关 于 对 康 美 药 业 股 份 有 限 公 司 2021 年 度 财 务 报 表 出 具 非 标 准 审 计 意 见 审 计 报 告 所 涉 及 事 项 在 2022 年 度 消 除 情 况 的 专 项 说 明 天 职 业 字 [2023]28693-4 号 日 录 2021 年度财务报表出具非标准审计意见审计报告所涉及事项在 2022 年度消除情况的专项 说明— -1 t and the first and the first of the first 关于对康美药业股份有限公司 2021 年度财务报表出具非标准审计意见审计报告 所涉及事项在 2022年度消除情况的专项说明 天职业字[2023]28693-4 号 康美药业股份有限公司全体股东: 我们接受委托,审计了康美药业股份有限公司(以下简称"康美药业"或"公司")2022 年度的财务报表,并出具了标准无保留意见的《审计报告》（天职业字[2023]28693 号）。 康美药业 2021 年度财务报表业经本所审计,并由本所出具了带强调事项段的无保留意见的 《审计报告》（天职业字[2022]25396 号）（以下简称"上期审计报告"）。根据《监管规 则适 ...

Financial Performance - The company reported a net profit of -2,688,674,014.61 CNY for 2022, a decrease of 133.96% compared to the previous year[4]. - Total operating revenue for 2022 was 4,180,150,329.54 CNY, representing a slight increase of 0.67% from 2021[17]. - The net cash flow from operating activities was -749,961,986.24 CNY, a decline of 450.11% compared to the previous year[17]. - As of the end of 2022, the total assets amounted to 15,111,759,138.19 CNY, down 5.87% from the end of 2021[17]. - The company's net assets attributable to shareholders decreased by 30.01% to 6,947,130,703.24 CNY by the end of 2022[17]. - The company plans no profit distribution or capital reserve transfer for 2022[4]. - The company's undistributed profits reached -26,004,732,013.55 CNY by the end of 2022[4]. - The basic earnings per share for 2022 was -0.19 CNY, a decrease of 133.33% compared to 0.57 CNY in 2021[18]. - The diluted earnings per share for 2022 was also -0.19 CNY, reflecting the same percentage decrease of 133.33% from the previous year[18]. - The net profit attributable to shareholders for Q4 2022 was -1,802,903,818.18 CNY, with a total annual net profit of -1,690,774,213.81 CNY across all four quarters[19]. - The operating revenue for Q4 2022 reached 1,458,342,620.92 CNY, contributing to a total annual revenue of approximately 4.18 billion CNY[19]. - The weighted average return on equity for 2022 was -31.87%, an improvement of 88.52% from -120.39% in 2021[18]. - The net cash flow from operating activities for Q4 2022 was -412,997,081.86 CNY, indicating ongoing cash flow challenges[19]. - Non-recurring gains and losses for 2022 totaled -1,180,124,269.62 CNY, significantly impacting the overall financial performance[21]. Business Strategy and Operations - The company is focusing on the traditional Chinese medicine sector, leveraging its integrated operational advantages and strong product quality to capture market opportunities[22]. - The management has implemented strategic adjustments to enhance operational stability and compliance, aiming for sustainable growth in the core business[22]. - The company is committed to innovation and collaboration in the traditional Chinese medicine field, aligning with national health initiatives and increasing consumer demand[22]. - The company signed a strategic cooperation agreement with the government of Dingxi City to promote the healthy development of the traditional Chinese medicine industry, focusing on planting, processing, and storage of medicinal materials[23]. - The company established a new display center for fresh-cut traditional Chinese medicinal materials, which is expected to reduce logistics and procurement costs for pharmaceutical companies by improving quality levels[23]. - The company launched a new version of the "Kangmei Pharmacy Mall" mini-program to provide precise procurement services for wholesale pharmaceutical companies[24]. - The company participated in major trade exhibitions, showcasing its core products such as traditional Chinese medicinal pieces and ginseng, which received widespread recognition[24]. - The company formed seven special working groups to focus on key projects, including resource integration and sales business projects, to achieve its annual strategic goals[27]. - The company improved its internal control system by hiring a third-party consulting firm to optimize and rectify internal control deficiencies, resulting in the creation of the "Kangmei Pharmaceutical Internal Control Manual (2022)"[28]. - The company was recognized as one of the "Stable and Qualified Enterprises" in product quality by a national magazine, enhancing its brand reputation[25]. - The company established a long-term cooperation relationship with Shandong Zhongping Pharmaceutical Co., focusing on standardized planting bases for medicinal materials[24]. - The company’s products received multiple awards, including recognition as "High-tech Products" in Guangdong Province, enhancing its market competitiveness[26]. - The company actively engaged in cultural brand building, aiming to enhance its economic strength through cultural initiatives and value creation[25]. Research and Development - The company has built a 3,000 square meter research and development platform for traditional Chinese medicine, which includes various functional modules for pharmacological research and high-throughput sequencing[34]. - The joint venture company focused on developing traditional Chinese medicine formula granules and health products, resulting in the application of two national standards, with one officially published[35]. - The company launched a new strategic development plan in November 2022, focusing on becoming a leading brand in traditional Chinese medicine with a comprehensive service model[36]. - The traditional Chinese medicine segment is the company's core pillar, with over 1,000 types of products and more than 20,000 specifications currently in production[37]. - The company has verified 113 standard varieties of traditional Chinese medicine (TCM) formula granules, successfully filed 81 varieties, and achieved mass production of 113 varieties with 358 batches as of December 31, 2022[39]. - The company has applied for 84 technology patents, with 56 granted, including 13 invention patents and 43 utility model patents as of December 31, 2022[38]. - The company is committed to improving user data collection to better understand market needs and product effectiveness[88]. - The company is investing heavily in R&D, with a budget increase of 25% for new technology development[138]. Market Expansion and Sales - The company has signed contracts with over 1,000 medical institutions, serving a total of 8.24 million patient visits as of December 31, 2022[38]. - The company has developed a smart pharmacy model that integrates online and offline services, enhancing user experience and optimizing prescription review processes[38]. - The company is actively participating in the revision of national TCM standards and has established multiple industry standards for TCM products[40]. - The company aims to strengthen brand promotion and expand the influence of its proprietary TCM products, focusing on high-demand therapeutic areas[41]. - The company is developing a three-in-one medical and health platform that integrates chain health hospitals, TCM clinics, and rehabilitation departments in collaboration with various medical institutions[42]. - The company has established a nationwide layout of traditional Chinese medicine markets through self-construction and acquisitions, including Anhui Bozhou, Puning, Gansu, and Xining[43]. - The company is transitioning from a single rental and sales model to an integrated operation model, focusing on online and offline integration, with recent strategies including tailored approaches for each market[43]. - The health products segment includes successful development of various ginseng products, with plans to enhance R&D capabilities and expand the product series to meet diverse consumer needs[44]. - The pharmaceutical commercial segment is a major revenue contributor, with a focus on optimizing supply chain management and expanding into high-margin products[45]. - The company is positioned as a leading player in the traditional Chinese medicine industry, with a comprehensive operational model and strong integration capabilities[49]. - The company operates nine production bases across multiple provinces, capable of producing over 1,000 varieties and more than 20,000 specifications of traditional Chinese medicine products[49]. - The company has established strategic partnerships with major e-commerce platforms like Tmall and JD.com, enhancing its online sales presence[54]. - The company has developed 21 high-quality traditional Chinese medicine pieces recognized as high-tech products in Guangdong Province[51]. Corporate Governance and Compliance - The company has implemented a comprehensive internal control system to address deficiencies and enhance risk management[168]. - The company has maintained a strict quality control system, ensuring no major quality safety incidents occurred during the year[170]. - The company achieved ISO management system certifications, including ISO9001, ISO14001, and ISO45001, reinforcing its commitment to quality management[170]. - The company has enhanced financial control by refining financial management systems and improving fund management across subsidiaries[170]. - The company has established a three-in-one mixed performance evaluation system to enhance management performance and align it with organizational goals[168]. - The company has committed to maintaining independence in assets, personnel, finance, governance, and business operations as per the commitment letter from its controlling shareholder[132]. - The company organized independent director and supervisory board field investigations to enhance understanding of subsidiary operations and provide management suggestions[129]. - The company actively communicates with investors to ensure transparency and fairness in information disclosure[131]. - The company has implemented a third-party professional agency to optimize internal control and rectify deficiencies[129]. - The company has proposed to increase the expected amount of daily related transactions for 2022, indicating ongoing operational needs[157]. Social Responsibility - The company invested over CNY 1.4 million in healthcare resources for grassroots regions, enhancing public health services[195]. - The company supported 1,079 registered poor households in Yunnan Province, creating approximately 8,360 job opportunities, with an average annual income increase of CNY 3,000 per person[193]. - The company contributed CNY 697,100 to poverty alleviation and rural revitalization projects, with CNY 600,900 in cash and CNY 96,200 in material donations[191]. - Over 8,300 students from Jieyang were assisted in pursuing higher education through the Jieyang University Student Foundation, promoting local employment and entrepreneurship[194]. - The company plans to leverage its full industry chain advantages in traditional Chinese medicine to further enhance corporate social responsibility and promote local economic development[196]. Legal and Regulatory Issues - The company has a significant legal case involving a financial loan dispute, with a first-instance judgment requiring it to pay approximately 2.82 billion CNY, impacting its net profit for 2022 by 609.16 million CNY[124]. - The company received administrative penalties from the China Securities Regulatory Commission, with fines totaling 2 million yuan for several executives due to inaccurate disclosures[150]. - The Shanghai Stock Exchange publicly reprimanded the company for inaccurate earnings forecasts in 2019 and 2020, leading to disciplinary actions against key executives[150].

Financial Performance - The company's operating revenue for Q1 2023 was CNY 1,143,946,162.37, representing a year-on-year increase of 22.50%[4] - The net profit attributable to shareholders was a loss of CNY 50,408,574.68, and the net profit after deducting non-recurring gains and losses was a loss of CNY 88,901,510.70[4] - The net profit for Q1 2023 was a loss of CNY 49,765,383.27, an improvement from a loss of CNY 111,557,219.71 in Q1 2022[16] - The company reported a net loss attributable to the parent company of CNY -50,409,108.66 for Q1 2023, compared to a loss of CNY -111,422,065.03 in Q1 2022[17] - The net loss for Q1 2023 was CNY -45,278,952.12, compared to a net loss of CNY -35,501,940.53 in Q1 2022, representing a decline of 27.5%[25] Cash Flow - The net cash flow from operating activities was negative at CNY 203,223,900.59[4] - The total cash inflow from operating activities for Q1 2023 was CNY 1,464,558,204.32, compared to CNY 848,235,064.96 in Q1 2022, representing a year-over-year increase of approximately 73%[18] - The net cash outflow from operating activities was CNY -203,223,900.59, slightly worse than the previous year's outflow of CNY -199,492,837.60[19] - The total cash and cash equivalents at the end of Q1 2023 were CNY 1,211,362,848.00, down from CNY 2,133,612,721.59 at the end of Q1 2022, indicating a decrease of approximately 43%[20] - The cash flow from operating activities showed a net outflow of CNY -230,509,616.40, compared to CNY -218,081,164.50 in the same period last year[26] Assets and Liabilities - The company's total assets at the end of the reporting period were CNY 14,800,805,858.96, a decrease of 2.06% compared to the end of the previous year[4] - The total current assets decreased to RMB 7,122,767,014.98 from RMB 7,383,990,388.30, reflecting a decline of about 3.5%[13] - The company's accounts receivable stood at RMB 1,917,105,230.41, down from RMB 1,964,955,319.56, indicating a reduction of approximately 2.4%[13] - The total current liabilities decreased to CNY 5,157,359,239.77 from CNY 5,441,511,537.39 in the previous quarter, reflecting a reduction of approximately 5.2%[15] - The total liabilities decreased to CNY 5,225,963,290.04 from CNY 5,459,104,498.52, a decline of 4.3%[23] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 193,025[7] - The largest shareholder, Guangdong Shennong Enterprise Management Partnership, held 25.31% of the shares, totaling 3,509,413,788 shares[7] - The total equity attributable to shareholders was CNY 6,897,854,467.42, a slight decrease from CNY 6,947,130,703.24 in the previous quarter[15] - The company’s total equity decreased to CNY 11,928,678,270.55 from CNY 11,971,572,385.21, a decline of 0.4%[23] Research and Development - Research and development expenses increased by 141.65% due to higher investment in R&D projects[6] - Research and development expenses for Q1 2023 were CNY 9,486,049.57, significantly higher than CNY 3,925,608.53 in Q1 2022, indicating an increase of about 141.1%[16] - Research and development expenses for Q1 2023 were CNY 4,653,278.58, indicating ongoing investment in innovation[24] Legal and Regulatory Matters - The company has reached an out-of-court settlement regarding the bankruptcy application of its wholly-owned subsidiary, which will allow it to avoid bankruptcy proceedings[10] - The company is in the process of applying to revoke the "other risk warning" status, contingent on the Shanghai Stock Exchange's review[11] - The company has a pending lawsuit involving a financial loan dispute, with a first-instance judgment requiring it to pay approximately RMB 281,989,470.00 in principal and interest[12] Other Financial Metrics - Non-recurring gains and losses totaled CNY 38,492,936.02, with significant contributions from non-current asset disposal gains and government subsidies[5] - The total operating costs for Q1 2023 were CNY 1,230,355,256.52, compared to CNY 1,044,554,905.16 in Q1 2022, indicating an increase of about 17.8%[16] - The deferred tax assets increased to CNY 95,901,705.57 from CNY 40,149,436.75 in the previous quarter, showing a growth of approximately 138.5%[15] - The company reported a financial expense of CNY -4,530,890.08 in Q1 2023, an improvement from CNY -7,088,193.40 in Q1 2022[16]

| 证券代码：600518 | 证券简称：ST康美 | 编号：临2023-014 | | --- | --- | --- | | 债券代码：122354 | 债券简称：15康美债 | | | 债券代码：143730 | 债券简称：18康美01 | | | 债券代码：143842 | 债券简称：18康美04 | | 康美药业股份有限公司 关于召开 2022 年度业绩说明会的公告 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法律责任。 重要内容提示： 会议召开时间：2023 年 05 月 16 日（星期二）上午 10:00-11:30 会议召开地点： 上海证券 交 易 所 上 证 路 演 中 心 （ 网址： http://roadshow.sseinfo.com/） 会议召开方式：上证路演中心视频录播和网络互动 投资者可于 2023 年 05 月 09 日（星期二）至 05 月 15 日（星期一）16:00 前登录上证路演中心网站首页点击"提问预征集"栏目或通过公司邮箱 kangmei@kangmei.com.cn 进行提问。公司将在业绩 ...

Financial Performance - The company reported a net profit of ¥7,917,900,623.78 for the year 2021, a significant recovery from a net loss of ¥31,084,832,430.77 in 2020[6]. - Total operating revenue for 2021 was ¥4,152,521,099.09, representing a decrease of 23.27% compared to ¥5,412,007,961.66 in 2020[21]. - The net cash flow from operating activities decreased by 79.23%, amounting to ¥214,205,102.33 in 2021, down from ¥1,031,392,101.60 in 2020[21]. - The company has a negative retained earnings balance of ¥23,316,057,998.94 as of December 31, 2021[6]. - The company reported a net profit attributable to shareholders after deducting non-recurring gains and losses of -¥7,968,233,252.63 in 2021[21]. - The net assets attributable to shareholders decreased to ¥9,926,555,018.46, down from ¥20,515,274,013.61, representing a decline of 48.39%[23]. - Total assets decreased by 51.83% to ¥16,054,259,253.19 from ¥64,586,228,755.01[23]. - Basic earnings per share improved to ¥0.57 from a loss of ¥2.25 in the previous year, marking a significant recovery[24]. - The weighted average return on net assets increased by 295.77% to -120.39% from -416.16%[24]. - The company reported a total revenue of ¥1,087,761,605.96 in Q1 2021, with a gradual increase in subsequent quarters[26]. - Non-recurring gains and losses totaled ¥15,886,133,876.41 for 2021, significantly impacting the overall financial results[29]. Business Strategy and Operations - The company is focusing on the "Smart Pharmacy 020" platform to enhance its O2O mobile medical model, integrating traditional Chinese medicine with modern technology[31]. - The company is undergoing restructuring, with a new controlling shareholder, Guangdong Shennongshi Enterprise Management Partnership (Limited Partnership)[31]. - The company is implementing a strategy to streamline operations by discontinuing non-core businesses to improve overall efficiency[31]. - The company has signed contracts with hundreds of medical institutions, including major hospitals, to provide quality traditional Chinese medicine services, receiving positive feedback[32]. - The company is focusing on the full industry chain of traditional Chinese medicine, optimizing its business structure, and concentrating resources on core traditional Chinese medicine businesses[35]. - The company has implemented an integrated project for business and financial systems to improve internal controls and ensure the unity of business flow, data flow, and capital flow[36]. - The company has established a modern pharmaceutical logistics system and a multi-level marketing network that integrates medical institutions, smart pharmacies, OTC retail, chain pharmacies, direct sales, e-commerce, and mobile healthcare[62]. - The company has developed a comprehensive marketing network that includes medical institutions, smart pharmacies, OTC retail, chain pharmacies, direct sales, and e-commerce[53]. Research and Development - As of December 31, 2021, the company has applied for 83 technology patents, with 52 granted, including 10 invention patents and 42 utility model patents[33]. - The company has established a 3,000 square meter traditional Chinese medicine research platform, including a 945 square meter experimental animal barrier environment, approved by the Guangdong Provincial Science and Technology Department[34]. - The company has developed key technologies in traditional Chinese medicine, including production and quality control, which are positioned at the forefront of the industry[85]. - The company has 22 ongoing R&D projects, with several products currently under review by the evaluation center[114]. - The company is actively involved in research and development of new formulations, particularly in the areas of respiratory and gastrointestinal health, to enhance its product portfolio[101]. Market Expansion and Product Development - The company is focusing on the development of high-value consumables and small to medium-sized medical devices, gradually expanding into larger equipment[45]. - The company is actively pursuing new strategies for market expansion and product development to drive future growth[77]. - The company plans to expand its market presence, focusing on enhancing its product offerings and exploring new technologies[77]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its product offerings[101]. - The company aims to enhance its distribution channels to reach a broader customer base, particularly in underserved regions[101]. - The company is focusing on expanding its product offerings in the traditional Chinese medicine sector[100]. Financial Management and Governance - The company has improved its financial management structure and implemented strict internal control measures to maintain its operational sustainability and mitigate debt risks[187]. - The company has established a competitive salary and benefits management mechanism, linking employee income to company performance[175]. - The company has emphasized the importance of independent directors in the decision-making process regarding profit distribution[179]. - The company has implemented a unified information system to enhance management efficiency and prevent data leakage risks[184]. - The company has actively communicated with minority shareholders to ensure their rights and interests are protected[179]. Social Responsibility and Community Engagement - The company has directly employed over 56,000 individuals and assisted approximately 30,000 households, benefiting over 2 million farmers through its poverty alleviation initiatives[195]. - The company actively engaged in health poverty alleviation by providing medical services and health education to rural communities, addressing urgent medical needs[196]. - The company has supported over 4,600 students from Jieyang to pursue higher education through its educational assistance programs[197]. - The company plans to enhance its commitment to poverty alleviation by leveraging its health service industry and the entire Chinese medicine supply chain[198].

Financial Performance - Operating revenue for the first nine months decreased by 61.62% to CNY 3.97 billion compared to the same period last year[5] - Net profit attributable to shareholders was a loss of CNY 2.37 billion, a decrease of 7,248.78% compared to the previous year[5] - Basic and diluted earnings per share were both CNY -0.481, a decrease of 6,971.43% compared to the previous year[6] - The weighted average return on equity was -12.18%, a decrease of 12.31 percentage points compared to the previous year[6] - Net profit for the first three quarters of 2020 was ¥519,876,141.85, down 77.8% from ¥2,345,454,899.34 in the same period of 2019[22] - The net profit attributable to shareholders was reported as -¥2,529,304,688.03, compared to -¥157,770,843.74 in the previous year, indicating a significant increase in losses[20] - The company's operating revenue for Q3 2020 was approximately ¥424.09 million, a significant decrease of 76.7% compared to ¥1.82 billion in Q3 2019[27] - The net profit for Q3 2020 was a loss of approximately ¥686.64 million, compared to a loss of ¥45.76 million in Q3 2019, indicating a substantial decline in profitability[28] Assets and Liabilities - Total assets decreased by 4.78% to CNY 61.50 billion compared to the end of the previous year[5] - The company's intangible assets decreased to RMB 1,309,634,875.44, down 35.25% from RMB 2,022,461,560.26 due to the sale of intangible assets[14] - Current liabilities totaled ¥20,149,818,486.94, down from ¥27,823,065,439.44, indicating a reduction of about 27.2%[19] - Long-term borrowings increased significantly to ¥12,558,661,890.34 from ¥2,088,752,629.63, marking a rise of 501.25%[19] - The total liabilities stood at ¥43,200,629,799.67, slightly down from ¥43,935,237,255.88, showing a decrease of about 1.7%[20] - The total number of shareholders at the end of the reporting period was 159,100[9] Cash Flow - Net cash flow from operating activities decreased by 73.14% to CNY 884.69 million compared to the same period last year[5] - The net cash flow from operating activities was RMB 884,689,062.10, a significant decline of 73.14% from RMB 3,293,151,636.86 in the same period last year[14] - Cash inflow from operating activities for Q3 2020 was ¥4.91 billion, a decrease of 56.0% from ¥11.17 billion in Q3 2019[32] - Cash outflow from operating activities for Q3 2020 was ¥4.03 billion, down from ¥7.88 billion in Q3 2019[32] - The net cash flow from financing activities was negative at ¥1.95 billion, an improvement from a negative cash flow of ¥4.53 billion in the same period of 2019[33] Expenses - Operating costs decreased to RMB 3,403,041,526.19, down 47.57% from RMB 6,490,614,926.42 year-on-year, primarily due to the decline in operating revenue[14] - Research and development expenses were RMB 47,833,541.00, a reduction of 30.75% compared to RMB 69,070,659.69 in the previous year[14] - Financial expenses for Q3 2020 amounted to ¥551,463,568.52, a slight decrease from ¥579,960,892.22 in Q3 2019[24] - The company's R&D expenses for Q3 2020 were approximately ¥13.62 million, slightly down from ¥13.98 million in Q3 2019[27] Shareholder Information - The largest shareholder, Kangmei Industrial Investment Holdings Co., Ltd., held 1,618,442,461 shares, with 209,424,083 shares pledged[9] - The total number of preferred shareholders at the end of the reporting period was 8, with the largest shareholder holding 9,000,000 shares, representing 30.00%[11]

Financial Performance - The company's operating revenue for the first half of 2020 was ¥2,516,815,229.20, a decrease of 69.05% compared to the same period last year[15]. - The net profit attributable to shareholders of the listed company was -¥1,423,842,311.97, a decline of 1,765.31% year-on-year[15]. - The net cash flow from operating activities was ¥371,391,310.50, down 83.09% from the previous year[15]. - The total assets at the end of the reporting period were ¥62,424,749,076.40, a decrease of 3.35% compared to the end of the previous year[15]. - The net assets attributable to shareholders of the listed company were ¥19,109,016,781.69, down 6.85% from the previous year[15]. - Basic earnings per share for the reporting period were -¥0.289, a decrease of 1,800.00% compared to the same period last year[16]. - The weighted average return on net assets was -7.14%, a decrease of 7.48 percentage points year-on-year[16]. - The company reported a significant decline in both revenue and profit, indicating challenges in the current market environment[15]. Operational Strategy - The company operates a comprehensive TCM (Traditional Chinese Medicine) industry chain, including cultivation, production, and sales of TCM products, Western medicine, health foods, and medical devices[20]. - The procurement model includes direct sourcing from production areas and market-based purchasing, ensuring stable supply and quality of raw materials[21]. - The production strategy follows a sales-driven model, with production plans based on market demand and inventory levels[22]. - The sales model encompasses multiple channels, including direct sales to hospitals, commercial wholesale, smart pharmacies, and e-commerce partnerships with platforms like Tmall and JD[22]. - The company has established a strategic collaboration with health product retail platforms to enhance its market reach[22]. - The company aims to leverage "Internet+" strategies to integrate direct sales, e-commerce, and retail operations for enhanced business synergy[22]. Industry Context - The pharmaceutical manufacturing industry is experiencing growth due to favorable policies and ongoing healthcare reforms in China[24]. - The pharmaceutical manufacturing industry experienced a revenue decline of 3.8% and a profit drop of 5.9% from January to May 2020 due to the impact of COVID-19[25]. - The company holds a leading position in the Chinese herbal medicine market, with over 1,000 varieties and more than 20,000 specifications of traditional Chinese medicine products[25]. Research and Development - The company has established over 20 national and provincial-level R&D platforms for traditional Chinese medicine research and transformation[32]. - The company has applied for 83 technology patents and 4 software copyrights related to its smart pharmacy initiative[35]. - The company has initiated two major national R&D projects focused on the modernization of traditional Chinese medicine and the development of key technologies[36]. - The company has formed a joint venture with Shenzhen BGI Genomics Co., Ltd. to leverage modern genomic technology for traditional Chinese medicine research[36]. Financial Management - The company has established a financial dual reporting mechanism to enhance financial control capabilities[37]. - The company has strengthened its information technology infrastructure to unify business, data, and cash flows[37]. - The company has implemented a comprehensive evaluation system for suppliers to ensure quality and reliability in its procurement processes[21]. Asset Management - The company plans to sell assets worth up to 1.13 billion yuan to further focus on its core business[26]. - The company has reduced its research and development expenses by 38.14% to approximately ¥29.66 million from ¥47.95 million year-on-year[40]. - The company has accumulated nearly 700 intellectual property rights, with around 650 effective patents in various fields[32]. Shareholder and Governance - The company will not distribute profits or increase capital reserves during the reporting period, indicating a focus on strengthening its financial position[52]. - The actual controller of the company has committed to repay non-operational fund occupation, with a minimum repayment of 10% (approximately RMB 948.11 million) by December 31, 2020, and 40% (approximately RMB 3.79 billion) by December 31, 2021[55]. - The company has held two extraordinary shareholder meetings in 2020, on January 2 and June 19[51]. Social Responsibility - The company has invested 345.85 million in six poverty alleviation projects, focusing on agricultural and technological poverty alleviation[69]. - A total of 6,300 individuals have been lifted out of poverty through the company's initiatives, with 855.84 million allocated for funding[71]. - The company has actively participated in COVID-19 relief efforts, providing 30,000 traditional Chinese medicine packages to residents in Wuhan[73]. Legal and Compliance - The company faces litigation risks following the administrative penalty and market entry decision issued by the China Securities Regulatory Commission on May 14, 2020[49]. - The company has received administrative penalties from the China Securities Regulatory Commission (CSRC) for information disclosure violations, with fines paid within the stipulated time[58]. Financial Ratios - The current ratio increased to 2.29 from 2.08, reflecting a 10.10% improvement[102]. - The quick ratio improved to 0.71 from 0.69, showing a 3.29% increase[102]. - The debt-to-asset ratio rose to 69.16% from 68.03%, indicating a 1.14% increase[102]. Credit and Liquidity - The company's credit rating was downgraded from BBB to B, and subsequently to C, indicating increased credit risk[98]. - The company plans to use funds raised from bonds to repay various financial institution loans and supplement working capital[97]. - As of June 30, 2020, the total credit limit obtained from banks was CNY 20.013 billion, with CNY 15.341 billion utilized[104]. Accounting Policies - The financial statements are prepared in accordance with the relevant accounting standards and reflect the company's financial position accurately[133]. - The company recognizes revenue from the sale of its share of joint venture outputs, as well as expenses incurred individually and in joint ventures[141]. - The company measures financial liabilities at amortized cost, including short-term borrowings and long-term borrowings, with interest calculated using the effective interest method recognized in profit or loss[148].

Financial Performance - Operating revenue dropped by 76.13% to CNY 1.17 billion year-on-year[4] - Net profit attributable to shareholders was a loss of CNY 296.63 million, a decrease of 552.28% compared to the same period last year[4] - Basic earnings per share were -CNY 0.060, a decline of 561.54% year-on-year[4] - The company's operating revenue decreased due to adjustments in the pharmaceutical industry policies, leading to a focus on core business and a decline in business volume[12] - The company reported a net profit loss of CNY 494,540,858 in Q1 2020, compared to a net profit of CNY 126,182,140 in Q1 2019, representing a significant decline[23] - The total comprehensive income for Q1 2020 was a loss of ¥297,270,145.80, compared to a profit of ¥61,012,226.88 in Q1 2019[21] Cash Flow - Net cash flow from operating activities decreased by 69.91% to CNY 202.82 million[4] - The net cash flow from operating activities was 202,816,854.80, a decrease of 69.91% compared to the previous year[12] - Cash flow from operating activities generated a net amount of CNY 202,816,854.80 in Q1 2020, down from CNY 673,948,510.00 in Q1 2019, a decrease of about 70%[24] - Total cash inflow from operating activities in Q1 2020 was 871,909,209.54 RMB, down from 4,689,143,140.31 RMB in the same period last year, representing a decrease of approximately 81.4%[26] - Cash outflow from operating activities in Q1 2020 was 936,106,455.51 RMB, compared to 3,686,412,471.29 RMB in Q1 2019, indicating a reduction of about 74.7%[26] Assets and Liabilities - Total assets decreased by 1.53% to CNY 63.60 billion compared to the end of the previous year[4] - The company's intangible assets decreased from 2,022,461,560.26 to 1,338,644,803.48, reflecting a reduction in asset value[16] - Total liabilities amounted to ¥43,245,665,264.13, a decrease from ¥43,935,237,255.88 in the previous period, reflecting a reduction of approximately 1.57%[17] - The company's total equity decreased to ¥22,611,658,505.49 from ¥23,106,199,363.49, a decline of about 2.14%[19] - The total non-current liabilities increased to ¥25,072,484,123.27 from ¥15,018,015,567.44, marking an increase of approximately 66.8%[19] Shareholder Information - The total number of shareholders at the end of the reporting period was 181,588[6] - The largest shareholder, Kangmei Industrial Investment Holdings Co., Ltd., held 32.75% of the shares[6] - The total number of preferred shareholders at the end of the reporting period was 8[8] - The top ten preferred shareholders held a total of 30% of the shares, with the largest shareholder holding 9,000,000 shares[8] Expenses - The operating cost for Q1 2020 was ¥835,387,976.74, reflecting a 76.64% decrease from ¥3,575,908,591.88 in the previous period[10] - The company experienced a significant decrease in sales expenses, which fell by 71.49% from ¥369,254,611.00 to ¥105,262,715.34[10] - Research and development expenses decreased due to reduced investment in R&D projects compared to the previous year[12] - Research and development expenses decreased to ¥14,436,906.09 in Q1 2020 from ¥21,522,150.98 in Q1 2019, a reduction of 33%[20] Government Support - The company received government subsidies amounting to CNY 36.45 million during the period[5] Other Financial Metrics - The weighted average return on equity decreased by 1.99 percentage points to -1.73%[4] - The company reported a significant increase in non-recurring losses, with a total of CNY 323.38 million attributed to non-recurring gains and losses[4] - The company reported a significant increase in financial expenses, totaling ¥513,206,606.74 in Q1 2020, compared to ¥497,913,387.85 in Q1 2019[20] - The company recorded an investment loss of ¥1,026,122.21 in Q1 2020, contrasting with an investment income of ¥38,835,826.96 in Q1 2019[20]

Financial Performance - The company reported a net profit of -4,660,675,038.43 CNY for 2019, representing a decrease of 1,344.53% compared to the previous year[4]. - Total revenue for 2019 was 11,445,545,810.05 CNY, down 32.93% from 2018[15]. - The company's undistributed profits as of December 31, 2019, were -157,770,843.74 CNY, while the parent company's undistributed profits were 2,345,454,899.34 CNY[4]. - The company plans not to distribute profits or increase capital reserves for the 2019 fiscal year[4]. - The total assets of the company decreased by 11.70% to 64,586,228,755.01 CNY compared to the previous year[16]. - The net assets attributable to shareholders of the listed company decreased by 21.05% to 20,515,274,013.61 CNY[16]. - The basic earnings per share (EPS) for 2019 was -0.9896 CNY, a decrease of 3,376.82% compared to the previous year[17]. - The diluted EPS for 2019 was also -0.9896 CNY, reflecting a decrease of 3,398.67% year-over-year[17]. - The weighted average return on equity (ROE) was -21.20% in 2019, down 24.64 percentage points from the previous year[17]. - The company reported a total profit of RMB 948,112,620.07 for the year 2019[121]. - The company reported a net profit of -4,655,207,167.83 CNY for the year 2019, with a net profit attributable to shareholders of -4,660,675,038.43 CNY[178]. - The company’s cash flow is expected to support normal operations and long-term development, which is a prerequisite for implementing its profit distribution policy[108]. Operational Highlights - The company experienced a significant cash flow from operating activities of 2,882,044,986.08 CNY, an increase of 843.03% compared to the previous year[16]. - The company has acknowledged the existence of non-operating fund occupation by controlling shareholders and related parties[5]. - The company received a qualified audit opinion from its accounting firm, which has been detailed in the report[3]. - The company has outlined potential risks in its future development plans, urging investors to maintain sufficient risk awareness[5]. - The company has established a complete health industry layout and basic structure of the industry system, focusing on traditional Chinese medicine and related products[24]. - The company has established a comprehensive quality control system for suppliers, ensuring that procurement meets strict quality standards[25]. - The company has developed a comprehensive sales network with over 2,000 medical institutions and approximately 200,000 chain pharmacies across the country, enhancing its market presence[35]. - The company has launched the "Kangmei e-Medicine Valley" online platform for bulk trading of medicinal materials and introduced the "Kangmei China Medicinal Material Price Index" to strengthen its market position[31]. Industry Context - In 2019, the pharmaceutical manufacturing industry achieved revenue of CNY 239.09 billion, a year-on-year growth of 7.4%, surpassing the national average industrial growth rate by 3.6 percentage points[28]. - The total profit of the pharmaceutical manufacturing industry reached CNY 31.20 billion, with a year-on-year increase of 5.9%, although the growth rate decreased by 3.6 percentage points compared to the previous year[28]. - The gross profit margin for the pharmaceutical manufacturing industry was 13.04%, an increase of 0.29 percentage points from the previous year, outperforming the national average of 7.15%[28]. Strategic Initiatives - The company has implemented a flexible and scientific procurement strategy, ensuring stable supply and quality of raw materials through direct sourcing and market procurement[25]. - The company has adopted a sales model that includes direct sales to hospitals, commercial wholesale, smart pharmacies, and e-commerce partnerships with platforms like Tmall and JD[27]. - The company has established long-term cooperative relationships with top research institutions, including the Chinese Academy of Traditional Chinese Medicine and several universities, forming a strong technical support organization[37]. - The company has established a joint venture with BGI Genomics to advance research in traditional Chinese medicine and genomics[44]. - The company has initiated two key projects under the National Key R&D Program focusing on the modernization of traditional Chinese medicine[44]. Research and Development - Total R&D investment amounted to 128.27 million yuan, representing 1.12% of operating revenue, with 581 R&D personnel, making up 6.31% of total staff[60]. - The company has established a doctoral workstation in Guangdong Province for talent cultivation and R&D platform development[71]. - The company has completed clinical trials for a new anti-constipation drug, achieving bioequivalence with reference formulations and submitted registration applications[76]. - The company has developed a lean production platform for TCM raw materials based on big data, with ongoing studies on the production line for red ginseng[75]. Corporate Governance - The company has appointed Lixin Certified Public Accountants as its auditing firm for the 2019 fiscal year, with an audit fee of RMB 620,000[126]. - The company has faced administrative penalties from the China Securities Regulatory Commission, including fines related to information disclosure violations[129]. - The company plans to enhance its internal control system to ensure effective operation and compliance with regulations[121]. - The company has committed to repaying all occupied funds and related interest by December 31, 2022[121]. Social Responsibility - The company has actively engaged in poverty alleviation efforts since 2008, establishing the Kangmei Poverty Alleviation Welfare Association[139]. - The company invested a total of 89.53 million RMB in poverty alleviation efforts, helping 8,652 registered impoverished individuals to escape poverty[141]. - The company has been recognized for its contributions to poverty alleviation, receiving multiple awards including the "Outstanding Contribution Collective" title in Guangdong Province[143]. - The company emphasizes social responsibility and has actively engaged in charitable activities for over 12 years, donating 400,000 RMB to impoverished households and elderly individuals[140]. Environmental Compliance - The company has not experienced any environmental pollution incidents during the reporting period and has implemented green production practices[146]. - The company’s wastewater treatment facility is compliant with the GB21905-2008 standards for pharmaceutical industry wastewater discharge[148]. - The company has implemented a self-monitoring plan for environmental compliance, including regular technical testing of wastewater and emissions[152]. Shareholder Information - The total number of ordinary shares was 4,973,861,675, with 88.53% being unrestricted circulating shares[156]. - The largest shareholder, Kangmei Industrial Investment Holdings, held 1,628,702,199 shares, representing 32.75% of the total shares[164]. - The company has issued 30,000,000 preferred shares at a price of 100.00 yuan each, with a dividend rate of 7.50%[174]. - The preferred shares have been fully utilized for fundraising purposes[174].

Financial Performance - Operating revenue for the period was CNY 10.35 billion, representing a decline of 28.61% year-on-year[5] - Net profit attributable to shareholders was CNY 33.17 million, down 95.19% from the previous year[5] - Basic earnings per share were CNY 0.007, a decrease of 95.00% year-on-year[5] - The company reported a net profit attributable to shareholders after deducting non-recurring gains and losses of CNY -50.81 million, a decrease of 107.84% year-on-year[5] - The net profit for Q3 2019 was a loss of ¥41,494,486.62, compared to a profit of ¥217,302,348.31 in Q3 2018[24] - The company reported a net loss of ¥51,368,872.04 for the current period, compared to a net profit of ¥196,251,219.17 in the same period last year, indicating a significant decline in profitability[25] - Total revenue for Q3 2019 was ¥1,818,736,358.82, down 47.0% from ¥3,433,934,810.66 in Q3 2018[27] - Operating profit for the current period was a loss of ¥48,196,374.73, contrasting with a profit of ¥251,773,259.79 in the previous year, reflecting a substantial operational downturn[27] Cash Flow - Net cash flow from operating activities was CNY 3.29 billion, an increase of 171.00% compared to the same period last year[5] - The net cash flow from operating activities for the first three quarters of 2019 was ¥3,293,151,636.86, a significant improvement compared to -¥4,638,255,546.90 in the same period of 2018[30] - Total cash inflow from operating activities was ¥11,168,159,230.97, down from ¥15,864,133,360.57 in the previous year, indicating a decrease of approximately 29.5%[29] - The cash outflow for purchasing goods and services was ¥6,008,392,090.24, compared to ¥13,915,337,362.59 in the same period last year, reflecting a reduction of about 56.8%[29] - The net cash flow from investing activities was -¥93,199,375.24, a notable decrease from -¥4,352,329,952.13 in the previous year[30] - Cash inflow from financing activities totaled ¥7,811,785,000.00, down from ¥30,362,929,790.34 in the same period of 2018, representing a decline of approximately 74.3%[30] - The net cash flow from financing activities was -¥4,530,080,134.51, contrasting with a positive net flow of ¥6,998,498,918.07 in the previous year[30] Assets and Liabilities - Total assets at the end of the reporting period were CNY 71.78 billion, a decrease of 3.81% compared to the end of the previous year[5] - Current assets totaled CNY 51.54 billion, down from CNY 54.24 billion year-over-year[19] - Total liabilities were CNY 43.76 billion, down from CNY 46.33 billion at the end of 2018[20] - The company's equity attributable to shareholders was CNY 27.92 billion, a decrease from CNY 28.19 billion year-over-year[20] - Accounts receivable decreased to CNY 5.28 billion from CNY 6.32 billion year-over-year, reflecting a decline of approximately 16%[19] - Cash and cash equivalents decreased by 73.72% to ¥1,839,201,190.32, primarily due to debt repayment[14] - Short-term borrowings increased significantly to CNY 15.85 billion from CNY 11.58 billion, representing a rise of approximately 37%[20] Shareholder Information - The total number of shareholders at the end of the reporting period was 213,227[8] - The largest shareholder, Kangmei Industrial Investment Holdings Co., Ltd., held 32.75% of the shares[8] - The second largest shareholder is WISCO International Trust Co., Ltd. with 231,901,482 shares, representing a notable stake in the company[9] - The total number of preferred shareholders is 8, with the largest being Bosera Fund with 9,000,000 shares, which constitutes 30% of the preferred shares[10] - The company has identified several related parties among its shareholders, including connections between Kangmei Industrial and Xu Dongjin[9] - The report indicates that the company is actively monitoring shareholder relationships to ensure compliance with regulations[9] Operating Costs and Expenses - Operating costs decreased by 36.96% to ¥10,295,822,793.83, reflecting a decline in operating revenue[15] - Research and development expenses for Q3 2019 were ¥21,119,989.91, down 45.4% from ¥38,670,395.91 in Q3 2018[24] - The company's R&D expenses decreased to ¥13,975,319.72 in Q3 2019 from ¥36,995,560.68 in Q3 2018, a reduction of 62.3%[27] - The company reported a significant increase in financial expenses, totaling ¥579,960,892.22 in Q3 2019 compared to ¥500,998,358.82 in Q3 2018[24] - Financial expenses increased to ¥576,989,710.13 in Q3 2019, compared to ¥497,082,938.19 in Q3 2018, representing a rise of 16.0%[27] Other Income and Adjustments - Non-operating income included government subsidies amounting to CNY 114.36 million for the year-to-date[6] - Other income surged by 195.34% to ¥36,617,411.96, resulting from increased government subsidies recognized in the current period[14] - The company received a notice of administrative penalty from the China Securities Regulatory Commission on August 16, 2019, which may lead to financial data adjustments[16] - The company anticipates potential adjustments to financial data based on the final administrative penalty decision from the regulatory authority[16]