥136,055,766.04, a decrease of 71.5% compared to ¥476,763,144.24 in the same period last year[138]. Market and Product Development - The company is actively expanding its health and wellness product lines, including health foods and cosmetics, to diversify its offerings[23]. - The company is focused on enhancing its market presence through strategic partnerships and potential acquisitions in the health sector[23]. - The company has launched 29 research projects related to pharmacology, toxicology, and clinical standards, focusing on the modernization of traditional Chinese medicine[48]. - The company is exploring potential mergers and acquisitions to strengthen its market position[126]. Quality and Compliance - The company adheres to strict quality management protocols in production, ensuring that raw materials and finished products undergo rigorous quality inspections[24]. - The company is committed to maintaining product quality by adhering to GMP standards and enhancing environmental protection measures[83]. - The company has implemented a "Quality Strong Enterprise" strategy to improve management systems and ensure high-quality development[49]. Strategic Initiatives - The establishment of the National Healthcare Security Administration in 2018 is expected to unify pricing standards and enhance cost control in the pharmaceutical industry[31]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[58]. - The company is committed to implementing targeted poverty alleviation efforts, aligning with national and local policies[99]. Research and Development - The company has been recognized as a national high-tech enterprise and has established a research institute to enhance its R&D capabilities, focusing on traditional Chinese medicine and biopharmaceuticals[42]. - The company aims to enhance its product innovation by establishing the "Pianzaihuang Pharmaceutical Research Institute" and expanding its research capabilities[48]. Environmental Responsibility - The company has implemented environmental protection measures, with wastewater treatment facilities achieving compliance with national standards[106]. - The company reported a wastewater discharge of approximately 1.3 tons with a COD concentration of 88 mg/L, meeting the required standards[107]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 67,291[114]. - The largest shareholder, Zhangzhou Jiulongjiang Group Co., Ltd., held 349,455,750 shares, representing 57.92% of total shares[116]. - The company reported no changes in the number of restricted shares or any new strategic investors among the top ten shareholders[118]. Legal and Regulatory Matters - The company is involved in a significant lawsuit seeking RMB 98 million in damages for trademark infringement and unfair competition against Xiamen Traditional Chinese Medicine Factory and others[90]. - The company has reported no major litigation or arbitration matters during the reporting period[91].

本公告所载2018年半年度主要财务数据为初步核算数据，未经会计师事务 所审计，具体数据以漳州片仔癀药业股份有限公司（以下简称"公司"）2018年半 年度报告中披露的数据为准，敬请投资者注意投资风险。 一、2018年半年度主要财务数据和指标 单位：人民币万元 | 项 目 | 本报告期 | 上年同期 | 增减变动幅度 | | | --- | --- | --- | --- | --- | | | | | （％） | | | 营业总收入 | 240,406.33 | 175,283.13 | | 37.15 | | 营业利润 | 72,750.59 | 51,072.86 | | 42.44 | | 利润总额 | 72,209.30 | 50,850.48 | | 42.00 | | 归属于上市公司股东的净利润 | 61,894.20 | 43,319.89 | | 42.88 | | 归属于上市公司股东的扣除 非经常性损益的净利润 | 60,676.20 | 41,689.81 | | 45.54 | | 基本每股收益（元） | 1.03 | 0.72 | | 43.06 | | 加权平均净资产收益率 | 14. ...

Financial Performance - Net profit attributable to shareholders rose by 44.07% to CNY 326,118,301.78 year-on-year[5] - Operating revenue increased by 42.06% to CNY 1,222,189,418.52 compared to the same period last year[5] - Basic earnings per share increased by 42.11% to CNY 0.54[5] - The weighted average return on equity increased by 1.33 percentage points to 7.61%[5] - The company achieved operating revenue of 122,218.94 million yuan in Q1 2018, an increase of 36,186.91 million yuan or 42.06% compared to Q1 2017[13] - Operating profit for the quarter was ¥383,327,203.79, representing a 46.5% increase compared to ¥261,571,462.10 in Q1 2017[25] - The company reported a total comprehensive income of ¥302,216,434.14, up 37.0% from ¥220,577,172.18 in the same quarter last year[26] Assets and Liabilities - Total assets increased by 7.67% to CNY 6,081,749,590.65 compared to the end of the previous year[5] - Total current liabilities increased to ¥1,283,639,621.30 from ¥1,151,442,124.22, representing an increase of approximately 11.5%[21] - Total assets reached ¥4,690,400,706.27, up from ¥4,336,618,942.24, indicating a growth of about 8.2%[23] - Total liabilities amounted to ¥1,350,969,149.30, up from ¥1,223,043,435.38, which is an increase of about 10.4%[21] - Total equity increased to ¥4,730,780,441.35 from ¥4,425,234,007.20, showing a growth of approximately 6.9%[21] Cash Flow - Cash flow from operating activities decreased by 12.80% to CNY 241,767,161.18 compared to the previous year[5] - The net cash flow from operating activities for the first quarter of 2018 was ¥266,259,836.94, slightly down from ¥270,121,072.38, a decrease of 1.4%[31] - Cash flow from financing activities generated a net inflow of ¥63,823,718.81, compared to a net outflow of ¥303,929,183.31 in the previous period[30] - The total cash and cash equivalents at the end of the period increased to ¥1,901,419,693.29 from ¥1,266,467,718.98, marking a rise of 50%[30] Expenses - Operating costs for the period were 65,404.40 million yuan, up 17,893.88 million yuan or 37.66% year-on-year, primarily due to increased sales in the pharmaceutical industry[14] - The company reported a significant increase in sales expenses, totaling 10,835.94 million yuan, which is an increase of 3,451.15 million yuan or 46.73% year-on-year, driven by business expansion efforts[14] - The company’s tax and additional charges amounted to 1,440.67 million yuan, an increase of 443.30 million yuan or 44.45% year-on-year, attributed to higher sales revenue[14] - Financial expenses surged to 248.03 million yuan, reflecting a 381.42% increase due to higher bank borrowings and interest expenses[15] Investment and Other Income - The company recorded a decrease in investment income to 345.58 million yuan, down 542.07 million yuan or 61.07% compared to the previous year[16] - Investment income decreased to ¥3,455,808.02 from ¥8,876,482.48, a decline of 61.0% year-over-year[25] - Other comprehensive income decreased to ¥98,519,441.43 from ¥121,780,899.20, indicating a decline of approximately 19.1%[21] - Other comprehensive income after tax was -¥23,362,765.33, compared to ¥1,089,664.59 in Q1 2017, indicating a significant decline[25]

Financial Performance - The company's operating revenue for 2017 reached CNY 3,713,953,975.95, representing a 60.85% increase compared to CNY 2,308,954,269.71 in 2016[20] - The net profit attributable to shareholders of the listed company was CNY 807,018,675.04, a 50.53% increase from CNY 536,131,906.97 in the previous year[20] - The basic earnings per share for 2017 was CNY 1.34, up 50.56% from CNY 0.89 in 2016[21] - The total assets of the company at the end of 2017 were CNY 5,648,277,442.58, reflecting a 12.12% increase from CNY 5,037,818,928.88 at the end of 2016[20] - The net cash flow from operating activities for 2017 was CNY 676,933,316.36, an increase of 71.58% compared to CNY 394,537,198.88 in 2016[20] - The company's total equity attributable to shareholders increased to CNY 4,136,041,636.83, an 18.40% rise from CNY 3,493,402,147.91 in 2016[20] - The weighted average return on equity for 2017 was 21.16%, an increase of 4.96 percentage points from 16.20% in 2016[21] - The total profit reached CNY 941.56 million, reflecting a growth of CNY 332.35 million or 54.55% year-on-year[55] - Net profit for the period was CNY 780.43 million, up CNY 273.61 million or 53.99% from the previous year[55] Dividend Distribution - The company plans to distribute a cash dividend of CNY 4.30 per 10 shares, totaling CNY 259,426,400.30, which accounts for 32.15% of the net profit attributable to shareholders[5] - The cash dividend distribution plan for 2017 is subject to approval at the annual shareholders' meeting[140] - For the year 2016, the cash dividend was 2.70 RMB per 10 shares, amounting to 162,895,646.70 RMB, accounting for 30.38% of the net profit attributable to shareholders[143] - The company’s cash dividend for 2015 was 3.50 RMB per 10 shares, totaling 140,774,015.56 RMB, which was 30.17% of the net profit attributable to shareholders[143] Operational Highlights - The company's total revenue for the year was approximately RMB 3.71 billion, with quarterly revenues of RMB 860.32 million, RMB 892.51 million, RMB 991.86 million, and RMB 969.26 million respectively[24] - The net profit attributable to shareholders for the year was RMB 780.43 million, with quarterly figures of RMB 226.37 million, RMB 206.83 million, RMB 241.51 million, and RMB 132.31 million[24] - The gross profit margin for the year was 43.26%, with quarterly margins of 44.78%, 43.44%, 41.63%, and 43.43%[24] - Operating cash flow for the year was negative in the fourth quarter at RMB -31.08 million, while the first three quarters had positive cash flows of RMB 277.27 million, RMB 167.90 million, and RMB 262.84 million[24] Research and Development - The company’s R&D expenditure was CNY 69.90 million, representing a 4.42% increase from CNY 66.95 million in the previous year[58] - The company has initiated 21 research projects related to pharmacology, toxicology, and clinical applications for Pianzaihuang, further solidifying its application evidence[51] - The company is focusing on modernizing Pianzaihuang, with a strategic plan that includes treatment for liver diseases and tumors, as well as immune regulation[51] - The company is actively pursuing the development of new health products and improving quality standards for its existing products[101] - The company is currently developing several new drugs, including a new analgesic in preclinical research and a drug for irritable bowel syndrome in Phase II clinical trials[104] Market Strategy - The company is actively expanding its product line to include health and wellness products, in addition to its core pharmaceutical offerings[32] - The company has established over 100 experience halls to enhance brand recognition and customer loyalty, covering major tourist areas and commercial districts[38] - The domestic sales model includes regional distribution, experience halls, and VIP sales targeting high-end customers, enhancing market penetration[37] - The company is focusing on the secondary development of its core product, Pientzehuang, and expanding its product line to include health products[98] Risk Management - The company has disclosed potential risks in its operations, which are detailed in the report[7] - The company faces risks from policy changes, particularly regarding tax rates and regulatory pressures in the pharmaceutical industry[136] - The company emphasizes strict adherence to quality and environmental standards to mitigate production risks[137] - The company is actively monitoring investment projects to reduce investment risks and enhance returns[139] Corporate Governance - The company appointed Fujian Huaxing Accounting Firm as its auditor for the 2017 fiscal year, with an audit fee of RMB 800,000[150] - The company has maintained a good integrity status during the reporting period, with no significant debts or court judgments unfulfilled[152] - The company has not disclosed any new employee stock ownership plans or other incentive measures during the reporting period[153] - The company’s major related party transactions were approved at the annual shareholders' meeting, with specific directors recusing themselves from voting[154] Social Responsibility - The company actively participates in social responsibility initiatives, including donations to local charities and support for community development[180] - The company has a commitment to continue its social responsibility efforts and improve its poverty alleviation strategies in the future[184] - The company reported a total of 490.30 million RMB invested in poverty alleviation efforts in 2017, helping 8 registered impoverished households to escape poverty[182] - The company engaged in 2 industrial poverty alleviation projects with an investment of 29 million RMB, contributing to local economic development[183]

Financial Performance - Total operating revenue for 2017 reached RMB 372,717.55 million, a year-on-year increase of 61.42%[2] - Operating profit increased by 49.56% to RMB 91,007.22 million, while total profit rose by 50.58% to RMB 91,737.79 million[2] - Net profit attributable to shareholders was RMB 79,055.17 million, reflecting a growth of 47.45% compared to the previous year[2] - The net profit attributable to shareholders after deducting non-recurring gains and losses increased by 45.73% to RMB 76,131.76 million[2] - Basic earnings per share rose by 47.19% to RMB 1.31[2] Assets and Equity - Total assets at the end of the reporting period were RMB 560,696.80 million, an increase of 11.30% from the beginning of the period[3] - Shareholders' equity attributable to the parent company increased by 17.96% to RMB 412,075.35 million[3] Revenue Drivers - The increase in revenue was primarily driven by sales growth of the main product series, with additional revenue of RMB 1,071 million from the subsidiary Xiamen Pianzaihuang Hongren Pharmaceutical Co., Ltd.[4] Non-recurring Items - Non-recurring gains and losses increased by 112.88%, mainly due to the disposal of shares in Fujian Taier Technology Co., Ltd., impacting the current period's profit by approximately RMB 21.32 million[4] Cautionary Note - The company warns that the financial data for 2017 is preliminary and has not been audited, urging investors to be cautious[6]

Financial Performance - The net profit attributable to shareholders for 2017 is expected to increase by CNY 214.45 million to CNY 321.68 million, representing a year-on-year growth of 40% to 60%[2] - The increase in profit is primarily driven by sales growth of the company's products[5] - After excluding non-recurring gains, the net profit attributable to shareholders is expected to rise by CNY 196.13 million to CNY 303.36 million, reflecting a year-on-year growth of 38% to 58%[3] - The net profit for the same period last year was CNY 536.13 million, with a net profit excluding non-recurring gains of CNY 522.40 million[4] - Earnings per share for the previous year was CNY 0.89[4] Non-Recurring Gains - Non-recurring gains are expected to increase by 133.41% year-on-year, mainly due to the disposal of shares in Fujian Tai'er Technology Co., Ltd., impacting current profits by approximately CNY 21.32 million[2] Forecast Accuracy - There are no significant uncertainties affecting the accuracy of this earnings forecast[6] - The above forecast data is preliminary and subject to final audited financial results[7]

片仔癀 2017 年第三季度报告 公司代码：600436 公司简称：片仔癀 漳州片仔癀药业股份有限公司 2017 年第三季度报告 福建·漳州 二 0 一七年十月二十七日 1 / 22 | 一、 | 重要提示 | 3 | | --- | --- | --- | | 二、 | 公司基本情况 | 3 | | 三、 | 重要事项 | 6 | | 四、 | 附录 | 11 | 片仔癀 2017 年第三季度报告 一、 重要提示 二、 公司基本情况 2.1 主要财务数据 单位：元 币种：人民币 本报告期末 上年度末 本报告期末比上年度末增 减(%) 总资产 5,486,720,773.10 5,037,818,928.88 8.91 归属于上市公司股东 的净资产 4,037,025,687.97 3,493,402,147.91 15.56 年初至报告期末 （1-9 月） 上年初至上年报告期末 （1-9 月） 比上年同期增减(%) 经营活动产生的现金 流量净额 708,009,148.67 308,854,425.38 129.24 年初至报告期末 （1-9 月） 上年初至上年报告期末 （1-9 月） 比上年同期增减 （% ...

Financial Performance - The company's operating revenue for the first half of 2017 was CNY 1,752,831,341.08, representing an increase of 82.50% compared to the same period last year[17]. - The net profit attributable to shareholders for the same period was CNY 433,198,861.81, up 41.83% year-on-year[17]. - The net cash flow from operating activities reached CNY 445,169,044.05, a significant increase of 139.76% compared to the previous year[17]. - The basic earnings per share for the first half of 2017 was CNY 0.72, reflecting a growth of 41.18% from CNY 0.51 in the same period last year[18]. - The company achieved operating revenue of RMB 1.75 billion, a year-on-year increase of 82.50%[41]. - Operating profit for the current period was ¥505,157,857.19, up 39.5% from ¥361,851,055.05 in the previous period[126]. - Total profit for the current period was ¥508,504,768.06, compared to ¥363,192,154.40 in the previous period, marking an increase of 40%[126]. - The company reported a net loss of RMB 5,200,508 for the first half of 2017, with total revenue of RMB 4,154,819, resulting in a loss per share of 0.69[101]. Assets and Liabilities - The company's total assets at the end of the reporting period were CNY 4,995,800,740.04, a slight decrease of 0.83% from the previous year[17]. - Total liabilities decreased from CNY 1,287,069,933.72 to CNY 984,209,386.60, a reduction of approximately 23.6%[120]. - Current liabilities totaled CNY 907,079,412.07, slightly down from CNY 910,035,359.11, indicating a marginal decrease of 0.2%[120]. - Non-current liabilities significantly decreased from CNY 377,034,574.61 to CNY 77,129,974.53, representing a decline of about 79.6%[120]. - The company's cash and cash equivalents decreased to RMB 1.630 billion from RMB 1.706 billion at the end of the previous year[119]. - The company's inventory increased to RMB 1.188 billion, up from RMB 1.126 billion at the end of the previous year[119]. Investment and Research - Research and development expenses amounted to RMB 21.41 million, a slight decrease of 3.34% year-on-year[41]. - The company has established a "cooperation + no-walled research institute" R&D model to enhance its research capabilities[38]. - The company reported investment income of ¥28,680,142.94, up from ¥6,834,307.02 in the previous period, indicating a strong growth in investment returns[126]. Sales and Marketing - The domestic sales model includes regional distribution, VIP sales, and direct sales through company-owned stores, enhancing market reach and customer engagement[28]. - The VIP sales model targets high-end customers, offering personalized services to increase brand loyalty and sales of the company's products[28]. - The company has established "experience halls" in collaboration with pharmaceutical distribution companies to enhance brand recognition and product sales through interactive experiences[29]. Compliance and Quality Control - The company holds valid drug production and operation licenses, ensuring compliance with regulatory standards[23]. - The company strictly follows production quality management standards, with quality inspection departments monitoring key production stages to ensure product quality[24]. Procurement and Supply Chain - The company's procurement strategy includes a focus on quality and price, with a structured procurement process involving bidding and supplier selection based on market conditions[26]. - The company's main raw materials include musk, ox gall, snake bile, and others, with significant procurement amounts for musk and snake bile, which require specific governmental licenses for procurement[25]. Corporate Governance and Shareholder Information - The company has a total of 59,859 common stock shareholders as of the end of the reporting period[99]. - The largest shareholder, Zhangzhou Jiulongjiang Group Co., Ltd., holds 349,455,750 shares, accounting for 57.92% of the total shares[100]. - The company has not experienced any environmental protection incidents or received administrative penalties during the reporting period[95]. Financial Obligations and Guarantees - The company reported a total guarantee amount of 6,000.00 million RMB for external guarantees, with no overdue guarantees[84]. - The total guarantee amount, including guarantees to subsidiaries, is 2,738.54 million RMB, which represents 0.68% of the company's net assets[84]. - The company has no guarantees provided to shareholders, actual controllers, or their related parties[84]. Strategic Initiatives - The company is actively expanding its product line to include health foods, functional beverages, and cosmetics, in addition to its core pharmaceutical products[23]. - The company has implemented a brand strategy focused on quality and innovation to drive growth[36]. - The company is investing in artificial musk farming to mitigate risks related to the supply and price of raw materials[68]. Legal Matters - The company is involved in a significant lawsuit seeking RMB 98 million in damages for trademark infringement and unfair competition against Xiamen Traditional Chinese Medicine Factory and others[73]. Accounting and Financial Reporting - The company has not made any changes to its accounting policies or estimates during the reporting period[96]. - The company’s financial statements are prepared based on the continuous operation principle, in accordance with relevant accounting standards[146]. - The company recognizes goodwill when the acquisition cost exceeds the fair value of identifiable net assets acquired in a business combination[154].

本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 本公告所载2017年半年度主要财务数据为初步核算数据，未经会计师事务所 审计，具体数据以公司2017年半年度报告中披露的数据为准，提请投资者注意投 资风险。 一、2017年半年度主要财务数据和指标 单位：万元 证券代码：600436 证券简称：片仔癀 公告编号：2017-047 漳州片仔癀药业股份有限公司 2017年半年度业绩快报公告 | 项目 | 本报告期 | 上年同期 | 增减变动幅度 （％） | | --- | --- | --- | --- | | 营业总收入 | 175,353.10 | 96,043.31 | 82.58 | | 营业利润 | 50,352.91 | 36,185.11 | 39.15 | | 利润总额 | 50,687.56 | 36,319.22 | 39.56 | | 归属于上市公司股 东的净利润 | 43,335.53 | 30,543.57 | 41.88 | | 基本每股收益（元） | 0.72 | 0.51 | 41.18 | | ...

Financial Performance - The company's operating revenue for 2016 was CNY 2,308,954,269.71, representing a year-on-year increase of 22.45% compared to CNY 1,885,674,673.52 in 2015[18]. - The net profit attributable to shareholders of the listed company for 2016 was CNY 536,131,906.97, an increase of 14.88% from CNY 466,676,722.67 in 2015[18]. - The cash dividend distribution plan for 2016 is CNY 2.7 per 10 shares, totaling CNY 162,895,646.70, which accounts for 30.38% of the net profit attributable to shareholders[2]. - The basic earnings per share for 2016 was CNY 0.89, reflecting a 15.58% increase from CNY 0.77 in 2015[19]. - The weighted average return on equity for 2016 was 16.20%, an increase of 0.77 percentage points from 15.43% in 2015[19]. - The net cash flow from operating activities for 2016 was CNY 394,537,198.88, up 29.14% from CNY 305,510,311.56 in 2015[18]. - The company's total assets as of December 31, 2016, were CNY 5,037,818,928.88, a 24.24% increase from CNY 4,054,922,388.84 in 2015[18]. - The company's net assets attributable to shareholders at the end of 2016 were CNY 3,493,402,147.91, a 10.71% increase from CNY 3,155,385,463.37 in 2015[18]. Revenue and Profit Analysis - The company's total revenue for the year reached 230,895.43 million RMB, with a significant increase in the fourth quarter revenue to 68,327.61 million RMB, representing a growth compared to previous quarters[22]. - The net profit attributable to shareholders for the fourth quarter was 55,075.18 million RMB, showing a decline from earlier quarters due to increased operating costs and expenses[22]. - The gross profit margin for the year was 48.95%, with a notable drop in the fourth quarter to 35.30% as a result of higher costs associated with the newly acquired pharmaceutical distribution business[23]. - Sales expenses increased significantly in the fourth quarter, totaling 10,257.94 million RMB, driven by sales contract adjustments and increased marketing efforts, including the opening of 36 new experience centers[25]. - The company reported a net cash flow from operating activities of 85,682.77 million RMB in the fourth quarter, indicating strong cash generation despite the profit decline[22]. Market and Product Development - The company has expanded its product line to include health and wellness products, enhancing its market presence beyond traditional pharmaceuticals[33]. - The pharmaceutical industry is experiencing rapid growth, driven by increasing healthcare demands and supportive government policies[39]. - The traditional Chinese medicine sector is a significant part of the pharmaceutical industry, with a strong market presence due to its low side effects and wide availability[40]. - The international market is increasingly recognizing the value of natural medicines, creating a favorable environment for the development of traditional Chinese medicine[40]. - The company aims to expand its business in pharmaceutical circulation, daily chemicals, and health food sectors as part of its "one core and two wings" health development strategy[64]. Research and Development - R&D expenditure increased by 32.70% to CNY 66,945,255.78, reflecting a commitment to innovation and product development[60]. - The company is actively engaged in research and development, collaborating with various research institutions to enhance its product offerings and technological capabilities[49]. - The company has a total of 8 patents for its main product, Pien Tze Huang, with patent protection extending until 2032[2]. - The company is currently conducting clinical trials for a new pain relief drug, with an investment of 671.00 million RMB, and is in the preclinical research phase[101]. - The company plans to expand its product line and enhance its competitiveness in the pharmaceutical industry through ongoing R&D efforts[102]. Operational Costs and Expenses - The company's management expenses for the year totaled 21,758.61 million RMB, with a management expense ratio of 9.42%[23]. - The total main business cost for the company increased by 18.36% to ¥1,176,155.15 million, primarily due to increased sales revenue[69]. - The total operating cost for the year was 2,031.04 million, an increase of 8.81% compared to the previous year[71]. - Sales expenses increased by 65.13% to 274.83 million, primarily due to increased promotional and advertising expenditures[74]. Strategic Initiatives - The company implemented a "one core, two wings" strategy to drive growth in the health industry, focusing on both internal and external resource integration[53]. - The company plans to strengthen sales channels and expand its market presence, focusing on both domestic and overseas markets[141]. - The company intends to integrate high-quality industry resources through mergers and acquisitions to enhance product sales scale[142]. - The company has established partnerships with local governments to facilitate growth, resulting in a 32.15% increase in operational efficiency[168]. Social Responsibility and Community Engagement - The company has actively engaged in poverty alleviation efforts, including building bridges, water projects, and cultural parks in impoverished villages[180]. - The company has a commitment to timely repayment of loans, with specific repayment dates outlined for each loan[176]. - The company has been recognized for its social responsibility initiatives, receiving praise from various sectors of society[180]. Risks and Compliance - The company faces risks from potential drug price reductions due to ongoing healthcare reforms and high raw material costs[143]. - The company has implemented strict GMP regulations to ensure product quality and environmental protection, which are critical for its operations[144]. - The company has maintained a strong focus on regulatory compliance and is closely monitoring drug procurement policies to adapt its sales strategies accordingly[111].