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].

Financial Performance - The company's operating revenue for the first half of 2019 was CNY 4,110,319,650.45, representing a 9.65% increase compared to CNY 3,748,513,664.94 in the same period last year[24]. - The net profit attributable to shareholders of the listed company was CNY 118,955,585.29, an increase of 18.92% from CNY 100,031,289.42 in the previous year[24]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 106,110,885.44, up 24.71% from CNY 85,085,920.79 in the same period last year[24]. - The net cash flow from operating activities was CNY -208,082,515.37, a significant decrease of 1,034.03% compared to CNY -18,348,951.63 in the previous year[24]. - Total assets at the end of the reporting period were CNY 12,257,313,090.24, reflecting a 4.60% increase from CNY 11,718,744,245.03 at the end of the previous year[24]. - The net assets attributable to shareholders of the listed company increased by 10.71% to CNY 3,842,429,043.33 from CNY 3,470,759,871.87 at the end of the previous year[24]. - The basic earnings per share remained stable at CNY 0.20, unchanged from the previous year[24]. - The diluted earnings per share also remained at CNY 0.20, consistent with the previous year[24]. - The weighted average return on net assets was 3.25%, a decrease of 0.38% compared to 3.63% in the previous year[24]. Revenue Breakdown - The raw material drug segment generated revenue of 743 million CNY, a decrease of 11.19% year-on-year[42]. - The formulation segment achieved revenue of 1.831 billion CNY, an increase of 25.48% year-on-year[42]. - The pharmaceutical commercial segment reported revenue of 1.493 billion CNY, up 7.32% year-on-year[42]. - The company's total revenue from the pharmaceutical manufacturing segment reached approximately ¥2.58 billion, with a gross margin of 65.97%, up 3.33% year-over-year[59]. Cost and Expenses - The operating cost increased to ¥2,271,916,647.35, up 4.76% from ¥2,168,755,614.58 in the previous year[53]. - Sales expenses rose significantly by 21.22%, amounting to ¥1,159,487,233.31, compared to ¥956,492,944.25 in the prior year[53]. - The management expenses increased by 7.87%, totaling ¥339,482,228.69 compared to ¥314,700,514.70 in the previous year[53]. - The company's financial expenses decreased by 27.76% to approximately ¥53.20 million compared to the previous period[57]. Innovation and Development - The company is focusing on innovation and product development, aiming to enhance competitiveness and efficiency across its pharmaceutical product lines[43]. - The company has established a biological medicine innovation platform to support its dual innovation strategy of leading with innovative drugs and following with generic drugs[43]. - Research and development investment increased by 23.38% to approximately ¥57.23 million, reflecting a commitment to innovation[57]. Corporate Governance and Management - The company has implemented a mixed-ownership reform, enhancing management efficiency and establishing a market-oriented governance structure[42]. - The company has approved a restricted stock incentive plan, granting 37,613,000 shares to 254 individuals, with the listing date set for January 22, 2019[93]. - The company appointed new senior management, including 周凯 as the new general manager and 张利东 as the new vice president and CFO[181]. Environmental Responsibility - The company has completed the first phase of its environmental protection project and is committed to enhancing its environmental responsibility[74]. - The company has implemented pollution prevention facilities, ensuring compliance with environmental standards across its operations[126]. - The company reported a total wastewater discharge of COD 246.07 mg/L and ammonia nitrogen 0.82 mg/L at the Tiexi plant, which is below the regulatory limits of COD 300 mg/L and ammonia nitrogen 30 mg/L[118]. - The company has established a comprehensive environmental management system to address pollution control and ensure sustainable operations[126]. Shareholder Information - The largest shareholder, Liaoning Fangda Group Industrial Co., Ltd., holds 24.41% of the shares, totaling 148,222,473 shares, which are currently pledged[161]. - The second-largest shareholder, Northeast Pharmaceutical Group Co., Ltd., holds 16.16% of the shares, totaling 98,153,387 shares, with a decrease of 758,640 shares during the reporting period[161]. - The total number of shares held by the top ten unrestricted shareholders includes significant holdings by Yang Guang (3.72%, 22,568,049 shares) and Wu Haizhen (1.33%, 8,084,022 shares)[161]. Legal and Compliance - The company is involved in significant litigation, with amounts at stake including ¥15,729,000 and ¥27,739,000 in two separate cases[87]. - The company has not reported any penalties or rectifications during the reporting period[89]. - The company has not engaged in any asset or equity acquisitions or sales during the reporting period[95]. Audit and Financial Reporting - The company’s half-year financial report has been audited by Tianzhi International Accounting Firm, with an audit fee of 450,000 RMB[85]. - The company reported a standard unqualified audit opinion for the half-year report, signed on August 27, 2019[187]. - The financial statements are prepared in Renminbi (RMB) and the company has no outstanding bonds that have not been fully paid upon maturity[185].

东北制药集团股份有限公司 2019 年第一季度报告 2019 年 04 月 1 m cr 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人魏海军、主管会计工作负责人张利东及会计机构负责人(会计主 管人员)周雅娜声明：保证季度报告中财务报表的真实、准确、完整。 2 第二节 公司基本情况 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 | | | | | | 营业收入（元） | 本报告期 2,133,979,382.40 | | ...

Financial Performance - The company's operating revenue for 2018 was ¥7,466,555,237.42, representing a 31.54% increase compared to ¥5,676,351,554.60 in 2017[29]. - The net profit attributable to shareholders for 2018 was ¥195,199,719.21, a 64.04% increase from ¥118,995,323.60 in 2017[29]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥42,169,451.02, showing a decrease of 63.18% compared to ¥114,521,798.94 in 2017[29]. - The net cash flow from operating activities for 2018 was ¥285,090,647.02, a significant improvement from -¥301,199,612.07 in 2017[29]. - The total assets at the end of 2018 were ¥11,718,744,245.03, an increase of 10.63% from ¥10,593,040,939.26 at the end of 2017[29]. - The net assets attributable to shareholders at the end of 2018 were ¥3,470,759,871.87, a 42.62% increase from ¥2,433,632,669.19 at the end of 2017[29]. - The basic earnings per share for 2018 was ¥0.36, up 44.00% from ¥0.25 in 2017[29]. - The diluted earnings per share for 2018 was also ¥0.36, reflecting the same 44.00% increase compared to ¥0.25 in 2017[29]. - The weighted average return on equity for 2018 was 6.33%, an increase from 5.01% in 2017[29]. - The company reported a total of ¥153,030,268.19 in non-recurring gains for 2018, compared to ¥4,473,524.66 in 2017[35]. Investment and R&D - The company plans to invest heavily in drug research and development, with increasing financial commitments each year, reflecting a focus on innovation despite regulatory uncertainties[5]. - The company has invested in R&D, establishing a multifunctional technology incubation platform for new drug development and collaborating with universities to enhance innovation[56]. - R&D investment amounted to ¥203,565,812.99, a 64.56% increase from the previous year, representing 2.73% of operating revenue[91]. - The company conducted 166 R&D projects in 2018, with key projects including the development of various pharmaceutical products expected to receive production approvals between 2019 and 2021[87]. - The company has commenced consistency evaluation for 32 products and 41 varieties, with 18 products completing preliminary stability tests[63]. Market and Competitive Position - The pharmaceutical market in China is expected to grow steadily due to rising income levels, expanded healthcare coverage, and an aging population[52]. - The company has a significant competitive advantage in the raw material drug sector, being one of the largest producers in China and a major global supplier[56]. - The company holds a leading market share in several products, including over 70% in phosphomycin sodium in China and is a key supplier of vitamin C globally[56]. - The company emphasizes the importance of understanding market competition dynamics, particularly with changes in the national essential drug list[5]. Strategic Direction and Shareholder Returns - The company does not plan to distribute cash dividends or issue bonus shares, indicating a strategy focused on reinvestment rather than shareholder returns[10]. - The change in the controlling shareholder to Liaoning Fangda Group poses potential shifts in strategic direction and operational focus for the company[27]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period[121]. - The company has not reported any significant environmental incidents or other major issues during the reporting period[185]. Environmental Compliance and Initiatives - The company is committed to improving its environmental performance and compliance with regulatory standards[168]. - The company’s wastewater emissions were within the permissible limits, with COD at 303.39 kg and ammonia nitrogen at 2.85 kg[160]. - The company achieved a COD level of 60 mg/L and ammonia nitrogen level of 1.8 mg/L in wastewater, which is significantly lower than the permissible limits of 300 mg/L and 30 mg/L respectively[166]. - The company has implemented a comprehensive air pollution control strategy, including tail gas treatment systems for various production processes[175]. - The company has established a comprehensive emergency management system, conducting regular drills and training to enhance the effectiveness of its environmental emergency response plans[181]. Operational Efficiency and Cost Management - The company initiated cost reduction and efficiency enhancement measures in July 2018, covering the entire supply chain from procurement to sales[63]. - The company is focusing on cost reduction and efficiency improvement across the entire supply chain, including procurement, production, and sales[111]. - Sales expenses increased by 71.03% to ¥1,918,288,285.92, primarily due to significant growth in sales promotion investments[86]. - R&D expenses surged by 150.91% to ¥144,670,294.89, mainly due to substantial investments in consistency evaluations[86]. Shareholder Structure and Changes - The company issued 94,931,013 new shares in May 2018, increasing total shares to 569,586,081[191]. - Liaoning Fangda Group Industrial Co., Ltd. holds 26.02% of the shares, totaling 148,222,473 shares, with an increase of 148,222,473 shares during the period[200]. - The total number of shareholders holding more than 5% of the shares includes three major entities, with the largest being Liaoning Fangda Group[200]. - The company has a total of 28,446 shareholders at the end of the reporting period[199].