Financial Performance - The company's operating revenue for Q1 2023 was ¥2,660,096,706.22, representing a year-on-year increase of 4.59%[6] - Net profit attributable to shareholders of the listed company decreased by 60.38% to ¥5,420,341.81 compared to the same period last year[6] - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥6,086,080.64, a decrease of 169.54% year-on-year[6] - Basic and diluted earnings per share were both ¥0.003, down 62.50% from the previous year[6] - The company reported a net loss of CNY 601,083,049.19 for Q1 2023, slightly improved from a net loss of CNY 606,503,391.00 in Q1 2022[27] - The net profit for Q1 2023 was CNY 6,546,123.55, a decrease of 66.0% compared to CNY 19,196,750.52 in Q1 2022[31] - Operating profit for Q1 2023 was CNY 36,450,940.95, down 11.8% from CNY 41,184,658.02 in the same period last year[31] - The total operating profit for Q1 2023 was CNY 18,931,965.78, compared to CNY 68,174,477.62 in Q1 2022, reflecting a significant decrease[46] - The net profit for Q1 2023 was CNY 21,339,797.92, down from CNY 64,533,832.18 in the same period last year[46] Cash Flow - The net cash flow from operating activities increased significantly by 404.11% to ¥187,858,742.38, mainly due to an increase in cash collections[6] - Cash flow from operating activities netted CNY 187,858,742.38 in Q1 2023, a significant increase from CNY 37,265,495.04 in Q1 2022[36] - The total amount of cash received from operating activities was CNY 2,055,067,700.88, while cash paid for goods and services was CNY 825,897,402.46 in Q1 2023[36] - The net cash flow from financing activities was CNY 308,525,208.29, a significant improvement from a negative cash flow of CNY -667,914,386.06 in the previous year[38] - The net cash flow from financing activities improved to CNY 106,704,458.19 in Q1 2023, compared to a negative CNY 961,604,887.43 in Q1 2022[49] Assets and Liabilities - Total assets at the end of Q1 2023 were ¥21,819,916,060.13, an increase of 2.82% from the end of the previous year[9] - Total assets reached CNY 21,819,916,060.13 as of March 31, 2023, compared to CNY 21,221,017,906.40 at the end of 2022, marking a growth of 2.8%[25] - Total liabilities increased to CNY 15,585,239,520.50 in Q1 2023 from CNY 14,992,641,818.84 in Q4 2022, reflecting a rise of 3.9%[26] - The total liabilities amounted to CNY 11,991,449,739.57, compared to CNY 11,693,543,754.40 in the previous year, indicating a rise in financial obligations[44] Equity - The equity attributable to shareholders of the listed company was ¥5,305,299,999.21, a slight increase of 0.10% compared to the end of the previous year[9] - The total equity attributable to shareholders was CNY 5,305,299,999.21 as of March 31, 2023, compared to CNY 5,300,125,328.88 at the end of 2022, showing a marginal increase of 0.1%[27] - The total equity increased to CNY 6,790,179,729.59 from CNY 6,768,839,931.67, reflecting a growth in shareholder value[44] Operating Costs and Expenses - Total operating costs for Q1 2023 were CNY 2,624,501,680.17, up from CNY 2,498,274,235.59 in Q1 2022, reflecting a year-over-year increase of 5.0%[27] - Research and development expenses increased significantly to CNY 66,514,021.08 in Q1 2023, up 99.5% from CNY 33,337,722.55 in Q1 2022[31] - Research and development expenses for Q1 2023 were CNY 13,324,018.64, significantly higher than CNY 4,374,035.32 in Q1 2022, indicating increased investment in innovation[44] - The company incurred financial expenses of CNY 131,734,667.63 in Q1 2023, down from CNY 142,638,164.40 in Q1 2022, a reduction of 7.0%[31] - The company reported a decrease in financial expenses to CNY 85,675,989.61 from CNY 109,874,458.68, indicating better cost management[44] Inventory and Receivables - Accounts receivable increased to CNY 2,397,251,350.19 in Q1 2023 from CNY 2,231,066,181.09 in Q4 2022, indicating a rise of 7.5%[22] - Inventory as of March 31, 2023, was CNY 2,565,609,361.14, slightly up from CNY 2,523,301,463.29 at the end of 2022, showing an increase of 1.7%[22] - The company's inventory increased to CNY 1,233,877,392.97 from CNY 1,136,776,702.39, reflecting a growth of approximately 8.5% year-over-year[38]

Financial Performance - In 2022, the company reported a net loss of approximately ¥678.78 million, with a net loss attributable to shareholders of approximately ¥689.23 million[5]. - The company's parent entity achieved a net profit of approximately ¥28.12 million for the year[5]. - The undistributed profits at the end of 2022 amounted to approximately ¥739.78 million after accounting for the legal surplus reserve and previous year dividends[5]. - The company plans not to distribute profits for 2022, nor to increase capital reserves through stock conversion, to ensure sustainable development and risk resilience[5]. - The company achieved an operating revenue of CNY 10.50 billion in 2022, a year-on-year increase of 1.11% compared to CNY 10.38 billion in 2021[22]. - The net profit attributable to shareholders was CNY -689.23 million, a significant decrease of 3,780.33% from CNY 18.73 million in 2021[22]. - The company recorded a net cash flow from operating activities of CNY 1.00 billion, down 4.37% from CNY 1.05 billion in 2021[22]. - The weighted average return on equity decreased to -12.11% in 2022, down 12.42 percentage points from 0.31% in 2021[23]. - The company reported a total asset value of CNY 21.22 billion at the end of 2022, a decrease of 14.88% from CNY 24.93 billion at the end of 2021[22]. - The total profit decreased to -565 million RMB, a decline of 518.87% compared to the previous year[60]. Operational Challenges - The company faced significant challenges, including a provision for bad debts of CNY 727.39 million related to relocation and suspension losses, impacting the net profit[32]. - The company generated CNY 2.54 billion in revenue in Q1 2022, with a net profit of CNY 13.68 million, but reported a net loss of CNY 727.17 million in Q4 2022[27]. - The company has not engaged in non-operational fund occupation by controlling shareholders or related parties[7]. - There were no significant risks that materially affected the company's operations during the reporting period[9]. Research and Development - The company increased its R&D investment to 609 million yuan, achieving an investment intensity of 5.80%[34]. - The company applied for 52 patents in 2022, including 33 invention patents, and was granted 45 patents[34]. - The company established three provincial-level research platforms, enhancing its R&D capabilities[34]. - The company is actively pursuing strategic collaborations with key universities and research institutions to accelerate product development[34]. - The company has established a comprehensive R&D system, including 4 national innovation platforms and 11 provincial innovation platforms, enhancing its research capabilities[105]. - The company is currently developing several new products, including a new anticoagulant drug in clinical trial phase and a rabies virus antibody product that received its registration certificate in January 2022[106]. Market Expansion and Sales Strategy - The company successfully expanded its international market, achieving overseas sales of CNY 1.59 billion in 2022[33]. - The company implemented a new marketing strategy, including an internet marketing plan, to enhance its sales capabilities and stabilize its revenue base[33]. - The company is exploring online drug sales, gradually increasing the number of varieties and expanding specialized treatment categories[46]. - The company is focusing on developing new treatment areas such as cardiovascular, anti-tumor, kidney disease, and diabetes products[59]. - The company plans to continue expanding its market presence and product diversity in response to changing market conditions[66]. - The company is considering strategic acquisitions to bolster its product portfolio, with a budget of $100 million allocated for potential deals[94]. Environmental Responsibility - The company invested 24,000,000 CNY in environmental protection during the reporting period[186]. - The company has established a comprehensive environmental management system and has passed the ISO14001 certification[187]. - The company operates 14 key pollutant discharge units across 19 production sites, demonstrating its commitment to environmental responsibility[188]. - The company has implemented a performance evaluation system for senior management, linking compensation to company performance[181]. - The company’s wastewater discharge is continuously monitored and complies with the standards set by the downstream sewage treatment plant[189]. Corporate Governance - The company has maintained a policy of independence from its controlling shareholders, ensuring no significant impact from related party transactions[148]. - The company has established specialized committees under the board, including an audit committee and a strategic committee, to enhance governance[165]. - The company has a structured process for nominating and compensating its directors and senior management, ensuring transparency and accountability[159]. - The company has actively participated in board and shareholder meetings, with directors attending all required sessions[163]. - The company has undergone changes in its board of directors, with several members being elected or resigning due to age or work reasons[160]. Future Outlook - The company is focused on cost reduction, efficiency improvement, and risk control as part of its operational strategy for 2023[135]. - The company plans to enhance its governance structure and improve operational efficiency in 2023[136]. - The company aims to achieve operating revenue of 11 billion yuan and a total profit of 120 million yuan in 2023[135]. - The company provided guidance for the next quarter, expecting revenue to be between $1.6 billion and $1.7 billion, which reflects a growth rate of approximately 10%[94]. - Future outlook remains positive, with expectations of improved financial performance driven by strategic initiatives[153].

Financial Performance - The company's operating revenue for Q3 2022 was approximately ¥2.59 billion, a decrease of 0.35% compared to the same period last year[7]. - Net profit attributable to shareholders was approximately ¥5.56 million, down 66.85% year-on-year, while year-to-date net profit increased by 113.39% to approximately ¥37.94 million[7][13]. - Basic and diluted earnings per share were both ¥0.003, reflecting a 70% decrease compared to the previous year[9]. - Total operating revenue for the first three quarters of 2022 was CNY 7,873,258,693.27, a decrease of 3.82% compared to CNY 8,186,782,145.76 in the same period of 2021[32]. - Net profit attributable to shareholders of the parent company for Q3 2022 was CNY 37,935,682.09, an increase of 113.57% from CNY 17,777,880.20 in Q3 2021[36]. - The company reported a total comprehensive income of CNY 62,428,111.51 for Q3 2022, compared to CNY 23,390,347.48 in Q3 2021, indicating a significant increase[38]. - The company’s basic and diluted earnings per share for Q3 2022 were both CNY 0.022, doubling from CNY 0.011 in Q3 2021[38]. - The net profit for the third quarter of 2022 was approximately ¥331.97 million, compared to ¥140.17 million in the same quarter of 2021, indicating a significant increase of 136.5%[54]. Cash Flow - The net cash flow from operating activities for the year-to-date period was approximately ¥533 million, a decrease of 17.04% compared to the same period last year[9]. - The company reported a decrease in cash flow from operating activities, impacting liquidity and operational flexibility[23]. - Cash inflow from operating activities totaled CNY 7,580,741,283.11, an increase from CNY 6,942,108,928.76 in the previous period, representing a growth of approximately 9.2%[42]. - Cash outflow from operating activities was CNY 7,047,722,200.67, compared to CNY 6,299,646,223.30 in the prior period, indicating an increase of about 11.9%[42]. - Net cash flow from operating activities decreased to CNY 533,019,082.44 from CNY 642,462,705.46, reflecting a decline of approximately 17%[42]. - Cash inflow from financing activities amounted to CNY 8,684,036,714.11, up from CNY 8,521,717,205.00, marking an increase of about 1.9%[44]. - Cash outflow from financing activities rose significantly to CNY 11,996,243,011.53 from CNY 7,462,991,263.62, representing an increase of approximately 60.5%[44]. - The net cash flow from financing activities showed a negative balance of CNY -3,312,206,297.42, compared to a positive CNY 1,058,725,941.38 in the previous period[44]. - Cash flow from operating activities generated a net amount of approximately ¥399.07 million in 2022, down from ¥489.90 million in 2021, a decrease of 18.5%[56]. Assets and Liabilities - Total assets at the end of the reporting period were approximately ¥23.16 billion, a decrease of 7.11% year-on-year[9]. - The company's equity attributable to shareholders was approximately ¥6.03 billion, down 0.88% from the previous year[9]. - The company's total assets amounted to CNY 23,156,852,612.93, a decrease from CNY 24,929,934,674.93 at the end of 2021[23]. - The company's current assets decreased to CNY 10,948,563,970.74 from CNY 12,712,195,682.24 year-over-year[27]. - The company's total liabilities decreased to CNY 16,193,809,118.95 from CNY 17,912,703,964.04[30]. - The total liabilities and shareholders' equity as of the end of the reporting period was CNY 23,156,852,612.93, down from CNY 24,929,934,674.93[32]. - The total liabilities decreased to approximately ¥11.63 billion in 2022 from ¥13.44 billion in 2021, a reduction of 13.5%[50]. - The total equity increased to approximately ¥7.07 billion in 2022 from ¥6.84 billion in 2021, showing a growth of 3.4%[50]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 92,202[14]. - The largest shareholder, Jizhong Energy Co., Ltd., held 24.08% of the shares, while Huabei Pharmaceutical Group held 19.90%[14]. Accounting Changes - The company has implemented changes in accounting practices affecting the presentation of transportation costs in the income statement, which do not impact net profit or net assets[9]. - The company has adopted new accounting standards starting from 2022, which may affect the financial statements[58].

Financial Performance - The company reported a total revenue of RMB 1.2 billion for the first half of 2022, representing a year-on-year increase of 15% compared to the same period last year[22]. - The net profit attributable to shareholders for the first half of 2022 was RMB 200 million, an increase of 10% year-on-year[22]. - The company's operating revenue for the reporting period was approximately ¥5.28 billion, a decrease of 5.45% compared to the previous year[25]. - Net profit attributable to shareholders was approximately ¥32.38 million, showing a significant increase of 3,121.28% year-on-year[25]. - The net profit after deducting non-recurring gains and losses was approximately ¥13.79 million, compared to a loss of ¥30.01 million in the same period last year[25]. - The net cash flow from operating activities was approximately ¥230.93 million, down by 5.08% from the previous year[25]. - Basic earnings per share increased to ¥0.019, a rise of 1,800.00% compared to the same period last year[25]. - The total profit for the period was CNY 0.97 billion, with a net cash flow from operating activities of CNY 230.93 million, down 5.08% year-on-year[51]. - Research and development expenses increased by 61.59% to CNY 104.41 million, reflecting the company's commitment to enhancing innovation capabilities[51]. - The company reported a decrease in undistributed profits by 37.44% year-on-year, amounting to CNY 117.92 million[58]. Market Expansion and Product Development - The company has expanded its user base by 20% in the first half of 2022, reaching a total of 1.5 million active users[22]. - The company plans to launch three new products in the second half of 2022, focusing on innovative drug formulations[22]. - The company is exploring market expansion opportunities in Southeast Asia, targeting a 30% increase in market share by the end of 2023[22]. - The company is focusing on the development of biopharmaceuticals and strengthening its position in chemical pharmaceuticals, while also expanding into health consumer products and veterinary medicine[32]. - The company focuses on high-value and high-growth projects in new therapeutic areas such as cardiovascular, anti-tumor, kidney disease, and diabetes[46]. Research and Development - The company has invested RMB 100 million in research and development for new technologies in the first half of 2022, which is a 25% increase from the previous year[22]. - The company has established 3 national-level R&D platforms and 8 provincial-level R&D platforms, enhancing its research capabilities[47]. - The company has received 5 national invention awards and 21 scientific and technological progress awards, highlighting its strong R&D capabilities[40]. - The company successfully registered 8 patents during the reporting period, with 13 patents granted, including 6 invention patents[47]. Environmental Compliance and Management - The company has established a comprehensive environmental management system, ensuring that all pollution prevention facilities operate normally and comply with emission standards[183]. - The company has implemented a comprehensive pollution prevention and control strategy, ensuring that pollution control facilities operate in sync with production equipment[87]. - The company has established emergency response plans for environmental incidents, ensuring preparedness for potential environmental risks[147]. - The company operates under the "Comprehensive Discharge Standard for Atmospheric Pollutants" and other relevant environmental standards[152]. - The company has maintained compliance with noise emission standards as per the "Industrial Enterprise Boundary Environmental Noise Emission Standard"[146]. Social Responsibility and Community Engagement - The company aims to increase the annual income of policy beneficiaries by an estimated RMB 500-1,000, with collective village income expected to exceed RMB 50,000[188]. - The company has expanded its green planting project in Yanjiakou Village, increasing the planting area from 11 mu to 26 mu, benefiting more households and creating nearly 50 short-term job opportunities[191]. - The company has received provincial recognition for its outstanding performance in poverty alleviation efforts in Yanjiakou and Yaogou Villages[191]. - The company has deployed 6 team members to support rural revitalization efforts in Zhangjiakou City, focusing on agriculture and tourism projects[192]. - The overall relocation project in the village has been completed, with all villagers moving into 120 new homes[193].

Financial Performance - The company's operating revenue for 2021 was approximately ¥10.38 billion, a decrease of 9.64% compared to ¥11.49 billion in 2020[27]. - The net profit attributable to shareholders was ¥18.73 million, down 80.76% from ¥97.32 million in the previous year[27]. - The net cash flow from operating activities increased by 39.63% to ¥1.05 billion, compared to ¥752.15 million in 2020[27]. - The total assets at the end of 2021 were approximately ¥24.93 billion, reflecting a 4.17% increase from ¥23.93 billion in 2020[27]. - The basic earnings per share for 2021 were ¥0.011, a decline of 81.67% from ¥0.060 in 2020[28]. - The company reported a net loss of ¥49.20 million after deducting non-recurring gains and losses, compared to a loss of ¥61.91 million in 2020[27]. - The weighted average return on equity decreased to 0.31% from 1.70% in the previous year[28]. - Total revenue for the company was approximately ¥10.30 billion, a decrease of 9.85% compared to the previous year[64]. - The gross profit margin decreased by 0.25 percentage points to 35.37%[64]. - Total profit amounted to CNY 135 million, reflecting a year-on-year decline of 27.73%[60]. Dividend and Retained Earnings - The company plans to distribute a cash dividend of RMB 0.6 per 10 shares, totaling RMB 102,943,822.2, which represents 549.69% of the net profit attributable to shareholders for the year[6]. - As of December 31, 2021, the company has retained earnings of RMB 714,464,297.92 to be carried forward for future distribution[6]. - The company has not proposed any capital reserve transfer to increase share capital for the current period[6]. Internal Control and Audit - The company reported no significant risks that could materially affect its operations during the reporting period[8]. - The company has identified one major internal control deficiency in its internal control evaluation report for 2021[11]. - The company has received a standard unqualified audit opinion from Zhongtian Yun Accounting Firm for its financial statements[5]. - The company’s financial report has been confirmed for its authenticity, accuracy, and completeness by its board of directors and senior management[4]. - The company has not faced any violations in decision-making procedures regarding external guarantees[8]. Research and Development - The company applied for 41 patents, including 25 invention patents, and was awarded first, second, and third prizes in provincial science and technology progress[36]. - The company has made significant progress in the consistency evaluation of generic drugs, with 11 varieties and 21 specifications passing the evaluation[36]. - The company is focusing on the development of specialty and innovative raw materials to increase the proportion of high-value-added products[45]. - The company is actively pursuing research and development initiatives to enhance its pipeline of injectable antibiotics, aiming for a 15% increase in R&D investment over the next fiscal year[97]. - The company’s R&D investment amounted to 505 million RMB, representing 4.86% of operating revenue, which is in line with the industry average[131]. Market and Product Development - The company is recognized as one of the largest chemical pharmaceutical enterprises in China, with total assets nearing 25 billion yuan and annual sales exceeding 10 billion yuan[42]. - The company is focusing on integrating raw material and formulation development to enhance competitiveness in the pharmaceutical market[90]. - The company is exploring potential mergers and acquisitions to strengthen its position in the pharmaceutical market and expand its product portfolio[97]. - The company aims to enhance its international competitiveness through a unified export platform for formulations[58]. - The company is committed to optimizing its resource allocation and organizational support to align with its strategic goals of marketization, capitalization, and internationalization[152]. Governance and Management - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 10.6479 million yuan[186]. - The company has implemented a performance evaluation system for directors and senior management, which influences their remuneration based on performance results[186]. - The company appointed new independent directors and a chairman through shareholder meetings, indicating a change in governance structure[186]. - The company has a total of 8 key management personnel changes during the reporting period, indicating active management restructuring[186]. - The company’s governance structure has been reinforced with the election of new board members, ensuring alignment with corporate strategy[186]. Operational Efficiency and Cost Management - The company's operating costs decreased by 9.20% to CNY 6.70 billion[60]. - The overall operating cost decreased by 9.50% year-over-year, indicating improved cost management[115]. - The company plans to reduce operational costs by 10% through efficiency improvements in the supply chain[177]. - The company reported a significant reduction in procurement costs for logistics and other trade by 42.63% year-on-year, primarily due to decreased logistics business volume[72]. Future Outlook - The company aims to achieve a revenue target of 38 billion CNY in 2022, focusing on market-oriented and capital-driven strategies[153]. - The management has provided guidance for the next quarter, expecting a revenue growth of approximately 10%[173]. - The company is considering strategic acquisitions to enhance its market position, with a budget of 300 million allocated for potential deals[177]. - The company anticipates a 10% growth in revenue for the upcoming fiscal year, driven by new product launches and market expansion strategies[97].

Financial Performance - The company's operating revenue for Q1 2022 was ¥2,543,401,447.14, representing a decrease of 6.25% compared to the same period last year[6]. - The net profit attributable to shareholders of the listed company was ¥13,681,778.22, with a net profit excluding non-recurring gains and losses of ¥8,752,350.95[6]. - The basic earnings per share for the period was ¥0.008, with diluted earnings per share also at ¥0.008[9]. - Total operating revenue for Q1 2022 was CNY 2,543,401,447.14, a decrease of 6.23% from CNY 2,712,983,676.41 in Q1 2021[30]. - Net profit for Q1 2022 was CNY 19,196,750.52, compared to a net loss of CNY 53,837,904.06 in Q1 2021[32]. - Earnings per share for Q1 2022 was CNY 0.008, recovering from a loss of CNY 0.035 in Q1 2021[34]. - The company reported a total comprehensive income of CNY 18,827,920.61 for Q1 2022, compared to a loss of CNY 53,645,616.91 in Q1 2021[34]. - Operating profit for Q1 2022 increased to approximately ¥68.17 million, up 33.7% from ¥51.01 million in Q1 2021[48]. - Net profit for Q1 2022 was approximately ¥64.53 million, compared to ¥51.01 million in Q1 2021, reflecting a growth of 26.5%[48]. Cash Flow and Liquidity - The net cash flow from operating activities was ¥37,265,495.04, down by 11.82% year-on-year[6]. - Cash received from sales of goods and services in Q1 2022 was CNY 2,016,755,498.20, an increase from CNY 1,758,014,929.49 in Q1 2021[34]. - The net cash flow from operating activities was 37,265,495.04 RMB, a decrease from 42,262,764.11 RMB in the previous period, reflecting a decline of approximately 11.8%[37]. - The company reported a significant increase in cash paid for purchasing goods and services, which rose to 1,047,043,423.62 RMB from 791,977,612.37 RMB, an increase of about 32.1%[37]. - The cash outflow for investment activities was 106,179,314.59 RMB, compared to 139,510,714.82 RMB, showing a decrease of approximately 23.8%[37]. - Cash and cash equivalents at the end of Q1 2022 were approximately ¥2.12 billion, down from ¥2.84 billion at the end of Q1 2021[51]. - The company reported a net cash outflow from financing activities of approximately ¥961.60 million in Q1 2022, compared to a net inflow of ¥327.50 million in Q1 2021[51]. Assets and Liabilities - Total assets at the end of the reporting period were ¥25,158,030,067.03, an increase of 0.91% from the end of the previous year[9]. - The equity attributable to shareholders of the listed company was ¥6,100,944,277.42, reflecting a 0.25% increase from the end of the previous year[9]. - Total liabilities as of the end of the reporting period were CNY 18,119,821,232.27, compared to CNY 17,912,703,964.04 at the end of the previous period[30]. - The total liabilities decreased from approximately ¥13.44 billion in the previous year to ¥13.21 billion in Q1 2022[45]. - The total equity increased to approximately ¥6.91 billion in Q1 2022, up from ¥6.84 billion in the same period last year[45]. - Current liabilities totaled ¥14.67 billion, compared to ¥14.24 billion in the previous year, reflecting an increase of about 3.01%[26]. - Short-term borrowings increased to ¥8.02 billion from ¥7.63 billion, showing a rise of approximately 5.22%[26]. - Non-current liabilities, including long-term borrowings, decreased to ¥2.85 billion from ¥3.30 billion, a decline of about 13.52%[26]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 81,593[14]. - The largest shareholder, Jizhong Energy Co., Ltd., held 413,080,473 shares, representing 24.08% of the total shares[14]. Research and Development - Research and development expenses for Q1 2022 were CNY 33,337,722.55, up from CNY 28,364,300.05 in Q1 2021, indicating increased investment in innovation[32]. - Research and development expenses for Q1 2022 were approximately ¥4.37 million, a slight increase from ¥4.05 million in Q1 2021[48]. Inventory and Receivables - Accounts receivable increased to ¥2.28 billion from ¥1.96 billion year-over-year, indicating a growth of about 16.43%[22]. - Inventory levels rose to ¥2.44 billion, up from ¥2.39 billion, marking an increase of approximately 1.14%[22]. - The company’s inventory increased to 1,151,851,136.82 RMB from 1,117,477,202.18 RMB, reflecting a growth of approximately 3.1%[43].

Financial Performance - The company's operating revenue for 2021 was approximately ¥10.38 billion, a decrease of 9.64% compared to ¥11.49 billion in 2020[27]. - The net profit attributable to shareholders was ¥18.73 million, down 80.76% from ¥97.32 million in the previous year[27]. - The total assets at the end of 2021 were approximately ¥24.93 billion, reflecting a 4.17% increase from ¥23.93 billion in 2020[27]. - The basic earnings per share for 2021 were ¥0.011, a decline of 81.67% from ¥0.060 in 2020[28]. - The weighted average return on net assets was 0.31%, down from 1.70% in 2020, indicating a decrease of 1.39 percentage points[28]. - The company reported a net loss of ¥49.20 million after deducting non-recurring gains and losses, compared to a loss of ¥61.91 million in 2020[27]. - The first quarter of 2021 saw an operating revenue of approximately ¥2.71 billion, with a net loss of ¥57.20 million attributable to shareholders[30]. - The company achieved a total revenue of 3.29 billion yuan, with export revenue reaching 1.7 billion yuan[52]. - Total revenue for the reporting period reached approximately CNY 10.30 billion, reflecting a decrease of 9.85% year-over-year[115]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of RMB 0.6 per 10 shares, totaling RMB 102,943,822.2, which represents 549.69% of the net profit attributable to shareholders for the year[6]. - As of December 31, 2021, the company has retained undistributed profits amounting to RMB 714,464,297.92[6]. - The company has no plans for capital reserve conversion into share capital for this period[6]. Audit and Compliance - The company has received a standard unqualified audit opinion from Zhongtian Yun Accounting Firm for its 2021 financial statements[5]. - The company’s financial report has been confirmed as true, accurate, and complete by its board of directors and senior management[4]. - The company reported no significant risks that could materially affect its operations during the reporting period[8]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[8]. - The company has not violated decision-making procedures for providing guarantees[8]. Research and Development - The company applied for 41 patents, including 25 invention patents, and was recognized as a "growing new R&D institution" in Hebei Province[36]. - The company has established a comprehensive three-tier R&D system, including four national-level and eight provincial-level R&D platforms, enhancing collaboration with prestigious institutions like Tsinghua University[117]. - The company is focusing on the development of new products, with ongoing projects in various stages, including clinical trials and preclinical research[120]. - The R&D investment amounted to 505 million RMB, representing 4.86% of operating revenue, which is in line with the industry average[131]. Market and Product Development - The company is focusing on expanding its market presence in the Asia-Pacific region, aiming for a 15% increase in market share over the next two years[99]. - The company is actively pursuing international market expansion, particularly in high-end markets such as Europe and the United States[155]. - The company is considering potential acquisitions to enhance its product portfolio and strengthen its market position, with a budget of $100 million allocated for this purpose[99]. - The company plans to enhance its core competitiveness by accelerating technological advancements and focusing on the development of monoclonal antibodies and recombinant proteins[155]. Operational Efficiency and Cost Management - The overall operating cost decreased by 9.50% year-over-year, indicating improved cost management[115]. - The company plans to reduce operational costs by 10% through efficiency improvements in the supply chain[177]. - The company is committed to optimizing its resource allocation and organizational support to align with its strategic goals of marketization, capitalization, and internationalization[152]. Employee and Management Structure - The total number of employees in the parent company and major subsidiaries is 11,501[199]. - The company implements a performance-based salary system, with a focus on key talents and positions[200]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 10.6479 million yuan[186]. Future Outlook and Strategic Initiatives - Future guidance includes a focus on sustainable practices in production and distribution, aiming to reduce carbon emissions by 25% by 2025[99]. - The company aims to achieve a revenue target of 12 billion yuan in 2022, focusing on market-oriented and capital-driven strategies[153]. - The company is investing in new product development, particularly in the pharmaceutical sector, with a budget allocation of 200 million for R&D[174]. - The company plans to launch two new products in Q2 2022, expected to contribute an additional 5% to overall revenue[174].

[Major Financial Data and Indicators](index=1&type=section&id=%E4%B8%80%E3%80%81%20%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE) The company experienced significant year-over-year declines in key financial metrics for Q3 and year-to-date 2021, primarily due to a high comparative base from prior-year government subsidies and increased expenses from the COVID-19 pandemic, despite positive contributions from non-recurring gains [Key Accounting Data and Financial Indicators](index=1&type=section&id=(%E4%B8%80)%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) In Q3 2021 and year-to-date, the company experienced year-over-year declines in several key financial metrics, with Q3 revenue down **17.26%** and net profit attributable to shareholders down **27.62%**; year-to-date, revenue decreased by **9.68%**, while net profit attributable to shareholders plummeted by **87.58%**, and non-recurring net profit turned from profit to loss, decreasing by **370.39%** 2021 Q3 and Year-to-Date Key Financial Indicators | Indicator | Current Period (Q3) | Year-to-Date | Year-to-Date YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 2,603,693,576.29 | 8,186,782,145.76 | -9.68% | | Net Profit Attributable to Shareholders of Listed Company (Yuan) | 16,772,829.00 | 17,777,880.20 | -87.58% | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-Recurring Gains and Losses (Yuan) | 6,331,731.45 | -23,675,722.76 | -370.39% | | Net Cash Flow from Operating Activities (Yuan) | Not Applicable | 642,462,705.46 | -3.02% | | Basic Earnings Per Share (Yuan/share) | 0.010 | 0.011 | -87.50% | | Weighted Average Return on Net Assets (%) | 0.28% | 0.29% | Decreased 2.20 percentage points | | Total Assets (Yuan) | 25,598,267,567.80 | 25,598,267,567.80 | 6.96% (vs. end of prior year) | | Owners' Equity Attributable to Shareholders of Listed Company (Yuan) | 6,096,618,653.83 | 6,096,618,653.83 | -0.45% (vs. end of prior year) | - Due to the company's acquisition of **51%** equity in Ainuo Company, **100%** equity in Dongbao Company, and related trademark assets in 2020, which constituted a business combination under common control, prior-year comparative data was retrospectively adjusted[9](index=9&type=chunk) [Non-Recurring Gains and Losses](index=2&type=section&id=(%E4%BA%8C)%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) During the reporting period, non-recurring gains and losses significantly positively impacted the company's net profit, totaling **41.45 million Yuan** year-to-date, primarily from government subsidies of **39.48 million Yuan** recognized in current profit or loss Year-to-Date Non-Recurring Gains and Losses | Item | Amount (Yuan) | | :--- | :--- | | Government subsidies recognized in current profit or loss | 39,479,468.60 | | Gains or losses on disposal of non-current assets | 2,090,332.20 | | Other non-operating income and expenses and other profit/loss items that meet the definition | 3,113,727.61 | | Debt restructuring gains or losses | -460,829.27 | | **Total** | **41,453,602.96** | [Analysis of Changes in Key Financial Data and Indicators](index=3&type=section&id=(%E4%B8%89)%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E5%8F%91%E7%94%9F%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E3%80%81%E5%8E%9F%E5%9B%A0) The company explained the significant year-to-date decline in net profit and non-recurring net profit, attributing the **87.58%** drop in net profit attributable to shareholders to a high base from large employment stabilization funds received last year and increased expenses due to the Shijiazhuang COVID-19 outbreak this year, which also caused the **370.39%** decrease in non-recurring net profit - Net profit attributable to shareholders of the listed company decreased by **87.58%** year-over-year, primarily due to: 1. **79.44 million Yuan** in employment stabilization funds received in the prior-year period, recognized as other income; 2. Increased expenses resulting from the COVID-19 outbreak in Shijiazhuang at the beginning of the year[14](index=14&type=chunk) - Net profit attributable to shareholders of the listed company excluding non-recurring gains and losses decreased by **370.39%** year-over-year, primarily due to increased expenses resulting from the COVID-19 outbreak in Shijiazhuang at the beginning of the year[14](index=14&type=chunk) [Shareholder Information](index=3&type=section&id=%E4%BA%8C%E3%80%81%20%E8%82%A1%E4%B8%9C%E4%BF%A1%E6%81%AF) As of the reporting period, the company had **88,441** common shareholders, with a concentrated equity structure where the top three shareholders, including related parties, collectively hold over **55%** of shares, with significant portions pledged or frozen [Total Number of Shareholders and Top Ten Shareholders' Holdings](index=3&type=section&id=(%E4%B8%80)%E6%99%AE%E9%80%9A%E8%82%A1%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E5%92%8C%E8%A1%A8%E5%86%B3%E6%9D%83%E6%81%A2%E5%A4%8D%E7%9A%84%E4%BC%98%E5%85%88%E8%82%A1%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) As of the end of the reporting period, the company had **88,441** common shareholders, with the top three shareholders, Jizhong Energy Co., Ltd., North China Pharmaceutical Group Co., Ltd., and Jizhong Energy Group Co., Ltd., collectively holding over **55%**, indicating a relatively concentrated equity structure, with significant shares pledged or frozen for North China Pharmaceutical Group and Jizhong Energy Group - As of the end of the reporting period, the company had **88,441** common shareholders[15](index=15&type=chunk) Top Three Shareholders' Holdings | Shareholder Name | Holding Percentage (%) | Share Status | | :--- | :--- | :--- | | Jizhong Energy Co., Ltd. | 24.08% | None | | North China Pharmaceutical Group Co., Ltd. | 19.90% | Pledged 110,000,000 shares | | Jizhong Energy Group Co., Ltd. | 11.02% | Pledged 90,000,000 shares, Frozen 180,869,298 shares | - The top three shareholders have related party relationships: North China Pharmaceutical Group is a wholly-owned subsidiary of Jizhong Energy Group, and Jizhong Energy Co., Ltd. is a controlling subsidiary of Jizhong Energy Group, forming parties acting in concert[20](index=20&type=chunk) [Other Important Reminders](index=5&type=section&id=%E4%B8%89%E3%80%81%20%E5%85%B6%E4%BB%96%E6%8F%90%E9%86%92%E4%BA%8B%E9%A1%B9) The company reported no other significant operating information requiring special attention from investors during the reporting period [Other Important Operating Information](index=5&type=section&id=%E9%9C%80%E6%8F%90%E9%86%92%E6%8A%95%E8%B5%84%E8%80%85%E5%85%B3%E6%B3%A8%E7%9A%84%E5%85%B3%E4%BA%8E%E5%85%AC%E5%8F%B8%E6%8A%A5%E5%91%8A%E6%9C%9F%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E5%85%B6%E4%BB%96%E9%87%8D%E8%A6%81%E4%BF%A1%E6%81%AF) During the reporting period, the company had no other significant operating information requiring special attention from investors - The company has no other important operating information requiring special attention from investors in this reporting period[21](index=21&type=chunk) [Quarterly Financial Statements](index=6&type=section&id=%E5%9B%9B%E3%80%81%20%E5%AD%A3%E5%BA%A6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) The company's quarterly financial statements for Q3 2021 show increased assets and liabilities, significant declines in revenue and net profit, stable operating cash flow, and adjustments due to the adoption of new lease accounting standards [Consolidated Balance Sheet](index=6&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of September 30, 2021, the company's total assets were **25.60 billion Yuan**, a **6.96%** increase from the beginning of the year, while total liabilities reached **18.58 billion Yuan**, up **10.1%**, raising the asset-liability ratio from **70.5%** to **72.6%**, driven by notable increases in monetary funds, accounts receivable, and long-term equity investments on the asset side, and significant growth in short-term borrowings and non-current liabilities due within one year on the liability side Consolidated Balance Sheet Major Item Changes (2021-09-30 vs 2020-12-31) | Item | September 30, 2021 (Yuan) | December 31, 2020 (Yuan) | Change Rate (%) | | :--- | :--- | :--- | :--- | | **Total Assets** | **25,598,267,567.80** | **23,931,716,749.91** | **6.96%** | | Monetary Funds | 5,845,974,918.55 | 4,907,510,588.71 | 19.12% | | Accounts Receivable | 2,073,262,442.93 | 1,734,216,115.27 | 19.55% | | **Total Liabilities** | **18,579,995,482.86** | **16,876,151,195.01** | **10.10%** | | Short-term Borrowings | 7,946,687,951.59 | 6,825,624,792.05 | 16.42% | | Non-current Liabilities Due Within One Year | 2,257,703,870.40 | 1,353,400,000.00 | 66.82% | | **Total Owners' Equity Attributable to Parent Company** | **6,096,618,653.83** | **6,124,327,255.79** | **-0.45%** | [Consolidated Income Statement](index=8&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In the first three quarters of 2021, the company's total operating revenue was **8.19 billion Yuan**, a **9.68%** year-over-year decrease, and net profit attributable to parent company shareholders was **17.78 million Yuan**, a significant **87.58%** year-over-year decline, while operating costs decreased by **8.05%** and selling expenses by **19.56%**, management and R&D expenses increased by **17.45%** and **9.80%** respectively Consolidated Income Statement Major Items (First Three Quarters 2021 vs First Three Quarters 2020) | Item | First Three Quarters 2021 (Yuan) | First Three Quarters 2020 (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 8,186,782,145.76 | 9,064,019,110.04 | -9.68% | | Total Operating Costs | 8,142,397,986.03 | 8,965,371,145.87 | -9.18% | | Selling Expenses | 1,665,993,967.27 | 2,071,191,727.55 | -19.56% | | Administrative Expenses | 433,521,844.68 | 369,097,137.59 | 17.45% | | Research and Development Expenses | 98,653,868.02 | 89,851,673.95 | 9.80% | | Operating Profit | 87,313,546.10 | 192,318,031.63 | -54.60% | | **Net Profit Attributable to Parent Company Shareholders** | **17,777,880.20** | **143,196,748.55** | **-87.58%** | [Consolidated Cash Flow Statement](index=11&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In the first three quarters of 2021, net cash flow from operating activities was **642 million Yuan**, largely stable year-over-year, indicating consistent cash recovery from core operations; net cash outflow from investing activities expanded by **22.62%** to **647 million Yuan** due to increased investment payments; and net cash inflow from financing activities significantly decreased by **54.28%** to **1.06 billion Yuan**, primarily due to the absence of large capital contributions from last year's fundraising Consolidated Cash Flow Statement Major Items (First Three Quarters 2021 vs First Three Quarters 2020) | Item | First Three Quarters 2021 (Yuan) | First Three Quarters 2020 (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 642,462,705.46 | 662,500,819.49 | -3.02% | | Net Cash Flow from Investing Activities | -647,109,559.22 | -527,735,005.93 | -22.62% | | Net Cash Flow from Financing Activities | 1,058,725,941.38 | 2,315,618,169.50 | -54.28% | | **Net Increase in Cash and Cash Equivalents** | **1,052,860,235.56** | **2,446,541,015.71** | **-56.97%** | [Adoption of New Lease Standards and Financial Statement Adjustments](index=13&type=section&id=(%E4%B8%89)2021%20%E5%B9%B4%E8%B5%B7%E9%A6%96%E6%AC%A1%E6%89%A7%E8%A1%8C%E6%96%B0%E7%A7%9F%E8%B5%81%E5%87%86%E5%88%99%E8%B0%83%E6%95%B4%E9%A6%96%E6%AC%A1%E6%89%A7%E8%A1%8C%E5%BD%93%E5%B9%B4%E5%B9%B4%E5%88%9D%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) Effective January 1, 2021, the company adopted new lease standards, adjusting its opening financial statements without restating prior-year comparative data, primarily impacting non-current assets and liabilities by recognizing **865 million Yuan** in right-of-use assets and **468 million Yuan** in lease liabilities, while reducing fixed assets by **830 million Yuan** and long-term payables by **456 million Yuan** - The company adopted new lease standards effective January 1, 2021, and adjusted its opening financial statements without adjusting prior-year-end figures[49](index=49&type=chunk) Major Impact of Adopting New Lease Standards on January 1, 2021 Balance Sheet | Statement Item | Adjustment Amount (Yuan) | | :--- | :--- | | **Assets** | | | Right-of-use assets | +865,412,596.78 | | Fixed assets | -830,320,642.38 | | Long-term prepaid expenses | -18,194,285.76 | | **Liabilities** | | | Lease liabilities | +467,942,572.46 | | Non-current liabilities due within one year | +4,472,166.81 | | Long-term payables | -455,517,070.63 |

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 5,583,088,569.47, a decrease of 5.65% compared to CNY 5,917,328,388.94 in the same period last year[23]. - The net profit attributable to shareholders of the listed company was CNY 1,005,051.20, down 99.16% from CNY 120,022,080.01 in the previous year[23]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY -30,007,454.21, a decrease of 405.67% compared to CNY 9,816,894.52 in the same period last year[23]. - The net cash flow from operating activities was CNY 243,294,367.88, down 24.23% from CNY 321,096,545.42 in the previous year[23]. - Basic earnings per share decreased by 98.65% to 0.001 CNY from 0.074 CNY in the same period last year[24]. - Diluted earnings per share also decreased by 98.65% to 0.001 CNY from 0.074 CNY in the same period last year[24]. - The weighted average return on equity decreased by 2.07 percentage points to 0.02% compared to the same period last year[24]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 25,539,582,056.45, an increase of 6.72% compared to CNY 23,931,716,749.91 at the end of the previous year[23]. - The net assets attributable to shareholders of the listed company were CNY 6,077,017,336.78, a decrease of 0.77% from CNY 6,124,327,255.79 at the end of the previous year[23]. - The company’s total liabilities increased by 12.65% to CNY 25,000,000,000, with short-term borrowings accounting for 30.11% of total liabilities[61]. - Long-term equity investments increased by 44.73% to CNY 842,268,114.48, primarily due to an additional investment of CNY 240 million in a financial company[58][62]. Revenue Segments - The company's revenue in the pharmaceutical manufacturing industry reached 1,592.14 billion CNY, a year-on-year increase of 28.7%[34]. - The total profit in the pharmaceutical manufacturing sector was 343.45 billion CNY, reflecting a year-on-year growth of 83.2%[34]. - The biopharmaceutical segment generated revenue of 813 million RMB, representing a year-on-year growth of 11%[41]. - The formulation segment's revenue was 2.69 billion RMB, with nine major products contributing 1.65 billion RMB, accounting for 61% of the formulation revenue[41]. - The agricultural and veterinary medicine and health products segments saw revenue growth of 7.4% and 22.5% respectively[41]. - Export revenue for the first half of the year reached 814 million RMB[51]. Research and Development - The company filed for 10 patents in the first half of the year, including 8 invention patents, with 5 invention patents granted[52]. - The company is advancing key R&D projects, including a recombinant human rabies virus monoclonal antibody injection, which is currently under priority review[52]. - The company is focusing on expanding its product range in new therapeutic areas such as cardiovascular, oncology, kidney disease, and diabetes[48]. - The company is focusing on the development of high-value-added projects in biopharmaceuticals and oncology drugs[29]. Environmental Compliance - The company has implemented strict budget controls and conducted 17 internal quality inspections to ensure product safety and quality[53]. - The company has 11 key pollutant discharge units, with 10 of them publicly disclosing environmental information for the first half of 2021[86]. - The company has implemented a continuous discharge system for wastewater, which is treated to meet standards before being released into the local sewage treatment plant[88]. - The company has established a self-monitoring plan and conducts regular monitoring activities[97]. - The company has completed several environmental protection projects, including the fermentation exhaust treatment project approved on October 18, 2011[97]. - The company has implemented pollution control facilities with a designed treatment capacity of 45,000 m³/h for fermentation tail gas, which is currently operating normally[104]. - The company has established an emergency response plan for environmental incidents, registered under number 130182-2018-031-M[123]. Corporate Governance - The company held its first extraordinary general meeting on April 23, 2021, where 14 resolutions were approved, including the appointment of independent directors and the approval of the 2020 annual financial reports[74]. - On June 16, 2021, the company convened its 2020 annual general meeting, which also approved multiple resolutions related to financial reports and the appointment of the 2021 auditing firm[74]. - The company reported a change in its board of directors, with Zhang Yuxiang elected as chairman and Liu Xinyan appointed as general manager following the resignation of several key executives[78]. - The company did not propose any profit distribution or capital reserve transfer plans for the current period[79]. Risks and Challenges - There were no significant risks that materially affected the company's production and operation during the reporting period[8]. - The company faces risks from a complex pharmaceutical operating environment, including regulatory pressures and rising costs in R&D and production[69]. - The company plans to accelerate structural adjustments and innovate marketing strategies to adapt to industry changes and reduce operational risks[69].

Financial Performance - The company's operating revenue for 2020 was CNY 11,492,504,163.48, representing a year-on-year increase of 0.31% compared to CNY 11,457,480,504.85 in 2019[27]. - The net profit attributable to shareholders of the listed company for 2020 was CNY 97,323,761.87, a decrease of 43.46% from CNY 172,147,389.25 in 2019[27]. - The net cash flow from operating activities for 2020 was CNY 752,146,763.87, a slight decrease of 1.51% compared to CNY 763,699,998.21 in 2019[27]. - The total assets at the end of 2020 amounted to CNY 23,931,716,749.91, reflecting a significant increase of 26.55% from CNY 18,910,689,810.40 at the end of 2019[27]. - The basic earnings per share for 2020 was CNY 0.060, down 43.40% from CNY 0.106 in 2019[27]. - The company reported a net loss attributable to shareholders after deducting non-recurring gains and losses of CNY 61,912,922.96 in 2020, compared to a profit of CNY 114,741,639.82 in 2019, marking a decrease of 153.96%[27]. - The company achieved a revenue of 11.493 billion yuan in 2020, representing a year-on-year growth of 0.31%, while the total profit decreased by 28.38% to 187 million yuan[62]. - The gross margin for the overall company was 36.27%, reflecting a decrease of 4.80% compared to the previous year[143]. Dividend Policy - The company plans to distribute a cash dividend of RMB 0.30 per 10 shares, totaling approximately RMB 48.92 million, which represents 50.27% of the net profit attributable to shareholders for the year[7]. - The cash dividend for 2019 was also RMB 0.30 per 10 shares, amounting to RMB 48,924,141.87, which was 31.88% of the net profit for that year[199]. - The company has maintained a consistent cash dividend policy over the past three years, with the same amount distributed each year[199]. - The total distributable profit as of December 31, 2020, was RMB 736,781,117.17 after accounting for the legal surplus reserve and previous dividends[198]. - The company has established a shareholder return plan, committing to distribute at least 30% of the average distributable profit over the last three years as cash dividends, provided the distributable profit is positive[198]. Internal Controls and Audit - The company has identified one significant internal control deficiency in its internal control evaluation report for 2020, which was independently audited[12]. - The company has received a standard unqualified audit opinion from Zhongtian Yun Accounting Firm for its financial statements[6]. - The company has not violated any decision-making procedures in providing guarantees[9]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[9]. Market and Industry Trends - The pharmaceutical manufacturing industry in China experienced a revenue growth of 7.0% year-on-year, with a profit increase of 19.3%[42]. - The chemical pharmaceutical industry reported a revenue of 1.23015 trillion yuan, with a profit of 162.72 billion yuan, both showing a year-on-year growth of 0.5%[45]. - The health industry in China has been growing at an annual rate exceeding 10% since 2018, driven by rising health awareness and supportive policies, indicating significant market potential[104]. - The national medical insurance directory for 2020 includes 2,800 drugs, with 1,264 Western medicines and 1,315 traditional Chinese medicines, reflecting ongoing healthcare reforms[107]. - The "volume-based procurement" policy has been implemented, leading to significant price reductions and a more standardized procurement process across the country[108]. Research and Development - The company achieved a research and development (R&D) investment of 469 million RMB, representing 4.08% of its operating revenue, which is in line with the industry average[162]. - The R&D investment capitalized ratio was 74.56%, indicating a significant portion of R&D expenses were capitalized[161]. - The company is focusing on expanding its presence in the biopharmaceutical sector, which is experiencing rapid growth and innovation, particularly in antibody and gene therapies[98]. - The company is committed to increasing investment in innovative drug research, particularly in monoclonal antibodies and complex generics[194]. - The company is investing in research and development for new antibiotics to combat antibiotic resistance, with a focus on innovative drug delivery systems[120]. Product Development and Sales - The company has a complete product chain from fermentation raw materials to semi-synthetic raw materials and formulations, maintaining a leading position in the antibiotic sector[48]. - The company has received multiple national awards, including 5 national invention awards and 21 scientific progress awards[50]. - The company is actively pursuing market expansion strategies, particularly in the Asia-Pacific region, to increase its market share in the pharmaceutical industry[120]. - The company has reported a significant increase in revenue from the sales of injectable amoxicillin sodium clavulanate, which is indicated for various infections, including respiratory and urinary tract infections[120]. - The company is focusing on expanding its product line with new formulations, including a new injectable formulation of vancomycin, targeting resistant bacterial infections[120]. Financial Management - The company has implemented strict budget controls and cost reduction measures, significantly lowering controllable expenses[63]. - The company reported a net cash outflow from investment activities of 843.58 million RMB, primarily due to increased R&D investments and acquisitions[66]. - The company’s long-term equity investment balance increased by 1.20% to 582 million as of December 31, 2020[175]. - The company has funded its projects through self-raised funds and loans, indicating a strong reliance on internal financing[177]. - The company is committed to enhancing its modern management level to ensure normal production operations and reduce operational risks[195].