桂林三金药业股份有限公司投资者关系活动记录表 编号：2022013 | --- | --- | --- | |-------------------------|-----------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | ■特定对象调研 | □ 分析师会议 | | 投资者关系活动类别 | □ 媒体采访 □业绩说明会 | | | | □ 新闻发布会 □ 现场参观 | □ 路演活动 | | | □其他（请文字说明其他活动内容） | | | 活动参与人员 | 华安证券 ...

桂林三金药业股份有限公司投资者关系活动记录表 编号：2022012 | --- | --- | --- | |-------------------------|-----------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | 投资者关系活动类别 | ■特定对象调研 \n□ 媒体采访 □业绩说明会 \n□ 新闻发布会 □ 现场参观 | □ 分析师会议 \n□ 路演活动 | | | □其他（请文字说明其他活动内容） | | | | 东方财富证券 何玮 东方财富 侯伟青 盘京资产 曹珊珊 | 唐佰强 | | 活动参与人员 | 长盛基金 周思聪 桂林三金董事长 邹洵 桂林三 ...

Revenue and Profit - Revenue for Q3 2022 reached ¥443,488,378.21, an increase of 18.03% year-over-year[7] - Net profit attributable to shareholders was ¥21,467,877.53, a decrease of 53.03% compared to the same period last year[7] - Net profit excluding non-recurring gains and losses was ¥14,655,019.81, up 97.43% year-over-year[7] - The company reported a basic earnings per share of ¥0.0281, a decrease of 64.61% compared to the same period last year[7] - The net profit attributable to shareholders of the listed company decreased by 53.03% to CNY 21,467,877.53 compared to the same period last year, primarily due to increased financial expenses and share-based payment provisions[16] - The net profit attributable to shareholders after deducting non-recurring gains and losses increased by 97.43% to CNY 14,655,019.81, mainly due to the high non-recurring gains in the previous period from government subsidies[16] - The net profit for the current period is CNY 324,383,259.62, an increase from CNY 292,898,189.25 in the previous period, representing a growth of approximately 10.7%[33] - Operating profit for the current period is CNY 399,141,337.71, compared to CNY 361,237,488.69 in the previous period, indicating an increase of about 10.5%[33] - Total profit for the current period is CNY 395,977,951.32, up from CNY 361,468,249.37, reflecting a growth of approximately 9.5%[33] Assets and Liabilities - Total assets at the end of the period were ¥4,046,301,129.62, a decrease of 1.21% from the end of the previous year[7] - The total assets of the company were CNY 4,046,301,129.62, a decrease from CNY 4,095,868,127.50 at the beginning of the year[30] - The total liabilities amounted to CNY 1,115,823,550.33, down from CNY 1,256,050,962.24[30] - Shareholders' equity attributable to the parent company increased to ¥2,930,477,579.29, up 3.19% from the previous year[7] - The company's equity attributable to shareholders was CNY 2,930,477,579.29, an increase from CNY 2,839,817,165.26[30] Cash Flow - Cash flow from operating activities for the year-to-date was ¥245,023,811.12, down 15.94% year-over-year[7] - Cash received from operating activities decreased by 75.45% to CNY 44,575,648.45, mainly due to a reduction in government subsidies compared to the previous period[16] - Cash paid for purchasing goods and receiving services increased by 93.14% to CNY 418,554,988.76, driven by increased sales and production[16] - Cash received from investment activities increased by 143.56% to CNY 473,707,824.13, mainly due to a higher number of maturing equity instruments[16] - Cash paid for investment activities surged by 1,699.65% to CNY 802,864,785.84, primarily due to increased investments in equity instruments[16] - Net cash flow from operating activities was $245,023,811.12, a decrease of 15.98% compared to $291,495,282.61 in the previous period[41] - Total cash inflow from investment activities was $555,924,903.30, down from $628,619,639.60, reflecting a decrease of 11.56%[41] - Cash outflow from investment activities increased significantly to $974,123,558.30 from $254,862,021.01, indicating a rise of 282.73%[41] - Net cash flow from financing activities was -$175,223,838.83, an improvement from -$295,805,366.73 in the previous period[41] - Cash inflow from financing activities totaled $266,396,014.38, compared to $209,692,691.28 in the previous period, marking an increase of 27.00%[41] - Cash outflow for dividend distribution and interest payments was $333,588,479.24, up from $244,001,210.05, representing a rise of 36.67%[41] Expenses - Management expenses rose by 55.64% to CNY 169,949,093.70, primarily due to the timely recognition of share-based payments[16] - Financial expenses decreased by 63.89% to CNY -5,784,980.30, attributed to increased loan interest and changes in the company's financial structure[16] - Research and development expenses decreased to CNY 127,378,100.62 from CNY 169,712,734.98, a reduction of about 25%[33] - Sales expenses increased to CNY 350,494,315.37 from CNY 309,789,625.49, marking an increase of approximately 13.1%[33] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 16,010[19] - The largest shareholder, Guilin Sanjin Group Co., Ltd., holds 62.05% of the shares, totaling 364,586,500 shares[19] Other Information - The company received FDA approval for clinical trials of its subsidiary's drug, indicating potential future growth in the pharmaceutical sector[23] - The company plans to change the purpose of its remaining repurchased shares, totaling 2,631,400 shares, to be used for cancellation to reduce registered capital[24] - The company did not undergo an audit for the third quarter report[44] - Other comprehensive income after tax for the current period is CNY 13,020,354.41, compared to a loss of CNY 1,854,021.31 in the previous period[37] - Basic and diluted earnings per share for the current period are both CNY 0.5547, an increase from CNY 0.5091 in the previous period[37] - The tax expenses for the current period amounted to CNY 71,594,691.70, compared to CNY 68,570,060.12 in the previous period, reflecting an increase of approximately 3%[33]

Financial Performance - The company's operating revenue for the first half of 2022 was approximately ¥995.47 million, representing a 13.13% increase compared to ¥879.90 million in the same period last year[28]. - Net profit attributable to shareholders was approximately ¥302.92 million, an increase of 22.54% from ¥247.19 million in the previous year[28]. - The net profit after deducting non-recurring gains and losses was approximately ¥290.27 million, reflecting a 35.19% increase from ¥214.72 million year-on-year[28]. - The basic earnings per share increased to ¥0.53, up 23.26% from ¥0.43 in the same period last year[28]. - The weighted average return on equity rose to 10.28%, an increase of 2.26% compared to 8.02% in the previous year[28]. - Total assets at the end of the reporting period were approximately ¥4.08 billion, a slight decrease of 0.37% from ¥4.10 billion at the end of the previous year[28]. - Net assets attributable to shareholders increased to approximately ¥2.88 billion, up 1.53% from ¥2.84 billion at the end of the previous year[28]. - The company reported a net cash flow from operating activities of approximately ¥209.39 million, a 4.66% increase from ¥200.07 million in the previous year[28]. - The company plans not to distribute cash dividends or issue bonus shares for this reporting period[6]. Market Environment and Industry Trends - The pharmaceutical manufacturing industry in China saw a revenue of CNY 1,400.78 billion, a year-on-year decrease of 0.60%, with profit totaling CNY 220.95 billion, down 27.60% year-on-year[37]. - The pharmaceutical industry is undergoing a period of adjustment and fluctuation, influenced by policies promoting innovation and strict regulation[37]. - The overall market environment for the pharmaceutical industry is characterized by dual pressures from administrative regulation and market competition[37]. - The company faces risks such as fluctuations in raw material prices and intensified market competition, which investors should be aware of[6]. - The company is facing risks from industry policy changes, particularly related to drug price reductions due to national procurement policies, with an average price drop of 21.8% in certain regions[153]. - The OTC market is expected to face increased competition as prescription drugs transition to non-prescription status, impacting companies focused on OTC products[153]. Product Portfolio and Development - The company holds 218 drug approvals, including 46 unique specialty varieties, with 70 specifications included in the National Essential Medicines List and 113 specifications in the National Medical Insurance Directory[43]. - The company has 64 valid invention patents, including one US invention patent and four patents awarded for excellence in China[43]. - The company aims to strengthen its leadership in the fields of oral and urinary system medications, continuing to grow steadily[40]. - The company has launched a new dosage form of Sanjin Pian, Sanjin Granules, which officially went on sale in 2021[51]. - The company is focused on expanding its product line and enhancing its market presence through innovative product development and strategic partnerships[46]. - The company is committed to ongoing research and development to improve existing products and introduce new therapies to meet market demands[46]. - The company has launched new products, including the Xiguashuang throat lozenge, which has received multiple awards and recognitions, including a national invention patent[55]. - The company is focusing on new product development, particularly in the health food sector, with specific products like Sanjin brand ginseng tablets and other herbal products[147]. Marketing and Sales Strategy - The company has a comprehensive marketing system established across the country, ensuring reliable drug quality and competitive advantages[40]. - The company aims to leverage its strong product portfolio to capture a larger share of the healthcare market, particularly in traditional Chinese medicine[46]. - The company plans to expand its market presence by entering new regions, targeting a 20% increase in market share by the end of 2023[67]. - The company plans to enhance hospital channel development and clinical promotion for its new product "Shu Yan Qing," which has significant market potential[134]. - The company will implement a "one province, one product, one strategy" promotion pilot for second-line exclusive products and continue to replicate and promote third-line exclusive and generic products in other markets[154]. - The company plans to accelerate the nationwide promotion of its value marketing model and optimize channel management to enhance terminal output[154]. Research and Development - The company has invested in R&D projects, including the deep secondary development of SanJin tablets and the development of new biopharmaceuticals[93]. - The company is focusing on research and development of new formulations, with a goal to introduce at least three new products by the end of 2023[67]. - The company is committed to improving cost efficiency across R&D, raw materials, production, and marketing to maintain profitability amid rising competition[153]. Corporate Social Responsibility and Compliance - The company has maintained compliance with environmental standards, with all monitored pollutants meeting the required discharge limits[165]. - The company has established a wastewater treatment system with a daily processing capacity of 2,500 tons, achieving a COD concentration of less than 500 mg/L after treatment[170]. - The company has contributed over 4 million yuan to social responsibility initiatives, including pandemic support and rural revitalization efforts[187]. Operational Challenges and Risk Management - The company has faced operational risks due to the ongoing COVID-19 pandemic and plans to innovate marketing strategies and enhance R&D efforts to mitigate short-term impacts on sales and performance[154]. - The management team has extensive experience and will actively monitor potential risks to ensure the successful completion of the 2022 operational plan and objectives[154]. - The company has faced challenges in the cultivation of raw materials due to environmental factors, impacting the efficiency of the "Modern Chinese Medicine Raw Material GAP Base" project[134]. - The company has successfully modified construction plans to save costs and ensure project completion despite geological challenges[134].

Financial Performance - The company's operating revenue for Q1 2022 was ¥516,891,871.81, representing a 20.32% increase compared to ¥429,589,921.89 in the same period last year[4] - Net profit attributable to shareholders for Q1 2022 was ¥120,053,789.34, up 22.92% from ¥97,672,179.84 in the previous year[4] - Basic and diluted earnings per share increased by 23.53% to ¥0.21 from ¥0.17 in the same period last year[4] - The net profit for the current period is 120,053,789.34, an increase from 97,672,179.84 in the previous period, representing a growth of approximately 22.8%[34] - The total comprehensive income for the current period is 119,558,821.49, compared to 97,672,179.84 in the previous period, indicating an increase of about 22.4%[34] Cash Flow - The net cash flow from operating activities decreased by 3.54% to ¥167,767,980.96 from ¥173,928,071.94 year-on-year[4] - Cash inflow from operating activities totals 638,327,757.79, compared to 555,330,275.03 in the previous period, showing an increase of approximately 14.9%[35] - Cash outflow from operating activities is 470,559,776.83, up from 381,402,203.09 in the previous period, indicating an increase of about 23.4%[38] - Cash flow from investing activities shows a net outflow of -73,360,724.97, compared to a net inflow of 15,397,513.24 in the previous period[38] - Cash flow from financing activities results in a net inflow of 12,206,733.48, contrasting with a net outflow of -87,001,816.04 in the previous period[38] - The ending cash and cash equivalents balance is 1,582,700,263.09, an increase from 1,076,974,962.17 in the previous period[38] Assets and Liabilities - Total assets at the end of the reporting period were ¥4,182,069,870.01, a 4.61% increase from ¥3,997,591,280.48 at the end of the previous year[4] - Total liabilities decreased to CNY 1,214,732,993.38 from CNY 1,256,050,882.92, a reduction of 3.3%[27] - The company's cash and cash equivalents were CNY 2,570,656,056.23, up from CNY 2,454,133,198.86, reflecting a growth of 4.7%[24] - Inventory levels increased to CNY 299,514,679.21 from CNY 284,155,000.17, an increase of 5.4%[24] - The company reported a decrease in accounts payable to CNY 156,373,010.80 from CNY 159,775,165.75, a decline of 2.5%[24] Shareholder Information - The company holds 364,679,300 shares of common stock, representing 61.79% of total shares outstanding, making it the largest shareholder[14] - The first phase employee stock ownership plan holds 12,295,951 shares, accounting for 2.08% of the total share capital[14] - The company’s actual controller changed to Mr. Zou Xun, who holds a total of 22.38% of the company's shares through direct and indirect ownership[17] - The company’s stock repurchase account holds 2,631,400 shares, representing 0.45% of total shares[14] - The company’s major shareholders include Mr. Zou Jieming with 9.05% and other individuals holding less than 2% each[14] Expenses - Total operating costs amounted to CNY 368,017,919.17, up from CNY 305,059,286.27, reflecting a year-over-year increase of 20.6%[28] - Research and development expenses were CNY 70,056,723.81, compared to CNY 62,817,958.41, indicating an increase of 11.8%[28] - Management expenses surged by 85.39% to ¥43,085,926.29 from ¥23,241,227.25, primarily due to timely recognition of share-based payments[11] Government Subsidies - The company received government subsidies amounting to ¥6,880,460.97, an increase of 58.54% compared to ¥4,339,924.03 in the previous year[11] Accounts Receivable and Prepayments - Accounts receivable increased by 57.86% to ¥75,014,430.90 from ¥47,520,406.16 year-on-year, mainly due to increased sales[7] - Prepayments rose by 81.96% to ¥45,387,082.33 from ¥24,943,705.01, attributed to increased advance payments to suppliers[7] Audit Status - The company has not undergone an audit for the first quarter report[41]

Financial Performance - The company reported a total revenue of RMB 1.2 billion for the year 2021, representing a year-on-year increase of 15%[19] - The net profit attributable to shareholders was RMB 300 million, an increase of 20% compared to the previous year[19] - The company's operating revenue for 2021 was ¥1,741,224,552.65, representing an increase of 11.15% compared to ¥1,566,484,673.44 in 2020[27] - The net profit attributable to shareholders for 2021 was ¥343,718,942.74, a 24.08% increase from ¥277,020,898.87 in 2020[27] - The net profit after deducting non-recurring gains and losses was ¥260,467,690.06, showing a 3.26% increase from ¥252,240,992.83 in 2020[27] - The basic and diluted earnings per share for 2021 were both ¥0.60, up 25.00% from ¥0.48 in 2020[27] - The profit margin for the total profit in 2021 was 24.67%, up from the previous year's profit margin[68] - The company reported a total revenue of CNY 1.5 billion for the fiscal year 2021, representing a year-over-year increase of 12%[178] Market Expansion and Strategy - The company is focusing on expanding its market presence in Southeast Asia, targeting a 30% growth in that region over the next two years[19] - User data showed an increase in active customers by 25%, reaching 1.5 million by the end of 2021[19] - The company plans to enhance the development and maintenance of hospital channels and increase clinical development and academic promotion for its second-line products due to their significant market potential[126] - The company is exploring potential mergers and acquisitions to enhance its product portfolio and market reach[19] - The company is exploring potential acquisitions to enhance its market presence, with a focus on companies in the herbal medicine sector[178] Research and Development - The company has invested RMB 50 million in research and development for new technologies in traditional Chinese medicine[19] - The company is investing CNY 200 million in R&D for new technologies aimed at enhancing product efficacy and safety[178] - R&D investment accounted for 11.63% of operating revenue, up from 9.85% the previous year[93] - The company is currently conducting multiple clinical trials for new biopharmaceutical products aimed at treating advanced malignancies, which are expected to enrich its product pipeline[90] - Research and development investments increased, resulting in 6 new invention patents and 10 ongoing projects in the biopharmaceutical pipeline, with 8 clinical approvals obtained[145] Product Development and Innovation - New product development includes the launch of three innovative herbal medicines, expected to contribute an additional RMB 100 million in revenue in 2022[19] - The company has established a leading position in the field of traditional Chinese medicine for oral and throat medications and urological products, recognized as one of China's top 50 traditional Chinese medicine companies[43] - The company has a robust pipeline of traditional Chinese medicine products, leveraging historical formulations for modern applications[59] - The company has developed multiple products including the Xigua Frost lozenge, which has received various awards and recognitions, including the National Invention Patent and the Guangxi Science and Technology Progress Second Prize[56] Financial Management and Governance - The company received government subsidies totaling CNY 76.36 million in 2021, which supported its operations during the challenging market environment[68] - The total pre-tax remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 6.08 million[182] - The company has established a comprehensive performance evaluation system for senior management, ensuring that remuneration is determined based on performance indicators[180] - The company maintains a strong governance structure, ensuring compliance with relevant laws and regulations, with no significant discrepancies noted with the guidelines set by the China Securities Regulatory Commission[157] Challenges and Risks - The board highlighted risks including raw material price fluctuations and increased market competition, urging investors to remain cautious[7] - The company is facing intensified market competition due to ongoing healthcare reforms and will promote value marketing models to optimize channel management[151] - The company will actively respond to the risks posed by industry policy changes and will adjust its product structure and marketing strategies accordingly[151] Employee and Management Structure - The total number of employees at the end of the reporting period is 2,677, with 1,495 in the parent company and 1,182 in major subsidiaries[196] - The company has established a compensation policy that reflects efficiency and fairness, aiming to attract and retain talent[200] - The company has maintained its current board structure with no new appointments or dismissals aside from the chairman transition[171] Sustainability and Corporate Responsibility - The management team emphasized a commitment to sustainability, with plans to reduce carbon emissions by 15% by 2025[178] - The company is adapting to market changes driven by aging population and health consumption upgrades, aiming for sustainable development[142]

Financial Performance - The company's revenue for Q3 2021 was ¥375,750,367.33, representing an increase of 8.72% compared to the same period last year[4] - The net profit attributable to shareholders for Q3 2021 was ¥45,706,103.61, a decrease of 28.33% year-on-year[4] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥7,422,725.25, down 87.70% compared to the same period last year[4] - The basic earnings per share for Q3 2021 was ¥0.08, down 33.33% compared to the same period last year[4] - The weighted average return on equity for Q3 2021 was 1.48%, a decrease of 0.68% year-on-year[4] - The company's total revenue for the current period was CNY 1,255,654,767.18, compared to CNY 1,097,870,149.56 in the previous period, indicating a year-over-year increase of about 14.36%[27] - Operating costs for the current period amounted to CNY 961,048,966.73, up from CNY 743,865,240.43 in the previous period, reflecting an increase of approximately 29.25%[27] - The company's total liabilities as of September 30, 2021, were CNY 999,906,452.88, compared to CNY 923,271,325.82 at the end of 2020, representing an increase of approximately 8.30%[23] - Total profit decreased slightly to ¥361,468,249.37 from ¥363,121,833.34, a decline of about 0.5%[30] - Net profit for the period was ¥292,898,189.25, down from ¥305,026,990.06, reflecting a decrease of approximately 4.0%[30] Assets and Liabilities - The total assets at the end of Q3 2021 amounted to ¥4,020,955,566.82, an increase of 3.57% from the end of the previous year[4] - The equity attributable to shareholders at the end of Q3 2021 was ¥3,021,049,113.94, reflecting a growth of 2.10% compared to the end of the previous year[4] - As of September 30, 2021, total assets reached CNY 4,020,955,566.82, an increase from CNY 3,882,273,181.59 as of December 31, 2020, representing a growth of approximately 3.57%[23] - The company's equity attributable to shareholders increased to CNY 3,021,049,113.94 from CNY 2,959,001,855.77, reflecting a growth of about 2.10%[26] - The company's total liabilities as of September 30, 2021, were CNY 999,906,452.88, compared to CNY 923,271,325.82 at the end of 2020, representing an increase of approximately 8.30%[23] - Total liabilities reached CNY 923,271,325.82, with current liabilities accounting for CNY 589,312,189.72[49] Cash Flow - The cash flow from operating activities for the year-to-date was ¥291,495,282.61, a decrease of 40.47% year-on-year[4] - Cash received from operating activities was CNY 181,568,534.70, an increase of 461.03% compared to CNY 32,363,531.97 in the previous year, mainly due to significant government subsidies received[12] - Cash recovered from investments was CNY 343,000,000.00, an increase of 8475.00% compared to CNY 4,000,000.00 in the previous year, primarily from the recovery of financial products and structured deposits[12] - Cash received from the disposal of fixed assets, intangible assets, and other long-term assets was CNY 53,985,800.60, a 23874.58% increase compared to CNY 225,179.31 in the previous year, due to the disposal of held-for-sale assets[12] - Cash paid for the purchase and construction of fixed assets, intangible assets, and other long-term assets was CNY 178,249,864.17, a 33.60% increase compared to CNY 133,419,319.45 in the previous year, reflecting increased investment in production equipment and infrastructure[12] - Cash paid for debt repayment was CNY 176,855,430.10, an increase of 299.66% compared to CNY 44,251,136.17 in the previous year, mainly due to the repayment of long-term liabilities by subsidiaries[12] - Cash paid for dividends, profits, or interest was CNY 243,963,969.45, a 77.18% increase compared to CNY 137,696,062.41 in the previous year, reflecting an increase in dividends distributed by the parent company[12] Research and Development - R&D expenses from the beginning of the year to the end of the reporting period amounted to CNY 169,712,734.98, a 54.70% increase year-on-year, reflecting the company's increased investment in R&D[12] - Research and development expenses rose to CNY 169,712,734.98, compared to CNY 109,705,777.33 in the previous period, marking a significant increase of about 54.73%[27] - The net profit attributable to shareholders after deducting non-recurring gains and losses for the period from July to September was CNY 7,422,725.25, a decrease of 87.70% compared to CNY 60,337,096.25 in the same period last year, mainly due to increased R&D expenses[12] Other Income and Expenses - The company's non-recurring gains and losses totaled ¥38,283,378.36 for the year-to-date, down from ¥47,745,933.89 in the previous year[8] - Other income for the same period was CNY 57,415,540.45, up 277.80% from CNY 15,197,275.36 in the previous year, primarily due to large government subsidies received for compensating previous years' costs[12] - The company reported a decrease in operating expenses to ¥1,159,062,042.16 from ¥1,012,534,000.14, an increase of approximately 14.5%[38] - Other comprehensive income after tax was reported at -¥1,854,021.31, indicating a loss compared to the previous period[34] Audit and Compliance - The company has not conducted an audit for the third quarter report, indicating a potential area for investor scrutiny[52]

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 879,904,399.85, representing a 16.97% increase compared to CNY 752,252,423.05 in the same period last year[28]. - The net profit attributable to shareholders of the listed company was CNY 247,192,085.64, a 2.46% increase from CNY 241,251,997.57 year-on-year[28]. - The net profit after deducting non-recurring gains and losses decreased by 8.04%, amounting to CNY 214,719,348.88 compared to CNY 233,493,196.27 in the previous year[28]. - The net cash flow from operating activities was CNY 200,067,292.17, down 57.34% from CNY 468,947,239.85 in the same period last year[28]. - The total assets at the end of the reporting period were CNY 3,905,369,633.69, a 0.59% increase from CNY 3,882,273,181.59 at the end of the previous year[28]. - The net assets attributable to shareholders of the listed company were CNY 2,974,955,731.53, reflecting a 0.54% increase from CNY 2,959,001,855.77 at the end of the previous year[28]. - The basic earnings per share for the reporting period was CNY 0.43, up 2.38% from CNY 0.42 in the same period last year[28]. - The diluted earnings per share also stood at CNY 0.43, indicating a 2.38% increase compared to CNY 0.42 year-on-year[28]. - The weighted average return on equity was 8.02%, slightly down from 8.28% in the previous year[28]. Research and Development - Research and development expenses increased significantly by 62.30% to ¥104,466,118.63, up from ¥64,367,190.51 in the previous year, primarily due to increased investment by the Shanghai subsidiary[59]. - The company is actively involved in the research and development of health products, including traditional Chinese medicine and health supplements, to expand its product offerings[88]. - The management team emphasizes the importance of maintaining communication with clinical experts and implementing a project management mechanism to mitigate R&D risks[101]. - R&D risks are present due to the lengthy and complex process of new drug development, which is subject to stringent regulatory requirements that could affect market acceptance and sales performance[101]. Product Development and Market Position - The company holds 218 drug approvals, including 46 exclusive varieties and 113 varieties listed in the national medical insurance directory[38]. - The company has effective invention patents totaling 64, including 1 US patent and 4 patents awarded for excellence in China[38]. - The company has 23 exclusive products, including Sanjin Pian and Guilin Xigua Frost, which are key in their respective therapeutic areas[38]. - The company focuses on continuous growth in the fields of oral and throat medications, as well as urological medications[38]. - The company aims to be a leading pharmaceutical manufacturing group in China, with a strong foundation for sustainable growth[38]. - The company is positioned in the traditional Chinese medicine sector, with a leading position in oral and throat medications and urological medications[55]. - The company plans to enhance its market presence through strategic acquisitions and partnerships in the health and wellness sector[88]. - The company is focusing on expanding its product lines, including new beverage offerings and health-related products, to capture a larger market share[88]. Financial Position and Cash Flow - The company's cash and cash equivalents increased to ¥1,624,574,125.24, representing 41.60% of total assets, up from 35.08% in the previous year[66]. - The company's long-term borrowings rose to ¥258,000,192.69, accounting for 6.61% of total liabilities, compared to 6.01% in the previous year[69]. - The company reported a net cash outflow from investing activities of ¥39,266,990.56, an improvement of 78.81% compared to a net outflow of ¥185,296,151.68 in the previous year, mainly due to reduced investments and real estate purchases[59]. - The net cash outflow from financing activities surged by 447.58% to ¥226,609,058.72, compared to ¥41,383,683.29 in the previous year, primarily due to increased long-term loan repayments and higher dividends[59]. - The total current assets decreased to ¥2,271,844,589.16 from ¥2,379,897,326.30, reflecting a decline of about 4.5%[194]. - Non-current assets increased to ¥1,633,525,044.53 from ¥1,502,375,855.29, indicating a growth of approximately 8.7%[194]. - The total liabilities slightly increased to ¥930,413,902.16 from ¥923,271,325.82, showing a marginal rise of about 0.2%[196]. Environmental and Social Responsibility - The company has established a wastewater treatment system with a daily processing capacity of 2,500 tons, achieving a COD concentration reduction from 3,000 mg/l to below 500 mg/l[110]. - The company has received no administrative penalties related to environmental issues during the reporting period, demonstrating compliance with environmental regulations[110]. - The company has invested in a 2.4MWP photovoltaic grid-connected power generation project, generating approximately 2.24 million kWh annually[110]. - The company has committed to social responsibility initiatives, including a plan to support local agricultural projects with a budget of 100,000 yuan[116]. - The company has been recognized with several environmental honors, including "Guangxi Green Factory" and "Water-saving Enterprise" certifications[110]. Risks and Challenges - The company faces significant risks from industry policy changes, including the implementation of the new Drug Administration Law and the normalization of drug procurement, which could impact its operations and profitability[98]. - The fluctuation in raw material prices poses a risk due to the seasonal and regional nature of traditional Chinese medicine materials, affecting production costs and profit margins[98]. - Increased market competition is anticipated as the pandemic alters consumer behavior and the national medical insurance directory undergoes adjustments, leading to potential price reductions for drugs[98]. - The company aims to control procurement costs within a reasonable range while ensuring the quality of raw materials[98]. Shareholder Information - The total number of shares outstanding remained at 590,200,000, with no new shares issued during the reporting period[161]. - The largest shareholder, Guilin Sanjin Group Co., Ltd., holds 61.19% of the shares, totaling 361,129,300 shares[170]. - The second-largest shareholder, Zou Jieming, holds 9.05% of the shares, totaling 53,394,648 shares[170]. - The company has 15,865 common shareholders at the end of the reporting period[165].

Financial Performance - The company's operating revenue for Q1 2021 was CNY 429,589,921.89, representing a 30.71% increase compared to CNY 328,651,865.72 in the same period last year[10] - Net profit attributable to shareholders for Q1 2021 was CNY 97,672,179.84, up 27.19% from CNY 76,791,683.43 in the previous year[10] - The net profit after deducting non-recurring gains and losses was CNY 95,252,240.18, reflecting a 34.76% increase from CNY 70,683,852.98 year-on-year[10] - The basic earnings per share for Q1 2021 was CNY 0.17, a 30.77% increase from CNY 0.13 in the same period last year[10] - Total revenue for the reporting period increased by 30.71% to 429,589,921.89 from 328,651,865.72 in the same period last year[21] - The company's net profit for the first quarter of 2021 is expected to show significant changes compared to the same period last year[34] Assets and Liabilities - The total assets at the end of the reporting period were CNY 3,997,591,280.48, a 2.97% increase from CNY 3,882,273,181.59 at the end of the previous year[10] - The net assets attributable to shareholders at the end of the reporting period were CNY 3,057,509,238.36, up 3.33% from CNY 2,959,001,855.77 at the end of the previous year[10] - The total liabilities of the company are RMB 940.08 million, compared to RMB 923.27 million previously[49] - The total current assets as of March 31, 2021, amount to RMB 2.38 billion, showing a slight increase from RMB 2.38 billion on the previous date[43] - The total non-current assets were CNY 1,502,375,855.29, unchanged from the previous period[88] Cash Flow - The net cash flow from operating activities for Q1 2021 was CNY 173,928,071.94, an increase of 5.04% compared to CNY 165,577,116.28 in the same period last year[10] - Cash received from operating activities increased by 497.05% to 20,620,055.56, mainly due to government subsidies and increased employee loan recoveries[24] - Cash inflow from investment activities reached CNY 469.57 million, significantly higher than CNY 326.54 million in the prior year, marking a 43.7% increase[80] - Cash outflow from investment activities was CNY 454.17 million, down from CNY 536.23 million, indicating a 15.3% decrease[80] - The ending balance of cash and cash equivalents was CNY 1,076.97 million, up from CNY 699.34 million, showing a 54% increase[82] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 15,993[14] - The company has utilized a total of RMB 813.76 million from the raised funds, with a net interest income of RMB 38.06 million as of March 31, 2021[33] - As of March 31, 2021, the balance of raised funds is RMB 51.16 million, including accumulated net interest income[33] Expenses and Costs - Operating costs rose by 47.62% to 127,893,037.17, primarily due to increased sales and higher trial production costs in Shanghai[21] - Research and development expenses for Q1 2021 amounted to ¥62,817,958.41, compared to ¥52,076,652.33 in Q1 2020, indicating a growth of 20.54%[62] - The company reported a 150.79% increase in interest expenses to 11,549,263.17, primarily due to higher long-term loan interest[21] Other Financial Metrics - The weighted average return on equity for Q1 2021 was 3.25%, an increase of 0.56% from 2.69% in the previous year[10] - The company reported a decrease in other comprehensive income, with a value of -RMB 307,797.66[52] - The total profit margin for the current period was approximately 38.3%, compared to 31.3% in the previous period, indicating improved profitability[69]

Financial Performance - The company's operating revenue for 2020 was ¥1,566,484,673.44, a decrease of 4.51% compared to ¥1,640,423,731.48 in 2019[24] - The net profit attributable to shareholders for 2020 was ¥277,020,898.87, down 29.36% from ¥392,142,681.13 in 2019[24] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥252,240,992.83, a decrease of 31.21% compared to ¥366,686,313.63 in 2019[24] - Basic earnings per share for 2020 were ¥0.48, down 28.36% from ¥0.67 in 2019[24] - The weighted average return on net assets was 9.63%, a decrease of 4.47% from 14.10% in 2019[24] - The total revenue for the company in 2020 was 1,566,484,673.44 CNY, a decrease of 4.51% compared to 1,640,423,731.48 CNY in 2019[64] - The company's net profit attributable to shareholders was 27,702.09 CNY, down 29.36% from 39,214.27 CNY in the previous year[64] - The company's sales revenue for 2020 was ¥1,426,854,461.78, a decrease of 3.39% compared to ¥1,476,848,730.85 in 2019[70] - The company's revenue from the pharmaceutical sector was 1,478,763,917.91 CNY, accounting for 94.40% of total revenue, with a decrease of 2.91% year-on-year[66] Cash Flow and Investments - The net cash flow from operating activities increased by 27.70% to ¥597,991,408.36 from ¥468,285,131.84 in 2019[24] - The company’s cash inflow from investment activities increased by 81.55% to ¥2,204,158,059.29 in 2020 from ¥1,214,076,135.35 in 2019[85] - Investment cash outflow increased by 27.78% to ¥2,412,114,628.76 compared to the previous period[88] - Net cash flow from investment activities improved by 69.13%, reaching -¥207,956,569.47[88] - Financing cash inflow rose by 82.48% to ¥318,863,542.98, driven by increased short-term and long-term borrowings[88] - The company established a wholly-owned subsidiary in the British Virgin Islands with an investment of $18 million (approximately ¥118,591,200.00) to expand overseas markets[74] Research and Development - Research and development expenses increased by 48.19% to 15,428.20 CNY from 10,411.20 CNY in 2019[64] - The annual report highlights the strategic importance of R&D in maintaining competitive advantage and meeting market demands[45] - The company aims to enhance market presence through innovation and product development, focusing on traditional Chinese medicine[42] - The company plans to increase R&D investment in new drugs, focusing on traditional Chinese medicine, natural products, and chemical drugs[135] - The company has made progress in new drug development, with several first-class new drugs in preclinical research and exploratory clinical studies approved for advanced cancer patients[141] Product Portfolio and Market Position - The company holds 218 drug approvals, including 46 exclusive varieties and 70 varieties listed in the national essential drug catalog[38] - The main products include Sanjin Pian, Xigua Shuang series, Xuenao, Tianqi, Hage, and Luo Han Guo Qing Fei granules/syrup, with a focus on traditional Chinese medicine[42] - Sanjin Pian is a national medical insurance Class A product, included in the national essential drug list and has shown significant therapeutic effects on urinary tract infections and chronic prostatitis[43] - The company has established a leading position in the fields of oral and throat medications and urological traditional Chinese medicine after over 50 years of development[52] - The company’s product portfolio includes OTC Class A products and national medical insurance directory products, indicating strong market presence[52] Risk Factors and Challenges - The company has faced risks including industry policy adjustments, raw material price fluctuations, and intensified market competition[7] - The company anticipates risks from industry policy changes, raw material price fluctuations, and intensified market competition, and will implement measures to mitigate these risks[135] - The company faced challenges in traditional sales channels due to the ongoing impact of COVID-19, with a significant risk of price reductions for drugs due to new medical insurance directory negotiations[138] Corporate Governance and Shareholder Returns - The company plans to distribute a cash dividend of ¥4 per 10 shares (including tax) to all shareholders[7] - The total distributable profit for 2020 was reported at 1,558,199,068.44 CNY, with the cash dividend constituting 100% of the profit distribution[150] - The company has committed to ensuring that cash dividends represent at least 20% of profit distribution during significant capital expenditure phases[150] - The company has adhered to its commitments regarding shareholder returns and has not engaged in non-operational fund occupation by controlling shareholders[150] Social Responsibility and Community Engagement - The company invested over 7.8 million yuan in social responsibility initiatives, including support for pandemic relief and poverty alleviation efforts in 2020[198] - In 2020, the company donated nearly 3 million yuan in medical supplies and support to frontline pandemic workers[198] - The company contributed 600,000 yuan to build an agricultural product trading center in a poverty-stricken village to help develop the local economy[198] - The company organized various employee welfare activities, including health check-ups and cultural events, to enhance employee well-being[198] - The company is committed to corporate citizenship and aims to balance economic benefits with social responsibilities in its future operations[198]