Group 1: Company Overview - The overall business operation of Dong'e Ejiao Co., Ltd. is stable in 2018, which is a key year for the company's "13th Five-Year Plan" development [2] - The company will continue to focus on its core business of Ejiao, promoting Ejiao cultural marketing and value recovery projects [2] - The company aims to enhance the comprehensive value of donkey resources through live donkey cycle development and experiential marketing [3] Group 2: Product Development Strategy - Dong'e Ejiao is pushing for cultural marketing and value recovery, targeting high-end health supplement consumers [3] - The company is innovating its product offerings, including the introduction of compound Ejiao products aimed at dual nourishment of Qi and blood, breaking traditional perceptions of "medicinal" products [3] - Increased investment in research and clinical validation is planned to enhance product specifications and improve customer experience [3] Group 3: Sales Performance - The sales situation of the company's products is stable, particularly during the peak season for Ejiao supplements [3] - The 12th Ejiao Nourishing Festival was held on December 22-23, 2018, attracting medical experts to discuss the inheritance and modernization of traditional Chinese medicine [3] Group 4: Shareholder Confidence - China Resources increased its stake in Dong'e Ejiao from November 6 to 19, 2018, reflecting confidence in the company's future development and recognition of its value [4]

Group 1: Company Development Strategy - The company's "13th Five-Year" strategy focuses on the core business of Ejiao, cultivating multiple brands, and promoting cultural marketing and value return projects [1] - The strategy aims to enhance the comprehensive value through live donkey resource development and extend upstream and downstream in the industry chain [1] - The company positions Ejiao as a "national treasure for nourishment," targeting high-end consumers and developing products like compound Ejiao syrup for broad consumption [3] Group 2: Sales Performance - The company is currently operating stably and believes the Ejiao market will continue to develop positively, allowing more consumers to experience the benefits of Ejiao products [3] - E-commerce sales currently account for a small proportion, with younger consumers being the primary demographic, although online consumption among middle-aged and elderly consumers is gradually increasing [3] Group 3: Shareholding and Governance - China Resources Pharmaceutical has increased its shareholding to over 30%, reflecting confidence in the company's future development and recognition of its value [3] Group 4: Supply Chain and Pricing - The supply of donkey hides includes a certain proportion from abroad, with differences in scale and systematic breeding compared to domestic practices [4] - The company adjusts product prices based on supply and demand changes, determined by market development conditions [4] Group 5: Future Product Development - The company plans to strengthen upstream resource control and implement cultural and academic marketing, focusing on clinical validation of Ejiao products [4] - There are ongoing developments in derivative products, such as Ejiao oatmeal juice, with expectations for growth [4] Group 6: Regional Sales Focus - The company aims to develop and expand in key regions such as the Yangtze River Delta and the Pearl River Delta, where competition is relatively intense [4]

Group 1: Event Details - The event is scheduled for November 16, 2022, from 14:00 to 16:00 [1] - The event will be held online via the investor relations interactive platform provided by Shenzhen Panorama Network Co., Ltd. [1] Group 2: Participation and Communication - Company representatives, including Secretary of the Board Ms. Deng Rong and Securities Affairs Representative Mr. Fu Yan, will engage with investors online [1] - Topics for discussion include corporate governance, social responsibility, operational status, development strategy, risk prevention, and investor protection [1] Group 3: Company Commitment - The company and its board guarantee the authenticity, accuracy, and completeness of the disclosed information, ensuring no false statements or significant omissions [1]

Financial Performance - The company's operating revenue for 2021 was CNY 3,848,985,686.56, representing a 12.89% increase compared to CNY 3,409,437,164.01 in 2020[12]. - The net profit attributable to shareholders for 2021 was CNY 440,439,963.60, a significant increase of 917.43% from CNY 43,289,251.31 in 2020[12]. - The net cash flow from operating activities reached CNY 2,800,902,528.25, marking a 249.75% increase from CNY 800,834,183.65 in the previous year[12]. - Basic earnings per share for 2021 were CNY 0.6800, an increase of 871.43% compared to CNY 0.07 in 2020[12]. - The company reported a significant increase in net profit after deducting non-recurring gains and losses, reaching CNY 352,383,752.92 in 2021, compared to a loss of CNY 39,462,110.08 in 2020[12]. - The net profit attributable to the parent company reached CNY 440 million, up 917.43% year-on-year, primarily driven by a revenue increase of CNY 510 million and a gross margin improvement of 6.47 percentage points[23]. - The total comprehensive income for 2021 was CNY 645.32 million, compared to CNY 128.51 million in 2020, showing an increase of approximately 403.6%[170]. Assets and Liabilities - Total assets at the end of 2021 amounted to CNY 11,628,031,898.88, reflecting a 6.19% increase from CNY 10,950,024,729.95 at the end of 2020[13]. - The total equity attributable to shareholders rose to CNY 9,973,048,913.43, up from CNY 9,731,407,793.03, reflecting an increase of about 2.5%[162]. - The company's total liabilities reached CNY 1,632,660,857.08, compared to CNY 1,173,013,575.53 in the previous year, reflecting an increase of about 39.1%[161]. - The cash and cash equivalents increased significantly to CNY 3.25 billion in 2021, up from CNY 1.45 billion in 2020, representing a growth of approximately 124.4%[159]. Revenue Breakdown - The pharmaceutical industry segment contributed CNY 3.61 billion, accounting for 93.77% of total revenue, with a growth rate of 20.22%[24]. - Total revenue for the four quarters was approximately ¥3.84 billion, with the highest in Q3 at ¥1.14 billion[15]. - The East China region generated CNY 1.72 billion in revenue, representing 44.60% of total revenue, with a growth rate of 13.25%[25]. Research and Development - R&D expenses were CNY 147,749,402.42, a decrease of 3.83% from CNY 153,632,752.46 in 2020, representing 3.84% of operating revenue[38]. - The company is conducting several R&D projects, including clinical trials for the blood-replenishing effects of Ejiao, which aims to enhance brand influence and support market development[37]. - The company holds over 190 authorized invention patents and has participated in more than 30 national and provincial-level research projects[22]. Market Position and Strategy - The company is a leader in the production and sales of Ejiao products, with a focus on quality and customer experience[19]. - The brand has been recognized as the top OTC product and has won multiple national quality awards, enhancing its market position[19]. - The company has a strategic plan for expanding its product offerings, including over 40 reserve products in development[19]. - The company aims to expand its market presence through a multi-channel strategy, enhancing both online and offline customer engagement[51]. Governance and Compliance - The company emphasizes the importance of governance and compliance with regulations, ensuring independent operations from its controlling shareholder[56]. - The company has established four specialized committees under the board of directors: Strategic Committee, Nomination Committee, Audit Committee, and Compensation and Assessment Committee[57]. - The management team has a clear division of responsibilities, with all senior executives fulfilling their duties diligently to protect the interests of the company and its shareholders[58]. Cash Flow and Financial Management - The cash flow from operating activities generated a net amount of CNY 2.80 billion in 2021, compared to CNY 800.83 million in 2020, reflecting an increase of approximately 249.5%[172]. - The company reported cash inflows from investment activities totaling CNY 5.62 billion in 2021, a significant rise from CNY 1.96 billion in 2020[172]. - The company has maintained a consistent approach to financial management with no overdue receivables reported[118]. Risks and Challenges - The company faces long-term risks due to the decreasing value of donkey usage and a sharp decline in free-range populations, with challenges in breeding and disease prevention research remaining unresolved[50]. - Short-term risks include pressures for digital transformation, market confidence rebuilding, and ongoing issues with low-priced competition and counterfeit products in the ejiao market[50]. Environmental and Social Responsibility - The company strictly adheres to environmental protection regulations, with no administrative penalties reported during the reporting period[101]. - The company has implemented a self-monitoring plan for wastewater and air emissions, achieving a 100% compliance rate in monitoring and reporting[100]. - The company emphasizes social responsibility and actively collaborates with stakeholders to promote sustainable and healthy development[58].