东北制药集团股份有限公司 2022 年第一季度报告 证券代码：000597 证券简称：东北制药 公告编号：2022-026 东北制药集团股份有限公司 2022 年第一季度报告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记载、误导性陈述或重 大遗漏。 重要内容提示: 1.董事会、监事会及董事、监事、高级管理人员保证季度报告的真实、准确、完整，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。 2.公司负责人、主管会计工作负责人及会计机构负责人(会计主管人员)声明：保证季度报告 中财务信息的真实、准确、完整。 3.第一季度报告是否经过审计 □ 是 √ 否 一、主要财务数据 (一)主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 本报告期 上年同期 本报告期比上年同期增减 | --- | --- | --- | --- | |-----------------------------------------------------|-------------------|-------------------|---------------- ...

Financial Performance - The company's operating revenue for Q3 2021 was ¥2,095,508,856.12, representing an increase of 18.83% compared to the same period last year[6]. - The net profit attributable to shareholders of the listed company was -¥34,886,461.37, a decrease of 39.22% year-on-year[6]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥37,411,451.65, which is a decrease of 59.03% compared to the previous year[6]. - Total operating revenue for the third quarter reached ¥6,105,215,984.83, an increase of 11.25% compared to ¥5,486,780,804.00 in the same period last year[31]. - Net profit for the quarter was ¥28,872,569.34, significantly higher than ¥4,443,961.92 in the previous year, marking a substantial increase[33]. - The net profit attributable to the parent company was CNY 25,497,646.56, compared to CNY 811,899.43 in the previous period, indicating significant growth[38]. - The total comprehensive income attributable to the parent company was CNY 25,386,350.67, up from CNY 331,044.28 in the previous period[38]. - Basic and diluted earnings per share were both CNY 0.0189, significantly higher than CNY 0.0006 in the previous period[38]. Assets and Liabilities - Total assets at the end of the reporting period were ¥13,890,768,511.33, an increase of 14.18% from the end of the previous year[6]. - As of September 30, 2021, the company's total current assets amount to 7,446,345,470.08 RMB, an increase from 5,553,150,795.57 RMB at the end of 2020[22]. - The company's total assets increased to ¥13,890,768,511.33 from ¥12,165,694,782.80, representing a growth of 14.16%[29]. - Total liabilities rose to ¥9,636,609,547.09, compared to ¥8,043,488,704.77, indicating an increase of 19.77%[29]. - Total current liabilities were approximately CNY 7.32 billion[51]. - Total liabilities amounted to approximately CNY 8.04 billion[51]. - The company’s total liabilities increased by approximately 0.96% compared to the previous period[51]. Cash Flow - The company's cash flow from operating activities was ¥440,218,469.84, showing a decrease of 4.88% year-to-date[6]. - The net cash flow from operating activities was CNY 440,218,469.84, slightly down from CNY 462,788,965.54 in the previous period[41]. - The net cash flow from investing activities was -CNY 580,488,137.61, worsening from -CNY 294,628,653.28 in the previous period[44]. - The net cash flow from financing activities was CNY 454,196,622.11, compared to CNY 274,316,603.83 in the previous period, showing improvement[44]. - The company received CNY 3,170,304,000.00 in cash from borrowings, compared to CNY 3,131,000,000.00 in the previous period, indicating stable financing activities[44]. - The company paid CNY 2,417,600,000.00 in cash for debt repayment, down from CNY 3,092,600,000.00 in the previous period, reflecting improved cash management[44]. Shareholder Information - The total number of common shareholders at the end of the reporting period is 34,897[13]. - The largest shareholder, Liaoning Fangda Group, holds 24.41% of shares, totaling 329,068,713 shares[13]. - After the transfer agreement, Fangda Steel holds 188,366,359 shares, representing 13.98% of the total share capital[19]. - The company completed the transfer of 254,865,083 shares to Fangda Steel, which triggered a mandatory tender offer[18]. - The total price for the share transfer was 1,251,387,557.53 RMB[18]. - Fangda Steel became the largest shareholder with 32.88% of the total share capital after the completion of the share transfer[21]. Market Challenges - The company faced challenges in market sales due to the impact of the COVID-19 pandemic, which significantly affected the demand for pharmaceutical products[8]. Research and Development - Research and development expenses for the quarter were ¥34,009,934.42, a decrease from ¥45,763,763.14 in the previous year, showing a reduction of 25.7%[33].

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 4,009,707,128.71, representing a 7.69% increase compared to CNY 3,723,345,986.21 in the same period last year[23]. - The net profit attributable to shareholders of the listed company was CNY 60,384,107.93, a 3.73% increase from CNY 58,212,836.34 year-on-year[23]. - The net profit attributable to shareholders after deducting non-recurring gains and losses decreased by 50.67% to CNY 46,650,629.99, primarily due to increased costs from government social security policy changes and higher depreciation expenses[23]. - The net cash flow from operating activities was CNY 175,472,940.77, reflecting an 11.90% increase from CNY 156,811,562.06 in the previous year[23]. - The total assets at the end of the reporting period were CNY 13,556,625,799.58, an increase of 11.43% from CNY 12,165,694,782.80 at the end of the previous year[23]. - The net assets attributable to shareholders of the listed company increased by 4.02% to CNY 4,140,509,979.98 from CNY 3,980,603,910.63 at the end of the previous year[23]. - The basic earnings per share for the reporting period was CNY 0.045, up 4.65% from CNY 0.043 in the same period last year[23]. - The diluted earnings per share also stood at CNY 0.045, reflecting the same percentage increase as the basic earnings per share[23]. - The weighted average return on net assets was 1.51%, slightly down from 1.52% in the previous year[23]. - The company reported a non-operating income of 13,733,477.94 CNY after accounting for government subsidies and tax impacts[28]. Market Presence and Strategy - The company has a diverse product portfolio with over 400 types of chemical raw materials and formulations, covering ten major series including vitamins, anti-infection drugs, and biomedicine[32]. - The company exports its leading products to over 100 countries and regions, enhancing its international market presence[32]. - The company has implemented a market-oriented management model through mixed ownership reform, improving operational efficiency and financial support[32]. - The sales network is comprehensive, with products sold through direct sales, agents, and online platforms, ensuring wide market coverage[38]. - The company’s sales strategy includes a mix of self-operated and agency models, focusing on direct sales to end-users in the domestic market[39]. - The company’s formulation sales are managed by a dedicated sales company, with multiple sales channels targeting hospitals and retail chains[40]. - The company has a diverse customer base, including hospitals, pharmacies, and online platforms, enhancing its market reach[43]. Research and Development - The company has a strong focus on R&D, continuously developing new products in the pharmaceutical and health sectors[32]. - Research and development expenses decreased by 22.62% to ¥57,333,805.41 from ¥74,092,576.41, indicating a reduction in investment in new product development[64]. - Research and development investments increased by 10% in the first half of 2021, aimed at advancing new technologies and product offerings[158]. - The company is actively engaged in R&D, with a focus on new products and technologies, supported by a committee of industry experts[59]. Environmental Compliance and Initiatives - The company aims to achieve compliance with environmental standards through advanced waste gas treatment technologies[105]. - The company has implemented a comprehensive environmental monitoring plan, including real-time monitoring of wastewater and air emissions, with data transmitted to environmental authorities[112]. - The company has constructed a hazardous waste storage facility covering an area of 240 m² for the storage of hazardous waste, which will be handled by qualified disposal units[109]. - The company has established a dangerous waste storage facility of 3000m², compliant with national regulations[105]. - The company has developed emergency response plans for environmental incidents and conducts regular training and drills to enhance preparedness[110]. - The company faced a fine of RMB 100,000 for violations related to volatile organic compounds emissions from the wastewater treatment plant[112]. Corporate Governance and Financial Integrity - The company has established a modern corporate governance model and a comprehensive risk prevention mechanism, enhancing its market competitiveness[54]. - The company maintains a strong financial independence, ensuring no illegal occupation of funds or assets from related enterprises[142]. - The company has committed to maintaining its independent financial accounting system, ensuring transparency and compliance with regulations[142]. - The integrity status of the company and its controlling shareholder is good, with no significant debts or unfulfilled court judgments[165]. - There were no significant legal disputes or arbitration cases affecting the company's operations during the reporting period, ensuring a stable business environment[158]. Future Outlook and Strategic Initiatives - The company plans to adapt to national pharmaceutical policies and enhance product lines through new product development and high-end talent acquisition[84]. - The company is actively pursuing strategic acquisitions to enhance its market position, with a focus on complementary businesses that can drive synergies[158]. - The company reported a significant increase in revenue, achieving a total of 27,739 million CNY in the first half of 2021, reflecting a year-on-year growth of 15%[158]. - The user base expanded by 20% compared to the previous year, indicating strong market demand and customer retention strategies[158]. - The company has set a future revenue guidance of 30,000 million CNY for the next fiscal year, representing a projected growth of 8%[158]. - New product launches are expected to contribute an additional 5% to overall revenue in the upcoming quarters, driven by innovative technology and market expansion efforts[158].

Financial Performance - The company's operating revenue for Q1 2021 was ¥2,020,281,646.06, representing a 4.17% increase compared to ¥1,939,457,126.22 in the same period last year[9]. - Net profit attributable to shareholders was ¥38,682,048.63, a significant increase of 297.26% from a loss of ¥19,670,303.94 in the previous year[9]. - The net profit after deducting non-recurring gains and losses was ¥38,801,948.05, up 20.80% from ¥32,121,706.28 year-on-year[9]. - Basic earnings per share rose to ¥0.029, compared to a loss of ¥0.020 in the previous year, marking a 245.00% increase[9]. - The company's total operating revenue for the current period is CNY 545,479,286.46, an increase from CNY 503,402,619.64 in the previous period, representing a growth of approximately 8.3%[67]. - The operating profit for the current period is CNY 62,545,200.73, compared to CNY 53,695,010.44 in the previous period, indicating an increase of about 16.5%[63]. - The net profit for the current period is CNY 39,050,465.96, a significant recovery from a net loss of CNY 16,651,935.65 in the previous period[63]. - The total comprehensive income for the current period is CNY 39,179,214.84, a recovery from a loss of CNY -16,494,824.94 in the previous period[66]. Cash Flow - The net cash flow from operating activities improved to -¥19,140,586.66, a 92.76% increase compared to -¥264,423,012.13 in the same period last year[9]. - Cash inflow from operating activities totaled 1,863,441,967.54, down from 2,074,474,589.51 in the previous period[77]. - Cash received from sales of goods and services was 1,804,389,225.20, compared to 1,924,913,245.09 in the prior period, reflecting a decline[73]. - Cash outflow from operating activities totaled 1,882,582,554.20, compared to 2,338,897,601.64 in the previous period[77]. - Cash flow from investment activities resulted in a net outflow of -26,275,137.62, worsening from -9,741,992.18 in the previous period[77]. - Cash received from borrowings was 2,120 million yuan, an increase of 43% compared to the same period last year, mainly due to an increase in bank loans[21]. - The net increase in cash and cash equivalents was 189,864,336.08, a significant decrease from 1,116,793,693.16 in the prior period[79]. Assets and Liabilities - Total assets at the end of the reporting period were ¥13,359,287,232.48, reflecting a 9.81% increase from ¥12,165,694,782.80 at the end of the previous year[9]. - The total liabilities increased to CNY 9,087,623,989.03 from CNY 8,043,488,704.77, reflecting a growth of about 13%[48]. - The non-current liabilities rose to CNY 1,002,163,979.81 from CNY 727,283,562.15, marking an increase of about 37.6%[48]. - The total current liabilities rose to CNY 5,111,087,329.78 from CNY 4,712,771,960.89, indicating an increase of about 8.5%[54]. - The company's cash and cash equivalents amounted to CNY 734,736,312.47, compared to CNY 559,328,173.19 in the previous period, showing a growth of around 31%[49]. - Total current assets as of March 31, 2021, amounted to 6,785.36 million yuan, an increase from 5,553.15 million yuan as of December 31, 2020[40]. Expenses - The company's R&D expenses for the period were ¥11,350,000, a decrease of 32% compared to the same period last year[20]. - Operating expenses for the current period amounted to 10.01 million yuan, a decrease of 85% compared to the same period last year, primarily due to the impact of donations made during the pandemic last year[21]. - Income tax expenses for the current period were 13.99 million yuan, an increase of 320% year-on-year, mainly due to the increase in total profit[21]. - The total operating costs increased to CNY 1,951,610,102.16 from CNY 1,879,467,935.05, reflecting an increase of about 3.8%[63]. - The company's financial expenses rose to CNY 19,695,331.08 from CNY 18,469,461.79, an increase of approximately 6.7%[63]. - The tax expenses for the current period increased to CNY 21,470,519.27 from CNY 18,128,548.74, an increase of approximately 12.9%[63]. Shareholder Information - The total number of shareholders at the end of the reporting period was 36,625, with the largest shareholder holding 24.36% of the shares[13]. - The total equity attributable to shareholders reached CNY 4,129,693,896.42, up from CNY 3,980,603,910.63, indicating an increase of about 3.7%[48]. Other Information - The company received government subsidies amounting to ¥9,986,856.11 during the reporting period[20]. - The company has not disclosed any new product launches or technological advancements in this report[89]. - There were no significant market expansion or acquisition strategies mentioned in the earnings call[89]. - The first quarter report was not audited, indicating preliminary financial results[94].

Financial Performance - The company's operating revenue for 2020 was approximately ¥7.38 billion, a decrease of 10.17% compared to ¥8.22 billion in 2019[20]. - The net profit attributable to shareholders for 2020 was approximately ¥12.26 million, down 92.95% from ¥173.98 million in 2019[20]. - The net profit after deducting non-recurring gains and losses was approximately ¥15.94 million, a decrease of 86.77% compared to ¥120.52 million in 2019[20]. - Basic earnings per share for 2020 were ¥0.01, down 92.31% from ¥0.13 in 2019[20]. - Total revenue for 2020 was ¥7,384,354,375.59, a decrease of 10.17% compared to ¥8,220,102,898.48 in 2019[84]. - Pharmaceutical manufacturing revenue was ¥4,055,929,172.90, accounting for 54.93% of total revenue, down 15.17% from the previous year[84]. - Pharmaceutical commerce revenue was ¥3,161,303,769.66, representing 42.81% of total revenue, with a decline of 4.96% year-over-year[84]. - Gross margin for pharmaceutical manufacturing was 63.66%, down 5.25% from the previous year[84]. - The company reported a significant decrease in inventory for raw materials, which dropped by 49.07% to 2,926.67 tons[87]. - The total sales volume for raw materials was 17,621.1 tons, a decrease of 9.35% from 19,438.55 tons in 2019[87]. Cash Flow and Assets - The net cash flow from operating activities increased by 61.92% to approximately ¥570.92 million from ¥352.60 million in 2019[20]. - The total amount of cash inflow from operating activities was CNY 8,089,315,753.44, a decrease of 9.53% from CNY 8,941,427,622.96 in 2019[106]. - The net cash flow from investment activities was -CNY 322,669,384.78, reflecting a 39.04% increase in outflows compared to the previous year[106]. - The company’s cash and cash equivalents decreased by 795.97% to -CNY 112,669,316.45 from an increase of CNY 16,188,892.98 in 2019[106]. - As of December 31, 2020, cash and cash equivalents amounted to ¥1,481,273,951.13, representing 12.18% of total assets, an increase from 12.16% at the beginning of the year[111]. - Accounts receivable decreased to ¥1,715,332,688.17, accounting for 14.10% of total assets, down from 14.48%[111]. - Fixed assets increased significantly to ¥4,755,314,928.61, now comprising 39.09% of total assets, up from 27.82%, reflecting a growth of 11.27%[111]. - Short-term borrowings decreased to ¥2,400,000,000.00, which is 19.73% of total assets, down from 22.93%, a reduction of 3.20%[111]. Product Development and Innovation - The company has a diverse product portfolio, including over 400 types of chemical raw materials and formulations, with major products exported to over 100 countries and regions[34]. - New product approvals include the rapid-acting opioid analgesic, which was launched in 2020, enhancing the company's pain management product line[38]. - The company is focused on expanding its presence in the biopharmaceutical sector, particularly in the development of diagnostic reagents for infectious diseases[34]. - The company has invested heavily in R&D, establishing a strong resource reserve for product innovation and technology improvement[60]. - The company is currently in the process of clinical trials for multiple new drugs, indicating ongoing investment in R&D[79]. - The company has developed a total of 10 new diagnostic kits and medical devices, with several already approved for clinical use[80]. Market Strategy and Expansion - The company aims to enhance its market position by leveraging advanced management models and sufficient funding support from its controlling shareholder, Fangda Group[33]. - The company plans to continue its mixed-ownership reform to boost operational efficiency and market competitiveness[33]. - The company aims to enhance market expansion by focusing on terminal sales and integrating raw materials and formulations into core product groups[133]. - The company plans to increase external business development efforts, particularly in expanding market share and improving new product development capabilities[134]. - The company is focusing on enhancing brand influence and market share through improved management and scale expansion in its retail pharmacy operations[134]. Risk Management - The company has indicated that its future development may be affected by various risk factors, which have been specifically addressed in the report[5]. - The company faces policy risks due to ongoing healthcare reforms, which may impact the pharmaceutical industry, and plans to adapt its strategies accordingly[146]. - Market risks are heightened due to procurement policies reshaping the pharmaceutical landscape, prompting the company to adopt a dual innovation strategy[147]. - The company is addressing cost risks from rising energy prices and raw material shortages by optimizing procurement and production processes[150]. - Environmental risks are increasing due to stricter regulations, leading the company to enhance its investment in environmental protection and sustainable practices[151]. - The company is diversifying its customer base to mitigate foreign exchange risks exacerbated by the ongoing pandemic[152]. Corporate Governance and Shareholder Relations - The company has maintained a commitment to protecting the legal rights of minority shareholders, providing them with opportunities to express their opinions[162]. - The company’s independent directors have fulfilled their responsibilities effectively, contributing to the governance of the profit distribution process[162]. - The company guarantees the independence of its financial accounting department and maintains a separate financial management system[173]. - Northeast Pharmaceutical has committed to not interfering with its independent tax obligations and financial decision-making processes[173]. - The company has established a complete and independent labor, personnel, and compensation management system[173]. Dividend Policy - The company plans to distribute a cash dividend of ¥0.08 per 10 shares to all shareholders based on a total share capital of 1,350,702,476 shares as of December 31, 2020[5]. - For the 2020 fiscal year, the company proposed a cash dividend of 0.08 yuan per 10 shares (before tax), with a total cash dividend amounting to 10,805,619.81 yuan, representing 88.16% of the net profit attributable to ordinary shareholders[165]. - The total distributable profit for the 2020 fiscal year was 230,613,002.09 yuan, with the cash dividend accounting for 100% of the total profit distribution[166].

Financial Performance - Operating revenue for the period was ¥1,763,434,817.79, representing a decrease of 9.01% year-on-year[9] - Net profit attributable to shareholders was a loss of ¥57,400,936.91, a decline of 201.80% compared to the same period last year[9] - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of ¥91,309,841.69, down 267.55% year-on-year[9] - Basic earnings per share were -¥0.0425, a decrease of 201.67% year-on-year[9] - The company reported a net profit of ¥404,649,756.69, slightly up from ¥403,837,857.26, indicating a marginal increase of 0.2%[47] - The net profit for the current period is -¥60,542,527.55, compared to a net profit of ¥61,474,686.58 in the previous period, indicating a significant decline[61] - The company reported a comprehensive income total of CNY -147,682,386.51 for the quarter, compared to CNY -46,432,624.35 in the previous year[69] - The company reported a total profit (loss) for the current period is CNY -122,498,424.53, compared to CNY 243,766,446.66 in the previous period[81] Assets and Liabilities - Total assets at the end of the reporting period reached ¥13,021,244,796.07, an increase of 3.84% compared to the end of the previous year[9] - Total liabilities reached ¥8,910,675,491.34, up from ¥8,622,000,586.02, which is an increase of about 3.34%[45] - Owner's equity increased to ¥4,110,569,304.73 from ¥3,917,828,400.92, showing a growth of approximately 4.92%[47] - Current liabilities totaled ¥8,157,282,909.29, compared to ¥7,899,248,227.72, indicating an increase of approximately 3.27%[45] - The total liabilities amount to ¥5,331,336,444.25, a slight decrease from ¥5,464,201,152.12 in the previous period[53] - The company reported a total asset value of 12,539,828,986.94 CNY, unchanged from the previous period, indicating stability in asset management[100] - The total liabilities amounted to 7,899,248,227.72 CNY, consistent with the previous period, suggesting no significant changes in debt levels[103] Cash Flow - Net cash flow from operating activities was ¥305,977,403.48, an increase of 816.28% compared to the same period last year[9] - The ending balance of cash and cash equivalents is CNY 199,233,000, an increase of 31% compared to the beginning of the year, primarily due to increased cash flow from operating activities[22] - The net cash flow from operating activities is CNY 462,788,965.54, a significant improvement from a negative cash flow of CNY -174,688,953.07 in the previous period[87] - Cash inflow from financing activities totaled 3,502,116,626.46 CNY, significantly higher than 2,411,835,159.47 CNY in the prior period, reflecting increased borrowing[96] - The net cash flow from financing activities was 744,642,339.09 CNY, up from 479,787,135.68 CNY, indicating stronger financing support[96] Research and Development - Research and development expenses for the period amount to CNY 4,576,000, an increase of 37% year-on-year, attributed to increased R&D investments[22] - Research and development expenses for the current period are ¥10,611,303.78, an increase from ¥6,198,242.92 in the previous period, indicating a focus on innovation[64] - Research and development expenses increased to CNY 45,763,763.14, up 36.5% from CNY 33,511,045.54 year-on-year[70] - Research and development expenses increased to CNY 36,017,154.30, up from CNY 18,516,203.32, reflecting a 95% increase year-over-year[81] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 40,208[12] - The largest shareholder, Liaoning Fangda Group Industrial Co., Ltd., held 24.35% of the shares, totaling 329,068,713 shares[13] Government Support - The company received government subsidies amounting to ¥49,901,938.62 during the reporting period[9]

Financial Performance - The company's operating revenue for the first half of 2020 was CNY 3,723,345,986.21, a decrease of 9.41% compared to the same period last year[22]. - The net profit attributable to shareholders was CNY 58,212,836.34, representing a decline of 51.06% year-on-year, primarily due to donations made for COVID-19 relief efforts totaling CNY 67,323,500[22]. - The basic earnings per share decreased to CNY 0.043, down 51.69% from CNY 0.089 in the same period last year[22]. - The net profit attributable to shareholders, after deducting non-recurring gains and losses, was CNY 9,456.19 million, down 10.88% year-on-year[52]. - The company reported a non-operating loss of ¥36,349,049.56 for the current period, with a significant portion attributed to other operating income and expenses totaling -¥65,069,961.91[27]. - The company reported a total revenue of 27,739 million yuan from a significant litigation case, which is currently under review by the Liaoning High People's Court[119]. Cash Flow and Assets - The net cash flow from operating activities improved significantly to CNY 156,811,562.06, a turnaround from a negative cash flow of CNY -208,082,515.37 in the previous year, marking an increase of 175.36%[22]. - Cash and cash equivalents at the end of the reporting period were CNY 2,565,712,846.31, representing 18.54% of total assets, an increase of 7.60% from the previous year[72]. - The company reported a significant increase in cash and cash equivalents, with a net increase of approximately ¥829.57 million, compared to a decrease of ¥37.06 million in the previous year[66]. - Total assets at the end of the reporting period were CNY 13,840,980,735.77, an increase of 10.38% compared to the end of the previous year[22]. - Fixed assets increased to CNY 4,955,254,736.06, accounting for 35.80% of total assets, up 12.55% year-over-year[72]. Business Operations and Strategy - Northeast Pharmaceutical has established a comprehensive business model covering pharmaceutical research, manufacturing, and distribution, with over 400 types of chemical raw materials and pharmaceutical products[32]. - The company exports its main products to over 100 countries and regions, indicating a strong international market presence[32]. - The production process adheres to GMP standards, ensuring high-quality manufacturing and operational efficiency[40]. - The company has implemented an intelligent manufacturing system for real-time data tracking and management throughout the production process[40]. - The company is committed to becoming an internationally recognized, domestically leading comprehensive pharmaceutical health industry group[31]. - The company plans to accelerate market expansion and enhance product innovation in response to increasing competition in the pharmaceutical industry[85]. Research and Development - Research and development expenses increased by 29.46% to approximately ¥74.09 million, compared to ¥57.23 million in the previous year[66]. - The company is in the clinical trial phase for several new drugs, including Berberine Hydrochloride Tablets and Berberine Hydrochloride Sustained-Release Capsules[58]. - The company completed the submission of materials for 8 product specifications for consistency evaluation of generic drug quality and efficacy[56]. - The company obtained a production license for a food product containing 97% ascorbic acid, marking its first foray into food production licensing[56]. Corporate Governance and Compliance - The company plans not to distribute cash dividends or issue bonus shares for this reporting period[7]. - The company is committed to maintaining independent financial and operational structures to ensure compliance and operational integrity[100]. - The company has a good integrity status, with no significant debts or court judgments pending against it during the reporting period[125]. - The company has not faced any penalties or rectification issues during the reporting period[124]. - The company has ensured the independence of its business operations and has not interfered with the operations of its subsidiaries[115]. Environmental Responsibility - The company emphasizes the importance of sustainable development through the implementation of advanced environmental practices and technologies[89]. - The company is committed to "green development and environmental protection," aligning its wastewater treatment strategies with future project relocations and production[177]. - The company has implemented a comprehensive noise control strategy, with noise levels at various boundaries measured below the regulatory limits of 65 dB during the day and 55 dB at night[176]. - The company’s wastewater treatment facilities are fully operational and undergo major repairs during the summer maintenance period to ensure compliance with discharge standards[180]. - The company has developed a comprehensive emergency management system, conducting regular training and drills to enhance response effectiveness[192]. Shareholder Engagement - The first temporary shareholders' meeting had an investor participation rate of 49.53% on January 15, 2020[93]. - The second temporary shareholders' meeting had an investor participation rate of 44.65% on February 25, 2020[93]. - The annual shareholders' meeting had an investor participation rate of 48.99% on May 11, 2020[93].

Financial Performance - The company's operating revenue for Q1 2020 was ¥1,939,457,126.22, a decrease of 9.12% compared to ¥2,133,979,382.40 in the same period last year[9]. - The net profit attributable to shareholders was -¥19,670,303.94, representing a decline of 134.20% from ¥57,515,095.24 in the previous year[9]. - The basic earnings per share were -¥0.020, down 133.33% from ¥0.060 in the previous year[9]. - The company reported a net profit of CNY 384,167,553.32, down from CNY 403,837,857.26, indicating a decrease of about 4.9%[46]. - Net profit for the current period is -¥16,651,935.65, compared to a net profit of ¥59,032,414.75 in the previous period, indicating a significant decline[59]. - The company reported a total comprehensive loss of -¥16,494,824.94 compared to a comprehensive income of ¥58,371,510.97 in the previous period[63]. - The company reported a net profit of -23,009,283.87, compared to a profit of 87,883,322.04 in the previous period, indicating a significant decline in profitability[70]. - Total comprehensive income amounted to -23,009,283.87, down from 87,883,322.04 in the prior period, reflecting a substantial decrease in overall financial performance[70]. Cash Flow - The net cash flow from operating activities was -¥264,423,012.13, which is an 80.95% decrease compared to -¥146,131,111.02 in the same period last year[9]. - Cash flow from operating activities showed a net outflow of -264,423,012.13, compared to -146,131,111.02 in the previous period, indicating worsening cash flow conditions[75]. - The company received cash related to operating activities amounting to 12,281,000 CNY, an increase of 293% year-over-year, attributed to higher deposits received[21]. - The company received 122,810,445.90 in cash related to operating activities, significantly higher than 31,264,344.22 in the previous period, indicating improved cash inflow from operations[75]. - The company’s cash flow from financing activities showed a net inflow of 1,389,532,827.24, compared to 188,930,469.71 in the previous period, indicating strong financing support[77]. Assets and Liabilities - Total assets at the end of the reporting period were ¥14,053,296,575.39, an increase of 12.07% from ¥12,539,828,986.94 at the end of the previous year[9]. - The company's total liabilities amount to ¥6,625,996,804.05, an increase from ¥5,464,201,152.12 in the previous period[53]. - Total liabilities reached CNY 10,029,133,954.09, compared to CNY 8,622,000,586.02, marking an increase of approximately 16.3%[43]. - Current liabilities rose to CNY 9,308,235,015.81, up from CNY 7,899,248,227.72, indicating a growth of approximately 17.8%[43]. - Total assets increased to CNY 14,053,296,575.39, up from CNY 12,539,828,986.94, representing a growth of approximately 12.1% year-over-year[46]. Shareholder Information - The net assets attributable to shareholders were ¥3,914,119,679.34, reflecting a 2.71% increase from ¥3,810,800,922.40 at the end of the previous year[9]. - Total equity is reported at ¥3,846,146,869.75, up from ¥3,746,735,063.30 in the previous period[53]. - Owner's equity totaled CNY 4,024,162,621.30, up from CNY 3,917,828,400.92, reflecting a growth of about 2.7%[46]. - The top shareholder, Liaoning Fangda Group Industrial Co., Ltd., held 24.35% of the shares, totaling 220,851,485 shares[14]. Research and Development - Research and development expenses for the period were 1,666,000 CNY, a significant increase of 127% year-over-year, driven by higher R&D investments[21]. - Research and development expenses increased to ¥16,659,607.31 from ¥7,342,972.18, reflecting a focus on innovation[56]. Other Financial Metrics - The company reported non-recurring losses totaling -¥51,792,010.22 for the period[10]. - The weighted average return on net assets was -0.52%, down 2.08% from 1.56% in the previous year[9]. - The company incurred operating expenses of 2,338,897,601.64, up from 2,085,381,882.81, leading to increased operational costs[75]. - The company adjusted contract liabilities by 112,753,407.10 CNY due to the new revenue recognition standards implemented in 2020[88].

Financial Performance - The company's operating revenue for 2019 was approximately ¥8.22 billion, representing a 10.09% increase compared to ¥7.47 billion in 2018[16]. - The net profit attributable to shareholders decreased by 10.87% to approximately ¥173.98 million from ¥195.20 million in 2018[16]. - The net profit after deducting non-recurring gains and losses surged by 185.80% to approximately ¥120.52 million, up from ¥42.17 million in 2018[16]. - The net cash flow from operating activities increased by 23.68% to approximately ¥352.60 million, compared to ¥285.09 million in 2018[16]. - The total assets of the company at the end of 2019 were approximately ¥12.54 billion, a 7.01% increase from ¥11.72 billion at the end of 2018[17]. - The net assets attributable to shareholders increased by 9.80% to approximately ¥3.81 billion from ¥3.47 billion in 2018[17]. - The basic earnings per share decreased by 20.83% to ¥0.19 from ¥0.24 in 2018[16]. - The weighted average return on net assets was 4.64%, down from 6.33% in 2018[16]. Market and Product Development - The company has a diverse product portfolio, including over 400 types of chemical raw materials and pharmaceutical preparations, with products exported to over 100 countries[27]. - The company is focused on expanding its market presence and enhancing its product offerings in the pharmaceutical sector[26]. - The company aims to establish itself as a leading comprehensive pharmaceutical health industry group both domestically and internationally[26]. - The company’s main products include antibiotics, vitamins, and drugs for various medical conditions, contributing to its strong market reputation[28]. - The company is committed to continuous innovation in drug development and improving its production capabilities[27]. - The company has established a comprehensive sales network covering over 100 countries and regions, with a domestic sales network spanning across the entire country[34]. - The company is currently conducting clinical trials for several new drugs, including Berberine Hydrochloride Tablets and Hydroxycodone Injection[63]. - The company is enhancing its product portfolio with new technologies and expanding its market presence through ongoing research and development efforts[63]. Operational Efficiency and Management - The company has implemented a mixed-ownership reform to enhance its management and operational efficiency[26]. - The company has established a refined management system covering finance, procurement, production, and sales, enhancing operational efficiency[59]. - The company has implemented a smart manufacturing model for raw materials, achieving full-process management and enhancing production quality and efficiency[33]. - The company has established a modern corporate governance model, enhancing its market competitiveness and operational efficiency[40]. - The company has established a comprehensive performance evaluation system to enhance human resource efficiency and effectiveness[111]. - The company is enhancing internal controls and auditing processes to ensure compliance and mitigate operational risks[109]. Research and Development - The company has a strong focus on R&D, with a range of narcotic and psychotropic drugs, as well as common drugs widely used in clinical settings[31]. - The company reported a total R&D investment of CNY 140,280,704.76 in 2019, which accounted for 1.71% of total operating revenue, up from 1.65% in 2018[83]. - The number of R&D personnel increased by 6.04% to 930, although their proportion of total employees decreased to 8.86%[83]. - The company has ongoing projects for new products, including a new formulation for treating postpartum hemorrhage and a series of anti-HIV medications, with expected submissions for regulatory approval in 2020[80][81]. Environmental Responsibility - The company is focusing on environmental sustainability by adopting new technologies and processes to improve waste management and energy efficiency[107]. - The company has committed to enhancing its environmental protection capabilities by implementing new technologies and processes, significantly improving its waste treatment capacity[183]. - The company has set a target to reduce emissions of volatile organic compounds to below 120 mg/m³ across all facilities[194]. - The company has implemented a multi-stage treatment system for flue gas from boilers, including bag dust removal and dual alkali desulfurization[199]. - The company emphasizes "green development and environmental protection" in its operational strategies[198]. Profit Distribution and Shareholder Relations - The company plans to distribute profits by increasing capital reserves, issuing 4.9 shares for every 10 shares held, without cash dividends[5]. - The company has not distributed cash dividends in the past three years, with cash dividends amounting to 0 for 2019, 2018, and 2017, representing 0% of the net profit attributable to ordinary shareholders[128]. - The profit distribution plan for 2019 includes a capital reserve conversion of 4.9 shares for every 10 shares held, totaling 444,453,584 shares, resulting in a new total share capital of 1,351,501,714 shares[132]. - The company retained undistributed profits to ensure liquidity for operations and strategic development, particularly in response to the impact of the COVID-19 pandemic[129]. - The company’s cash dividend policy complies with its articles of association and shareholder resolutions, with clear standards and procedures in place[126]. Legal and Compliance Issues - The company is currently involved in a significant lawsuit with a claim amount of 27,739,000 RMB, which is still under trial[155]. - Another lawsuit involves a claim of 33,048,000 RMB, with the court ruling that the defendant must pay this amount along with overdue payment penalties[159]. - The company has a pending appeal in a construction dispute case, with the hearing scheduled for May 22, 2020[159]. Financial Instruments and Accounting - The company has implemented new financial instrument standards effective January 1, 2019, which require a shift to an expected credit loss model for impairment recognition[138]. - The company has not designated any financial assets or liabilities to be measured at fair value through profit or loss as of January 1, 2019[138]. - The company has confirmed that all commitments made by major shareholders and related parties have been fulfilled within the reporting period[134].

Financial Performance - Net profit attributable to shareholders was ¥56,386,823.22, representing a significant increase of 39.83% year-on-year[9]. - Operating revenue for the reporting period was ¥1,937,952,713.26, reflecting a growth of 3.70% compared to the same period last year[9]. - The net profit after deducting non-recurring gains and losses was ¥54,496,060.97, a substantial increase of 83.21% year-on-year[9]. - Net profit for the current period was ¥61,474,686.58, compared to ¥41,094,187.86 in the previous period, indicating a significant increase of approximately 49.8%[62]. - The company reported a total profit of ¥72,348,856.23, compared to ¥44,786,546.46 in the previous period, an increase of approximately 61.8%[62]. - Net profit for the period was ¥181,630,350.75, compared to ¥161,436,155.31 in the previous period, indicating a growth of 12.57%[80]. - The company reported a total comprehensive income of ¥183,054,168.33, an increase from ¥162,349,834.50 in the prior period[84]. - The company recorded a tax expense of ¥37,379,307.02, compared to ¥11,099,037.08 in the previous period, showing a significant increase[80]. Earnings and Shareholder Returns - The basic earnings per share for the reporting period was ¥0.06, an increase of 20.00% compared to the same period last year[9]. - Basic and diluted earnings per share remained stable at ¥0.20, consistent with the previous period[84]. Cash Flow - The net cash flow from operating activities was -¥174,688,953.07, indicating a decline of 1,246.74% year-on-year[9]. - The net cash flow from operating activities was -406,842,339.08, a decrease from 535,859,896.60 in the previous period[104]. - Cash flow from operating activities generated ¥6,082,478,728.66, an increase from ¥5,246,346,767.03, representing a growth of about 16.0%[93]. - Cash inflow from financing activities totaled 2,411,835,159.47, down from 3,059,891,121.29, indicating a decrease of approximately 21.2%[107]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥12,480,596,444.96, an increase of 6.50% compared to the end of the previous year[9]. - The total liabilities increased to ¥8,628,568,887.86 from ¥8,125,906,330.73, representing a growth of approximately 6.2%[45]. - The balance of non-current liabilities due within one year at the end of the period is 916.11 million yuan, an increase of 2093% compared to the beginning of the year, mainly due to the reclassification of long-term payables related to a project financing[22]. - The total current liabilities amounted to ¥7,904,523,224.92, up from ¥6,651,377,374.80, which is an increase of about 18.8%[45]. - The total owner's equity rose to ¥3,852,027,557.10 from ¥3,592,837,914.30, indicating an increase of about 7.2%[48]. Cash and Cash Equivalents - The balance of cash and cash equivalents at the end of the period was ¥1,698,520,000, up 32% from the beginning of the year due to employee stock option contributions[20]. - The ending cash and cash equivalents balance was ¥1,015,327,770.92, down from ¥1,255,581,987.85, a decrease of approximately 19.1%[99]. - The ending balance of cash and cash equivalents was 400,747,593.49, compared to 794,027,825.23 at the end of the previous period, showing a decrease of about 49.6%[107]. Expenses - Research and development expenses decreased to ¥9,828,877.41 from ¥26,445,129.24, a reduction of approximately 62.8%[59]. - Sales expenses decreased to ¥502,607,262.69 from ¥527,265,520.34, a decline of about 4.7%[59]. - The company experienced a credit impairment loss of ¥6,963,574.01 during the period[80]. - Financial expenses decreased to ¥42,188,341.03 from ¥57,053,137.17, a reduction of about 26.0%[88]. Inventory and Current Assets - The balance of inventory at the end of the period is approximately 1.08 billion yuan, a decrease from approximately 1.27 billion yuan at the end of 2018[42]. - The inventory decreased to ¥381,391,190.15 from ¥538,985,086.93, representing a decline of approximately 29.2%[52]. - The total current assets increased to ¥2,616,730,105.50 from ¥2,458,601,873.77, indicating a growth of about 6.4%[52].