Financial Performance - The total revenue for 2021 was approximately ¥10.12 billion, representing a 15.19% increase compared to ¥8.78 billion in 2020[10]. - The net profit attributable to shareholders for 2021 was approximately ¥1.34 billion, an increase of 10.27% from ¥1.22 billion in 2020[10]. - The basic earnings per share for 2021 was ¥0.8044, reflecting a 10.27% increase from ¥0.7295 in 2020[10]. - The total assets at the end of 2021 were approximately ¥12.90 billion, a 12.29% increase from ¥11.49 billion at the end of 2020[10]. - The net assets attributable to shareholders at the end of 2021 were approximately ¥9.07 billion, a slight increase of 1.68% from ¥8.92 billion at the end of 2020[10]. - The weighted average return on equity for 2021 was 14.94%, up from 14.48% in 2020[10]. - The company achieved a total of 5 patents recognized in the "2021 China Family Essential Medicine" list[133]. - The company reported a significant increase in sales expenses, which rose by 13.14% to CNY 3.43 billion, primarily due to higher personnel costs and marketing expenses[144]. - The company achieved operating revenue of CNY 10,116,793,937.78, a year-on-year increase of 15.19%, and a net profit attributable to shareholders of CNY 1,343,856,007.91, up 10.27% year-on-year[96]. Cash Flow and Investment - The net cash flow from operating activities decreased by 66.67% to approximately ¥528.69 million, down from ¥1.59 billion in 2020[10]. - The net cash flow from investment activities improved by 51.28%, reaching -¥506,758,842.82, due to reduced fixed asset investments[150]. - The company’s cash and cash equivalents decreased by 153.90%, resulting in a net decrease of ¥280,691,785.36[149]. - The capitalized R&D investment decreased by 44.56% to ¥45,768,715.06, representing 5.46% of total R&D investment[148]. - The company has completed major investment construction content for its public offering projects, with some contract payments still outstanding[158]. Research and Development - The company has maintained its commitment to research and development, focusing on new products and technologies[10]. - The company is focusing on research and development in cardiovascular, respiratory, neurological, digestive, endocrine, immune, urological, gynecological, and pediatric fields, enhancing its product pipeline[70]. - The company has developed over ten national patent new drugs targeting major diseases such as cardiovascular, respiratory, tumors, diabetes, and neurological disorders, establishing a solid foundation for future growth[76]. - The company has invested CNY 837.93 million in R&D, accounting for 8.28% of its revenue, which is above the industry average[122]. - The company is enhancing its research and development capabilities, focusing on high-demand products and significant breakthroughs in drug development[174]. Market Position and Strategy - The company is committed to expanding its market presence and enhancing its product offerings in response to the growing healthcare demands driven by an aging population and increased health awareness[18]. - The company is actively pursuing the internationalization of traditional Chinese medicine, with ongoing registration efforts for its products in various countries[97]. - The company plans to continue integrating its resources in academic research, technological innovation, and marketing networks to drive growth over the next 5 to 20 years[167]. - The company is focusing on the research, production, and sales of patented traditional Chinese medicine as its main business direction[167]. - The company has established a nationwide academic marketing network, with dedicated departments for different market segments, including urban hospitals and retail[72]. Product Development and Innovation - The company has developed 13 patented new drugs, establishing a rich product portfolio, particularly in the fields of cardiovascular and respiratory diseases, where it holds a leading position in the industry[41]. - The company has established a comprehensive health industry system, integrating medical, pharmaceutical, and health management services, with a focus on health product development[44]. - The company has launched 11 new disinfection products and 7 protective products based on Lianhua Qingshen oil, expanding its health product line[145]. - The company is leveraging technology innovation to enhance the high-tech connotation of traditional Chinese medicine, contributing to its rapid development[84]. - The company is committed to developing innovative traditional Chinese medicine products and expanding its product lineup to cover 12 major systems[173]. Regulatory and Compliance - The company is committed to maintaining compliance with legal regulations and improving governance standards to protect investor interests[187]. - The company has established a clear and complete asset ownership structure, independent of the controlling shareholder[190]. - The company has not engaged in any related party transactions that would compromise its independence[190]. - The company has established stable supplier systems and safety stock warning systems for key raw materials to ensure supply stability[178]. - The company has been enhancing its internal control systems and governance structures to mitigate management risks associated with rapid expansion[180]. Market Trends and Challenges - The pharmaceutical industry is expected to experience steady growth due to rising consumption levels and an aging population, supporting long-term development[164]. - The company faces risks from industry policy adjustments, including price reductions and regulatory changes, which could impact performance[175][176]. - The implementation of new national standards has significantly increased the production costs of traditional Chinese medicine formula granules[178]. - The company is actively monitoring the market trends of traditional Chinese medicine materials, which include ginseng, scorpion, leech, and others, to control procurement costs and ensure stable supply[178]. - The company is positioned to benefit from favorable policies promoting the development of traditional Chinese medicine[165].