关于举行 2022 年度网上业绩说明会并征集相关问题的公告 证券代码：002198 证券简称：嘉应制药 公告编号：2023-013 广东嘉应制药股份有限公司 关于举行 2022 年度网上业绩说明会并征集相关问题的公告 本公司及全体董事会成员保证本公告内容的真实、准确和完整，不存在虚假记 载、误导性陈述或者重大遗漏。 广东嘉应制药股份有限公司（以下简称"公司"）《2022年年度报告》全文 及其摘要于2023年4月28日经公司第六届董事会第五次会议审议通过。本公司 《 2022 年 年 度 报 告 全 文 》 已 于 2023 年 4 月 29 日 刊 登 在 巨 潮 资 讯 网 站 （http://www.cninfo.com.cn）上，《2022年年度报告摘要》刊登在当日的《证 券 时 报 》 、 《 中 国 证 券 报 》 、 《 证 券 日 报 》 和 巨 潮 资 讯 网 站 （http://www.cninfo.com.cn）上，供全体股东和投资者查阅。 为使广大投资者进一步详细了解公司年报信息，公司将于2023年5月10日星 期三15:00-17:00，在全景网举行2022年度业绩网上说明会。 一、业 ...

Group 1: Natural Borneol Project - The purity of the company's natural borneol extraction ranges between 96% and 99%, with market prices for 96% purity around 3000 to 5000 RMB per kilogram [2][3] - The company has established pilot production lines for extraction and purification, which have been operational for over 2 years, with an expected annual capacity of 250 tons post-completion of facilities [3][4] - The domestic market demand for natural right-handed borneol is approximately 650 tons per year, while international demand is about 10,500 tons per year, indicating a significant market opportunity due to supply shortages [4][5] Group 2: Company Performance - The company's revenue for the first three quarters of the year reached 395 million RMB, with a net profit of 68 million RMB, reflecting a year-on-year growth of 325.29% [5][6] - The expected net profit for the entire year is projected to be between 68 million and 73 million RMB [5][6] - The subsidiary, Jinsan Pharmaceutical, is expected to achieve a net profit of 58.25 million RMB as per the profit compensation agreement [6][7] Group 3: Investment and Market Strategy - The company plans to focus future investments on the traditional Chinese medicine sector, emphasizing profitability in potential investments [7][8] - There is currently no intention to acquire hospitals or traditional Chinese medicine enterprises [7][8] - The company aims to enhance its market share and brand through increased advertising and sales team expansion, while also exploring external investments to improve overall profitability [8]

Group 1: Company Operations - The management structure of the company is stable, and the operational situation is normal [1] - Tiger Hui is not currently involved in the actual operations of the company, and there are no significant disagreements between the management and Tiger Hui [2] Group 2: Production and Capacity - The company’s subsidiary, Huqingyuan Bio, is expanding the cultivation of the Mei tree as planned, with natural borne ice currently in small-scale trial production [2] - The company is optimistic about the development prospects of the Mei tree industry, believing it will contribute to future performance [2] - The fundraising projects from the IPO, including the production of dual-purpose throat wind powder and solid essence ginseng pills, have been completed, with capacity utilization reaching approximately 100% [2] Group 3: Research and Development - The company’s new drugs, including diabetes and anti-tumor medications, are in different stages of development, with diabetes drugs in clinical stages and anti-tumor drugs in preclinical research [3] - The company will disclose any new developments in drug research in accordance with regulations [3] Group 4: Shareholder Actions - The company acknowledges that shareholders may reduce their holdings for personal financing or lifestyle improvements, complying with legal and regulatory requirements for information disclosure [3]

Financial Performance - The company's operating revenue for the first half of 2022 was CNY 246,850,964.98, a decrease of 2.15% compared to CNY 252,275,713.81 in the same period last year[21]. - The net profit attributable to shareholders increased by 105.33% to CNY 8,594,745.92, up from CNY 4,185,798.91 in the previous year[21]. - The net cash flow from operating activities surged by 305.52% to CNY 20,152,198.69, compared to CNY 4,969,459.88 in the same period last year[21]. - The basic earnings per share rose by 106.10% to CNY 0.0169, compared to CNY 0.0082 in the previous year[21]. - The net profit after deducting non-recurring gains and losses was CNY 8,804,116.64, reflecting an increase of 111.59% from CNY 4,160,894.89 in the previous year[21]. - The company's gross profit margin for pharmaceutical products was 70.24%, down by 5.73% year-on-year, with a cost of sales increasing by 21.16% to CNY 73.45 million[50]. - The company reported a net loss of CNY 159,227,677.61 for the first half of 2022, an improvement from a loss of CNY 256,930,154.17 in the same period last year[152]. - The total profit for the first half of 2022 was CNY 11,444,075.52, an increase of 54.5% from CNY 7,435,843.44 in the first half of 2021[154]. Assets and Liabilities - Total assets decreased by 3.05% to CNY 782,741,827.83 from CNY 807,337,692.89 at the end of the previous year[21]. - Total liabilities decreased to CNY 89,663,771.13 from CNY 122,854,382.11, indicating a significant reduction in financial obligations[148]. - The company's equity attributable to shareholders increased to CNY 693,078,056.70 from CNY 684,483,310.78, reflecting a positive shift in retained earnings[148]. - The total assets at the end of the reporting period were 9.80 billion yuan, compared to 8.06 billion yuan in the previous year, indicating a growth of approximately 21.5%[167]. - The total liabilities at the end of the reporting period were 8.32 billion yuan, which is an increase from 7.50 billion yuan in the previous year[167]. Cash Flow - Cash received from operating activities rose by 46.06% to CNY 3,050,100 from CNY 2,087,400 year-on-year, attributed to increased recoveries of office petty cash and deposits[52]. - The net cash flow from operating activities for the first half of 2022 was ¥20,152,198.69, a significant increase from ¥4,969,459.88 in the same period of 2021, representing a growth of approximately 304%[160]. - The cash outflow for purchasing goods and services was ¥76,087,044.24, which is a substantial increase from ¥48,519,727.23 in the first half of 2021, indicating a rise of approximately 56.8%[160]. Business Operations - The company operates in the traditional Chinese medicine sector, with 70 product varieties across five dosage forms, focusing on orthopedics, throat, cold, and heat-clearing medicines[29]. - The company maintains a diverse product portfolio with 58 varieties across 5 dosage forms, including notable products like Shuangliao Houfeng San and Zhonggan Ling Pian[37]. - The company follows a sales model that emphasizes collaboration with medical institutions and compliance with local procurement pricing[35]. - The R&D focus includes projects like the Bone-setting series and various herbal formulations aimed at enhancing product offerings[36]. - The company has established a new platform for high-value-added products, achieving an annual production capacity of 960 tons for cosmetics and 480 tons for disinfectants[45]. Risks and Challenges - The company faces risks related to industry policy changes, product concentration, price declines, cost control, and new drug development[3]. - The company faces risks related to concentrated product lines, with key products directly impacting revenue and profitability, prompting a strategy to diversify product offerings[66]. - The company plans to enhance internal management and operational efficiency to mitigate risks from regulatory changes in the pharmaceutical industry[65]. - The company faces risks from price declines and cost control due to national policies that have led to a general downward trend in drug prices, impacting product costs and marketing expenses[67]. Environmental Compliance - The company is classified as a key pollutant discharge unit but has not exceeded emission standards for nitrogen oxides and sulfur dioxide[79]. - The company has established a pollution discharge permit valid from August 18, 2020, to August 17, 2023, with all major pollutants meeting discharge standards[84]. - The company has implemented emergency response plans for environmental incidents, with updates made as necessary[85][86]. - The company has implemented five key environmental protection measures, ensuring compliance with national and local pollution discharge standards[93]. Corporate Governance - The company held 1 annual general meeting, 5 board meetings, and 4 supervisory board meetings during the reporting period, ensuring compliance with governance structures[92]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period[99]. - The company has engaged a third-party consulting firm to improve information disclosure practices and compliance with regulations[105]. Future Outlook - The company plans to enhance its market expansion strategies and invest in new product development to drive future growth[166]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its product offerings[166]. - The future outlook remains positive, with management guiding for continued revenue growth in the second half of 2022[176].

广东嘉应制药股份有限公司 2022 年第一季度报告全文 证券代码：002198 证券简称：嘉应制药 公告编号：2022-017 广东嘉应制药股份有限公司 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 | | --- | --- | --- | --- | | 营业收入（元） | 120,586,266.19 | 121,970,257.25 | -1.13% | | 归属于上市公司股东的净利润（元） | 2,535,662.28 | 7,764,3 ...

Financial Performance - The company's operating revenue for 2021 was CNY 574,713,387.08, representing a 5.50% increase compared to CNY 544,728,979.12 in 2020[19]. - The net profit attributable to shareholders of the listed company decreased by 92.55% to CNY 1,477,269.72 from CNY 19,838,348.25 in the previous year[19]. - The net profit attributable to shareholders after deducting non-recurring gains and losses fell by 98.59% to CNY 282,064.41 from CNY 19,991,758.09 in 2020[19]. - The net cash flow from operating activities decreased by 46.53% to CNY 51,800,132.35 from CNY 96,873,550.55 in the previous year[19]. - Basic earnings per share dropped by 92.58% to CNY 0.0029 from CNY 0.0391 in 2020[19]. - The weighted average return on equity for the company was 0.22% at the end of 2021, a decrease of 2.73% compared to the previous year[20]. - Total assets at the end of 2021 were approximately ¥807.34 million, a slight decrease of 0.14% from the end of 2020[20]. - The net profit attributable to shareholders for the first quarter of 2021 was ¥7.76 million, while the second quarter reported a loss of ¥3.58 million[23]. - The net cash flow from operating activities in the fourth quarter of 2021 was ¥28.32 million, showing a positive trend in cash generation[23]. - The company reported a total of ¥1.20 million in non-recurring gains and losses for 2021, compared to a loss of ¥0.15 million in 2020[25]. Industry Context - The pharmaceutical industry in China saw a GDP growth of 8.1% in 2021, with a significant increase in healthcare spending, which is expected to drive demand for pharmaceuticals[29]. - The company operates in the traditional Chinese medicine sector, which has gained widespread recognition due to its unique advantages and cultural significance[32]. - The government has implemented policies to promote high-quality development in the pharmaceutical industry, indicating a supportive regulatory environment for growth[31]. - The company has faced challenges due to cost control policies, but the overall pharmaceutical industry continues to show steady growth trends[31]. - In 2021, the total production of traditional Chinese medicine (TCM) reached 2.318 million tons, representing a year-on-year growth of 6.5%[33]. - The number of new TCM drug applications accepted by the National Medical Products Administration increased to 60 in 2021, a rise of 114.29% compared to the previous year[33]. - A total of 12 new TCM drugs were approved for market in 2021, accounting for 54% of the total new TCM drugs approved in the past five years[33]. Product and Market Strategy - The company aims to optimize product structure and enhance quality control while emphasizing the clinical and scientific value of its products[36]. - The company operates under a sales-driven production model, aligning production plans with market demand and sales forecasts[42]. - The sales strategy includes establishing partnerships with medical institutions and utilizing academic marketing methods to promote products[43]. - The company has developed over 58 varieties of drugs, with key products like Shuangliao Houfeng San and Zhonggan Ling Pian recognized as "Guangdong Province Famous Brand Products"[45]. - The company has established a new production capacity for cosmetics and disinfectants, with an annual production capacity of 960 tons for cosmetics and 480 tons for disinfectants[54]. - The company expanded its market presence by developing 113 offline experience stores and enhancing its marketing team in provinces such as Xinjiang, Guangxi, Hunan, and Henan[54]. Governance and Compliance - The company has no controlling shareholder or actual controller as of the latest report[18]. - The company is committed to ensuring the accuracy and completeness of its financial reports, as stated by its management[3]. - The company has established a robust governance framework to ensure compliance with regulations and protect shareholder interests[99]. - The company is committed to maintaining open communication with shareholders through various channels, ensuring transparency and engagement[103]. - The company has a structured process for determining the remuneration of its directors and senior management based on established policies and past shareholder resolutions[130]. - The company has faced regulatory scrutiny due to the delayed disclosure of significant agreements, resulting in administrative measures against involved personnel[128]. Risks and Challenges - The company faces risks related to industry policy changes, product concentration, price declines, cost control, and new drug development[4]. - The company's main products, Shuangliao Houfeng San and Jiekou Qili series, are highly concentrated, posing a risk to revenue and profitability if market conditions change[91]. - The implementation of new medical insurance policies has led to a general decline in drug prices, affecting the company's cost structure and profitability[92]. - New drug development poses risks due to lengthy approval processes and high funding requirements, which could lead to financial losses if projects do not meet expectations[95]. Environmental Responsibility - Guangdong Jiaying Pharmaceutical Co., Ltd. is classified as a key pollutant discharge unit by the Meizhou Environmental Protection Bureau[168]. - The company has implemented a centralized wastewater treatment system in collaboration with Meizhou Huayu Wastewater Treatment Co., Ltd.[168]. - The company’s nitrogen oxide emission limit is set at 150 mg/m³, with no exceedance reported[167]. - The sulfur dioxide emission limit is 30 mg/m³, with a reported range of 0-29 mg/m³[166]. - The company has conducted environmental impact assessments for its construction projects[168]. Employee and Stakeholder Engagement - The company has established a comprehensive employee welfare system, including labor contracts and social insurance, to protect employee rights[177]. - The total number of employees at the end of the reporting period is 753, with 392 from the parent company and 361 from major subsidiaries[145]. - The company actively participates in social welfare activities, contributing to community development and public health initiatives[179]. - The company respects and protects the legitimate rights and interests of stakeholders, promoting sustainable and stable development[109].

Financial Performance - The company's revenue for Q3 2021 was ¥150,494,400.62, representing a 2.20% increase year-over-year, while year-to-date revenue reached ¥402,770,114.43, up 13.30% compared to the same period last year[3]. - Net profit attributable to shareholders for Q3 2021 was ¥308,765.66, a significant decrease of 88.31% year-over-year, while year-to-date net profit was ¥4,494,564.57, showing a remarkable increase of 1,875.08%[3]. - The basic and diluted earnings per share for Q3 2021 were both ¥0.0006, down 88.31% year-over-year, while year-to-date earnings per share increased by 1,875.08% to ¥0.0089[4]. - Total operating revenue for Q3 2021 reached CNY 402,770,114.43, an increase of 13.3% compared to CNY 355,499,946.98 in the same period last year[21]. - Net profit for Q3 2021 was CNY 4,494,564.57, a significant recovery from a net loss of CNY 253,203.23 in Q3 2020[22]. - Operating costs for Q3 2021 amounted to CNY 388,343,405.90, up from CNY 351,233,965.81 in the previous year, reflecting a rise of 10.6%[21]. - The company reported a total profit of CNY 8,899,406.31 for Q3 2021, compared to CNY 2,057,481.68 in Q3 2020, indicating a substantial increase[22]. Assets and Liabilities - The company's total assets at the end of Q3 2021 were ¥824,796,596.52, a 2.02% increase from the end of the previous year[4]. - The total liabilities increased to CNY 137,295,990.89 from CNY 125,433,767.07, marking a rise of 9.5%[20]. - The company's total equity increased to CNY 687,500,605.63 from CNY 683,006,041.06, showing a growth of 0.7%[20]. - Total assets as of September 30, 2021, amounted to ¥824,796,596.52, up from ¥808,439,808.13 at the end of 2020, indicating a growth of 2.0%[18]. Cash Flow - Cash flow from operating activities for the year-to-date period was ¥23,481,235.90, reflecting a decrease of 26.16% compared to the same period last year[4]. - The net cash flow from operating activities was CNY 23,481,235.90, a decrease of 26.2% compared to CNY 31,801,926.85 in the previous year[26]. - The net cash flow from investing activities was CNY 31,404,544.11, an increase of 171.5% from CNY 11,589,858.19 in the same period last year[26]. - The net cash flow from financing activities was CNY 15,441,057.25, compared to a negative cash flow of CNY 23,192,093.41 in the previous year, indicating a significant improvement[26]. - The total cash and cash equivalents increased by CNY 70,326,837.26, compared to an increase of CNY 20,199,691.63 in the same quarter last year[26]. Shareholder Information - Total number of common shareholders at the end of the reporting period is 28,722[12]. - The top 10 shareholders hold a combined 56.77% of shares, with Shenzhen Tiger Fund Management Co., Ltd. holding 11.27% (57,200,000 shares) and Chen Yonghong holding 10.01% (50,778,500 shares)[12]. - The top 10 shareholders involved in margin trading hold a total of 6,865,753 shares through Citic Securities and 5,030,000 shares through Caitong Securities[12]. Operational Highlights - The company experienced a 313.79% increase in other operating income year-over-year, primarily due to increased government subsidies[9]. - Cash received from investment recoveries increased by ¥14,000,000, a 75.68% increase year-over-year, due to the recovery of funds from Guizhou Yun Guiding Technology[10]. - Research and development expenses were CNY 5,753,031.90, slightly increasing from CNY 5,690,694.01 in the same quarter last year[21]. Corporate Actions - The company plans to issue non-public shares to New South Medical, with the proposal approved by the board on June 17, 2021[15]. - The company has terminated the voting rights entrustment agreement with New South Medical, allowing it to exercise its shareholder rights independently[14]. - The company has not disclosed any new product developments or market expansion strategies in the current report[1]. - The company has not received the third-quarter financial report from Guangdong Kangci Medical Management Co., Ltd., leading to an estimated investment loss of ¥2.3 million[15]. Audit and Reporting - The company did not undergo an audit for the third quarter report[28]. - The report was released by the board of directors on October 25, 2021[29].

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 252,275,713.81, representing a 21.14% increase compared to CNY 208,250,220.53 in the same period last year[19]. - The net profit attributable to shareholders of the listed company reached CNY 4,185,798.91, a significant increase of 244.64% from a loss of CNY 2,893,941.22 in the previous year[19]. - The net profit after deducting non-recurring gains and losses was CNY 4,160,894.89, up 340.59% from a loss of CNY 1,729,431.26 in the same period last year[19]. - The basic earnings per share increased to CNY 0.0082, compared to a loss of CNY 0.0057 per share in the previous year, marking a 243.86% improvement[19]. - The company reported a total comprehensive income of CNY 4,185,798.91 for the first half of 2021, a recovery from a loss of CNY 2,893,941.22 in the same period of 2020[138]. - The company reported a significant decrease in financial expenses, with a net financial cost of CNY -679,036.44 compared to CNY 1,808,009.13 in the first half of 2020[132]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 811,270,570.28, a slight increase of 0.35% from CNY 808,439,808.13 at the end of the previous year[19]. - The net assets attributable to shareholders of the listed company were CNY 687,191,839.97, reflecting a 0.61% increase from CNY 683,006,041.06 at the end of the previous year[19]. - The company's current assets increased to CNY 456,609,925.58 from CNY 434,520,258.99, reflecting a growth of approximately 5.0%[125]. - The company's total liabilities decreased slightly to CNY 124,078,730.31 from CNY 125,433,767.07, a reduction of approximately 1.1%[126]. - The total equity attributable to shareholders at the end of H1 2021 was 687,191,839.97, an increase from 663,167,692.81 at the end of H1 2020[150]. Cash Flow - The company reported a net cash flow from operating activities of CNY 4,969,459.88, which is a decrease of 70.95% compared to CNY 17,105,615.86 in the same period last year[19]. - The net cash flow from operating activities for the first half of 2021 was -532,107.57, an improvement from -39,647,419.88 in the same period of 2020[146]. - Cash and cash equivalents at the end of the first half of 2021 totaled CNY 195,040,476.13, up from CNY 123,151,134.41 at the end of the first half of 2020[143]. - The net cash flow from financing activities for H1 2021 was 15,798,769.92, compared to 23,059,993.06 in H1 2020, indicating a decline of about 31.1%[146]. Market and Industry - The pharmaceutical industry in China is experiencing rapid growth, becoming the second-largest drug consumption market globally, driven by economic growth and an aging population[29]. - The company faces risks related to industry policy changes, product concentration, price declines, cost control, and new drug development[4]. - The company is facing both opportunities and challenges due to recent reforms in the pharmaceutical sector, including centralized procurement and price management policies[29]. Product and Brand - The company offers over 60 products across 5 dosage forms, focusing on traditional Chinese medicine for throat, cold, orthopedic, rheumatism, and gynecological conditions[27]. - The company has established a strong brand presence, with leading products like Shuangliao Houfeng San and Zhonggan Ling Pian recognized as "Guangdong Province Famous Products" and having significant market share[35]. - The company’s core competitiveness remains stable, with a focus on unique products and strong brand recognition in the market[35]. Research and Development - The company is currently conducting new drug research and development, primarily focusing on the secondary development of its leading products[60]. - Research and development expenses for the first half of 2021 were CNY 3,752,065.81, significantly higher than CNY 387,015.59 in the first half of 2020, marking an increase of 867.45%[132]. Environmental Compliance - The company is classified as a key pollutant discharge unit by the environmental protection department[71]. - The company has implemented pollution control facilities, including a cyclone dust collector and bag filter system, ensuring compliance with emission standards[73]. - The wastewater treatment facilities have been optimized to reduce operational costs and improve stability[74]. Corporate Governance - The company plans not to distribute cash dividends, issue bonus shares, or increase capital from reserves[4]. - The company has no stock incentive plans or employee stock ownership plans in place during the reporting period[68]. - The company confirmed its ability to continue as a going concern for the next 12 months from the report date[175].

Financial Performance - The company's operating revenue for Q1 2021 was ¥121,970,257.25, representing a 32.02% increase compared to ¥92,384,827.51 in the same period last year[8] - Net profit attributable to shareholders for Q1 2021 was ¥7,764,389.66, a significant increase of 363.81% from ¥1,674,030.75 in the previous year[8] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥7,755,443.98, up 205.29% from ¥2,540,317.24 year-on-year[8] - The basic earnings per share for Q1 2021 was ¥0.0153, which is a 363.64% increase compared to ¥0.0033 in the same period last year[8] - The weighted average return on equity for the reporting period was 1.13%, an increase of 0.88% from 0.25% in the previous year[8] - Operating revenue increased by CNY 29.585 million, a growth of 32.02%, driven by increased market demand following a decline in sales due to the pandemic last year[18] - Net profit increased by CNY 6.0904 million, a growth of 363.81%, attributed to increased sales revenue and decreased financial expenses[18] - Basic earnings per share increased by 363.81%, reflecting the growth in net profit[18] - The total operating revenue for Q1 2021 was CNY 121,970,257.25, an increase of 32.2% compared to CNY 92,384,827.51 in the same period last year[39] - The net profit for Q1 2021 was CNY 7,764,389.66, compared to CNY 1,674,030.75 in Q1 2020, representing a significant increase of 363.5%[40] - The total comprehensive income for the period was ¥740,407.74, a recovery from a loss of ¥898,960.27 in the same period last year[44] Cash Flow and Liquidity - The net cash flow from operating activities was -¥2,969,949.07, showing an improvement of 84.89% compared to -¥19,651,242.63 in the same period last year[8] - Cash flow from operating activities increased by CNY 16.6813 million, a growth of 84.49%, primarily due to increased cash received from sales and reduced cash payments for purchases[21] - The company's cash and cash equivalents decreased to CNY 19,723,433.09 from CNY 21,210,482.62, a decline of 7.0%[35] - The total cash and cash equivalents at the end of the period increased to ¥166,505,542.40 from ¥95,240,445.37 at the end of the same period last year[47] - The company's investment activities generated a net cash inflow of ¥32,229,612.31, a recovery from a net outflow of -¥894,872.43 in the previous year[46] - The company’s financing activities resulted in a net cash outflow of -¥4,990,618.71, compared to -¥6,522,436.95 in the previous year[47] - The net cash flow from financing activities was -CNY 4,990,618.71, indicating a decrease in cash from financing operations[50] Assets and Liabilities - Total assets at the end of the reporting period were ¥800,963,760.16, a decrease of 0.92% from ¥808,439,808.13 at the end of the previous year[8] - The total assets as of March 31, 2021, amounted to CNY 497,701,703.64, slightly up from CNY 496,746,348.50 at the end of 2020[36] - The total liabilities as of March 31, 2021, were CNY 71,682,860.88, compared to CNY 71,467,913.48 at the end of 2020, indicating a marginal increase[36] - The inventory level decreased to CNY 34,474,494.23 from CNY 41,515,925.54, a reduction of 16.9%[35] - The total equity attributable to the parent company as of March 31, 2021, was CNY 690,770,430.72, compared to CNY 683,006,041.06 at the end of 2020, reflecting a growth of 1.1%[36] Shareholder Information - The company reported a total of 28,039 common shareholders at the end of the reporting period[11] - The top shareholder, Shenzhen Tiger Fund Management Co., Ltd., held 11.27% of the shares, amounting to 57,200,000 shares, which are currently pledged[11] Other Financial Metrics - Accounts receivable increased by CNY 19.589 million, a growth of 60.99%, mainly due to an increase in notes received from sales[18] - Other receivables decreased by CNY 25.1003 million, a decline of 73.73%, mainly due to the recovery of CNY 32.5 million from a debt[18] - Financial expenses decreased by CNY 1.5113 million, a decline of 129.21%, due to a reduction in total bank loans and interest expenses[18] - Income tax expenses increased by CNY 1.1908 million, a growth of 190.72%, due to an increase in total profit[18] - Sales expenses increased by CNY 25.7298 million, a growth of 68.96%, as last year's expenses were lower due to pandemic-related restrictions[18] Audit Status - The company has not undergone an audit for the Q1 2021 report, indicating that the figures are unaudited[51]

Financial Performance - The company's operating revenue for 2020 was CNY 544,728,979.12, an increase of 8.84% compared to CNY 500,504,004.47 in 2019[17] - The net profit attributable to shareholders in 2020 was CNY 19,838,348.25, a significant turnaround from a loss of CNY 122,184,478.40 in 2019, representing a 116.24% increase[17] - The net cash flow from operating activities reached CNY 96,873,550.55, marking a substantial increase of 647.25% from CNY 12,963,921.39 in the previous year[17] - Basic earnings per share for 2020 were CNY 0.0391, compared to a loss of CNY 0.2408 per share in 2019, reflecting a 116.24% improvement[17] - The total assets at the end of 2020 were CNY 808,439,808.13, a decrease of 5.55% from CNY 855,938,235.20 at the end of 2019[18] - The net assets attributable to shareholders increased by 2.99% to CNY 683,006,041.06 at the end of 2020, up from CNY 663,167,692.81 in 2019[18] - The weighted average return on net assets was 2.95% in 2020, a significant recovery from -16.87% in 2019, indicating improved profitability[17] Market and Industry Insights - The Chinese pharmaceutical market is the second largest globally, driven by economic growth, increased public health spending, and an aging population, although growth rates are declining[29] - The COVID-19 pandemic has temporarily boosted the demand for certain traditional Chinese medicine products, enhancing market sales and prices[30] - The average profit margin in the traditional Chinese medicine sector has been declining due to rising raw material costs and increased R&D expenditures[30] - The company has a diverse product portfolio with over 60 varieties, primarily in traditional Chinese medicine, including categories like throat, cold, orthopedic, and rheumatology[26] Operational Developments - The company has not reported any changes in its main business since its listing, indicating stability in its operational focus[16] - The company invested in GMP upgrades and automation of production equipment, which reduced labor costs and improved production efficiency[37] - The marketing strategy focused on optimizing regional management and maintaining price stability, leading to improved sales channels[37] - The production volume increased by 15.71% to ¥131,159,075.35, while inventory decreased by 5.17% to ¥72,798,553.45[46] Risk Management - The company has acknowledged potential risks including industry policy changes and intensified market competition, which may impact future performance[4] - The company is facing challenges from industry competition and regulatory changes, which may impact future growth prospects[29] - The company faces risks related to market concentration on its main products, which could impact revenue if market conditions change[73] - The company is addressing cost control risks due to price declines in the pharmaceutical market and potential increases in raw material costs[75] Corporate Governance and Compliance - The company has established a comprehensive environmental management system, ensuring compliance with the Environmental Protection Law and related regulations, with all pollution control facilities designed and constructed simultaneously with the main project[133] - The company has a complete corporate governance structure, ensuring timely and accurate information disclosure to protect shareholder and creditor rights[125] - The company has committed to avoiding related party transactions that could conflict with its interests, ensuring fair and reasonable pricing for necessary transactions[88] - The company has established a legal commitment to avoid any related party transactions that could harm its interests[90] Shareholder Relations and Dividends - The company plans not to distribute cash dividends or issue bonus shares for the year[5] - The company committed to distributing at least 10% of the annual distributable profit in cash dividends, with a cumulative cash distribution over three consecutive years not less than 30% of the average annual distributable profit achieved during that period[91] - The company will actively adopt cash distribution methods for profit allocation over the next three years, prioritizing cash dividends over stock dividends[91] Environmental Compliance - The company has implemented five environmental protection measures to ensure compliance with national and local pollution discharge standards[127] - The pollution discharge permit for the company is valid from August 18, 2020, to August 17, 2023, confirming that major pollutants are within the discharge standards[136] - The company achieved a 100% disclosure rate for its environmental self-monitoring data from 2019 to 2020[138] Employee Welfare and Management - The company emphasizes employee welfare, providing a good working environment and comprehensive social insurance[126] - The company employs a total of 764 staff, with 231 in production, 230 in sales, and 99 in technical roles[171] - The compensation structure consists of basic salary, position salary, performance salary, allowances, and benefits, closely linked to company performance and individual contributions[172] Financial Reporting and Audit - The company has implemented changes in accounting policies effective from January 1, 2020, including the new revenue recognition standard and lease accounting standard, which will not significantly impact total assets, net assets, or net profit[99][103] - The internal control audit report confirmed that the company maintained effective financial reporting internal controls as of December 31, 2020[200] - The internal control audit report was disclosed on April 20, 2021, and received a standard unqualified opinion[200]