Financial Performance - The company's operating revenue for the first half of 2023 was ¥121,411,354.73, representing a 2.55% increase compared to ¥118,397,374.09 in the same period last year[19]. - The net loss attributable to shareholders was ¥37,775,397.48, which is a 14.72% increase in loss compared to ¥32,927,209.66 in the previous year[19]. - The net cash flow from operating activities decreased significantly by 88.63%, amounting to ¥808,121.15 compared to ¥7,105,657.94 in the same period last year[19]. - The total assets at the end of the reporting period were ¥712,555,161.73, down 3.46% from ¥738,078,462.55 at the end of the previous year[19]. - The company reported a basic earnings per share of -¥0.0367, a decrease of 14.69% from -¥0.0320 in the previous year[19]. - The weighted average return on net assets was -7.02%, compared to -5.58% in the previous year, indicating a decline in profitability[19]. - The company's revenue for the reporting period was CNY 121,411,354.73, representing a year-on-year increase of 2.55% compared to CNY 118,397,374.09[36]. - The company's R&D investment decreased by 51.85% to CNY 14,480,935.62 from CNY 30,076,280.23 in the previous year, indicating a reduction in ongoing projects[36]. - Sales expenses increased by 31.61% to CNY 65,807,996.66, attributed to increased market research and promotion efforts[36]. - The company reported a gross profit margin of approximately 28.5% for the first half of 2023, down from 30.0% in the previous year[126]. Assets and Liabilities - The total assets of the company as of the end of the first half of 2023 were CNY 715,471,458.50, slightly down from CNY 716,647,363.94 at the end of 2022[124]. - Total liabilities as of June 30, 2023, were CNY 159,179,908.88, up from CNY 144,583,108.82, representing an increase of about 10.1%[120]. - The company's total equity decreased to CNY 553,375,252.85 from CNY 593,495,353.73, a decline of approximately 6.8%[120]. - The company has no preferred shares or bonds outstanding as of the reporting date[111][120]. Cash Flow - The operating cash flow for the reporting period was CNY 808,121.15, a significant decrease of 88.63% compared to CNY 7,105,657.94 in the previous year[36]. - The company reported a cash outflow of ¥5,376,002.43 related to the repayment of lease liabilities during the reporting period[90]. - The total cash outflow from operating activities was 750,659.13 yuan in the first half of 2023, down from 1,682,891.36 yuan in the same period of 2022, indicating a reduction of approximately 55%[135]. - The total cash inflow from financing activities decreased to 27,560,000.00 yuan in the first half of 2023 from 41,302,000.70 yuan in the previous year, reflecting a decline of approximately 33.3%[136]. Research and Development - The company has five invention patents and three new drug certificates, highlighting its strong R&D capabilities[33]. - The company has invested 5.4 million yuan in research and development during the first half of 2023, reflecting a commitment to innovation[140]. - Research and development expenses decreased to CNY 14,480,935.62 in the first half of 2023 from CNY 30,076,280.23 in the same period of 2022, a reduction of about 52.1%[126]. Market and Sales - The company continues to focus on the production and sales of biopharmaceutical products, including recombinant human erythropoietin and granulocyte colony-stimulating factor injections[27]. - The company employs a sales model primarily through distributors, focusing on academic promotion and technical training to enhance product recognition[30]. - Domestic sales contributed ¥118,732,130.73, representing 97.79% of total revenue, while international sales increased to ¥2,679,224.00, accounting for 2.21%[37]. Environmental Compliance - The company is subject to strict environmental regulations and holds a valid Pollution Permit until July 14, 2027[61]. - The company has implemented measures to monitor and control emissions effectively[63]. - The company reported a stable operation of its wastewater treatment plant with a capacity of 120 tons per day, which was put into operation in December 2021 and has achieved standard discharge[65]. Corporate Governance - The company emphasizes the protection of minority shareholders' rights and has established a comprehensive corporate governance structure to ensure fair treatment[67]. - The company has set up various specialized committees within its board of directors to enhance governance and operational efficiency[67]. - The company adheres to timely and accurate information disclosure practices to protect the rights of all shareholders and stakeholders[67]. Legal Matters - The company has received a first-instance judgment dismissing all claims in a lawsuit related to securities false statements[51]. - The company reported no significant litigation or arbitration matters during the reporting period[79]. - There were no major related party transactions during the reporting period[81]. Future Outlook - Future outlook remains cautious due to ongoing market challenges and the need for strategic adjustments to improve profitability[127]. - The company plans to enhance its market expansion strategies and invest in new product development to drive future growth[142]. - The company is exploring potential mergers and acquisitions to enhance its competitive position in the market[146].

上市公司 2023 年 1-6 月非经营性资金占用及其他关联资金往来情况汇总表 编制单位：江苏四环生物股份有限公司 金额单位：人民币元 | 非经营性资金 | | 占用方与上市公 | 上市公司核 | 2023 年期初占用 | 2023年1-6月占 | 2023年1-6月 | 2023 年 1-6 月偿 | 2023.6.30 占用 | 占用形成 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | 资金占用方名称 | | 算的会计科 | | 用累计发生金 | 占用资金的 | | | | 占用性质 | | 占用 | | 司的关联关系 | 目 | 资金余额 | 额（不含利息） | 利息(如有) | 还累计发生金额 | 资金余额 | 原因 | | | 现 大 股 东 及 | | | | | | | | | | | | 其附属企业 | | | | | | | | | | | | 小计 | - | - | - | | | | | | - | - | | 前 大 股 东 及 | | | | | | | | | | | | 其附 ...

二、公司 2023 年上半年第一大股东、实际控制人及其他关联方占用公司资 金情况的独立意见： 1、公司在报告期内无第一大股东、实际控制人及其附属企业非经营性占用 公司资金的情况； 2、公司在报告期内不存在为第一大股东、实际控制人及其他关联方垫支工 资、福利、保险、广告等期间费用，也不存在为第一大股东、实际控制人及其他 关联方承担成本和其他支出的情况。 作为江苏四环生物股份有限公司（以下简称"公司"）的独立董事，我们根 据中国证监会《上市公司独立董事规则》、[2022]26 号《上市公司监管指引第 8 号—上市公司资金往来、对外担保的监管要求》等有关规定，对公司关联方资金 占用和对外担保情况进行了认真核查，发表如下独立意见： 一、公司对外担保情况如下： 报告期内，不存在公司为第一大股东、实际控制人及其他关联方、任何法人 单位或个人提供担保的情形。 江苏四环生物股份有限公司独立董事 关于公司实际控制人及其他关联方占用公司资金、 公司对外担保情况的专项说明和独立意见 刘卫 吴良卫 王莉 2023 年 8 月 21 日 独立董事： ______________ _____________ ...

江苏四环生物股份有限公司2022年年度报告全文 江苏四环生物股份有限公司 2022 年年度报告 ...

Financial Performance - The company's revenue for Q1 2023 was ¥57,013,482.58, representing a 13.22% increase compared to ¥50,357,114.91 in the same period last year[5] - The net loss attributable to shareholders was ¥18,959,108.45, an improvement of 18.55% from a loss of ¥23,275,808.58 in the previous year[5] - The company's basic and diluted earnings per share were both -¥0.0184, showing an improvement of 18.58% from -¥0.0226 in the same period last year[5] - Operating profit for Q1 2023 was -¥21,889,366.63, an improvement from -¥25,909,904.09 in Q1 2022[17] - Net profit for Q1 2023 was -¥21,122,207.95, compared to -¥25,909,848.63 in Q1 2022, showing a reduction in losses[18] - Total comprehensive income for Q1 2023 was -¥21,122,207.95, an improvement from -¥25,909,848.63 in Q1 2022[18] Cash Flow - The net cash flow from operating activities was ¥3,050,580.73, a significant increase of 141.37% compared to a negative cash flow of ¥7,374,282.57 in the same period last year[5] - Cash flow from operating activities for Q1 2023 was ¥3,050,580.73, a significant recovery from -¥7,374,282.57 in Q1 2022[20] - Cash flow from investing activities was -¥200,800.00 in Q1 2023, compared to -¥1,779,000.00 in Q1 2022, indicating reduced investment outflows[20] - Cash flow from financing activities was -¥5,374,002.44 in Q1 2023, worsening from -¥387,375.01 in Q1 2022[20] - The beginning cash and cash equivalents balance was ¥27,680,469.82, compared to ¥37,862,389.45 in the previous period, indicating a decrease of approximately 26.8%[21] - The ending cash and cash equivalents balance was ¥25,137,867.09, down from ¥28,308,162.95, reflecting a decline of about 11.4%[21] Assets and Liabilities - The total assets at the end of the reporting period were ¥712,877,322.62, down 3.41% from ¥738,078,462.55 at the end of the previous year[5] - Total liabilities decreased to CNY 140,504,176.84 from CNY 144,583,108.82, representing a reduction of about 2.4%[14] - The company's cash and cash equivalents were CNY 25,637,530.70, down from CNY 28,180,123.46, indicating a decrease of approximately 9.2%[13] - Accounts receivable decreased to CNY 77,066,984.91 from CNY 100,116,017.59, a decline of about 23%[13] - Inventory increased slightly to CNY 410,622,090.87 from CNY 408,764,642.59, showing a marginal increase of approximately 0.4%[13] - The total equity attributable to shareholders decreased by 3.40% to ¥538,281,742.59 from ¥557,240,851.04 at the end of the previous year[5] - The company reported a total current liability of CNY 112,061,767.39, down from CNY 116,217,258.18, reflecting a decrease of approximately 3.6%[14] - The non-current assets totaled CNY 168,308,257.58, down from CNY 173,258,603.92, indicating a decrease of about 2.9%[13] Expenses and Subsidies - Research and development expenses decreased by 47.31% to ¥7,340,182.16 from ¥13,931,832.09 in the previous year[9] - The company received government subsidies amounting to ¥529,552.89, a significant increase of 17,826.21% compared to ¥2,954.07 in the previous year[9] - The company reported a 234.32% increase in taxes and additional fees paid, totaling ¥4,199,170.56 compared to ¥1,256,046.80 in the previous year[9] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 102,347, with the top two shareholders holding 28.32% of the total shares[10] - The company has no outstanding preferred shares or perpetual bonds as of the reporting date[14] - The company’s retained earnings showed a negative balance of CNY -565,581,208.49, worsening from CNY -546,622,100.04 at the beginning of the year[14] Audit Status - The first quarter report was not audited, indicating that the financial data may be subject to further review[22]

Financial Performance - The company's operating revenue for 2022 was ¥270,149,197.60, a decrease of 23.03% compared to ¥350,961,775.85 in 2021[19]. - The net profit attributable to shareholders was a loss of ¥48,792,770.94, representing a decline of 40.25% from a loss of ¥34,789,910.35 in the previous year[19]. - The pharmaceutical business revenue was ¥258,841,543.69, reflecting a year-on-year decline of 11.15% due to medical reform policies[42]. - The company achieved a revenue of ¥270,149,197.60 in 2022, a decrease of 23.03% compared to the previous year[42]. - The net profit attributable to shareholders was -¥48,792,770.94, down 40.25% year-on-year[42]. - Total operating revenue decreased by 23.03% to ¥270,149,197.60 in 2022 from ¥350,961,775.85 in 2021[44]. - The pharmaceutical segment revenue increased by 12.80% to ¥258,841,543.69, accounting for 95.81% of total revenue[44]. - The company reported a total of 1,000 shares held by directors at the end of the reporting period, with no changes in holdings during the period[86]. Cash Flow and Assets - The net cash flow from operating activities increased significantly to ¥4,865,787.34, a rise of 3,026.02% compared to ¥155,654.35 in 2021[19]. - Cash and cash equivalents at the end of 2022 amounted to ¥28,180,123.4, representing 3.82% of total assets, down from 4.77% at the beginning of the year[61]. - Accounts receivable decreased to ¥100,116,017, accounting for 13.56% of total assets, a decline of 1.37% from the previous year[61]. - Inventory increased to ¥408,764,642, making up 55.38% of total assets, an increase of 1.50% compared to the beginning of the year[61]. - Total assets at the end of 2022 were ¥738,078,462.55, down 7.66% from ¥799,312,074.12 at the end of 2021[19]. - The company's total equity decreased from CNY 646.78 million in 2021 to CNY 593.50 million in 2022, reflecting a decline of about 8.2%[195]. - The total assets decreased from CNY 799.31 million in 2021 to CNY 738.08 million in 2022, a reduction of about 7.7%[195]. Research and Development - The company has 5 invention patents and 3 new drug certificates, indicating strong R&D capabilities[41]. - R&D investment decreased by 24.82% from 51,836,224.41 CNY in 2021 to 38,968,076.78 CNY in 2022, while the proportion of R&D investment to operating revenue slightly decreased from 14.77% to 14.42%[57]. - The number of R&D personnel increased by 7.14% from 28 in 2021 to 30 in 2022, with the proportion of R&D personnel in the total workforce rising from 11.02% to 14.35%[56]. - The company is developing a new type of recombinant human erythropoietin with a longer half-life and stronger biological activity, which is expected to enhance competitiveness in the long-acting protein market[55]. - The company is also advancing the clinical research of a new anti-cataract drug, which is anticipated to create a new revenue growth point upon market launch[55]. - The company has made significant progress in the development of a new formulation of calcitonin tablets for osteoporosis treatment, which is expected to enhance patient compliance and market penetration[56]. Governance and Compliance - The company adheres to strict governance practices, ensuring compliance with relevant laws and regulations, and maintaining an independent operational structure[79]. - The company’s board consists of six members, including three independent directors, ensuring compliance with legal requirements and promoting the interests of minority shareholders[80]. - The company has established an independent financial department and accounting system, ensuring financial decisions are made independently of the actual controller[83]. - The company has implemented measures to enhance product quality management, including optimizing production processes and improving inspection technologies to mitigate safety risks[72]. - The company has established a comprehensive governance structure to protect the rights of minority shareholders[119]. - The company has not conducted any investor communication activities during the reporting period, indicating a focus on internal management[76]. Market and Industry Outlook - The pharmaceutical industry in China is expected to continue steady growth in 2023, driven by ongoing healthcare reforms and increased demand for high-quality medical services[31]. - The company operates in a sector characterized by strong demand and low sensitivity to macroeconomic fluctuations, making it a defensive industry[31]. - The government has emphasized the importance of innovation in drug development and has implemented policies to support the pharmaceutical industry[33]. - The average price reduction for selected drugs in the sixth batch of national centralized procurement reached 48%, with some products seeing reductions over 70%[32]. Risks and Challenges - The company has highlighted potential risks in its future development outlook, which investors should be aware of[4]. - The company faces significant R&D risks due to the long cycles, high investment, and inherent uncertainties in drug development, necessitating scientific management of projects[72]. - The company is exposed to industry policy risks, including dynamic adjustments in the medical insurance catalog and procurement methods, which may adversely affect market share and revenue[72]. - The company is facing uncertainties due to evolving regulatory policies in the biopharmaceutical industry, which may impact operations[71]. - The company has a high inventory risk related to seedlings, with slow turnover impacting cash flow and overall financial health, prompting efforts to accelerate inventory consumption through government collaborations[74]. Employee and Management Information - The total number of employees at the end of the reporting period was 250, with 113 in production, 23 in sales, 74 in technical roles, 15 in finance, and 25 in administration[102]. - The company has no retired employees requiring pension expenses, indicating a focus on a younger workforce[102]. - The total pre-tax remuneration for directors, supervisors, and senior management during the reporting period amounted to 202.79 million CNY[95]. - The company’s financial director, Xu Haizhen, received a pre-tax remuneration of 28 million CNY[95]. - The chairman and general manager, Guo Yu, received a pre-tax remuneration of 33 million CNY[95].

Financial Performance - Revenue for Q3 2022 was ¥78,228,965.06, a decrease of 9.52% compared to the same period last year[5] - Net profit attributable to shareholders was -¥2,428,434.71, a decline of 149.68% year-on-year[5] - Total operating revenue for Q3 2022 was ¥196.63 million, a decrease of 16.76% from ¥236.21 million in the same period last year[15] - Total profit for the period was -¥38,968,155.80, a decline of 58.86% year-on-year attributed to decreased revenue[8] - Net loss for Q3 2022 was ¥38.63 million, compared to a net loss of ¥25.78 million in Q3 2021, representing a 49.73% increase in losses[16] - The company's gross profit margin decreased to -16.69% in Q3 2022 from -4.67% in Q3 2021[15] Cash Flow - Cash flow from operating activities showed a net increase of ¥10,971,676.12, representing a 189.91% increase compared to the previous year[5] - The net cash flow from operating activities for the period was ¥10,971,676.12, compared to a negative cash flow of ¥12,202,601.96 in the previous period, indicating a significant improvement[17] - Total cash inflow from operating activities was ¥216,954,395.65, down 18.2% from ¥265,224,529.22 in the same period last year[17] - Cash outflow from operating activities totaled ¥205,982,719.53, a decrease of 25.8% from ¥277,427,131.18 in the previous year[17] - The cash flow from investment activities was negative at ¥16,380,130.00, compared to a negative cash flow of ¥3,732,208.77 in the same period last year[18] - The net cash flow from financing activities was negative at ¥1,628,250.30, compared to a negative cash flow of ¥516,200.02 in the previous year[18] Assets and Liabilities - Total assets at the end of the reporting period were ¥757,659,060.87, down 5.21% from the end of the previous year[5] - As of September 30, 2022, total current assets amounted to CNY 578,099,705.50, a decrease of 6.8% from CNY 620,440,744.86 at the beginning of the year[11] - The total liabilities as of Q3 2022 amounted to ¥149.51 million, a slight decrease from ¥152.54 million at the end of the previous period[15] - The total equity attributable to shareholders of the parent company was ¥570.68 million, down from ¥606.03 million in the previous period[15] Shareholder Information - The top shareholder, Yu Qinfeng, holds 14.32% of the shares, with a total of 147,381,643 shares, of which 139,860,000 are pledged[10] - The second-largest shareholder, Wang Hongming, owns 14.00% of the shares, totaling 144,138,394 shares, with 144,130,000 pledged[10] - The company has a total of 108,400 common shareholders as of the end of the reporting period[10] Operational Metrics - The company reported a significant increase in accounts receivable financing by 123.85% to ¥6,663,552.76[8] - Long-term equity investments decreased by 54.43% to ¥335,349.37 due to increased losses from joint ventures[8] - Other income from government subsidies decreased by 93.94% to ¥174,351.88 compared to the previous year[8] - The company reported a significant increase in accounts payable, rising to ¥63.81 million from ¥60.77 million year-on-year[15] - Research and development expenses for Q3 2022 were ¥46.09 million, a decrease of 22.00% from ¥59.10 million in the previous year[15] Development and Future Plans - The company plans to continue investing in new production projects, particularly in Beijing, which has already seen an increase in development expenditures by 70.08% to ¥30,580,000.00[8] - The company reported a significant increase in development expenditures, rising to CNY 30,580,000.00 from CNY 17,980,000.00, an increase of 70.5%[12] Miscellaneous - The report was not audited, indicating that the figures may be subject to change upon final review[19] - The company's cash and cash equivalents showed a net decrease of ¥6,760,627.38, an improvement of 58.86% compared to the previous year[8] - Cash and cash equivalents decreased to CNY 31,601,405.64 from CNY 38,111,291.58, reflecting a decline of 17.5%[12] - Accounts receivable decreased to CNY 96,736,079.01 from CNY 119,306,867.86, a reduction of 18.9%[12] - Inventory stood at CNY 425,846,450.46, slightly down from CNY 430,665,018.49, indicating a decrease of 1.1%[12] - Total non-current assets increased to CNY 179,559,355.37 from CNY 178,871,329.26, showing a growth of 0.4%[12]

Financial Performance - The company's operating revenue for the first half of 2022 was ¥118,397,374.09, a decrease of 20.94% compared to ¥149,748,660.35 in the same period last year[19]. - The net profit attributable to shareholders of the listed company was -¥32,927,209.66, representing a decline of 19.00% from -¥27,669,307.65 in the previous year[19]. - The company reported a basic earnings per share of -¥0.0320, a decrease of 18.96% from -¥0.0269 in the previous year[19]. - The weighted average return on net assets was -5.58%, a decline of 1.17% from -4.41% in the previous year[19]. - The company reported a net profit of 112,904,300 yuan for the first half of 2022, reflecting a significant increase compared to previous periods[51]. - The total comprehensive loss for the first half of 2022 was CNY 36,206,585.58, compared to a loss of CNY 31,570,621.78 in the first half of 2021[122]. - The company reported a net profit of 29,877 million yuan for the first half of 2022, up from 27,572 million yuan in the same period last year, indicating an increase of 8.3%[132]. - The total revenue for the first half of 2022 was 40,646 million yuan, which is a 7.3% increase compared to 37,606 million yuan in the previous year[134]. Cash Flow and Liquidity - The net cash flow from operating activities improved significantly to ¥7,105,657.94, a 155.37% increase from -¥12,832,855.88 in the same period last year[19]. - Total cash inflow from operating activities decreased to ¥145,792,927.36 in the first half of 2022, down from ¥168,523,613.72 in the first half of 2021, representing a decline of approximately 13.5%[128]. - Cash outflow from operating activities also decreased to ¥138,687,269.42 in the first half of 2022, compared to ¥181,356,469.60 in the first half of 2021, indicating a reduction of about 23.5%[128]. - The ending cash and cash equivalents balance decreased to ¥27,916,083.05 at the end of the first half of 2022, down from ¥39,469,926.67 at the end of the first half of 2021[129]. Assets and Liabilities - Total assets at the end of the reporting period were ¥759,906,697.80, down 4.93% from ¥799,312,074.12 at the end of the previous year[19]. - The total liabilities decreased to CNY 149,336,912.77 from CNY 152,535,703.51, reflecting a reduction of approximately 2%[118]. - The total equity attributable to shareholders decreased to CNY 573,106,412.32 from CNY 606,033,621.98, representing a decline of about 5.4%[118]. - Accounts receivable decreased to ¥91,678,802.4, representing 12.06% of total assets, down from 14.93% last year[41]. - Inventory increased slightly to ¥432,519,973, accounting for 56.92% of total assets, up from 53.88%[41]. Research and Development - Research and development expenses decreased by 27.31% to ¥30,076,280.23 from ¥41,376,753.42 year-on-year[36]. - The company has five invention patents and three new drug certificates, indicating a strong focus on innovation in the biopharmaceutical sector[34]. - The company has allocated 3,600 million yuan for research and development in the current fiscal year, which is a 10% increase from the previous year[134]. Business Operations - The main business includes the production and sales of biopharmaceutical products, focusing on treatments for cancer and anemia[26]. - The company operates an independent and complete procurement, production, and sales model, continuously improving its business model based on market demand[26]. - The sales model primarily relies on distributors to sell products to hospitals, while the company manages product development and academic promotion internally[32]. - The company has established a qualified supplier database to ensure the procurement of raw materials meets production needs[30]. Market and Strategic Initiatives - The company plans to expand its market presence and invest in new product development to drive future growth[134]. - The company aims to enhance its operational efficiency through strategic mergers and acquisitions in the upcoming quarters[134]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its product offerings[135]. Corporate Governance and Compliance - The company has established a relatively complete corporate governance structure, ensuring equal rights for all shareholders, especially minority shareholders[71]. - The company actively explores and improves corporate governance in accordance with relevant laws and regulations[71]. - The company adheres to the accounting standards set by the Ministry of Finance, ensuring compliance and transparency in financial reporting[147]. Environmental and Social Responsibility - The company is committed to reducing carbon emissions and has developed emergency response plans for environmental incidents, demonstrating its focus on sustainability[65]. - The company has received approval for its wastewater discharge permit, ensuring compliance with environmental regulations and enhancing its environmental management capabilities[64]. Risks and Challenges - The company is facing risks related to the COVID-19 pandemic, which may impact production operations and increase costs for raw materials, labor, and logistics[52]. - The company is actively managing litigation risks related to a securities false statement lawsuit, with ongoing efforts to respond and disclose updates[55].

Financial Performance - The company's operating revenue for 2021 was ¥350,961,775.85, a decrease of 30.56% compared to ¥505,399,427.19 in 2020[19] - The net profit attributable to shareholders in 2021 was -¥34,789,910.35, representing a decline of 227.46% from a profit of ¥27,295,103.63 in 2020[19] - The net cash flow from operating activities was ¥155,654.35, down 99.84% from ¥100,233,420.61 in the previous year[19] - The basic earnings per share for 2021 was -¥0.0338, a decrease of 227.55% compared to ¥0.0265 in 2020[19] - Total assets at the end of 2021 were ¥799,312,074.12, a decrease of 2.96% from ¥823,707,532.72 at the end of 2020[19] - The net assets attributable to shareholders decreased by 5.43% to ¥606,033,621.98 at the end of 2021 from ¥640,823,532.33 at the end of 2020[19] - In 2021, the company achieved total revenue of ¥350,961,775.85, a decrease of 30.56% compared to the previous year[39] - The net profit attributable to shareholders was -¥34,789,910.35, representing a decline of 227.46% year-on-year[39] - The company reported a net profit of -29,014,372 yuan for its subsidiary Beijing Sihuan Biological Pharmaceutical Co., Ltd., indicating a significant loss[73] - The company reported a net loss of CNY 497.83 million in 2021, compared to a net loss of CNY 463.04 million in 2020, indicating a worsening financial position[196] Operational Challenges - The company reported a significant decline in both net profit and operating revenue, indicating potential challenges in its business operations[19] - The company has acknowledged risks related to its future development and ongoing operations in its report[5] - The company faces risks from the ongoing COVID-19 pandemic, which may impact production operations and increase costs[75] - The pharmaceutical industry is experiencing intensified competition due to increasing government support and regulatory changes[75] - The company is exposed to litigation risks related to securities false statements, with ongoing lawsuits that may impact future profits[77] Research and Development - The company holds 5 invention patents and 3 new drug certificates, indicating a strong focus on R&D[38] - Research and development expenses increased by 27.35% year-on-year, amounting to 51,836,224.41 yuan[55] - The company is developing a new long-acting recombinant human erythropoietin, which aims to enhance market competitiveness[56] - The company has applied for an invention patent for a new calcitonin tablet, which is currently in the formulation and process research stage[56] - The number of R&D personnel increased by 75% from 16 in 2020 to 28 in 2021, with the proportion of R&D personnel rising from 5.56% to 11.02%[57] - R&D investment amounted to ¥51,836,224.41 in 2021, a 27.35% increase from ¥40,704,876.05 in 2020, representing 14.77% of operating revenue, up from 8.05%[57] Inventory and Procurement - The inventory of white介素 surged by 91.69% year-on-year, primarily due to a decline in sales[46] - The inventory of G-CSF increased by 46.48% year-on-year, attributed to a rise in production based on sales volume[47] - The company has a diverse procurement strategy, combining centralized and decentralized purchasing methods to ensure material supply[34] - The sales volume of Interleukin was 2,444,283 units, a decrease of 14.63% year-on-year[45] - The sales volume of EPO increased by 18.96% year-on-year, reaching 6,579,974 units, while production volume rose by 17.43% to 6,627,380 units[46] Governance and Compliance - The company has established a governance structure to protect the rights of minority shareholders, ensuring equal rights for all shareholders, particularly small and medium-sized shareholders[120] - The company emphasizes timely, truthful, and accurate information disclosure to protect the rights of all stakeholders, enhancing transparency and credibility[121] - The company has implemented a robust investor relations management system, ensuring accurate and timely communication with all investors[82] - The company has completed the rectification of issues identified in the special governance action as required by regulatory authorities[80] - The company has not experienced any significant discrepancies between its governance practices and regulatory requirements[82] Financial Management - The company has established independent financial departments and accounting systems, ensuring financial decisions are made independently of the actual controller[83] - The internal control system has been effectively established and executed, with no significant deficiencies reported during the period[110] - The internal control self-assessment report indicates that 100% of the total assets of the evaluated units are included in the consolidated financial statements[112] - The internal control audit report confirmed that the company maintained effective financial reporting internal controls as of December 31, 2021[114] - The company has not engaged in any significant asset or equity sales during the reporting period[69] Market Position and Strategy - The company is focused on the production and sales of biopharmaceutical products, including innovative cancer treatments, which are critical for future growth[32] - The company is positioned in a defensive sector with strong demand characteristics, making it less susceptible to economic fluctuations[30] - The company aims to consolidate and enhance market share for its core products, including Delu Sheng and Xin Li Sheng, while exploring new business and product opportunities[75] - The company is actively managing product quality risks by optimizing production processes and enhancing quality management[76] - The company is adapting to industry policy changes to improve operational efficiency and manage market risks[76] Shareholder Information - The company has a total of 1,000 shares issued, with no changes reported in the number of shares[86] - The first major shareholder, Wang Hongming, holds 144,138,394 shares, accounting for approximately 14.41% of the total shares[160] - The second major shareholder, Yu Qinfeng, holds 104,318,725 shares, representing about 10.43% of the total shares[160] - The company has a total of 43,000,000 shares pledged by the first major shareholder, Wang Hongming, which is 80% of his holdings[164] - The company reported no changes in its controlling shareholder during the reporting period[162] Legal and Regulatory Issues - The company faced administrative penalties from the China Securities Regulatory Commission for information disclosure violations, which led to the identification of related party relationships and transactions as key audit matters[183] - Senior management faced disciplinary actions for violations of information disclosure regulations, with public reprimands issued on April 7, 2021[136] - The company is involved in several ongoing litigations, with a total amount in dispute of approximately CNY 26,577.84 million, including cases related to false statements[134]

Financial Performance - The company's operating revenue for 2021 was ¥350,961,775.85, a decrease of 30.56% compared to ¥505,399,427.19 in 2020[19] - The net profit attributable to shareholders in 2021 was -¥34,789,910.35, representing a decline of 227.46% from a profit of ¥27,295,103.63 in 2020[19] - The net cash flow from operating activities was ¥155,654.35, down 99.84% from ¥100,233,420.61 in the previous year[19] - The basic earnings per share for 2021 was -¥0.0338, a decrease of 227.55% compared to ¥0.0265 in 2020[19] - Total assets at the end of 2021 were ¥799,312,074.12, a decrease of 2.96% from ¥823,707,532.72 at the end of 2020[19] - The net assets attributable to shareholders decreased by 5.43% to ¥606,033,621.98 at the end of 2021 from ¥640,823,532.33 at the end of 2020[19] - In 2021, the company achieved total revenue of ¥350,961,775.85, a decrease of 30.56% compared to the previous year[40] - The net profit attributable to shareholders was -¥34,789,910.35, representing a decline of 227.46% year-on-year[40] Operational Challenges - The company reported a significant decline in both net profit and operating revenue, indicating potential challenges in its business operations[19] - The company has acknowledged risks related to its future development and ongoing operational uncertainties[5] - The company faces risks from the ongoing COVID-19 pandemic, which may impact production operations and increase costs related to materials and logistics[76] Revenue Sources and Market Position - The company’s main revenue source is from pharmaceutical sales, which is part of the growing healthcare expenditure in China, projected to reach ¥7.23 trillion by 2020[30] - The compound annual growth rate (CAGR) of healthcare spending in China from 2010 to 2020 was 13.71%, indicating a robust market opportunity for the pharmaceutical industry[30] - The pharmaceutical segment generated revenue of ¥291,331,416.65, down 5.66% from the previous year, accounting for 83.01% of total revenue[41] Research and Development - The company is focused on innovative drug development, aligning with national policies that encourage research and development in the pharmaceutical sector[31] - The company is advancing several R&D projects, including a new long-acting recombinant human erythropoietin, aimed at enhancing market competitiveness[57] - R&D investment rose by 27.35% to ¥51,836,224.41 in 2021, representing 14.77% of operating revenue, up from 8.05% in 2020[58] - R&D personnel increased by 75% from 16 in 2020 to 28 in 2021, accounting for 11.02% of total employees[58] Inventory and Cost Management - The inventory of white blood cell growth factor (G-CSF) increased by 46.48% year-on-year, attributed to increased production based on sales volume[48] - The cost of raw materials for white blood cell growth factor (G-CSF) decreased by 8.81% to 4,164,927.19 CNY, accounting for 51.47% of the total operating costs[50] - The company reported a 27.11% decrease in the cost of raw materials for interleukin, totaling 4,361,695.22 CNY, which represented 47.33% of the operating costs[50] Governance and Compliance - The company has established a comprehensive governance structure to protect the rights of minority shareholders and ensure compliance with relevant laws and regulations[121] - The board of directors consists of six members, including three independent directors, and operates in accordance with relevant regulations, ensuring the protection of minority shareholders' rights[82] - The company has completed the rectification of issues identified in the special governance action as required by regulatory authorities, ensuring compliance with governance standards[81] - The company has established an independent financial department and accounting system, ensuring independent financial decision-making and tax compliance[84] Legal and Regulatory Matters - The company is currently involved in a lawsuit related to securities false statements, which may have uncertain implications for future profits[78] - The company has faced regulatory scrutiny, receiving penalties for information disclosure violations, impacting its operations[182] - Several senior management personnel received disciplinary actions for violations related to information disclosure, with public reprimands issued on April 7, 2021[137] Shareholder Information - The total number of shares is 1,029,556,222, with 100% being unrestricted shares[157] - Major shareholders include Wang Hongming with 14.00% and Yu Qinfeng with 10.13% of the shares[160] - The company has 118,246 shareholders at the end of the reporting period[160] Financial Audit and Reporting - The company has received a clean audit opinion from Zhongshun Yatai Accounting Firm, confirming that the financial statements fairly reflect its financial position as of December 31, 2021[173] - The audit report confirmed no significant misstatements in the financial statements, ensuring compliance with auditing standards[185] - The domestic accounting firm appointed for the audit is Zhongshen Yatai CPA, with an audit fee of 1.4 million RMB for the year[133]