Financial Performance - The company's operating revenue for Q1 2022 was ¥339,787,138.24, representing a decrease of 19.31% compared to the same period last year[6]. - The net profit attributable to shareholders for Q1 2022 was ¥97,884,290.18, down 11.99% year-on-year[6]. - The basic earnings per share for Q1 2022 was ¥0.24, reflecting a decline of 22.58% compared to the previous year[6]. - The weighted average return on equity was 2.14%, a decrease of 2.29 percentage points from the previous year[6]. - The company's net profit for the current period is CNY 97,839,105.81, a decrease of 12.1% compared to CNY 111,438,989.98 in the previous period[23]. - Operating profit for the current period is CNY 113,975,894.14, down 12.2% from CNY 129,805,878.02 in the previous period[23]. - The total revenue from sales of goods and services received cash of CNY 452,337,106.36, an increase of 4.9% compared to CNY 432,096,414.51 in the previous period[25]. - The basic earnings per share decreased to CNY 0.24 from CNY 0.31, reflecting a decline of 22.6%[25]. Cash Flow and Assets - The net cash flow from operating activities increased by 84.56% to ¥117,419,230.70, primarily due to a reduction in payments for imported raw materials[6][8]. - Cash and cash equivalents as of March 31, 2022, amounted to RMB 2,661,766,876.36, an increase of 4.0% from RMB 2,559,516,190.32 at the end of 2021[17]. - The cash and cash equivalents at the end of the period reached CNY 2,661,766,876.36, up from CNY 1,652,855,224.62, indicating a growth of 61.6%[27]. - The company experienced a net increase in cash and cash equivalents of CNY 102,250,686.04, compared to CNY 51,479,034.04 in the previous period, indicating a positive cash flow trend[27]. - The total assets at the end of the reporting period were ¥5,500,016,576.82, an increase of 1.79% from the end of the previous year[8]. - Total assets as of March 31, 2022, were RMB 5,500,016,576.82, compared to RMB 5,403,274,095.25 at the end of 2021, marking an increase of 1.8%[19]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 12,932[9]. - The largest shareholder, Shandong Weigao Group Medical Polymer Company, held 50.63% of the shares[11]. Research and Development - The company's R&D investment totaled ¥18,820,083.16, a decrease of 22.15% year-on-year, with R&D expenses accounting for 5.54% of operating revenue, down 0.20 percentage points[6][8]. - Research and development expenses decreased to CNY 18,820,083.16 from CNY 24,176,004.26, reflecting a reduction of 22.1%[23]. Operational Challenges - The company faced supply chain disruptions due to COVID-19 restrictions in March 2022, impacting product availability[15]. - The company resumed normal operations in early April 2022 after the local COVID-19 situation was brought under control[15]. - The company is actively participating in volume-based procurement initiatives across multiple provinces, which began implementation in March 2022[15]. Financial Adjustments and Compliance - The company announced the implementation of new accounting standards starting from 2022[29]. - The financial statements for the year of first-time application were adjusted accordingly[29]. - The announcement was made by the board of directors on April 29, 2022[29]. - The accounting work is overseen by Xin Wenzhi, who is also the head of the accounting institution[29]. - Gong Jianbo is the company leader responsible for the announcement[29]. - The company did not apply the new accounting standards for the current reporting period[29]. - The adjustments pertain to the financial statements at the beginning of the year[29]. - The announcement is part of the company's compliance with regulatory requirements[29]. - The board of directors is committed to transparency in financial reporting[29]. - The company aims to enhance its financial reporting quality through these adjustments[29].

| --- | --- | |----------------------------------------------------------------------------------------------------------|-------| | | | | 股票代码: 688161 山东威高骨科材料股份有限公司 SHANDONG WEIGAO ORTHOPAEDIC DEVICE CO., LTD 2021年年度报告 | | | WEGO ORTHO 町島智科 | | 2021 年年度报告 重要提示 | --- | --- | |---------------------------------------------------------------------------------------|-------| | | | | 一、 本公司董事会、监事会及董事、监事、高级管理人员保证年度报告内容的真实性、准确性、 | | | 完整性，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 | | | 二、 公司上市时未盈利且尚未实现盈利 | | | □是 √否 | | ...

Financial Performance - The company's operating revenue for 2021 was approximately RMB 2.15 billion, an increase of 18.08% compared to RMB 1.82 billion in 2020[24]. - The net profit attributable to shareholders for 2021 was approximately RMB 690.32 million, reflecting a growth of 23.62% from RMB 558.40 million in the previous year[24]. - The net cash flow from operating activities reached approximately RMB 788.25 million, up 22.38% from RMB 644.12 million in 2020[26]. - The company's total assets as of the end of 2021 were approximately RMB 5.40 billion, a 70.20% increase from RMB 3.17 billion at the end of 2020[26]. - The net assets attributable to shareholders increased by 84.67% to approximately RMB 4.53 billion from RMB 2.45 billion in 2020[26]. - Basic earnings per share for 2021 were RMB 1.82, a 16.67% increase from RMB 1.56 in 2020[26]. - The overall gross profit margin for the reporting period was 81.17%[35]. - The company's operating revenue for the reporting period was CNY 2,153.55 million, representing an 18.08% year-on-year increase[98]. - Operating costs increased to CNY 405.42 million, a rise of 26.01% compared to the previous year, primarily due to the recovery of medical institutions and an increase in surgical volumes[99]. - The gross margin for the orthopedic medical device manufacturing segment was 81.23%, a decrease of 1.15 percentage points from the previous year[105]. Research and Development - The company's R&D investment as a percentage of operating revenue rose to 5.63%, an increase of 1.11 percentage points from 4.52% in 2020[26]. - The total R&D investment for the current year is CNY 121,225,000.04, a significant increase of 47% compared to CNY 82,463,200.84 from the previous year[66]. - Research and development expenses reached CNY 121.23 million, up 47.00% year-on-year, reflecting the company's commitment to innovation and product development[98]. - The company has filed 63 new patent applications this year, with 62 patents granted, bringing the total to 355 applications and 268 granted patents[65]. - The company focuses on continuous product innovation and has strengthened R&D investment to meet diverse clinical needs in orthopedic surgery[65]. - The company has developed several core technologies, including hook-shaped trapezoidal thread technology and new embedded saddle-shaped pressure ring technology, covering various orthopedic implant fields[44]. Market Position and Strategy - The company ranks first among domestic manufacturers and fifth overall in the orthopedic implant medical device market, with specific market shares of first in spinal products and second in trauma products[50]. - The orthopedic medical device industry in China is experiencing rapid growth, driven by an aging population and increasing health awareness, presenting substantial market opportunities[49]. - The company aims to strengthen its brand competitiveness and profitability by expanding its product line with new technologies and materials[51]. - The company is actively responding to national policies on centralized procurement, establishing a specialized sales team to enhance market share[50]. - The company maintains a multi-brand strategy and focuses on expanding sales channels and developing secondary hospitals[36]. Corporate Governance - The company has not yet achieved profitability since its listing[3]. - The company has received a standard unqualified audit report from Da Hua Certified Public Accountants[4]. - The management has confirmed the authenticity, accuracy, and completeness of the annual report[4]. - The company does not have any special arrangements for corporate governance[8]. - The company has established a governance structure that complies with relevant laws and regulations, ensuring clear responsibilities and effective coordination among its governing bodies[144]. Dividend Policy - The company plans to distribute a cash dividend of 5.20 CNY per 10 shares, totaling 20,800,000 CNY, which represents 30.13% of the net profit attributable to shareholders for the year 2021[5]. - The cash dividend policy stipulates that in the absence of significant capital expenditure, at least 80% of profits should be distributed as cash dividends during the mature phase of development[185]. - The company aims to maintain a continuous and stable profit distribution policy, with a minimum of 10% of the distributable profit allocated as cash dividends each year[186]. Risks and Challenges - The company has detailed the major risks it will face in the future and the corresponding countermeasures in the report[3]. - The forward-looking statements in the report do not constitute substantial commitments to investors[6]. - The company maintains a high gross profit margin, but may face risks of declining product prices due to national volume-based procurement policies, potentially impacting future profitability[90]. - The company faces risks related to product development, including potential failures in meeting regulatory standards and market demands[88]. Social Responsibility and ESG - The company actively participates in social welfare activities and has contributed to disaster relief efforts, including sending aid to Zhengzhou during the July 2021 floods[198]. - The company emphasizes ESG (Environmental, Social, and Governance) practices, integrating them into daily operations and promoting sustainable development[197]. - The company has not been classified as a key pollutant discharge unit by environmental protection authorities[199]. - There were no administrative penalties imposed on the company due to environmental issues during the reporting period[199].

Financial Performance - The company's operating revenue for Q3 2021 was ¥475,276,952.47, representing a year-on-year increase of 10.56%[7] - The net profit attributable to shareholders for the same period was ¥125,199,004.76, an increase of 8.47% compared to the previous year[7] - The net profit after deducting non-recurring gains and losses was ¥120,216,320.12, reflecting a 3.48% increase year-on-year[7] - Total operating revenue for the first three quarters of 2021 reached ¥1,570,592,770.80, an increase of 24.4% compared to ¥1,261,864,108.66 in the same period of 2020[31] - Net profit for the first three quarters of 2021 was ¥495,867,418.87, representing a 28.7% increase from ¥385,597,530.21 in the same period of 2020[34] Assets and Liabilities - The total assets at the end of the reporting period reached ¥5,145,963,866.16, a significant increase of 62.10% compared to the end of the previous year[11] - The company's total assets increased to ¥5,145,963,866.16, compared to ¥3,174,596,918.79 in the previous year, reflecting a growth of 62.2%[31] - Total liabilities rose to ¥805,081,891.77, up from ¥710,440,679.27, indicating an increase of 13.3%[31] - Current liabilities reached $610,787,531.11, slightly decreased from $613,332,664.74, a reduction of $2,545,133.63[51] Equity - The total equity attributable to shareholders at the end of the reporting period was ¥4,334,285,936.97, up 76.64% from the previous year[11] - The equity attributable to shareholders of the parent company reached ¥4,334,285,936.97, a significant increase from ¥2,453,797,254.33 in the previous year, marking a growth of 76.5%[31] - Shareholders' equity totaled $2,464,156,239.52, unchanged from the previous period[51] Cash Flow - The net cash flow from operating activities for the year-to-date was ¥522,133,081.74, showing a year-on-year increase of 23.91%[11] - Cash inflow from operating activities totaled CNY 1,714,941,327.13 in the first three quarters of 2021, up from CNY 1,493,956,820.01 in 2020, indicating an increase of about 14.8%[40] - The company reported a net cash flow from financing activities of CNY 1,374,176,588.27, a significant improvement compared to a net outflow of CNY 815,572,564.21 in the previous year[44] - The ending balance of cash and cash equivalents increased to CNY 3,406,327,136.38 from CNY 1,378,721,271.63, reflecting a substantial increase of approximately 147%[44] Research and Development - The company's R&D investment for the period was ¥30,687,050.96, which accounted for 6.46% of operating revenue, an increase of 0.36 percentage points[11] - Research and development expenses for the first three quarters of 2021 amounted to ¥81,678,494.11, an increase of 36.4% compared to ¥59,926,104.66 in the same period of 2020[34] Market Strategy - The company successfully won bids for its orthopedic products in a centralized procurement process, which is expected to enhance market share[21] - The company plans to leverage its technological advantages and logistics capabilities to respond to national policies and improve market penetration[22] - The company is actively monitoring and researching relevant national and provincial policies to optimize its market sales strategy[22] - The company has identified opportunities for market expansion through successful bids in the national centralized procurement for high-value medical consumables[21] Shareholder Information - The number of shares held by major shareholders includes 1,247,843 shares by Huatai Innovation Investment Co., Ltd., with a total of 1,656,543 shares being subject to trading restrictions[20] Other Financial Metrics - The basic earnings per share for Q3 2021 was ¥0.31, a decrease of 2.76% compared to the same period last year[11] - The weighted average return on equity was 2.93%, down by 2.28 percentage points year-on-year[11] - The company reported a financial expense of -¥21,502,639.59, which improved from -¥10,042,942.80 in the previous year[34] - Deferred tax liabilities increased to ¥11,936,805.28 from ¥8,480,360.72, reflecting a growth of 40.5%[31]

Financial Performance - The company's operating revenue for the first half of 2021 was approximately ¥1.095 billion, representing a year-on-year increase of 31.65% compared to ¥831.98 million in the same period last year[26]. - Net profit attributable to shareholders was approximately ¥369.15 million, a year-on-year increase of 37.85% from ¥267.79 million[26]. - The net cash flow from operating activities was approximately ¥407.78 million, reflecting a 12.75% increase from ¥361.68 million in the previous year[26]. - The company's total assets reached approximately ¥5.10 billion, an increase of 60.73% compared to ¥3.17 billion at the end of the previous year[26]. - The net assets attributable to shareholders increased to approximately ¥4.23 billion, a 72.25% increase from ¥2.45 billion[26]. - Basic earnings per share for the first half of 2021 were ¥1.03, up 37.33% from ¥0.75 in the same period last year[26]. - The company's operating revenue for the reporting period was CNY 1,095,315,818.33, representing a year-on-year increase of 31.65%[93]. - Operating costs amounted to CNY 195,423,999.49, an increase of 37.73% compared to the previous year, primarily due to the rise in operating revenue[95]. - The net cash flow from operating activities was CNY 40,778,522.96, which is a 12.75% increase from the previous year, driven by sustained sales growth[99]. Research and Development - The company's R&D investment accounted for 4.66% of operating revenue, an increase of 0.61 percentage points compared to the previous year[26]. - The total R&D investment reached ¥50,991,443.15, representing a 51.19% increase compared to the previous period, driven by product design fees, testing costs, and an increase in R&D personnel[59]. - The R&D investment accounted for 4.66% of total revenue, up from 4.05% in the previous period, indicating a focus on innovation and product development[59]. - The company has developed several core technologies, including the hook-shaped trapezoidal thread technology, which improves screw strength by nearly 50% compared to similar products, enhancing safety and effectiveness in spinal surgery[44]. - The company emphasizes independent research and development, collaborating with medical institutions and researchers to innovate in orthopedic medical devices, covering various subfields such as spine, trauma, and joint medicine[39]. - The company has filed for 28 new patents during the reporting period, with 19 patents granted, bringing the total to 228 granted patents[58]. - The company has established a comprehensive quality control system to ensure product quality, which is critical given the medical nature of its orthopedic devices[89]. Market Position and Strategy - The company has established a leading market position in the orthopedic implant medical device sector, ranking first among domestic manufacturers and fifth overall in the industry, with over 1,500 hospitals using its products nationwide[43]. - The orthopedic medical device market in China has shown rapid growth, with sales revenue increasing from ¥16.4 billion in 2015 to ¥30.8 billion in 2019, reflecting a compound annual growth rate of 17.03%[35]. - The company has strengthened its sales strategy by expanding sales channels and developing county-level hospitals, contributing to stable performance growth[29]. - The sales model primarily relies on distributors, with a focus on deep collaboration and support to meet the needs of surgeons, while direct sales account for a smaller proportion of revenue[41]. - The company is focusing on deepening its exploration in the high-value consumables field while enhancing its strategic layout in related areas[81]. - The company plans to expand its product line and achieve both vertical and horizontal development in the orthopedic industry[81]. Corporate Governance and Compliance - The board of directors confirmed that all members attended the board meeting, ensuring the integrity of the financial report[5]. - The financial report has not been audited, but the responsible persons have declared its authenticity and completeness[5]. - There are no special arrangements for corporate governance or other significant matters applicable to the company[8]. - The company has not disclosed any significant equity or non-equity investments during the reporting period[107]. - The company has established a commitment to maintain the stability of stock prices through various measures, effective from June 25, 2021[126]. - The actual controller and major shareholders committed to a lock-up period for their shares for 36 months from the date of the company's IPO, ensuring no transfer or management delegation of shares[129]. Risks and Challenges - The company has detailed the major risks it will face in the future and the corresponding countermeasures in the report[4]. - The company faces risks related to competitive pricing pressures and the need for continuous innovation to maintain profitability[85]. - The company is facing risks related to potential leakage of core technologies and intellectual property, which could weaken its competitive position[88]. Investment and Financial Management - The company has invested a total of CNY 10,900 million in ongoing projects, with CNY 1,701.06 million invested in the current period[65]. - The company has a well-established quality management system, having obtained ISO9001 and ISO13485 certifications[75]. - The company has experienced a significant increase in cash and cash equivalents, totaling CNY 3,349,803,586.28, which is a 109.2% increase from the previous year, primarily due to funds received from the IPO[100]. - Financing at the end of the period increased by 254.03% compared to the beginning of the period, mainly due to the growth in operating income[103]. Profit Distribution Policy - The company emphasizes a stable profit distribution policy, ensuring reasonable returns for investors[181]. - The profit distribution policy includes a minimum cash dividend ratio of 80% for mature companies without major capital expenditures[188]. - The company commits to maintaining the continuity and stability of its profit distribution policy[189]. - The actual controller and major shareholders have made commitments to not interfere with company management or infringe on company interests[182][185].