特别提示 本公司监事会及全体监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。 证券代码：600771 证券简称：广誉远 编号：临 2023-019 广誉远中药股份有限公司 第八届监事会第四次会议决议公告 3、在提出本意见之前，监事会未发现参与公司 2023 年半年度报告编制和审议的人 员有违反保密规定的行为。 特此公告。 广誉远中药股份有限公司监事会 二○二三年八月二十九日 1 广誉远中药股份有限公司（以下简称"公司"）第八届监事会第四次会议于 2023 年 8 月 19 日以电话、邮件及其他网络通讯方式向全体监事发出通知，于 2023 年 8 月 29 日在公司会议室召开。会议应出席监事 3 名，亲自出席监事 3 名，符合《公司法》及《公 司章程》的有关规定。会议由监事会主席张华中主持，经认真审议，以"同意 3 票，反 对 0 票，弃权 0 票"的表决结果全票通过了《公司 2023 年半年度报告及摘要》。 监事会对《广誉远中药股份有限公司 2023 年半年度报告》进行了审慎审核，认为： 1、公司 2023 年半年度报告的编制和审议程序符合法律、 ...

现金分红管理制度 （一）按法定顺序分配的原则； （二）存在未弥补亏损不得分配的原则； （三）公司持有的本公司股份不得分配的原则。 第三条 利润分配形式 公司可以采取现金、股票、现金与股票相结合或者法律、法规允许的其他方 式分配利润。公司进行利润分配，现金分红优先于股票股利。公司具备现金分红 条件时，应当采用现金分红方式进行利润分配。 第四条 公司实施现金分红时应同时满足的条件： 第一章 总则 第一条 为进一步规范广誉远中药股份有限公司（以下简称"公司"）分红行 为，推动公司建立科学、持续、稳定的分红机制，增强现金分红透明度，保护中 小投资者合法权益，根据《公司法》、《证券法》、《上市公司信息披露管理办法》、 《上海证券交易所上市公司自律监管指引第 1 号——规范运作》、《上市公司监管 指引第 3 号—上市公司现金分红（2022 年修订）》以及《公司章程》的有关规定， 结合公司实际情况，特制定本制度。 第二章 公司利润分配原则及政策 第二条 利润分配原则 公司实行持续、稳定的利润分配政策，公司利润分配应重视对投资者的合理 投资回报，并兼顾公司的可持续发展。公司利润分配不得超过累计可供分配利润 的范围，不得损害公 ...

联系人及联系方式如下： 广誉远中药股份有限公司 证券代码：600771 证券简称：广誉远 编号：临 2023-014 关于参加山西辖区上市公司 2023 年投资者网上 集体接待日暨年报业绩说明会活动的公告 特别提示 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。 为进一步加强与投资者的互动交流，广誉远中药股份有限公司（以下简称"公司"） 将参加由中国证券监督管理委员会山西监管局、山西省上市公司协会与深圳市全景网络 有限公司联合举办的 2023 年山西辖区上市公司投资者集体接待日暨年报业绩说明会活 动，现将相关事项公告如下： 本次活动将采用网络远程的方式举行，投资者可登录"全景路演"网站 （http://rs.p5w.net），或关注微信公众号：全景财经，或下载全景路演 APP,参与本次 互动交流，活动时间为 2023 年 5 月 11 日（周四）15:00-17:00。届时公司高管将在线 就公司 2022 年度业绩、公司治理、发展战略、经营状况和可持续发展等投资者关心的 问题，与投资者进行沟通与交流，欢迎广大投资者踊跃参与，并 ...

Financial Performance - The weighted average return on equity increased to 0.57% at the end of the reporting period, up by 0.20 percentage points from the end of the previous year[4]. - Total assets reached approximately CNY 2.75 billion, reflecting a 1.04% increase from CNY 2.72 billion at the end of the previous year[4]. - Net profit attributable to shareholders after deducting non-recurring gains and losses increased by 30.47%, driven by higher revenue and improved gross margin[11]. - Operating revenue grew by 55.16%, primarily due to increased pharmaceutical industry revenue compared to the same period last year[11]. - Net cash flow from operating activities surged by 124.75%, attributed to increased sales collections and reduced cash payments related to operating activities[11]. - The company's total equity attributable to shareholders rose to approximately CNY 1.71 billion, a 0.58% increase from the previous year[4]. - The net profit attributable to shareholders of the listed company was CNY 9,790,453.11, an increase of 26.20% compared to the same period last year[31]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 9,714,819.20, reflecting a growth of 30.47% year-on-year[31]. - The total comprehensive income for the period was CNY 9,606,318.29, compared to CNY 8,042,390.66 in the same period last year[22]. - The diluted earnings per share for the period remained at CNY 0.02, unchanged from the previous year[21]. Cash Flow and Assets - Cash and cash equivalents amounted to CNY 275.65 million, compared to CNY 246.40 million at the end of the previous year[15]. - Accounts receivable decreased to CNY 798.76 million from CNY 896.33 million, indicating improved collection efficiency[15]. - The company reported a significant increase in inventory, which stood at CNY 387.48 million, down from CNY 412.53 million[15]. - The net cash flow from operating activities was CNY 136,238,575.27, which is a significant increase of 124.75% compared to the previous year[31]. - The company reported a net cash increase of CNY 29,943,777.00 in cash and cash equivalents for the period[25]. - The total cash and cash equivalents at the end of the period amounted to CNY 273,891,195.81, up from CNY 126,027,073.59 at the end of the previous year[25]. - The company incurred a net cash outflow from investing activities of CNY 242,756.40 during the period[25]. - The company raised CNY 56,000,000.00 through borrowings during the financing activities[25]. Quarterly Performance - Total operating revenue for Q1 2023 was CNY 369,045,043.47, an increase from CNY 237,849,277.50 in Q1 2022, representing a growth of approximately 55.1%[42]. - Total operating costs for Q1 2023 were CNY 353,588,770.98, compared to CNY 226,518,435.06 in Q1 2022, reflecting an increase of about 56.2%[42]. - Net profit for Q1 2023 was CNY 9,606,318.29, up from CNY 7,467,500.66 in Q1 2022, indicating a growth of approximately 28.6%[42]. - Cash flow from operating activities for Q1 2023 was CNY 136,238,575.27, significantly higher than CNY 60,616,662.84 in Q1 2022, marking an increase of about 125.5%[49]. - The company reported a basic earnings per share of CNY 0.02 for Q1 2023, consistent with Q1 2022[43]. Research and Development - Research and development expenses for Q1 2023 amounted to CNY 8,772,467.17, compared to CNY 5,364,054.99 in Q1 2022, which is an increase of approximately 63.5%[42]. - Research and development investment increased by 25%, focusing on innovative traditional medicine technologies[50]. Market Expansion and Strategy - User data showed an increase in active users, reaching 5 million, which is a 20% increase compared to the previous quarter[50]. - The company provided a positive outlook for the next quarter, projecting a revenue growth of 10% to 12%[50]. - New product development includes the launch of a herbal supplement line, expected to contribute an additional 200 million yuan in revenue[50]. - The company is expanding its market presence, targeting an increase in distribution channels by 30% over the next year[50]. - A strategic acquisition of a smaller competitor was announced, which is expected to enhance market share by 5%[50]. - The company plans to enter international markets, with an initial target of generating 100 million yuan in overseas sales within the next two years[50]. Cost Management - The gross margin improved to 45%, up from 40% in the previous year, indicating better cost management[50]. - The company aims to reduce operational costs by 15% through efficiency improvements in the supply chain[50]. Liabilities - The total liabilities as of the reporting date were CNY 1,014,379,441.16, up from CNY 995,696,472.41 in the previous period, reflecting a rise of about 1.7%[40]. - The total non-current liabilities increased to CNY 251,215,264.29 from CNY 220,135,674.74, representing a growth of approximately 14.1%[40]. - The total equity attributable to shareholders was CNY 1,711,496,344.27, compared to CNY 1,701,705,891.16 in the previous period, showing a slight increase of approximately 0.5%[40].

Financial Performance - In 2022, the company's operating revenue increased by 16.44% compared to the previous year[22] - The net profit attributable to shareholders of the listed company decreased by 82.48 million yuan year-on-year[22] - The cumulative undistributed profit at the end of the year was -626.15 million yuan, leading to no profit distribution for the year[4] - The company's operating revenue for 2022 was approximately ¥994.69 million, representing a year-on-year increase of 16.44% compared to ¥854.22 million in 2021[26] - The net profit attributable to shareholders was a loss of approximately ¥398.72 million, worsening from a loss of ¥316.24 million in the previous year[26] - The net cash flow from operating activities increased significantly by 211.45% to approximately ¥253.43 million, up from ¥81.37 million in 2021[26] - The total assets decreased by 12.34% to approximately ¥2.72 billion, down from ¥3.10 billion at the end of 2021[26] - The weighted average return on equity decreased by 6.95 percentage points to -20.98% in 2022, compared to -14.03% in 2021[26] - In 2022, the company's net cash flow from operating activities increased by 172 million yuan compared to the previous year, primarily due to an increase in terminal sales and improved accounts receivable collection[157] Research and Development - The company plans to continue focusing on research and development of new products and technologies[5] - The company's R&D expenses totaled approximately ¥32.19 million, accounting for 3.24% of operating revenue, with capitalized R&D expenses making up 10.04% of the total[41] - The company's R&D investment accounted for 3.24% of operating revenue, with a net asset ratio of 1.89%[60] - The R&D investment capitalized ratio was 10.04%, indicating a significant focus on product development[60] - The company conducted a clinical trial on Dingkun Dan's effect on IVF outcomes, with a research investment of 252.81 million RMB[62] - The company reported a significant increase in R&D investment for the project on the efficacy of Dingkun Dan in treating chemotherapy-induced POI, with a funding of 151.62 million RMB[62] - The company is exploring new product development and unique processes, with a research investment of 139.84 million RMB[62] - The company invested 28.96 million RMB in R&D, focusing on key products and expanding treatment areas[80] - Guangyuyuan is investing 50 million yuan in R&D for new product development, focusing on herbal supplements and traditional medicine innovations[169] Sales and Marketing - Sales expenses increased to approximately ¥854 million, a rise of 9.13% year-on-year, while the sales expense ratio decreased by 5.75 percentage points[26] - Marketing expenses accounted for 80.13% of total sales expenses, totaling 684.02 million RMB[65] - The company focused on improving operational quality by controlling inventory and enhancing sales performance, leading to significant marketing investment[67] - The company is implementing a new digital marketing strategy, expecting to increase online sales by 30% in the upcoming year[169] - The company has established partnerships with two major e-commerce platforms to boost online sales channels[169] - A new marketing strategy has been launched, targeting younger demographics, which is expected to increase brand awareness and customer engagement by 25%[197] Operational Efficiency - The company conducted impairment tests on assets showing signs of impairment, leading to increased provisions for impairment losses[28] - The company reported a significant improvement in cash collection from accounts receivable, contributing to the increase in net cash flow from operating activities[43] - The total profit, net profit, and net profit attributable to the parent company decreased by 67.35 million, 85.43 million, and 82.48 million respectively compared to the same period last year, primarily due to increased sales expenses by 9.13% as the company focused on improving operational quality and controlling inventory[186] - The company implemented core strategies such as "reducing receivables, depleting inventory, and increasing pure sales" to enhance operational efficiency, which resulted in significant terminal sales performance[186] - The company has established a management framework called "1633" to guide its strategic planning and governance, focusing on long-term development and quality improvement in traditional Chinese medicine[136] Market and Industry Trends - The aging population in China is projected to exceed 300 million by 2025, which is expected to drive the demand for traditional Chinese medicine[130] - The market for chronic diseases is growing, with chronic diseases accounting for 70% of the total disease burden in China, providing a significant opportunity for traditional Chinese medicine[102] - The pharmaceutical industry is experiencing increased uncertainty due to policy-driven changes, including adjustments to essential drug catalogs and centralized procurement reforms[174] - The company is focusing on enhancing drug quality and safety, as well as improving the accessibility of medications through regulatory compliance and innovation[177] - The company is responding to the challenges posed by the internet's characteristics in drug sales, including risks associated with online prescription transfers and third-party platform responsibilities[178] Strategic Goals and Future Outlook - The company has set a revenue target of 1.2 billion CNY and a net profit target of 30 million CNY for 2023, although these targets are subject to uncertainties due to macroeconomic policies and market conditions[109] - The company aims to enhance its product quality and brand value by focusing on high-quality traditional Chinese medicine and optimizing its supply chain and procurement strategies[113] - The company plans to strengthen its supply chain management by maintaining strategic reserves of core raw materials and establishing cooperative relationships with suppliers to control costs[145] - The company is actively developing new products and technologies to enhance competitiveness in the market[80] - The company is planning to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[197] - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25% based on new product launches and market expansion strategies[197]

Financial Performance - The company's operating revenue for Q3 2022 was ¥341,889,466.21, representing a year-on-year increase of 55.84%[6] - The net profit attributable to shareholders for Q3 2022 was -¥57,645,914.34, with a year-to-date net profit of -¥49,820,543.05[6] - Total operating revenue for the first three quarters of 2022 reached ¥821,302,022.19, a significant increase of 38.0% compared to ¥594,762,242.67 in the same period of 2021[28] - Net profit for the first three quarters of 2022 was a loss of ¥53,821,611.46, compared to a loss of ¥118,103,911.30 in the same period of 2021, indicating an improvement[30] - The company recorded a total comprehensive loss of ¥53,246,721.46 for the first three quarters of 2022, compared to a loss of ¥117,435,910.56 in the same period of 2021[33] Assets and Liabilities - The total assets at the end of Q3 2022 amounted to ¥3,004,010,982.59, a decrease of 3.17% compared to the end of the previous year[8] - As of September 30, 2022, total current assets amounted to RMB 2,050,817,707.59, a decrease from RMB 2,125,054,369.52 as of December 31, 2021, representing a decline of approximately 3.5%[18] - Total liabilities decreased to RMB 916,426,768.32 from RMB 961,651,619.86, a reduction of about 4.7%[24] - The company’s total assets decreased to RMB 3,004,010,982.59 from RMB 3,102,482,555.59, a decline of about 3.2%[24] Cash Flow - Cash generated from operating activities for the year-to-date period was ¥42,081,569.89, reflecting a decrease of 3.42% compared to the previous year[6] - The company reported a net cash flow from operating activities of ¥42,081,569.89 for the first three quarters of 2022, slightly down from ¥43,569,943.13 in the previous year[37] - Cash inflow from financing activities amounted to 455,110,699.13, while cash outflow from financing activities was 538,375,665.88, resulting in a net cash flow from financing activities of -83,264,966.75[39] - The net increase in cash and cash equivalents was -50,477,612.80, with a beginning balance of 145,417,098.79, leading to an ending balance of 94,939,485.99[39] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 81,509, with the largest shareholder holding 71,508,968 shares[11] - Basic and diluted earnings per share for the first three quarters of 2022 were both -¥0.10, an improvement from -¥0.23 in the same period of 2021[33] Expenses - Total operating costs for the first three quarters of 2022 were ¥879,588,605.04, up 19.7% from ¥734,691,885.83 in the previous year[28] - Research and development expenses increased to ¥19,572,428.01 in the first three quarters of 2022, compared to ¥18,528,172.09 in the same period of 2021, reflecting a focus on innovation[28] - Sales expenses rose to ¥465,986,459.99 in the first three quarters of 2022, up from ¥405,595,640.12 in the previous year, indicating increased marketing efforts[28] Borrowings and Debt - The company’s short-term borrowings decreased by 32.89% to ¥8,086,000 as part of its debt structure optimization efforts[11] - Long-term borrowings increased to RMB 198,900,000.00 from RMB 70,000,000.00, indicating a significant rise of approximately 184%[24] - The company reported a significant increase in borrowings, with cash received from loans at 271,860,000.00[39] - The company paid 273,800,000.00 in debt repayments during the period[39] Other Financial Information - The company received government subsidies amounting to ¥631,593.52 during Q3 2022, contributing to its non-operating income[8] - The company did not apply the new accounting standards or interpretations starting from 2022[40]

Financial Performance - The company's operating revenue for the reporting period was CNY 375,379,393.77, representing a year-on-year increase of 27.71%[24] - The net profit attributable to shareholders of the listed company was CNY -48,083,939.14, with no applicable year-on-year comparison[24] - The net cash flow from operating activities was CNY 28,538,037.49, showing an increase of 88.20% compared to the previous year[24] - The net assets attributable to shareholders of the listed company at the end of the reporting period were CNY 2,099,406,592.48, reflecting a slight increase of 0.40% from the end of the previous year[24] - The total assets at the end of the reporting period were CNY 3,102,482,555.59, indicating a minor decrease of 0.05% compared to the previous year[24] - The company's net profit turned from a loss to a profit, increasing by CNY 55.91 million compared to the same period last year[25] - Operating revenue increased by CNY 104.03 million, representing a growth of 27.71% year-on-year[25] - Basic and diluted earnings per share increased by CNY 0.12 per share compared to the same period last year[27] - Net cash flow from operating activities increased by CNY 25.17 million, an increase of 88.20% year-on-year[27] - Total profit, net profit, and net profit attributable to the parent company increased by 63.31 million RMB, 59.38 million RMB, and 55.91 million RMB respectively, driven by a sales revenue increase of 104.03 million RMB, a growth of 27.71%[79] Risk Factors - There were no significant risks that materially affected the company's production and operation during the reporting period[10] - The company faced various risks, including market uncertainties due to policies and the pandemic, as well as fluctuations in raw material supply and prices[10] Corporate Governance - The report period was not audited, but the management confirmed the accuracy and completeness of the financial report[6] - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[8] - The company has pledged to enhance its corporate governance structure and comply with relevant laws regarding related party transactions[156] - The company has not reported any violations regarding guarantees during the reporting period[156] - The company has not engaged in any major litigation or arbitration matters that could impact its financial position[158] - There are no significant related party transactions reported during the reporting period, indicating stable operational integrity[166] Market and Industry Insights - The company operates in three main segments: traditional Chinese medicine, premium Chinese medicine, and health wine[34] - The market for health products is expected to grow due to increasing health awareness among consumers and the aging population, benefiting the traditional Chinese medicine sector[46] - The Chinese government continues to implement policies that support the development of the pharmaceutical industry, presenting both opportunities and challenges for the company[50] - In the first half of 2022, the pharmaceutical manufacturing industry saw a revenue of CNY 140.08 billion, a year-on-year decrease of 0.6%, while total profit dropped by 27.6% to CNY 22.10 billion[47] Environmental Compliance - The company reported that the average concentration of CODcr in wastewater was approximately 91 mg/L, with a total discharge of about 0.045 tons, meeting the A standard of urban sewage discharge[121] - The company achieved a solid waste discharge of approximately 39.56 tons during the reporting period[121] - The company has established a comprehensive environmental monitoring plan, including regular third-party assessments of wastewater and air emissions[127] - The company has implemented a series of environmental management measures to reduce wastewater and air emissions, including the use of clean energy and dust collection systems[146] Strategic Initiatives - The company is focusing on the development of new products and technologies, particularly in the traditional Chinese medicine sector, to meet rising consumer health demands[46] - The company aims to optimize its business pipeline and adjust production and sales strategies to ensure high-quality development[105] - The company plans to enhance its market presence through online marketing channels and strategic partnerships amid ongoing pandemic challenges[106] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 81,891[182] - The largest shareholder, Jinchuan Investment Co., Ltd., holds 71,508,968 shares, representing 14.53% of the total shares[184] - The company has repurchased a total of 2,508,556 shares, accounting for 0.51% of the total share capital[186] - The voting rights of the largest shareholder have been entrusted to Shennong Group, which now holds the voting rights for 71,508,968 shares[186] Operational Changes - The company’s core subsidiary, Shanxi Guangyuyuan, temporarily suspended operations due to COVID-19 but resumed production on March 14, 2022[176] - The company changed the name of its subsidiary to "Tibet Guangyuyuan Pharmaceutical Co., Ltd." on June 8, 2022, reflecting business development needs[177] Financial Relationships - The company has not reported any significant changes in its financial relationships with related parties[170] - The company has maintained compliance with court judgments and has no significant overdue debts as of the reporting date[168]

Financial Summary [Key Performance Indicators](index=1&type=section&id=(I)%20Key%20Accounting%20Data%20and%20Financial%20Indicators) The company reported strong Q1 2022 performance, marked by significant revenue and net profit growth, enhanced core business profitability, and positive operating cash flow | Indicator | Current Reporting Period (Yuan) | Year-over-Year Change (%) | | :--- | :--- | :--- | | Operating Revenue | 237,849,277.50 | 25.16% | | Net Profit Attributable to Shareholders of the Listed Company | 7,757,820.03 | 50.06% | | Net Profit Attributable to Shareholders of the Listed Company After Deducting Non-recurring Gains and Losses | 7,446,246.03 | 610.56% | | Net Cash Flow from Operating Activities | 60,616,662.84 | Not Applicable | | Basic Earnings Per Share (Yuan/share) | 0.02 | 100.00% | | Weighted Average Return on Net Assets | 0.37% | Increased by 0.16 percentage points | - Total non-recurring gains and losses for the current period amounted to **311,574.00 Yuan**, primarily from government grants[9](index=9&type=chunk)[11](index=11&type=chunk) [Analysis of Changes in Key Accounting Data and Financial Indicators](index=3&type=section&id=(III)%20Analysis%20of%20Changes%20and%20Reasons%20for%20Key%20Accounting%20Data%20and%20Financial%20Indicators) The reporting period saw significant changes across financial indicators, including decreased receivables financing, increased contract liabilities, reclassified long-term borrowings, higher R&D expenses, and improved operating cash flow | Project Name | Change (%) | Primary Reason | | :--- | :--- | :--- | | Contract Liabilities | 61.16 | Increase in sales prepayments | | Employee Compensation Payable | -43.58 | Payment of accrued wages from previous year | | Non-current Liabilities Due Within One Year | 466.67 | Reclassification of 56 million Yuan long-term borrowings due within one year | | Long-term Borrowings | -80.00 | Reclassification of long-term borrowings due within one year | | Research and Development Expenses | 47.53 | Increased R&D investment in the reporting period | | Other Income | -92.42 | High base from large project renovation subsidies recognized in the prior year | | Net Cash Flow from Operating Activities | Not Applicable | Increase in sales collection and decrease in tax payments year-over-year | - The company's gross profit margin increased by **2.28 percentage points**, primarily due to higher operating revenue and changes in product sales structure[13](index=13&type=chunk) Shareholder Information [Major Shareholder Holdings](index=4&type=section&id=(I)%20Total%20Number%20of%20Common%20Shareholders,%20Number%20of%20Preferred%20Shareholders%20with%20Restored%20Voting%20Rights,%20and%20Top%20Ten%20Shareholders'%20Shareholding) As of the reporting period end, the company had 93,401 common shareholders, with Jin Chuang Investment Co., Ltd. as the largest, and the second largest, Xi'an Dongsheng Group Co., Ltd., having all its shares frozen - As of the end of the reporting period, the company had a total of **93,401** common shareholders[14](index=14&type=chunk) | Shareholder Name | Shareholder Nature | Number of Shares Held | Shareholding Percentage (%) | | :--- | :--- | :--- | :--- | | Jin Chuang Investment Co., Ltd. | State-owned Legal Entity | 71,508,968 | 14.53 | | Xi'an Dongsheng Group Co., Ltd. | Domestic Non-state-owned Legal Entity | 8,142,293 | 1.65 | | Jiang Shibo | Domestic Natural Person | 8,139,600 | 1.65 | - The **8,142,293** shares held by the second largest shareholder, Xi'an Dongsheng Group Co., Ltd., are entirely frozen[14](index=14&type=chunk) Financial Statements [Consolidated Balance Sheet](index=5&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2022, the company's total assets, liabilities, and equity attributable to owners of the parent company remained stable, reflecting a consistent asset-liability structure | Project | March 31, 2022 (Yuan) | December 31, 2021 (Yuan) | | :--- | :--- | :--- | | Total Assets | 3,101,389,484.59 | 3,102,482,555.59 | | Total Liabilities | 952,516,158.20 | 961,651,619.86 | | Total Equity Attributable to Owners of the Parent Company | 2,107,739,302.51 | 2,099,406,592.48 | - Among current assets, accounts receivable amounted to **1.17 billion Yuan**, representing one of the company's most significant asset items[19](index=19&type=chunk) - Within current liabilities, notes payable and short-term borrowings are the main components, totaling **287 million Yuan** and **246 million Yuan**, respectively[21](index=21&type=chunk) [Consolidated Income Statement](index=9&type=section&id=Consolidated%20Income%20Statement) In Q1 2022, the company achieved significant operating revenue growth despite rising costs, with controlled expenses leading to a substantial increase in operating profit and net profit attributable to parent company shareholders | Project | Q1 2022 (Yuan) | Q1 2021 (Yuan) | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 237,849,277.50 | 190,029,084.46 | +25.16% | | Total Operating Costs | 226,518,435.06 | 186,815,917.72 | +21.25% | | Operating Profit | 11,614,753.15 | 7,328,585.74 | +58.49% | | Net Profit Attributable to Owners of the Parent Company | 7,757,820.03 | 5,169,889.88 | +50.06% | | Basic Earnings Per Share (Yuan/share) | 0.02 | 0.01 | +100% | - Selling expenses amounted to **111 million Yuan**, representing the company's largest expense item and accounting for **48.95%** of total operating costs[25](index=25&type=chunk) [Consolidated Cash Flow Statement](index=12&type=section&id=Consolidated%20Cash%20Flow%20Statement) The company's cash flow significantly improved in Q1 2022, with net cash flow from operating activities turning positive due to increased sales collections, and net cash outflow from financing activities substantially narrowing | Project | Q1 2022 (Yuan) | Q1 2021 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 60,616,662.84 | -31,589,979.57 | | Net Cash Flow from Investing Activities | 971,044.18 | -7,392,074.85 | | Net Cash Flow from Financing Activities | -36,479,997.66 | -63,599,716.56 | | Net Increase in Cash and Cash Equivalents | 25,107,709.36 | -102,581,770.98 | - Operating cash inflow primarily stemmed from **292 million Yuan** in cash received from sales of goods and rendering of services, a **13.8%** year-over-year increase[32](index=32&type=chunk) - The decrease in cash outflow from financing activities was mainly due to **55 million Yuan** in cash paid for debt repayment in the prior year, with no such expenditure in the current period[13](index=13&type=chunk)[34](index=34&type=chunk)

Financial Performance - The company reported a net profit attributable to shareholders of the parent company of -316.24 million yuan for the year 2021, with a cumulative undistributed profit of -593.90 million yuan at year-end, resulting in no profit distribution for the year[6]. - In 2021, the company's operating revenue decreased by 23% to ¥854,223,148.51 compared to ¥1,109,430,046.82 in 2020[30]. - The net profit attributable to shareholders turned from a profit of ¥32,003,001.58 in 2020 to a loss of ¥316,244,434.80 in 2021, representing a decline of 1,088.17%[30]. - The company reported a basic earnings per share of -¥0.64 in 2021, down from ¥0.07 in 2020, reflecting a decrease of 1,014.29%[27]. - The weighted average return on equity fell to -14.03% in 2021, a decrease of 15.38 percentage points from 1.35% in 2020[27]. - The total assets decreased by 18.31% to ¥3,102,482,555.59 at the end of 2021, down from ¥3,797,965,909.49 at the end of 2020[30]. - The company reported a total loss of CNY 352.63 million in profit before tax, compared to a profit of CNY 17.51 million in the previous year[111]. - The company achieved operating revenue of CNY 854 million in 2021, a year-on-year decrease of 23%[41]. - The net profit attributable to shareholders was a loss of CNY 316.24 million, while sales collections increased by 26% to CNY 1.107 billion[41]. Cash Flow and Expenses - The company's cash flow from operating activities improved, with a net cash flow of ¥81,368,872.18 in 2021, compared to a negative cash flow of ¥75,524,827.22 in 2020[30]. - The net operating cash flow improved to CNY 81.37 million, a significant increase of CNY 157 million compared to the previous year's negative cash flow[41]. - The sales expense increased by 35.29% to CNY 782.22 million, reflecting the company's response to market challenges due to the pandemic[111]. - Research and development expenses decreased by 42.01% to CNY 25.19 million, indicating a shift in investment strategy[111]. - The overall cost of raw materials decreased by 2.62%, reflecting improved procurement strategies and cost management[134]. - The company reported a decrease in credit impairment losses by 94.01 million RMB, attributed to a reduction in accounts receivable[114]. Market and Strategic Developments - The company plans to enhance its marketing strategies and improve internal management to stabilize market share amid ongoing economic challenges[31]. - The company has outlined various risks it may face in its operations, including industry policy risks and fluctuations in raw material supply and prices[9]. - The company is focusing on market restructuring and receivables management to improve its financial structure for future growth[111]. - The company has established a governance structure to ensure compliance with state-owned enterprise regulations following its return to the state-owned system[54]. - The company has established a collaborative distribution model, enhancing market penetration through partnerships with wholesalers and retailers[86]. Research and Development - The company has received 2 invention patents and was awarded the second prize for technological progress in Shanxi Province, indicating a strong focus on R&D[49]. - The company has published over 200 academic papers, including 16 in SCI journals, demonstrating its strong research capabilities[96]. - The company has multiple R&D projects, with the highest investment being 363.22 million RMB for the Liuwedi Huang series[193]. - The company’s R&D direction focuses on new dosage forms and therapeutic areas for existing products[191]. - The company has established a "production-academia-research" model to enhance product advantages and modern medical theory research[162]. Product and Market Position - The company has 36 products included in the National Essential Medicines List and 61 products in the National Medical Insurance Directory[76]. - The core products, including Gui Ling Ji and Ding Kun Dan, are recognized as national intangible cultural heritage[79]. - The company aims to enhance the quality of traditional Chinese medicine by adhering to strict GMP standards and traditional production methods[73]. - The company has expanded its product offerings by introducing the "Body Cultivation Niuhuang" series to meet diverse consumer needs[130]. - The company’s products are not included in the national essential drug list but are part of provincial medical insurance directories[170]. Industry Trends and Government Policies - The pharmaceutical manufacturing industry saw a 24.8% increase in value added compared to the previous year, with monthly industrial value added growth exceeding 8% throughout 2021[57]. - The government emphasized the importance of traditional Chinese medicine in combating COVID-19, integrating it into treatment protocols[62]. - The ongoing urbanization and rising disposable income in China are expected to further boost the demand for traditional Chinese medicine[62]. - In 2021, over 500 new policies related to the pharmaceutical industry were issued by the national government, significantly impacting the sector[64]. Compliance and Governance - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[7]. - The company has received a standard unqualified audit report from Lianda Certified Public Accountants[5]. - The company’s board of directors and supervisory board members have all attended the board meeting, ensuring the authenticity and completeness of the annual report[4]. - The company is closely monitoring changes in medical policies to adapt its strategies accordingly[76].