证券代码：600671 证券简称：*ST 目药 公告编号：2023-046 杭州天目山药业股份有限公司 关于完成工商变更登记并换发营业执照的公告 一、公司营业期限工商变更登记事由 杭州天目山药业股份有限公司（以下简称"公司"）因营业执照上的营业期 限将于 2023 年 8 月 11 日到期。公司于 2023 年 7 月 19 日召开第十一届董事会 第十八次会议，2023 年 8 月 4 日召开 2023 年第一次临时股东大会，审议通过了 《关于修改<公司章程>的议案》，具体内容详见 2023 年 7 月 20 日在《中国证券 报》、《证券日报》及上海证券交易所网站（www.sse.com.cn）披露的《杭州天目 山药业股份有限公司关于修改<公司章程>的公告》（公告编号：2023-041），2023 年8月5日在《中国证券报》、《证券日报》及上海证券交易所网站（www.sse.com.cn） 披露的《杭州天目山药业股份有限公司 2023 年第一次临时股东会决议公告》（公 告编号：2023-045）。 公司依据修订后的《公司章程》第七条的相关规定向浙江省市场监督管理局 申请将营业期限变更为长期。 二、工商变更登记 ...

证券代码：600671 证券简称：*ST 目药 公告编号：2023-032 杭州天目山药业股份有限公司 关于召开 2022 年度暨 2023 年第一季度业绩说明会 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个别及连带责任。 重要内容提示： （网址：http://roadshow.sseinfo.com/） 会议召开方式：上证路演中心网络互动 投资者可于 2023 年 05 月 17 日(星期三) 至 05 月 23 日(星期二)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 tianmuyaoye@126.com 进行提问。公司将在说明会上对投资者普遍关注的 问题进行回答。 杭州天目山药业股份有限公司（以下简称"公司"）已于 2023 年 4 月 26 日 发布公司 2022 年度报告，为便于广大投资者更全面深入地了解公司 2022 年度 经营成果、财务状况，公司计划于 2023 年 05 月 24 日 上午 11:00-12:00 举行 2022 年度暨 2023 年第一季度业绩说明会，就投资者 ...

Financial Performance - The net profit attributable to shareholders for 2022 was -67.56 million RMB, with the parent company's net profit at -48.96 million RMB, resulting in a cumulative undistributed profit of -201.12 million RMB as of December 31, 2022[6]. - The company's operating revenue for 2022 was ¥108,906,179.08, a decrease of 25.95% compared to ¥147,069,186.37 in 2021[22]. - The net loss attributable to shareholders for 2022 was ¥67,560,283.78, compared to a net loss of ¥29,801,430.12 in 2021[22]. - The total assets at the end of 2022 were ¥299,839,827.42, reflecting a decrease of 25.53% from ¥402,648,614.86 at the end of 2021[22]. - The basic earnings per share for 2022 was -¥0.55, compared to -¥0.24 in 2021[23]. - The weighted average return on equity for 2022 was -442.20%, significantly lower than -50.50% in 2021[23]. - The company reported a net loss of 233.38 million yuan, which is a 40.74% increase in losses compared to the previous year[77]. - The company reported a total revenue of 1.5 billion RMB for the fiscal year 2022, representing a year-over-year growth of 12%[151]. Dividend and Profit Distribution - The company will not allocate surplus reserves or distribute dividends for the year 2022, in accordance with relevant regulations[6]. - The company did not propose any profit distribution or cash dividends for the year due to the negative net profit[176]. Debt and Financial Management - The company has signed a debt transfer agreement totaling 90 million RMB with Yongxin Huari to resolve issues related to fund occupation and guarantees by the former controlling shareholder[10]. - As of December 30, 2022, the company has received a total of 117.29 million RMB from the debt transfer, which has resolved the fund occupation issues[10]. - The company completed the repayment of 117 million yuan in non-operating fund occupation by the former controlling shareholder, alleviating financial pressure and laying a foundation for future development[38]. - The net cash flow from financing activities increased by 62.38% to ¥56,055,553.94, primarily from the debt transfer payment received from Yongxin Huayi[55]. - The company has a high debt ratio and is experiencing financing difficulties, which poses a risk to its ongoing operations and sustainability[132]. Risk Management - The company has acknowledged various risks in its operations and has detailed its risk management strategies in the report[9]. - The audit report issued by Zhongxing Caiguanghua CPA indicates significant uncertainties regarding the company's ability to continue as a going concern[5]. - The company is facing significant regulatory risks due to ongoing changes in pharmaceutical policies, including centralized procurement and adjustments in medical insurance policies, which could impact the industry's overall health[125]. - The company has identified general deficiencies in internal control and is actively implementing corrective measures, including revising internal control systems and enhancing employee training[190]. Product Development and Market Strategy - The company launched a self-developed "explosion bead mask" in the second half of the year, which received positive market feedback and achieved breakthrough sales[33]. - The company is developing new products including electronic atomizers and a car-mounted atomizer, with a focus on expanding market presence through targeted customer engagement[33]. - The company is focusing on improving product quality and has initiated several research projects, including the extraction study of Glycyrrhizic acid for sleep aid granules[50]. - The company is actively expanding its product sales channels both online and offline, particularly in the health sector, to enhance market competitiveness[37]. - The company is committed to expanding the health product segment, leveraging new traditional Chinese medicine varieties to create new revenue channels[120]. Internal Management and Governance - The board of directors and supervisory board have confirmed the authenticity and completeness of the annual report[4]. - The company has optimized its internal management structure to enhance operational efficiency and has implemented a performance evaluation system[34]. - The company has established a robust internal control management system, continuously improving it to reduce operational risks and ensure compliance, thereby supporting strategic implementation[179]. - The company has implemented a training plan for employees, focusing on various professional development areas, including equipment management and environmental law management[175]. - The company has established a remuneration management system for directors, supervisors, and senior management, which was approved by the board and shareholders[158]. Compliance and Regulatory Issues - The company has not faced any penalties from regulatory bodies, reflecting a strong compliance record[148]. - The company is undergoing a restructuring of its board, with new appointments including independent director Gai Yongmei and financial director You Jie[160]. - The company has been under scrutiny from the Zhejiang Securities Regulatory Bureau for various compliance issues, including providing guarantees for loans without proper approval[161]. - The company received a qualified opinion on its internal control audit for 2021, primarily due to related party fund occupation totaling RMB 67.29 million[183]. Market Trends and Industry Outlook - The health products market in China is expected to enter a "golden period" of rapid growth, driven by increased consumer health awareness and demand for health supplements[85]. - The company anticipates significant growth in the pharmaceutical market driven by aging population and increased health awareness, supported by government policies[115]. - The implementation of centralized procurement policies has led to significant price reductions for included products, impacting sales models and necessitating cost control measures for pharmaceutical companies[86]. Sales Performance - The company achieved a total revenue of 10,890.62 million yuan in 2022, a year-on-year decrease of 25.95%[48]. - The company experienced a 28.94% decline in revenue after excluding non-core business activities, with total revenue of ¥104,133,894.80 in 2022[22]. - The sales of the main product, Amoxicillin and Clavulanate Potassium Tablets, reached 2.08 million boxes, a year-on-year increase of 250.71%[48]. - The sales revenue in the East China region was 83,892,159.51, down by 29.31% compared to the previous year[59]. Research and Development - R&D expenses totaled 1,584,081.57 yuan, which is 1.45% of the operating revenue[72]. - The company is focusing on the development of innovative TCM products and enhancing its evidence-based capabilities in TCM[89]. - The company completed the consistency evaluation study for Amoxicillin Clavulanate Potassium Tablets by the end of 2021, with research data submitted to the National Medical Products Administration (CDE)[99]. Employee and Management Structure - The company has a total of 371 employees, with 152 in production, 55 in sales, 60 in technical roles, 17 in finance, and 87 in administration[172]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to 3.1342 million yuan, with an expected remuneration of 3.7012 million yuan[158]. - The management team has extensive experience in various sectors, enhancing the company's strategic capabilities[148].

Financial Performance - The company's operating revenue for Q1 2023 was ¥22,252,900.21, representing a decrease of 14.58% compared to the same period last year[3] - Total operating revenue for Q1 2023 was ¥22,252,900.21, a decrease of 14.3% compared to ¥26,051,761.22 in Q1 2022[20] - The net profit attributable to shareholders was -¥9,055,100.93, indicating a significant loss[3] - Net loss for Q1 2023 was ¥9,973,874.17, compared to a net loss of ¥7,032,712.05 in Q1 2022, representing an increase in loss of 41.5%[21] - The weighted average return on equity was -47.27% for the reporting period[3] - The total equity attributable to shareholders of the parent company was -¥23,682,372.25 in Q1 2023, compared to -¥14,627,271.32 in Q1 2022[17] - Cash received from sales of goods and services in Q1 2023 was ¥22,337,611.36, down 16.5% from ¥26,596,798.13 in Q1 2022[24] - Research and development expenses for Q1 2023 were ¥1,371.68, significantly reduced from ¥81,108.68 in Q1 2022[20] - The company reported a basic and diluted earnings per share of -¥0.0744 for Q1 2023, compared to -¥0.0478 in Q1 2022[22] Cash Flow and Liquidity - The net cash flow from operating activities was -¥11,989,424.41, reflecting ongoing cash outflows[3] - The company’s cash flow from operating activities showed a decrease, indicating potential challenges in maintaining liquidity[24] - Net cash inflow from operating activities was -$11,989,424.41, compared to -$5,534,309.50 in the previous period, indicating a decline in cash flow from operations[25] - Total cash inflow from operating activities was $25,014,384.17, while cash outflow was $37,003,808.58, resulting in a net cash flow of -$11,989,424.41[25] - Cash received from interest, fees, and commissions was $2,676,739.71, contributing to the overall cash inflow[25] - Cash paid for employee benefits was $9,184,784.54, reflecting the company's commitment to its workforce[25] - The ending cash and cash equivalents balance was $26,809,514.56, down from $42,391,996.34 at the beginning of the period[26] Assets and Liabilities - Total assets at the end of Q1 2023 were ¥284,209,624.52, down 5.21% from the end of the previous year[4] - The company's total liabilities as of Q1 2023 amounted to ¥289,703,770.38, a slight decrease from ¥295,360,099.11 in the previous quarter[17] - The company's equity attributable to shareholders decreased to -¥23,682,372.25, compared to -¥14,627,271.32 at the end of the previous year[4] - The company's non-current assets totaled RMB 171,758,065.49, down from RMB 175,706,761.51, reflecting a decrease of approximately 2.7%[15] - The total current liabilities were RMB 104,503,818.03, compared to RMB 104,642,762.49, indicating a slight decrease of about 0.1%[15] Shareholder Information - The total number of common shareholders at the end of the reporting period was 7,711[8] - The company reported that 永新华瑞文化发展有限公司 holds 25,000,000 shares, representing 20.53% of the total share capital, while 青岛共享 holds 4,000,028 shares, or 3.28%[11] - Following a share reduction of 234,100 shares on March 29, 2023, 永新华瑞 and its concerted parties hold a total of 28,765,928 shares, accounting for 23.62% of the total share capital[11] - The company has signed a concerted action agreement with 青岛应急共享管理有限公司, resulting in a combined shareholding of 29,000,028 shares, or 23.81% of the total share capital[11] Legal and Operational Updates - The company has resolved a legal dispute with 湖南金州律师事务所, leading to the unfreezing of its bank accounts, allowing normal operations to resume[12] Changes in Assets - The company experienced a 369.92% increase in cash outflows from investing activities, primarily due to increased payments for fixed assets and intangible assets[6] - The company's cash and cash equivalents decreased to RMB 27,107,954.56 from RMB 42,392,496.34, representing a decline of about 36.0%[14] - Accounts receivable stood at RMB 30,768,964.37, slightly down from RMB 30,806,029.81, indicating a marginal decrease of 0.1%[15] - Inventory increased to RMB 49,221,169.11 from RMB 47,560,717.66, showing an increase of approximately 3.5%[15] - Other current assets increased by 132.53%, mainly due to a subsidiary's pending deductible VAT of ¥480,000[5]

Financial Performance - The company's operating revenue for the first half of 2022 was ¥51,864,252.16, a decrease of 32.83% compared to ¥77,214,839.39 in the same period last year [22]. - The net profit attributable to shareholders was -¥21,255,473.34, compared to -¥6,150,354.29 in the previous year, indicating a significant loss [22]. - The net cash flow from operating activities was -¥4,021,313.83, a decline of 164.45% from ¥6,239,411.75 in the same period last year [22]. - The total assets at the end of the reporting period were ¥373,435,288.71, down 7.26% from ¥402,648,614.86 at the end of the previous year [22]. - The net assets attributable to shareholders decreased by 45.58% to ¥24,588,545.12 from ¥45,184,018.46 at the end of the previous year [22]. - The basic earnings per share for the first half of 2022 was -¥0.1745, compared to -¥0.0505 in the same period last year [23]. - The weighted average return on net assets was -60.93%, a significant drop from -8.82% in the previous year [23]. - The net loss for the period was CNY -24.39 million, worsening from CNY -7.10 million in the previous year [41]. Debt and Liabilities - The company reported a total debt of RMB 90 million transferred to Yongxin Huari, with RMB 85.0344 million already received as of the report date [9]. - The total amount of guarantees provided by the company, including those to subsidiaries, is 82.67 million RMB, which accounts for 182.97% of the company's net assets [134]. - The company has a total of 6.008 million RMB in guarantees exceeding 50% of net assets [134]. - The company has unresolved interest guarantee liabilities amounting to 2.33 million RMB related to previous loans from the original controlling shareholder [99]. - The company has a total of 19.02 million RMB in litigation claims against related parties, which are expected to be recoverable [95]. - The company has a total of 3,073.12 million RMB in payments made to Zhejiang Gongxiang Construction Group for a project that has not commenced, which has been classified as non-operating fund occupation [96]. Legal and Compliance Issues - The company is currently handling multiple legal disputes that may impact its financial position [104]. - The company has incurred litigation costs related to these ongoing cases [104]. - The company has received an administrative penalty of 1 million RMB from the China Securities Regulatory Commission for regulatory violations [119]. - The company has committed to improving governance and compliance following regulatory scrutiny [119]. - The company has not made timely submissions for significant equity acquisitions, leading to regulatory penalties [96]. Operational Challenges - The pharmaceutical manufacturing industry faced significant operational pressure in the first half of 2022, with a 0.6% decline in revenue year-on-year [28]. - The total profit of the pharmaceutical manufacturing sector decreased by 27.6% year-on-year to ¥2,209.5 billion in the first half of 2022 [28]. - The company experienced a 39.90% increase in management expenses, primarily due to higher costs at the parent company and its subsidiary [42]. - The company is actively addressing internal control issues highlighted in the audit report, focusing on governance and risk management improvements [39]. Environmental and Social Responsibility - The company has completed a coal-to-natural gas project, improving overall emissions and ensuring that wastewater and air emissions meet regulatory standards [69]. - The company has established a comprehensive environmental monitoring plan, with third-party assessments conducted regularly [78]. - The company emphasizes clean production and has integrated environmental management into its operational assessments [80]. - The company donated pandemic prevention materials, including new Five Flower Explosive Pearl masks, to areas with severe COVID-19 outbreaks, demonstrating its commitment to social responsibility [82]. Strategic Initiatives - The company aims to enhance its market share by improving terminal market promotion capabilities and collaborating with large chain pharmacies [33]. - The company is focusing on the development of new products and technologies, particularly in the field of traditional Chinese medicine, to meet the growing health demands of the population [31]. - The company is committed to enhancing its production capabilities by adhering to GMP standards throughout the entire production process [33]. - The company is actively exploring new business models in drug distribution to adapt to the evolving healthcare landscape [31]. Governance and Management - The company’s board of directors and supervisory board members have all attended the board meeting, ensuring governance compliance [4]. - The company has established a complete corporate governance structure to ensure the independence of its board and management [93]. - The company has committed to transparent and fair pricing in any necessary related transactions with its controlling shareholders [88]. - The company has implemented measures to ensure the independence of its assets and management, including that senior management only serves the listed company [89].

Financial Performance - The net profit attributable to shareholders for 2021 was -29.8014 million CNY, with the parent company's net profit at -28.3876 million CNY, resulting in a cumulative undistributed profit of -152.1559 million CNY as of December 31, 2021[6]. - The company will not allocate surplus reserves or distribute dividends for the year 2021 due to the negative net profit[6]. - The company's operating revenue for 2021 was ¥147,069,186.37, a decrease of 28.82% compared to ¥206,627,323.03 in 2020[24]. - The net profit attributable to shareholders for 2021 was -¥29,801,430.12, improving from -¥40,518,323.01 in 2020[24]. - The net cash flow from operating activities for 2021 was -¥26,421,706.19, compared to -¥8,395,914.90 in 2020[24]. - The total assets at the end of 2021 were ¥402,648,614.86, a decrease of 9.01% from ¥442,510,197.01 in 2020[24]. - The basic earnings per share for 2021 was -¥0.24, compared to -¥0.33 in 2020[25]. - The weighted average return on equity for 2021 was -50.50%, slightly worsening from -49.64% in 2020[25]. - The company reported a quarterly operating revenue of ¥47,247,929.90 in Q4 2021, with a net profit of -¥14,671,722.78[27]. - The net assets attributable to shareholders at the end of 2021 were ¥45,184,018.46, down 37.97% from ¥72,843,448.58 in 2020[24]. - The company received government subsidies amounting to ¥1,769,183.59 in 2021, compared to ¥5,400,896.24 in 2020[29]. - The company reported a total revenue of CNY 2,838,065.82 for the anti-infection segment, with a gross margin of 19.10%, reflecting a decrease of 91.21% in revenue compared to the previous year[94]. - The revenue from tumor auxiliary products reached CNY 28,091,417.60, with a gross margin of 80.81%, showing a decline of 10.72% in revenue year-over-year[94]. - The raw material drug segment generated CNY 54,463,412.70 in revenue, with a gross margin of 11.84%, down 34.19% from the previous year[94]. Debt and Financial Management - A debt transfer agreement was signed in April 2021, allowing the company to transfer confirmed and conditionally confirmed debts totaling 90 million CNY to Yongxin Huari, with 50 million CNY already received by September 2021[11]. - The company transferred a debt of 331 million yuan to Yongxin Huari in April 2021, which was subsequently repaid[193]. - The company has provided guarantees for loans totaling 770 million yuan, which were approved by the former general manager but not by the board or shareholders[191]. - As of June 30, 2021, the company had an outstanding interest guarantee responsibility of 83.16 million yuan, while the principal loan guarantees had been released[191]. - The company is currently involved in a legal case regarding a loan of 300 million yuan, which is under first-instance judgment execution[193]. - The company has engaged in multiple loan transactions with its former controlling shareholder, which were not approved by the board or shareholders[193]. - The company is actively managing its financial obligations and ensuring compliance with regulatory requirements regarding loan guarantees[191]. Internal Control and Governance - The company received a qualified audit opinion from Zhongxing Caiguanghua Accounting Firm, which has been explained in detail in the report[5]. - The company has identified significant internal control deficiencies, particularly in the management of subsidiaries, which have not met expected internal control goals[186]. - The internal control audit report issued by Zhongxing Caiguanghua Certified Public Accountants provided a negative opinion, indicating serious internal control issues[190]. - The company has established a comprehensive internal control management system but acknowledges ongoing deficiencies, especially in subsidiary management[189]. - The company is committed to enhancing its internal control systems and improving subsidiary management to protect shareholder interests[189]. - The company has made efforts to strengthen its internal control framework in compliance with relevant laws and regulations, but challenges remain[189]. - The company has not proposed any cash profit distribution plan for the reporting period, as the parent company's distributable profit was negative[185]. - The company is actively rectifying issues pointed out by the Zhejiang Securities Regulatory Bureau regarding non-compliance with regulations[197]. Market and Product Development - The company has been involved in the development of new products and technologies, although specific details are not provided in the extracted content[7]. - The company plans to focus on expanding its market presence and developing new products and technologies in the upcoming year[24]. - The company launched new health products, including a 3D visual steam eye mask and pearl eye health patches, as part of its strategy to enter the health industry[38]. - The company completed the consistency evaluation research for Amoxicillin and Clavulanate Potassium Tablets by the end of 2021, with research materials submitted to the National Medical Products Administration[38]. - The company is focusing on restructuring and optimizing its product portfolio to adapt to market changes and improve profitability[66]. - The company is exploring new insurance products related to traditional Chinese medicine to enhance healthcare management services[122]. - The company is focusing on the development of mint essential oil and derivative products, aiming to increase the variety of sellable products[132]. Strategic Initiatives and Future Outlook - The company has a three-year shareholder return plan from 2021 to 2023, which is referenced in the report[6]. - The company is actively pursuing external mergers and acquisitions to adapt to industry policy changes and enhance its core competitiveness[126]. - The company is focusing on internal innovation to establish a complete ecosystem in the traditional Chinese medicine industry[125]. - The company is leveraging the "Healthy China" national strategy to expand into medical services, health consumption, and daily chemical products, creating new profit growth points[125]. - The company anticipates significant growth in the pharmaceutical market due to increasing healthcare awareness and an aging population, with the elderly expected to reach one-third of the total population by 2050[119]. - The company is considering strategic acquisitions to enhance its market position, targeting firms with a combined revenue of 500 million[155]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25%[155]. Human Resources and Management - The company recruited 21 new talents in 2021 to strengthen its human resources and ensure proper job matching[40]. - The company is implementing a human resources management system to attract, retain, and motivate talent, ensuring business goals are met[129]. - The company has established a compensation management system for directors, supervisors, and senior management, which was approved by the board and shareholders[164]. - The total remuneration for the chairman acting as the secretary is 53.33 million yuan, while the total remuneration for the vice chairman and president is 37.50 million yuan[150]. - The company has a total of 5 employees with master's degrees or higher, indicating a focus on skilled workforce development[180]. Compliance and Regulatory Issues - The company faced regulatory scrutiny, receiving warnings from the China Securities Regulatory Commission for failing to disclose related party guarantees and significant litigation matters[167]. - The company has not faced any penalties from the China Securities Regulatory Commission or other relevant authorities[152]. - The company is committed to maintaining compliance with regulatory requirements and corporate governance standards[154]. - The company has a strategic focus on enhancing its financial oversight and governance practices[154]. Shareholder Relations - The company conducted multiple shareholder meetings throughout 2021, ensuring compliance with legal procedures and facilitating shareholder participation[144]. - The company has a complete business and operational capability, independent from its controlling shareholder[144]. - The company maintained independence from its major shareholder, ensuring no interference in decision-making or operational activities[144].

Financial Performance - The company's operating revenue for Q1 2022 was ¥26,051,761.22, representing a decrease of 33.05% compared to the same period last year[5]. - The net profit attributable to shareholders was a loss of ¥5,826,421.39, with a diluted earnings per share of -¥0.0478[6]. - The company's net loss for Q1 2022 was ¥-171,641,624.28, worsening from ¥-165,815,202.89 in Q1 2021[26]. - The company's net profit for Q1 2022 was -7,032,712.05 RMB, compared to -3,353,092.51 RMB in Q1 2021, indicating a decline of approximately 109.5% year-over-year[30]. - Operating profit for Q1 2022 was -8,027,970.26 RMB, worsening from -5,663,210.18 RMB in the same period last year[30]. - Total revenue from sales and services received in Q1 2022 was 26,596,798.13 RMB, down from 28,074,784.98 RMB in Q1 2021, representing a decrease of about 5.3%[32]. - The company's total comprehensive loss for Q1 2022 was -7,032,712.05 RMB, compared to -3,353,092.51 RMB in Q1 2021, indicating a worsening financial position[31]. Assets and Liabilities - Total assets at the end of the reporting period were ¥390,946,508.63, down 12.89% from the end of the previous year[6]. - As of March 31, 2022, total current assets amounted to ¥178,581,862.83, a decrease from ¥186,075,275.80 at the end of 2021[24]. - The total assets as of March 31, 2022, were ¥390,946,508.63, down from ¥402,648,614.86 at the end of 2021[25]. - The total liabilities as of March 31, 2022, were ¥333,421,125.22, compared to ¥338,090,519.40 at the end of 2021[25]. - The total non-current assets as of March 31, 2022, were ¥212,364,645.80, a slight decrease from ¥216,573,339.06 at the end of 2021[25]. Cash Flow - Cash flow from operating activities showed a net outflow of ¥5,534,309.50[5]. - The net cash flow from operating activities in Q1 2022 was -5,534,309.50 RMB, compared to -1,311,785.21 RMB in Q1 2021, reflecting a significant increase in cash outflow[34]. - Cash and cash equivalents as of March 31, 2022, were ¥13,525,724.83, down from ¥22,291,090.10 at the end of 2021[24]. - Cash and cash equivalents at the end of Q1 2022 stood at 3,353,922.64 RMB, slightly up from 3,118,803.70 RMB at the end of Q1 2021[34]. - The total cash inflow from financing activities in Q1 2022 was 88,100,000.00 RMB, down from 106,840,000.00 RMB in Q1 2021[34]. Expenses - The company's sales expenses decreased by 62.78% due to the decline in revenue[11]. - The company's management expenses increased by 34.36%, primarily due to the addition of new subsidiaries[11]. - The company incurred total expenses of 56,325,393.30 RMB in operating activities during Q1 2022, compared to 34,139,489.11 RMB in Q1 2021, marking an increase of approximately 65%[34]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 7,823[13]. - The company reported a total shareholding of 29,000,028 shares, accounting for 23.81% of the total share capital, making it the largest shareholder[15]. Regulatory and Compliance - The company faced a fine of 1 million RMB from the China Securities Regulatory Commission for information disclosure violations[16]. - The company has a non-operating fund occupation balance of 67.2877 million RMB from previous years[16]. Investments and Development - The company is undergoing GMP renovation in two phases for its new production facility, focusing on eye drops and penicillin tablets in the first phase[19]. - The company has completed the GMP compliance inspection for its Amoxicillin Clavulanate Potassium Tablets on September 15, 2021, allowing it to resume production[19]. - The company signed a technical development contract for the consistency evaluation of its main product, with a total contract amount of 11 million RMB[19]. - The company reported a significant decrease in cash flow from investment activities, down 79.33% compared to the previous year[11]. - The company has transferred debts totaling 90 million RMB to Yongxin Huari, with 50 million RMB already received as of September 2021[18].

Financial Performance - The company's operating revenue for Q3 2021 was CNY 22,606,417.08, representing a decrease of 53.70% compared to the same period last year[5]. - The net profit attributable to shareholders was a loss of CNY 8,979,353.05, with a year-to-date loss of CNY 15,129,707.34[5]. - The basic and diluted earnings per share for the quarter were both CNY -0.07, compared to CNY -0.12 in the same period last year[6]. - Total operating revenue for the first three quarters of 2021 was ¥99,821,256.47, a decrease from ¥160,113,947.23 in the same period of 2020, representing a decline of approximately 37.5%[24]. - The net profit for Q3 2021 was -¥16,400,778.04, compared to -¥4,583,781.37 in Q3 2020, reflecting a significant increase in losses[26]. - Basic and diluted earnings per share for Q3 2021 were both -¥0.1242, compared to -¥0.0338 in Q3 2020[26]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 418,885,254.88, down 5.34% from the end of the previous year[6]. - The equity attributable to shareholders decreased by 20.77% to CNY 57,713,741.24 compared to the end of the previous year[6]. - Total liabilities as of September 30, 2021, were CNY 341,953,694.81, a slight decrease of 2.5% from CNY 349,177,858.90[21]. - The company's total assets were CNY 418,885,254.88, down from CNY 442,510,197.01, reflecting a decrease of 5.34%[22]. Cash Flow - The company reported a cash flow from operating activities of CNY -2,515,433.45 year-to-date[6]. - Net cash flow from operating activities for the first three quarters of 2021 was -¥2,515,433.45, an improvement compared to -¥12,668,897.79 in the same period of 2020[29]. - The company reported a total cash inflow from operating activities of ¥93,030,160.72 for the first three quarters of 2021, compared to ¥171,116,625.20 in 2020, a decrease of about 45.4%[29]. - The company reported a net increase in cash and cash equivalents of $32,143,821.67, contrasting with a decrease of -$15,615,973.50 in the previous year[30]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 7,698[12]. - The top two shareholders held 42.54% of the total shares, with Qingdao Huilong Huaze Investment Co., Ltd. holding 22.01% and Yongxin Huari Cultural Development Co., Ltd. holding 20.53%[12]. - The top shareholder, Qingdao Huilong Huaze Investment Co., Ltd., holds 26,799,460 shares, representing 23.81% of the total share capital after signing a concerted action agreement[14]. - The company has a total of 29,000,028 shares held by the concerted action parties, making them the largest shareholder group[14]. - The company has a total of 10 major shareholders, with the top 5 holding significant stakes in the company[13]. Operational Challenges - The significant decline in revenue was attributed to the suspension of production for GMP transformation during the reporting period[10]. - The company is under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure laws, which poses a risk of forced delisting if found guilty[15]. - The company confirmed non-operating fund occupation by the former controlling shareholder amounting to RMB 28.84 million and illegal guarantees totaling RMB 3.31 million[15]. - The company has identified RMB 30.73 million in engineering prepayments and RMB 54.14 million in equity transfer payments as non-operating fund occupations[15]. - The company is actively cooperating with the regulatory investigation and adhering to disclosure obligations during this period[15]. Production and Development - The company is undergoing a GMP renovation of its production lines in a new facility, with the first phase focusing on eye drops and penicillin tablets[16]. - The company completed the BE clinical registration for its main product, Amoxicillin and Clavulanate Potassium Tablets, on July 12, 2021[18]. - The company has made progress in the consistency evaluation of its main product, with a total contract amount of CNY 11 million signed for the technical development[17]. - The production line for Amoxicillin and Clavulanate Potassium Tablets has resumed after passing the GMP compliance inspection[17]. Expenses - Total operating costs for the first three quarters of 2021 were ¥120,739,841.16, down from ¥172,888,643.61 in 2020, indicating a reduction of about 30.2%[24]. - Sales expenses for the first three quarters of 2021 were ¥16,288,662.11, down from ¥41,692,871.92 in 2020, a decrease of approximately 60.0%[24]. - Research and development expenses for the first three quarters of 2021 were ¥1,136,346.03, slightly down from ¥1,569,501.47 in 2020[24].

Regulatory and Legal Issues - The company is under investigation by the China Securities Regulatory Commission (CSRC) for suspected violations of information disclosure laws, which poses a significant risk of forced delisting if found guilty[5]. - The company is actively cooperating with the CSRC during the ongoing investigation and is committed to fulfilling its disclosure obligations[5]. - The company has initiated legal proceedings to recover occupied funds from the original controlling shareholder and related parties[97]. - The company has received a regulatory letter from the Shanghai Stock Exchange regarding fund occupation and illegal guarantees amounting to 90 million RMB[105]. - The company has taken legal actions to recover funds and has fulfilled its information disclosure obligations to protect the rights of minority shareholders[105]. Financial Performance - The company's operating revenue for the first half of the year was ¥77,214,839.39, a decrease of 30.62% compared to ¥111,290,544.53 in the same period last year[21]. - The net profit attributable to shareholders was -¥6,150,354.29, worsening from -¥2,400,710.48 in the previous year[21]. - The basic earnings per share for the first half of the year was -¥0.0505, compared to -¥0.0197 in the same period last year[23]. - The weighted average return on equity was -8.82%, down from -2.29% in the previous year[23]. - The company's total assets decreased by 2.57% to ¥431,143,857.06 from ¥442,510,197.01 at the end of the previous year[22]. Cash Flow and Liquidity - The net cash flow from operating activities significantly improved to ¥6,239,411.75 from ¥73,967.03 in the previous year, an increase of 8335.40%[22]. - The cash flow from financing activities increased by 2186.70% to 21,873,274.34 CNY, primarily due to the receipt of debt transfer payments[39]. - The total cash inflow from operating activities was CNY 65,552,844.47, down from CNY 121,926,168.92 in the first half of 2020, reflecting a decline in operational cash generation[147]. - The company's total cash and cash equivalents at the end of the period reached 26,006,571.80 RMB, compared to 334,435.41 RMB at the end of the previous year[152]. Shareholder and Ownership Structure - The largest shareholder changed from Qingdao Huilong Huaze to Yongxin Huari and its concerted action party, Qingdao Shared, holding a combined 23.81% of the total shares[6]. - The company held its 2020 annual general meeting on May 26, 2021, where it approved the election of the 11th Board of Directors and Supervisory Board[60]. - The company has not experienced any changes in its total share capital or share structure during the reporting period[121]. - The total number of ordinary shareholders as of the reporting period end is 8,173[122]. Operational Focus and Strategy - The company continues to focus on the production and sales of traditional Chinese medicine and related health products, with key products including eye drops and antibiotics[27]. - The company is enhancing its procurement and production management to reduce costs and ensure product quality through strategic supplier relationships[28]. - The sales strategy includes expanding market coverage and collaborating with internet sales companies to boost product visibility and sales[28]. - The company maintains a stable operational model while actively seeking new market opportunities to improve its market share[28]. Environmental Compliance - The company is classified as a key pollutant discharge unit, primarily discharging wastewater, waste gas, and solid waste, with wastewater treatment capacity of 150 tons per day[66]. - The company has completed the renovation of low-nitrogen combustion for natural gas boilers, significantly improving overall emissions[66]. - The total amount of treated wastewater in the first half of 2021 was 4,125 tons, all meeting discharge standards[67]. - The company has established an environmental self-monitoring plan, conducting quarterly inspections of wastewater emissions[69]. Governance and Management - The board of directors and management have confirmed the accuracy and completeness of the semi-annual report, which has not been audited[5]. - The company has implemented twelve governance measures to improve organizational structure and financial management[37]. - The company has committed to ensuring the independence of its management team, including the CEO, CFO, and board secretary, who will not hold positions outside the company[78]. - The company has established a legal governance structure, ensuring that the shareholders' meeting, board of directors, and supervisory board operate independently[82]. Debt and Liabilities - The company signed a debt transfer agreement in April 2021, transferring debts totaling RMB 90 million to Yongxin Huari, with the first payment of RMB 32.15 million received by April 28, 2021[8]. - The company has a total of 90.48 million yuan in restricted assets, primarily due to loan collateral[43]. - The company reported a total of RMB 252.16 million in irregular guarantees, representing 3.46% of the latest audited net assets[88]. - The company has a total of 9,000 million RMB in confirmed and conditionally transferred debts to Yongxin Huari[96]. Research and Development - The company has modern pharmaceutical production technology and facilities certified by national GMP standards[34]. - The company completed the GMP transformation of its production line for Amoxicillin and Clavulanate Potassium Tablets, with three batches of samples produced for consistency evaluation[117]. - Research and development expenses for the first half of 2021 were CNY 795,792.24, a decrease from CNY 976,458.65 in the first half of 2020[140]. Litigation and Disputes - The company is involved in multiple litigation cases with a total claim amount exceeding RMB 5 million[99]. - The company has a pending lawsuit regarding a share transfer agreement with a total amount of RMB 55 million, subject to audit adjustments[100]. - The company is actively seeking legal remedies for financial recoveries from various parties involved in disputes[100]. - The company has incurred litigation costs related to various disputes, which are still ongoing[99].

Financial Performance - The net profit attributable to shareholders for 2020 was -40.5183 million yuan, with the parent company's net profit at -33.75 million yuan, resulting in a cumulative undistributed profit of -123.7683 million yuan as of December 31, 2020[5]. - The company will not allocate surplus reserves or distribute dividends for the year due to the negative net profit[5]. - The company's operating revenue for 2020 was ¥206,627,323.03, a decrease of 30.45% compared to ¥297,072,374.92 in 2019[25]. - The net loss attributable to shareholders for 2020 was ¥40,518,323.01, compared to a profit of ¥50,680,106.57 in 2019[25]. - The basic earnings per share for 2020 was -¥0.33, down from ¥0.42 in 2019[26]. - The total assets at the end of 2020 were ¥442,510,197.01, a decrease of 16.02% from ¥526,926,931.31 in 2019[25]. - The weighted average return on equity for 2020 was -49.64%, compared to 66.43% in 2019[26]. - The net cash flow from operating activities for 2020 was -¥8,395,914.90, a decline of 105.21% from ¥161,127,708.67 in 2019[25]. - The company's net assets attributable to shareholders decreased by 28.45% to ¥72,843,448.58 at the end of 2020 from ¥101,806,599.96 in 2019[25]. Corporate Governance and Compliance - The company is under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure laws, which poses a risk of forced delisting if found guilty[8]. - The company has acknowledged the existence of previous non-operating fund occupations and illegal guarantees but reported no new cases during the reporting period[10]. - The audit report issued by Suya Jincheng Certified Public Accountants confirmed the financial statements with an emphasis on certain matters, indicating ongoing financial concerns[4]. - The company has committed to ensuring the accuracy and completeness of the annual report, with all board members present during the meeting[7]. - The company is actively improving its internal governance and compliance in response to previous audit findings[45]. - The company plans to strengthen corporate governance and internal control systems to ensure compliance and protect shareholder interests[153]. Shareholding Structure and Changes - The company has undergone a significant change in shareholding structure, with Qingdao Huilong Huaze Investment Co., Ltd. becoming the largest shareholder with 22.01% of shares[9]. - The company has no controlling shareholder or actual controller following the recent changes in shareholding[9]. - The company has signed a debt transfer agreement with Yongxin Huari to transfer a total of 90 million yuan in debts, with 32.15 million yuan already received as of April 28, 2021[11]. Market Strategy and Future Outlook - The company plans to focus on new product development and market expansion strategies in the upcoming year[1]. - The company is exploring potential mergers and acquisitions to enhance its market position[1]. - Future guidance indicates a cautious outlook due to the current financial performance and market conditions[1]. - The company aims to achieve profitability in 2021 by expanding its main business and improving the profitability of leading products[112]. - The company plans to enhance its marketing strategies to increase product market share and improve brand awareness[112]. Product Development and R&D - The company holds 98 drug approval numbers and 5 health product approval numbers, indicating a diverse product portfolio[33]. - The company has established long-term strategic partnerships with suppliers to ensure stable quality and reduce production costs[34]. - The company is focusing on integrating new technologies such as big data and artificial intelligence to enhance healthcare services[39]. - Research and development expenses decreased by 86.55% year-on-year to ¥642,881.98, indicating a significant reduction in investment in new product development[49]. - The company is the sole domestic producer of Amoxicillin and Clavulanate Potassium Tablets (4:1), which is undergoing consistency evaluation to enhance its market brand[81]. Legal and Financial Issues - The company has initiated legal proceedings to recover loans amounting to ¥20 million from its former controlling shareholder and related parties[46]. - The company has outstanding non-operating fund occupation of RMB 1.69 million, which has not been repaid by the original controlling shareholder Qingfeng Yuansheng[170]. - The company has initiated legal proceedings against Qingfeng Yuansheng and its related parties to recover the occupied funds, with the court having accepted the case but not yet scheduled a hearing[170]. - The company is actively pursuing legal remedies to protect its interests and those of its shareholders[170]. Operational Challenges - The company faced significant challenges due to the impact of COVID-19 and increased pressure from national medical insurance cost control policies[44]. - The company reported a significant increase in various impairment losses, totaling 46.40 million yuan, contributing to the substantial loss[77]. - The company is under regulatory scrutiny for not following proper approval procedures for significant contracts, leading to corrective measures mandated by the regulatory authority[198]. Financial Adjustments and Corrections - The company identified and corrected prior accounting errors, impacting the 2018 and 2019 financial statements, including adjustments to deferred tax assets and liabilities[155]. - The adjustments resulted in an increase of RMB 27 million in other receivables and a decrease of RMB 27 million in construction in progress for the 2018 balance sheet[160]. - The total assets after adjustments amounted to CNY 526,926,931.31, reflecting a decrease of CNY 9,742,723.37 from the previous figure[161].