天津力生制药股份有限公司 2021 年第三季度报告 证券代码：002393 证券简称：力生制药 公告编号：2021-038 天津力生制药股份有限公司 2021 年第三季度报告 本公司及其董事、监事、高级管理人员保证公告内容真实、准确和完整，公告不存在 虚假记载、误导性陈述或者重大遗漏。 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.第三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 | 本报告期比上年 同期增减 | 年初至报告期末 | 年初至报告期末 比上年同期增减 | | --- | --- | --- | --- | --- | | 营业收入（元） | 248,328,474.55 | -17.66% | 835,659,085.18 | -8.71% | | ...

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 587.33 million, a decrease of 4.32% compared to CNY 613.86 million in the same period last year[26]. - The net profit attributable to shareholders increased by 8.28% to CNY 61.25 million, up from CNY 56.57 million year-on-year[26]. - The net cash flow from operating activities decreased significantly by 44.86% to CNY 40.10 million, compared to CNY 72.73 million in the previous year[26]. - The total assets at the end of the reporting period were CNY 5.09 billion, reflecting a 1.38% increase from CNY 5.02 billion at the end of the previous year[26]. - The net assets attributable to shareholders increased by 0.98% to CNY 4.34 billion, compared to CNY 4.30 billion at the end of the previous year[26]. - The company achieved a 100% pass rate in product quality inspections during the first half of the year, maintaining high standards[46]. - The total profit for the first half of 2021 was CNY 75.17 million, compared to CNY 68.02 million in the same period of 2020, marking an increase of 10.5%[140]. - The company reported a comprehensive income total of CNY 86.62 million for the first half of 2021, up from CNY 71.16 million in the same period of 2020, reflecting a growth of 21.7%[144]. Research and Development - The company invested approximately 60 million yuan in research and development in the first half of 2021, focusing on the treatment of chronic diseases[43]. - Research and development expenses rose significantly by 49.98% to ¥59,886,219.54, reflecting increased investment in R&D projects[51]. - The company plans to continue investing in new product development and market expansion strategies to drive future growth[139]. - The R&D expenditure for the first half of 2021 was approximately 200 million yuan, accounting for 7.1% of total revenue, aimed at enhancing product pipeline[156]. Market Strategy and Compliance - The company plans to enhance compliance management and adjust operational strategies in response to ongoing national healthcare reforms and procurement policies[7]. - The company is focusing on accelerating the consistency evaluation of its generic drugs to maintain market competitiveness amid expanding centralized procurement[8]. - The company is adapting to the evolving pharmaceutical industry landscape, focusing on compliance and quality to navigate increased competition and regulatory changes[38]. - The company is actively expanding its market presence by strengthening strategic partnerships with leading pharmaceutical distributors and enhancing its marketing capabilities[41]. Financial Management and Investments - The company does not plan to distribute cash dividends or issue bonus shares for the reporting period[13]. - The cash and cash equivalents decreased significantly by 420.92% to -¥78,528,654.83, indicating challenges in cash flow management[52]. - The company invested ¥42,591,546.75 during the reporting period, a significant increase of 115.00% compared to ¥18,817,655.88 in the same period last year[62]. - The ongoing construction project for the Cangzhou raw material drug base has seen an investment of ¥42,591,546.75, with a total actual investment of ¥127,936,383.61 to date[63]. Risks and Challenges - The company faces risks from ongoing national healthcare reforms, including volume-based procurement and consistency evaluations, which significantly impact drug R&D, production, and sales[70]. - Rising production costs due to stricter drug production and environmental standards pose a risk, prompting the company to implement lean production practices to enhance efficiency and reduce costs[72]. - The company anticipates continued price declines for generic drugs due to national procurement policies, leading to increased investment in new product development, particularly in the cardiovascular and chronic disease sectors[72]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 18,259[119]. - Tianjin Jinhao Pharmaceutical Co., Ltd. holds 51.36% of the shares, amounting to 93,710,608 shares[119]. - The company has not engaged in any securities or derivative investments during the reporting period[65][66]. - The company has not sold any significant assets or equity during the reporting period[67]. Asset and Liability Management - The total assets of the company reached 900,540,000 CNY, showing a robust asset base for future growth[162]. - The total liabilities stood at CNY 747,461,132.54, up from CNY 720,087,231.30, reflecting an increase of approximately 3.41%[132]. - The company's non-current assets totaled CNY 2,794,052,307.30, slightly up from CNY 2,777,812,908.95, indicating a growth of about 0.58%[131]. Corporate Governance and Compliance - The company has a history of compliance with regulatory requirements, as evidenced by its successful public listing and capital verification[167]. - The company has not implemented any stock incentive plans or employee stock ownership plans during the reporting period[79]. - There were no significant litigation or arbitration matters during the reporting period[92].

天津力生制药股份有限公司 2021 年第一季度报告全文 天津力生制药股份有限公司 2021 年第一季度报告 2021 年 04 月 1 天津力生制药股份有限公司 2021 年第一季度报告全文 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。 公司负责人徐道情、主管会计工作负责人王家颖及会计机构负责人(会计主 管人员)王家颖声明：保证季度报告中财务报表的真实、准确、完整。 2 天津力生制药股份有限公司 2021 年第一季度报告全文 第二节 公司基本情况 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） | 327,607,280.27 | 332,679,628.71 | -1.52% | | 归属于上市公司股东的净利润（元） | 36,054,500.57 | 34,252,525.69 | 5.26% ...

Financial Performance - The company reported a total revenue of CNY 1.14 billion in 2020, a decrease of 29.37% compared to CNY 1.62 billion in 2019[22]. - Net profit attributable to shareholders was CNY 8.62 million, down 95.42% from CNY 188.14 million in the previous year[22]. - The net cash flow from operating activities was CNY 76.37 million, a decline of 71.54% from CNY 268.33 million in 2019[22]. - The company’s total assets at the end of 2020 were CNY 5.02 billion, a decrease of 4.75% from CNY 5.27 billion at the end of 2019[22]. - The net assets attributable to shareholders were CNY 4.30 billion, down 2.60% from CNY 4.42 billion at the end of 2019[22]. - In Q4 2020, the company experienced a net loss of CNY 70.55 million, contrasting with profits in the first three quarters[26]. - The company reported a total operating revenue for 2020 of ¥1,140,837,555.39, a decrease of 29.37% compared to ¥1,615,276,373.24 in 2019[52]. - The revenue from tablets was ¥834,696,353.00, accounting for 73.17% of total revenue, with a year-on-year decline of 35.79%[53]. - The company achieved a gross margin of 61.48% in the pharmaceutical manufacturing sector, down by 10.80% from the previous year[55]. - The sales revenue in the North China region was ¥491,063,718.07, representing 43.04% of total revenue, with a decrease of 35.31% year-on-year[53]. Dividend Policy - The company reported a cash dividend of 1 RMB per 10 shares for a total of 182,454,992 shares as of December 31, 2020[12]. - The company plans to distribute a cash dividend of 1.00 yuan per 10 shares, totaling 18,245,499.20 yuan, which represents 211.78% of the net profit attributable to ordinary shareholders[115]. - The cash dividend policy has been executed in accordance with the company's articles of association, ensuring transparency and protection of minority shareholders' rights[114]. - The company has maintained a consistent cash dividend distribution over the past three years, with the 2020 distribution being the lowest compared to previous years[117]. Market Challenges and Strategies - The company faces risks from national medical system reforms, including volume-based procurement and price control policies, which may impact drug development and sales[7]. - The company anticipates continued pressure on drug prices due to national procurement policies, prompting increased investment in new product development in the cardiovascular and chronic disease sectors[11]. - The company emphasizes the importance of completing consistency evaluations for generic drugs to maintain market competitiveness, given the ongoing national drug procurement expansion[8]. - The company will strengthen compliance management and adjust operational strategies to adapt to industry policy changes and improve operational quality and efficiency[7]. - The company aims to optimize its product structure and accelerate the launch of new products to seize market opportunities and enhance sales quality[11]. Research and Development - The company is committed to innovation and aims to enhance its R&D capabilities to mitigate risks associated with long development cycles and high investment in new drug development[9]. - The company has a strong focus on building a high-quality R&D team and fostering collaboration to advance new product development and approval processes[9]. - The company plans to enhance innovation capabilities by increasing R&D investment and completing 4 active pharmaceutical ingredient projects within the year, improving supply chain control[104]. - The company is investing in R&D, with a budget allocation of RMB 100 million for the development of new drugs and technologies in the upcoming year[200]. Operational Efficiency - The company plans to implement lean production practices to improve efficiency and reduce production costs amid rising raw material prices and stricter production standards[10]. - The production efficiency of the packaging line improved by 24% through lean production initiatives[49]. - The company aims to improve production efficiency through lean management and effective cost control, with a focus on safety and quality management[105]. - Operational efficiency initiatives have led to a reduction in production costs by 10%, enhancing overall profitability[147]. Corporate Governance and Compliance - The company has established a risk management mechanism to improve operational quality and ensure compliance with annual budget goals[107]. - The company is committed to maintaining high standards in corporate governance with the recent appointments of independent directors[197]. - The company has made commitments to avoid any competition with Tianjin Lisheng Pharmaceutical, ensuring that its subsidiaries do not engage in competing activities[120]. - The company reported no non-operating fund occupation by controlling shareholders or related parties during the reporting period[122]. Community and Environmental Responsibility - The company provided financial support of 140,000 yuan to impoverished villages in Ninghe District as part of its poverty alleviation efforts[159]. - During the pandemic, the company and its affiliated enterprises donated over 52,500 yuan through 367 contributions[158]. - The company has a hazardous waste disposal capacity of 241.35 tons, with all waste managed according to national standards[163]. - The company is actively involved in community support and social responsibility initiatives, including disaster relief efforts[158]. Future Outlook and Growth Initiatives - The company is exploring potential mergers and acquisitions to enhance its product portfolio and market presence[200]. - Future outlook indicates a projected revenue growth of 10% for 2021, driven by new product launches and market expansion strategies[200]. - The company aims to introduce three new products in the next quarter, which are anticipated to contribute an additional 200 million RMB in revenue[147]. - The company is optimistic about future growth prospects, supported by its strategic initiatives and management expertise[196].

天津力生制药股份有限公司 2020 年第三季度报告全文 2020 年第三季度报告 2020 年 10 月 1 天津力生制药股份有限公司 2020 年第三季度报告全文 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。 公司负责人徐道情、主管会计工作负责人王家颖及会计机构负责 人(会计主管人员)王家颖声明：保证季度报告中财务报表的真实、准 确、完整。 2 天津力生制药股份有限公司 2020 年第三季度报告全文 天津力生制药股份有限公司 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 | | 本报告期末 | 上年度末 | | 本报告期末比上 年度末增减 | | --- | --- | --- | --- | --- | | 总资产（元） | 5,198,240,651.10 | 5,272,702,523.46 | | -1.41% | | 归属于上市公司股东的净资产（元） | 4,440, ...

Financial Performance - The company's operating revenue for the first half of 2020 was CNY 613,859,637.68, a decrease of 28.21% compared to CNY 855,026,310.95 in the same period last year[27]. - The net profit attributable to shareholders of the listed company was CNY 56,567,032.86, down 36.34% from CNY 88,856,429.54 year-on-year[27]. - The net cash flow from operating activities was CNY 72,730,531.90, a decline of 37.87% compared to CNY 117,061,094.58 in the previous year[27]. - The basic earnings per share decreased to CNY 0.31, down 36.73% from CNY 0.49 in the same period last year[27]. - The total profit was 68.02 million yuan, down 35.97% year-on-year, while net profit was 56.57 million yuan, a decline of 36.34%[45]. - The gross profit margin for the pharmaceutical segment was 63.95%, down 7.33% year-on-year, with a revenue decrease of 28.21% and a cost reduction of 9.88%[55]. - The company reported a net increase in cash and cash equivalents of ¥24,470,144.15, a decline of 25.22% compared to ¥32,721,329.76 in the previous year[54]. - The company reported a total investment of 69,996,000 RMB in the new coronavirus pharmaceutical raw materials and formulations project, with an actual investment of 63,661,740 RMB, achieving a progress rate of 90.95%[77]. Investment and Development - The company plans to increase investment in new product development, particularly in the cardiovascular and chronic disease sectors, to enhance market competitiveness[13]. - The company has committed to invest CNY 86,768,400 in various projects, with CNY 57,640,000 already invested[73]. - The company is currently constructing a new drug base, with a total investment of CNY 7,518,150 planned[66]. - The company has established a complete industrial chain by self-producing the raw materials needed for its main products, ensuring quality and reducing production costs[41]. - The company plans to enhance market expansion by adjusting marketing strategies and increasing coverage in grassroots medical and retail terminals[48]. Compliance and Risk Management - The company will strengthen compliance management and adjust operational strategies in response to ongoing healthcare reforms and procurement policies[8]. - The company is facing risks from industry policy changes, including national medical system reforms and centralized procurement, which may significantly impact drug R&D, production, and sales[83]. - The company emphasizes the importance of completing the consistency evaluation of generic drugs to maintain market competitiveness, as failure to do so could lead to a loss of market share[84]. - The company has committed to ensuring that any transactions with related parties will adhere to fair market principles and will be conducted at reasonable prices[96]. Environmental and Social Responsibility - The company provided financial support of 70,000 RMB to poverty-stricken villages in Ninghe District, Banjiao Town[130]. - The company has established a closed and hardened hazardous waste storage facility, compliant with national standards[127]. - The company has implemented an emergency response plan for environmental incidents, approved by the local environmental bureau[127]. - The total hazardous waste generated in the first half of 2020 was 74.8 tons, with proper disposal measures in place[127]. Shareholder and Equity Information - The company did not distribute cash dividends or issue bonus shares for the reporting period[15]. - The company has a total of 182,454,992 shares, with 100% being unrestricted shares[141]. - The company has 19,209 ordinary shareholders as of the report date[143]. - The company has not reported any major changes in its subsidiaries during the reporting period[138]. - The company has not implemented any share repurchase or reduction during the reporting period[142]. Operational Efficiency - The company aims to improve production efficiency and reduce costs through lean production practices amid rising production costs[12]. - The company aims to improve cost control and efficiency through the application of OEE and TPM, focusing on improving yield and labor utilization rates[48]. - The company will conduct regular safety inspections to ensure stable safety production conditions and enhance quality management systems[48]. Research and Development - R&D investment decreased by 42.57% to ¥39,929,137.89 from ¥69,523,829.25 in the previous year, attributed to higher R&D spending in the same period last year[54]. - The company is committed to innovation and R&D to facilitate its transformation, despite the long and uncertain nature of drug development cycles[86]. - The implementation of centralized procurement policies is expected to lead to a decline in generic drug prices, which will pressure the company's sales; the company plans to increase R&D investment in new products targeting chronic diseases[88].

证券代码：002393 证券简称：力生制药 公告编号：2020-044 天津力生制药股份有限公司 关于举行"投资者网上集体接待日"活动公告 本公司及其董事、监事、高级管理人员保证公告内容真实、准确和完整，公告不 存在虚假记载、误导性陈述或者重大遗漏。 天津力生制药股份有限公司（以下简称"公司"）为便于广大投资者更深入全面地了解 公司情况，公司定于 2020 年 6 月 10 日（周三）15:00-16:30 举行"投资者网上集体接待日" 活动，现将有关事项公告如下： 本次"投资者网上集体接待日"活动将在深圳市全景网络有限公司提供的网上平台采取 网络远程的方式举行，投资者可登录"全景• 路演天下"（http://rs.p5w.net）参与本次互动 交流。 出席本次"投资者网上集体接待日"活动的人员有：董事、总经理王福军先生，独立董 事田昆如先生，董事会秘书马霏霏女士和副总会计师丁雪艳女士。 欢迎广大投资者积极参与。 特此公告。 天津力生制药股份有限公司 2020 年 6 月 5 日 ...

Financial Performance - The company's revenue for Q1 2020 was ¥332,679,628.71, a decrease of 23.43% compared to ¥434,462,480.17 in the same period last year[9] - Net profit attributable to shareholders was ¥34,252,525.69, down 22.90% from ¥44,426,621.86 year-on-year[9] - Operating revenue for the first quarter was CNY 332,679,628.71, a decrease of 23.43% year-on-year, primarily due to the impact of the COVID-19 pandemic and the "4+7" centralized procurement policy[19] - Net profit attributable to shareholders was CNY 34,252,525.69, down 22.90% compared to the same period last year, influenced by reduced hospital visits for non-emergency patients and lower drug prices[20] - Operating profit for the period was CNY 36,092,879.40, a decrease of 31.52% year-on-year, mainly due to reduced revenue[14] - Total operating revenue for Q1 2020 was CNY 332,679,628.71, a decrease of 23.4% compared to CNY 434,462,480.17 in Q1 2019[40] - Net profit for Q1 2020 was CNY 40,671,488.45, compared to CNY 52,558,312.26 in Q1 2019, reflecting a decrease of 22.6%[41] - The operating profit for Q1 2020 was CNY 45.40 million, a decline of 16.5% from CNY 54.38 million in Q1 2019[44] Cash Flow - The net cash flow from operating activities increased by 71.99% to ¥86,913,363.60, compared to ¥50,535,196.57 in the previous year[9] - Cash flow from operating activities increased by 71.99% year-on-year to CNY 86,913,363.60, attributed to decreased cash outflows from operating activities[20] - Cash and cash equivalents increased by 64.44% year-on-year to CNY 68,640,998.25, driven by the net cash flow from operating activities[14] - The net cash flow from operating activities increased to ¥67,895,733.15, up from ¥36,416,619.29 in the previous period, representing an increase of approximately 86.5%[51] - Total cash inflow from operating activities was ¥160,541,282.15, compared to ¥172,028,815.96 in the previous period, showing a decrease of about 6.5%[51] - Cash outflow from operating activities decreased to ¥92,645,549.00 from ¥135,612,196.67, a reduction of approximately 31.6%[51] Assets and Liabilities - Total assets at the end of the reporting period were ¥5,283,753,002.12, a slight increase of 0.21% from ¥5,272,702,523.46 at the end of the previous year[9] - Total assets as of March 31, 2020, amounted to CNY 5,283,753,002.12, slightly up from CNY 5,272,702,523.46 at the end of 2019[35] - Total liabilities decreased to CNY 834,112,867.19 from CNY 855,854,757.03 at the end of 2019, indicating a reduction of 2.4%[35] - The company reported a total asset value of ¥5,272,702,523.46, with total liabilities amounting to ¥855,854,757.03[57] - The total liabilities and owner's equity combined also amounted to approximately 3.56 billion, consistent with total assets[61] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 19,326[13] - The largest shareholder, Tianjin Jinhao Pharmaceutical Co., Ltd., holds 51.36% of the shares, totaling 93,710,608 shares[13] - The company did not engage in any repurchase transactions among the top 10 shareholders during the reporting period[14] Research and Development - The company's R&D expenses for the period were ¥20,248,379.12, a decrease of 46.73% compared to the previous year, primarily due to reduced spending on consistency evaluation[17] - Research and development expenses for Q1 2020 were CNY 20,248,379.12, down 46.8% from CNY 38,012,990.53 in Q1 2019[41] - The company reported a significant decrease in R&D investment, with expenses for Q1 2020 at CNY 10.16 million, compared to CNY 26.77 million in the previous year[44] Other Financial Metrics - Other income for the period was CNY 4,649,374.82, a significant increase of 2508.21% year-on-year, mainly due to government subsidies received[14] - Cash paid for purchasing goods and services was CNY 20,848,006.61, a decrease of 55.76% year-on-year, primarily due to an increase in acceptance bill payments[14] - Cash paid for fixed assets and other long-term assets was CNY 18,051,883.41, an increase of 125.41% year-on-year, as the company made payments for construction projects[21] - The company reported a decrease in sales expenses to CNY 30.40 million from CNY 53.91 million, reflecting cost-cutting measures[44] - The financial income for Q1 2020 included interest income of CNY 5.96 million, compared to CNY 2.09 million in the same period last year[44] Future Considerations - The company has implemented new revenue and leasing standards, which may affect future financial reporting[62] - The company has not yet audited the first quarter report, indicating that the figures may be subject to change[62]

Financial Performance - The company's operating revenue for 2019 was ¥1,615,276,373.24, representing a year-on-year increase of 7.43% compared to ¥1,503,607,407.43 in 2018[26]. - The net profit attributable to shareholders for 2019 was ¥188,137,401.05, a 1.71% increase from ¥184,977,556.78 in 2018[26]. - The net profit after deducting non-recurring gains and losses was ¥179,428,523.91, which is a 9.93% increase from ¥163,215,295.40 in 2018[26]. - The net cash flow from operating activities increased by 64.93% to ¥268,326,346.27 in 2019, compared to ¥162,686,709.87 in 2018[26]. - The total assets at the end of 2019 were ¥5,272,702,523.46, reflecting a 34.60% increase from ¥3,917,201,547.49 at the end of 2018[27]. - The net assets attributable to shareholders increased by 37.50% to ¥4,416,847,766.43 at the end of 2019, compared to ¥3,212,355,312.03 at the end of 2018[27]. - The basic earnings per share for 2019 was ¥1.03, up 1.98% from ¥1.01 in 2018[26]. - The weighted average return on equity for 2019 was 4.06%, down from 5.88% in 2018, indicating a decrease of 1.82%[26]. - The company reported non-recurring gains of ¥8,708,877.14 for 2019, compared to ¥21,762,261.38 in 2018[33]. - In 2019, the company achieved a total revenue of CNY 1.615 billion, representing a year-on-year growth of 7.43%[44]. - The total profit amounted to CNY 217 million, an increase of 1.31% compared to the previous year[44]. - The net profit attributable to shareholders reached CNY 188 million, reflecting a growth of 1.71% year-on-year[44]. Cash Dividend - The company reported a cash dividend of 3 RMB per 10 shares for the year ending December 31, 2019, based on a total share capital of 182,454,992 shares[15]. - The cash dividend for 2019 represented 29.09% of the net profit attributable to the company's ordinary shareholders, which was 188,137,401.05 CNY[139]. - The cash dividend for 2018 accounted for 29.59% of the net profit attributable to the company's ordinary shareholders, which was 184,977,556.78 CNY[139]. - The cash dividend for 2017 was 46.86% of the net profit attributable to the company's ordinary shareholders, which was 116,817,244.27 CNY[139]. - The company has a clear and transparent cash dividend policy, with all necessary decision-making processes in place[136]. - The company has not proposed any changes to the cash dividend distribution plan for the reporting period[140]. - The total distributable profit for the reporting period was 775,731,463.09 CNY, with the cash dividend accounting for 100% of the profit distribution[140]. Research and Development - The company is focusing on R&D innovation to drive transformation, acknowledging the long and uncertain nature of drug development cycles[10]. - The company will strengthen its R&D team and management to mitigate risks associated with new product development and ensure timely project progress[10]. - The company invested in 39 products for consistency evaluation, with 2 products successfully passing on-site inspections[47]. - The company is focusing on the development of cardiovascular drugs and enhancing cooperation with renowned research institutions for new drug development[70][71]. - The company has initiated quality and efficacy consistency evaluations for key products to align with original research products[69]. - The company’s R&D expenses increased by 30.89% to ¥123,429,084.19, representing 7.64% of operating revenue[72]. - The number of R&D personnel increased by 15.29% to 377, making up 22.45% of the workforce[72]. - A new collaborative research and development system is being established to enhance R&D capabilities and quality, with a focus on building platforms for sustained-release technology and soft capsule technology[109]. - The company is investing in R&D to mitigate risks associated with new product development and is focusing on building a high-quality R&D team[127]. Market and Competition - The company faces risks from national medical system reforms, including volume-based procurement and price control policies, which may impact drug development and sales[7]. - The company emphasizes the importance of completing consistency evaluations for generic drugs to maintain market competitiveness, given the ongoing national drug procurement expansion[8]. - The pharmaceutical industry is expected to face both favorable and unfavorable factors in 2020, with ongoing reforms and cost control measures impacting market dynamics[37]. - The company is actively responding to the new market dynamics post "4+7" volume-based procurement policy by optimizing its product and channel resources[106]. - The company is transitioning from a manufacturing-focused entity to a high-end generic drug R&D and production company[53]. - The company is under pressure to complete the consistency evaluation of generic drugs, which is critical for maintaining market share amid expanding centralized procurement[125]. - The company is facing risks from industry policy changes, including drug procurement and pricing policies, which may impact its operations and market competitiveness[124]. Operational Efficiency - Rising production costs due to stricter standards and environmental regulations pose a significant risk, prompting the company to implement lean production practices[11]. - The company aims to enhance product competitiveness through structural optimization and marketing reforms to adapt to market changes[12]. - The company aims to enhance its production efficiency and reduce operational costs in response to increasing raw material and labor costs, as well as stricter regulatory requirements[105]. - The company is focusing on lean management to improve production efficiency and is accelerating the automation and digitalization of production processes[117]. - The company anticipates rising production costs due to stricter standards and is implementing lean production practices to enhance efficiency and reduce costs[128]. Environmental Compliance - The company is classified as a key pollutant discharge unit by environmental protection authorities[179]. - The company has received approval for the environmental impact assessment of its expansion project, indicating compliance with regulatory requirements[181]. - An emergency response plan for environmental incidents has been filed and approved by the local environmental protection bureau[181]. - The company has obtained a pollution discharge permit and is conducting regular monitoring as per the permit requirements[181]. - The company is committed to environmental protection and has implemented measures for pollution prevention and control[180]. - The company is actively pursuing the establishment of a national-level green factory and enhancing daily monitoring of wastewater and exhaust treatment systems to ensure compliance with emission standards[115]. Strategic Initiatives - The company has committed to eliminating potential competition through asset restructuring and mergers within five years[141]. - The company plans to integrate its chemical drug manufacturing businesses to avoid competition with its own operations[141]. - The company has completed the transfer of its subsidiary Taihe Pharmaceutical to a third party to eliminate competition concerns[141]. - The company has established regulatory agreements with banks to manage and protect the raised funds, ensuring compliance with legal requirements[90]. - The company is currently involved in significant non-equity investments, including the Cangzhou raw material drug construction project[86]. - The company has designated certain equity investments as "measured at fair value with changes recognized in other comprehensive income" under new accounting standards[82]. Social Responsibility - The company actively participates in social responsibility initiatives, including disaster relief and community support[175]. - The company has a plan for targeted poverty alleviation, with a cadre assigned to assist a poverty-stricken village[176]. - The company plans to continue its poverty alleviation efforts in the future[178].

Financial Performance - The company's operating revenue for 2019 was ¥1,615,276,373.24, representing a year-on-year increase of 7.43% compared to ¥1,503,607,407.43 in 2018[6]. - The net profit attributable to shareholders for 2019 was ¥188,137,401.05, a 1.71% increase from ¥184,977,556.78 in 2018[6]. - The net profit after deducting non-recurring gains and losses was ¥179,428,523.91, which is a 9.93% increase from ¥163,215,295.40 in 2018[6]. - The net cash flow from operating activities increased by 64.93% to ¥268,326,346.27 in 2019, compared to ¥162,686,709.87 in 2018[6]. - The total assets at the end of 2019 were ¥5,272,702,523.46, reflecting a 34.60% increase from ¥3,917,201,547.49 at the end of 2018[28]. - The net assets attributable to shareholders increased by 37.50% to ¥4,416,847,766.43 at the end of 2019, compared to ¥3,212,355,312.03 at the end of 2018[28]. - The basic earnings per share for 2019 was ¥1.03, up 1.98% from ¥1.01 in 2018[6]. - The weighted average return on equity for 2019 was 4.06%, down from 5.88% in 2018, indicating a decrease of 1.82%[6]. - In 2019, the company achieved a total revenue of CNY 1.615 billion, representing a year-on-year growth of 7.43%[44]. - The total profit amounted to CNY 217 million, an increase of 1.31% compared to the previous year[44]. Dividend Policy - The company reported a cash dividend of 3 RMB per 10 shares for the year ending December 31, 2019, based on a total share capital of 182,454,992 shares[15]. - The cash dividend for 2019 represents 29.09% of the net profit attributable to the company's ordinary shareholders, which is 188,137,401.05 yuan[140]. - The company maintained a consistent cash dividend policy over the past three years, with the same cash dividend amount of 54,736,497.60 yuan for each year from 2017 to 2019[139]. - The total distributable profit for the year is reported at 775,731,463.09 yuan, with the cash dividend accounting for 100% of the profit distribution[141]. - The cash dividend distribution process has been completed in accordance with the established procedures and mechanisms, ensuring the rights of minority shareholders are upheld[136]. Market and Operational Challenges - The company faces risks from national medical system reforms, including volume-based procurement and price control policies, which may impact drug development and sales[7]. - The company anticipates ongoing pressure on drug prices due to national procurement policies and is increasing investment in new product development, particularly in the cardiovascular and chronic disease sectors[12]. - The COVID-19 pandemic has affected hospital visits for non-emergency patients, impacting the demand for chronic disease medications and potentially delaying clinical trials[14]. - The company is actively working to mitigate the adverse effects of the pandemic on its operations while striving to meet annual performance targets[14]. - The company anticipates that the pharmaceutical industry will face both favorable and unfavorable factors in 2020, with ongoing reforms and cost control measures impacting growth[37]. Research and Development - The company is focusing on R&D innovation to drive transformation, with a commitment to building a high-quality R&D team and a combination of independent and collaborative research[10]. - The company invested in 39 products for consistency evaluation, with 2 products passing on-site verification, and 7 new projects initiated[47]. - The company is increasing R&D investment in the cardiovascular and chronic disease sectors, aiming to enrich its product line through self-research, collaboration, and acquisitions[112]. - The company has initiated the quality and efficacy consistency evaluation for key products, aiming to align its products with original research products[70]. - The company completed the construction of controlled-release technology platform, soft capsule technology platform, and lyophilized powder injection platform to enhance R&D capabilities[110]. Production and Cost Management - The company aims to enhance production efficiency and reduce costs through lean production practices in response to rising production factor costs and stricter regulatory requirements[11]. - The company reported a significant increase in raw material costs, which rose by 19.34% to ¥199,297,100.32, now accounting for 44.51% of total operating costs[63]. - The company is committed to enhancing production efficiency and reducing costs through lean production practices in response to rising production factor costs[129]. - The company plans to enhance production efficiency and reduce operational costs to improve risk resilience[106]. Compliance and Regulatory Matters - The company emphasizes the importance of compliance with increasing regulatory standards in drug safety and environmental protection[106]. - The company has maintained a 100% compliance rate in product quality market sampling inspections[49]. - The company has established regulatory agreements with banks to manage and protect the raised funds[91]. - The company has adopted new financial instrument standards effective January 1, 2019, impacting accounting policies and estimates[148]. Strategic Initiatives and Market Expansion - The company is focused on producing a range of pharmaceutical products, including chemical tablets and injections, and aims to leverage opportunities in the evolving healthcare market[36]. - The company aims to expand its market presence by developing untapped markets and strengthening strategic partnerships with mainstream commercial companies[108]. - The company will focus on new product launches and optimize its marketing strategies in response to the "4+7" volume-based procurement policy[107]. - The company has established a wholly-owned subsidiary, Hebei Kunlun Pharmaceutical Co., Ltd., to expand its operational capabilities[104]. Social Responsibility and Community Engagement - The company actively participates in social responsibility initiatives, including disaster relief and community support[178]. - The company has appointed a cadre to assist in poverty alleviation efforts in a local village[179]. Shareholder and Corporate Governance - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties during the reporting period[147]. - The company has established a framework to ensure fair and reasonable pricing in transactions with its controlling shareholders[145]. - The company has committed to avoiding competition with Tianjin Lifesun in its operations, ensuring equal treatment in transactions with subsidiaries[145].