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].

Revenue and Profit - The company's revenue for Q3 2021 reached ¥2,215,505,872.40, representing a year-on-year increase of 13.01%[4] - Net profit attributable to shareholders was ¥259,549,700.23, a decrease of 14.02% compared to the same period last year[4] - Total operating revenue for the third quarter reached ¥8,111,597,900.32, an increase of 25.8% compared to ¥6,447,356,117.62 in the same period last year[15] - Net profit for the period was ¥1,222,795,539.76, representing a 20.5% increase from ¥1,014,766,683.73 in the previous year[17] - The company reported a total comprehensive income of ¥1,222,929,080.06, compared to ¥1,012,426,540.55 in the previous year, indicating a strong performance[17] Assets and Liabilities - The total assets at the end of the reporting period were ¥12,984,144,152.67, an increase of 12.98% from the end of the previous year[5] - The total assets of the company reached ¥12,984,144,152.67, up from ¥11,492,337,701.65 year-on-year, showing robust growth[15] - The company's total liabilities reached ¥4,031,223,159.40, compared to ¥2,568,984,805.44 in the previous year, reflecting a significant increase[15] - Non-current assets totaled RMB 7.09 billion, an increase from RMB 6.03 billion, indicating a growth of approximately 17.6%[14] Cash Flow - The cash flow from operating activities showed a net outflow of ¥279,291,885.87, a significant decrease of 82.16% compared to the previous year[9] - The total cash inflow from operating activities for the period was CNY 7,359,521,868.91, an increase of 3.69% compared to CNY 7,097,778,177.08 in the previous period[18] - The net cash outflow from operating activities was CNY 279,291,885.87, a significant decrease from CNY 1,565,162,395.79 in the previous period[18] - The cash inflow from investment activities totaled CNY 517,194,920.79, down from CNY 2,332,020,387.34 in the previous period, indicating a decline of approximately 77.8%[19] - The cash inflow from financing activities was CNY 2,399,805,833.33, a substantial increase from CNY 290,328,483.66 in the previous period[19] Research and Development - The company's R&D expenses increased by 37.96% to ¥537,590,964.63, reflecting a focus on innovation[9] - Research and development expenses increased to ¥537,590,964.63, a rise of 37.9% compared to ¥389,666,408.21 in the same period last year[16] Shareholder Information - The basic earnings per share for the period was ¥0.1554, down 14.02% year-on-year[4] - Basic earnings per share increased to ¥0.7324, compared to ¥0.6082 in the same period last year, marking a growth of 20.4%[17] - The company has a total of 1,428,000 shares of stock outstanding[12] Inventory and Receivables - The accounts receivable rose by 56.19% to ¥1,769,260,046.66, indicating increased sales activity[8] - Accounts receivable increased significantly to RMB 1.77 billion, up from RMB 1.13 billion, marking a growth of approximately 56.3%[13] - Inventory levels rose to RMB 1.62 billion, compared to RMB 1.58 billion, reflecting an increase of about 1.5%[13] Expenses - Total operating costs amounted to ¥6,718,420,007.78, up 27.2% from ¥5,281,693,269.35 year-on-year[16] - The company’s sales expenses rose to ¥2,795,771,783.69, an increase of 36.4% from ¥2,048,547,082.19 in the previous year[16] - The cash paid to employees and for employee benefits was CNY 1,577,112,890.60, an increase from CNY 1,003,880,984.45 in the previous period[18] - The cash paid for various taxes was CNY 991,720,675.33, up from CNY 771,677,766.24 in the previous period[18] Financing Activities - The long-term borrowings increased to ¥500,422,500.00, marking a 100% rise as the company sought additional financing[9] - Short-term borrowings increased to RMB 500.42 million from RMB 270.18 million, a rise of about 85.0%[14] - The net cash outflow from financing activities was CNY 281,766,922.15, compared to CNY 21,667,270.81 in the previous period[19]