中准会计师事务所（特殊普通合伙） Zhongzhun Certified Public Accountants 关于对吉药控股集团股份有限公司的关注函的回复 深圳证券交易所创业板公司管理部： 根据贵部下发的关于对吉药控股集团股份有限公司（以下简称"吉药控股" 或"公司"）的关注函（创业板关注函〔2023〕第 39 号）的要求，中准会计师 事务所（特殊普通合伙）（以下简称"本所"）组织相关人员，对贵部关注函中 提及的问题，严格按照要求进行认真、详细的核查，就相关事项回复如下： 问题 2：业绩预告显示，公司收到业绩补偿款、大股东豁免公司债务、子公 司少数股权被司法拍卖等事项预计将累计增加公司净资产 94,559.21 万元；上 述事项未经过会计师事务所审计，能否增厚 2022 年末净资产尚存在重大不确定 性。 请你公司结合上述事项的筹划、决策及执行过程、商业合理性、程序合法合 规性以及是否存在应披露未披露的"抽屉协议"或其他交易安排等，充分说明相 关事项会计处理的确认依据及其合理性，并明确说明公司是否可能因此承担其 他或有债务、上述事项是否存在前提条件或后续安排、上述事项是否与公司正在 筹划的重大事项（如有）为一 ...

根据贵部下发的关于对吉药控股集团股份有限公司（以下简称"吉药控股" 或"公司"）的关注函（创业板关注函〔2023〕第 4 号）的要求，中准会计师 事务所（特殊普通合伙）（以下简称"本所"）组织相关人员，对贵部关注函中 提及的问题，严格按照要求进行认真、详细的核查，就相关事项回复如下： 深圳证券交易所创业板公司管理部： 中准会计师事务所（特殊普通合伙） Zhongzhun Certified Public Accountants 关于对吉药控股集团股份有限公司的关注函的回复 问题 1：公告显示，2022 年 12 月 13 日，朱余勇通过京东网络司法拍卖平 台，以 2,401 万元竞得公司子公司吉林金宝药业股份有限公司（以下简称金宝药 业）48%股权；2022 年 12 月 25 日，吉林股权交易所股份有限公司通化分公司出 具了《股东名册》，朱余勇已完成金宝药业股东的股权变更。前期公司公告显示， 朱余勇系吉林省梅河建设发展有限公司（以下简称梅河建设）的法定代表人，梅 河建设控股股东为梅河口市财政局。 （3）请你公司说明金宝药业股权拍卖事项预计对你公司 2022 年期末净资 产、净利润的影响，相关会计处理的具体依 ...

Financial Performance - The company's operating revenue for the first half of 2022 was ¥252,384,269.57, a decrease of 27.70% compared to ¥349,067,582.49 in the same period last year[19]. - The net loss attributable to shareholders was ¥242,755,819.26, which is a 3.58% increase from a loss of ¥234,362,969.48 in the previous year[19]. - The net cash flow from operating activities decreased significantly by 85.66%, amounting to ¥5,708,151.55 compared to ¥39,800,916.49 in the same period last year[19]. - The total assets at the end of the reporting period were ¥2,330,896,451.68, reflecting a decrease of 3.47% from ¥2,414,668,261.93 at the end of the previous year[19]. - The company's net assets attributable to shareholders decreased by 57.31%, amounting to -¥666,358,923.95 compared to -¥423,603,104.69 at the end of the previous year[19]. - Basic and diluted earnings per share were both -¥0.3645, a decline of 3.58% from -¥0.3519 in the same period last year[19]. - The weighted average return on net assets plummeted to 44.54%, down 212.01% from 256.55% in the previous year[19]. - The net profit for the reporting period was -248,529,963.75 CNY, with a net profit attributable to shareholders of the parent company at -242,755,819.26 CNY[57]. - The total comprehensive income for the first half of 2022 was -248,529,963.75 CNY, compared to -237,103,562.87 CNY in the first half of 2021[145]. - The company reported a net profit of 1,471.99 million yuan, which is a decline of 4.2% year-over-year[160]. Cash Flow and Liquidity - Cash and cash equivalents decreased to ¥20,704,584.8, accounting for 0.89% of total assets, down from 1.06% last year[40]. - The net cash flow from operating activities fell sharply by 85.66% to ¥5.71 million from ¥39.80 million year-on-year, attributed to a decline in sales scale[36]. - The cash inflow from operating activities was significantly lower in 2022, with only 596,799.03 yuan received compared to 4,995,337.53 yuan in 2021, a decrease of about 88.0%[154]. - The total cash inflow from investment activities was 340,864.00 yuan, up from 298,256.00 yuan in the first half of 2021, reflecting a growth of approximately 14.3%[155]. - The cash flow from financing activities resulted in a net outflow of -9,717.21 yuan for the first half of 2022, compared to -1,056,201.20 yuan in the same period of 2021, showing a substantial improvement[155]. Debt and Financial Distress - The company's debt-to-asset ratio stood at 130%, indicating significant financial distress[57]. - The company has faced overdue debts and has had multiple bank accounts frozen, with several assets being seized[57]. - The local government has established a risk disposal leadership group to assist the company in addressing its declining profitability and liquidity issues[58]. - The company is focusing on resolving its debt crisis and is in discussions with potential investors to inject capital and explore new profit growth opportunities[58]. - The company has reported a total debt of 11,381.71 million CNY related to a loan dispute with Jilin Coal Investment Co., Ltd.[84]. - The company is currently executing legal strategies to address these financial obligations and disputes[84][85]. Legal Issues - The company is currently involved in multiple legal disputes, including a case with Jiangsu Bank regarding a loan default, which has been accepted by the Changchun Intermediate People's Court[86]. - The company has received a civil mediation document from the court regarding a lawsuit filed by Jiangsu Bank, indicating ongoing legal challenges[86]. - The company is facing a lawsuit from Anhui Jiayou for alleged debt defaults, with the case being processed by the Meihekou People's Court[87]. - The company is actively managing multiple legal disputes related to loan defaults, indicating potential financial strain[83]. - The ongoing litigation may impact the company's future financial performance and strategic decisions[83]. Operational Strategies - The company plans to integrate existing resources and revise its production and operational strategies to reduce costs and enhance sales channels[59]. - The company aims to improve its operational efficiency by implementing new strategies and optimizing existing processes[161]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its product offerings[161]. Corporate Governance and Compliance - The company has established a robust corporate governance structure and continuously improves internal management and control systems[71]. - There were no non-operating fund occupations by controlling shareholders or other related parties during the reporting period[75]. - The company did not have any violations regarding external guarantees during the reporting period[76]. - The semi-annual financial report has not been audited[77]. - The independent directors expressed agreement with the audit report, emphasizing the need for ongoing supervision of the company's management actions to protect shareholder interests[79]. Shareholder Information - The total number of shareholders at the end of the reporting period was 45,537, with no preferred shareholders having voting rights[119]. - The largest shareholder, Lu Zhongkui, holds 17.32% of the shares, totaling 115,334,302, with a pledge status on 115,136,932 shares[119]. - The total number of unrestricted shares held by the top shareholder, Jilin Province Bencao Hui Pharmaceutical Technology Co., Ltd., is 33,300,734 shares[121]. - The company has implemented a share repurchase program, although specific details on the progress were not disclosed[115]. Research and Development - Research and development investment decreased by 27.35% to ¥6.32 million compared to ¥8.70 million in the previous year[36]. - The company has allocated 230 million yuan for research and development in new technologies and products[161]. Market Position and Future Outlook - The company plans to enhance its market expansion strategies, focusing on new product development and technological advancements[161]. - Future guidance suggests a projected revenue growth of 10% for the next fiscal year, driven by new product launches[165].

Financial Performance - The company's operating revenue for 2021 was ¥684,752,355.71, representing a 5.58% increase compared to ¥648,546,128.84 in 2020[20] - The net profit attributable to shareholders for 2021 was a loss of ¥451,317,877.99, which is an 18.67% increase in loss from ¥380,305,063.00 in 2020[20] - The total profit amounted to -¥463,682,133.25, a decrease of 12.17% year-on-year[40] - The net profit attributable to shareholders was -¥451,317,877.99, down 18.67% from the previous year[40] - The company's total revenue for Q1 was approximately CNY 165.25 million, Q2 was CNY 183.81 million, Q3 was CNY 151.88 million, and Q4 was CNY 183.80 million[24] - The net profit attributable to shareholders for Q1 was a loss of CNY 34.34 million, Q2 was a loss of CNY 200.03 million, Q3 was a loss of CNY 72.00 million, and Q4 was a loss of CNY 144.96 million[24] - The total sales amount from the top five customers reached ¥141,115,870.01, accounting for 20.61% of the annual total sales[50] - The largest customer, Liaoning Ruijia Meicheng Pharmaceutical Co., Ltd., contributed ¥68,830,465.58, representing 10.05% of the annual sales[50] Cash Flow and Assets - The net cash flow from operating activities improved significantly to ¥33,159,137.37, compared to a negative cash flow of ¥141,792,383.33 in 2020, marking a 123.39% increase[20] - The total assets at the end of 2021 were ¥2,414,668,261.93, down 11.87% from ¥2,739,752,697.28 at the end of 2020[20] - The company's net assets attributable to shareholders were negative at ¥-423,603,104.69, a drastic decline of 1,445.98% from ¥31,471,734.56 in 2020[20] - The cash and cash equivalents net increase was -¥8,196,964.75, showing a 54.51% improvement compared to the previous year[59] - As of the end of 2021, cash and cash equivalents amounted to ¥25,653,885.9, representing 1.06% of total assets, down from 1.74% at the beginning of the year[62] - Accounts receivable decreased to ¥226,814,046, accounting for 9.39% of total assets, a decline of 3.63% from the previous year[62] - Inventory stood at ¥217,012,235, making up 8.99% of total assets, down by 1.67% compared to the start of the year[62] - Fixed assets increased to ¥678,156,559, representing 28.08% of total assets, an increase of 2.25%[62] Legal and Financial Challenges - The company has faced severe liquidity issues, leading to overdue loans and multiple lawsuits, which have significantly impacted operations[4] - The company reported that its net profit for the last three accounting years has been negative, indicating ongoing uncertainty regarding its ability to continue as a going concern[20] - The company is currently facing overdue debts and has experienced litigation and arbitration issues, with some bank accounts frozen[146] - The company is involved in multiple ongoing lawsuits, including a borrowing dispute with Nanjing Bank, with a claim amounting to 1,545.15 million.[158] - The company is actively pursuing new strategies and market expansions, although specific details were not disclosed in the provided content.[156] - The company’s legal disputes indicate a significant focus on financial management and risk mitigation in its operations.[156] - The company is currently involved in a legal dispute with Haitong Hengyun, with a claim amounting to 81.38 million yuan, which is still in execution[154] - The company has reached a settlement agreement with Haitong Hengyun regarding a lawsuit involving Jinbao Pharmaceutical, which was recognized as a defaulting borrower by China National Pharmaceutical Group.[156] Research and Development - Research and development expenses amounted to ¥16,631,400.91, representing 2.43% of the operating revenue[54] - The number of R&D personnel decreased by 7.48% to 136, while the proportion of R&D personnel increased to 11.90%[54] - The company is in the research phase for new product development, aiming to achieve new profit growth points[54] - The company has a focus on research and development in biochemistry and molecular biology, with several team members holding advanced degrees in these fields[98] Corporate Governance - The company has implemented a governance structure that ensures fair treatment of all shareholders, particularly minority investors, during decision-making processes[80] - The company has maintained compliance with relevant laws and regulations, ensuring that all related party transactions are conducted at fair prices without harming shareholder interests[80] - The company is committed to maintaining high standards of corporate governance and transparency in its operations[101] - The company has established a governance structure that includes a remuneration and assessment committee to oversee executive compensation[102] - The company has a structured remuneration decision-making process involving performance evaluations and approval from the board and shareholders[102] Market Position and Strategy - The company operates in the pharmaceutical industry, which is increasingly important due to the aging population in China, with 264 million people aged 60 and above[33] - The company focuses on the development and production of traditional Chinese medicine, aligning with national standards for modernization and internationalization[34] - The company aims to strengthen its management structure and talent development programs to support its growth strategy in the pharmaceutical sector[74] - The company plans to expand its market presence by focusing on the OTC market and enhancing the sales of innovative drugs, aiming for a broader reach in retail and terminal sales[74] Employee and Management Structure - The total number of employees at the end of the reporting period is 1,166, including 9 from the parent company and 1,157 from major subsidiaries[119] - The employee composition includes 641 production personnel, 172 sales personnel, 105 technical personnel, 45 financial personnel, and 203 administrative personnel[119] - The educational background of employees shows that there are 5 with a master's degree or above, 164 with a bachelor's degree, 226 with a college diploma, and 771 with education below college level[119] - The company has maintained a stable management team, with key executives holding their positions since 2017[94] Shareholder Engagement - The participation rate of investors in the first extraordinary shareholders' meeting of 2021 was 0.23%[84] - The participation rate of investors in the annual shareholders' meeting of 2020 was 0.22%[84] - The company held three extraordinary shareholders' meetings in 2021, with participation rates of 0.25% and 0.21% respectively[86] - The company has a complete profit distribution policy that aligns with its articles of association and shareholder resolutions[123] Future Outlook - The company is expected to provide further updates on its financial outlook and performance guidance in future communications.[156] - Future outlook remains uncertain due to ongoing litigation and financial constraints, which may affect growth prospects[162] - The company’s future outlook remains uncertain due to the potential financial implications of these lawsuits and ongoing legal proceedings[166]

Financial Performance - The company's operating revenue for 2021 was ¥684,752,355.71, an increase of 5.58% compared to ¥648,546,128.84 in 2020[20] - The net profit attributable to shareholders for 2021 was a loss of ¥451,317,877.99, representing an increase in loss of 18.67% from a loss of ¥380,305,063.00 in 2020[20] - The total profit for the company was -¥463,682,133.25, a decrease of 12.17% year-on-year, while the net profit attributable to shareholders was -¥451,317,877.99, down 18.67% from the previous year[38] - The basic earnings per share for 2021 was ¥-0.6776, worsening from ¥-0.5710 in 2020[20] - The company reported a net profit impact of over 10% from its major subsidiaries, including Jilin Jinbao and Tonghua Shuanglong Chemical Co., Ltd.[61] - The company reported a net loss attributable to the parent company increased from CNY -1,499,893,886.70 in 2020 to CNY -1,951,211,764.69 in 2021, indicating a worsening financial performance[198] Cash Flow and Liquidity - The net cash flow from operating activities improved significantly to ¥33,159,137.37, a 123.39% increase from a negative cash flow of ¥141,792,383.33 in 2020[20] - The total amount of cash inflow from operating activities decreased by 16.90% to CNY 602,422,300.78 in 2021[54] - The company reported a net decrease in cash and cash equivalents of CNY 8,196,964.75, an improvement of 54.51% compared to the previous year[55] - The company's cash and cash equivalents decreased from 47,607,953.74 yuan in 2020 to 25,653,885.94 yuan in 2021, a decline of approximately 46%[195] - The company's cash and cash equivalents dropped from CNY 131,400.93 in 2020 to CNY 36,970.94 in 2021, a decrease of about 72%[198] Assets and Liabilities - The total assets at the end of 2021 were ¥2,414,668,261.93, a decrease of 11.87% from ¥2,739,752,697.28 at the end of 2020[20] - The total liabilities increased, with short-term borrowings accounting for 37.56% of total assets at CNY 907,028,508[57] - Total assets decreased from CNY 2,739,752,697.28 in 2020 to CNY 2,414,668,261.93 in 2021, a decline of approximately 11.9%[196] - Total liabilities increased from CNY 2,712,552,815.99 in 2020 to CNY 2,865,398,522.51 in 2021, an increase of about 5.6%[197] - The company's total equity decreased significantly from CNY 27,199,881.29 in 2020 to CNY -450,730,260.58 in 2021, indicating a negative equity situation[198] Legal and Compliance Issues - The company faced severe liquidity issues, leading to overdue loans and multiple lawsuits, which significantly impacted operations[5] - The company is involved in multiple lawsuits, including a significant case with China Minmetals Health Industry Leasing Co., amounting to 4,511.54 million[138] - The company has ongoing litigation matters involving a borrowing dispute with an amount of 81.38 million yuan, which is currently being executed[136] - The company is actively managing its legal disputes to mitigate financial risks[137] - The company’s legal challenges are impacting its financial stability and operational focus[138] Research and Development - The company is currently developing one new drug, indicating ongoing investment in research and development[34] - The company's R&D investment in 2021 was CNY 11,264,141.84, accounting for 1.64% of operating revenue, down from 2.36% in 2020[52] - Research and development expenses amounted to CNY 16,631,400.91, reflecting a 1.24% increase year-on-year[50] - The number of R&D personnel decreased by 7.48% to 136 in 2021, while the proportion of R&D personnel to total employees increased to 11.90%[52] - The company has established partnerships with leading research institutions to foster innovation and accelerate product development[82] Market and Industry Position - The pharmaceutical industry in China is experiencing significant growth due to an aging population, with 264 million people aged 60 and above, representing 18.7% of the total population[32] - The company operates in a highly regulated pharmaceutical industry, which presents both challenges and opportunities for growth[33] - The company has approximately 170 drug production licenses, including 61 products listed in the national medical insurance catalog[34] - The company’s pharmaceutical segment includes a diverse range of dosage forms, such as tablets, capsules, and injections, catering to various medical needs[34] - The company is focused on performance evaluation and remuneration distribution based on operational performance and job responsibilities[91] Governance and Shareholder Engagement - The governance structure is compliant with relevant laws and regulations, ensuring independent decision-making and operational autonomy from controlling shareholders[75] - The board consists of 5 members, including 2 independent directors, ensuring compliance with governance standards[73] - The company maintains transparency in information disclosure, providing equal access to information for all shareholders[74] - The company held three shareholder meetings during the reporting period, with investor participation rates of 0.23%, 0.22%, and 0.25% respectively[76][77][79] - The company has a commitment to transparency, as evidenced by the independent opinions expressed by independent directors during board meetings[94] Strategic Initiatives - The company aims to establish a comprehensive pharmaceutical group strategy, focusing on pharmaceutical manufacturing, commercial services, and healthcare industries[66] - The company plans to enhance its management, particularly in the OTC market sales and innovative drug development[66] - The company is committed to enhancing shareholder value through strategic initiatives and improved financial performance[82] - The company is exploring new strategies to enhance its market position amidst ongoing legal issues[139] - The company has implemented a comprehensive compensation system to enhance employee engagement and retention[121]

Financial Performance - The company's revenue for Q1 2022 was ¥118,015,687.61, a decrease of 28.59% compared to ¥165,254,931.72 in the same period last year[4] - The net profit attributable to shareholders was -¥52,149,950.90, representing a decline of 51.88% from -¥34,336,148.03 year-on-year[4] - Basic and diluted earnings per share were both -¥0.0783, a decrease of 51.74% compared to -¥0.0516 in the same period last year[4] - Total operating revenue for the first quarter was ¥118,015,687.61, a decrease of 28.5% compared to ¥165,254,931.72 in the previous period[25] - The net loss for the quarter was ¥52,275,394.38, compared to a net loss of ¥35,478,050.15 in the same period last year, indicating a worsening of 47.2%[28] - The operating profit (loss) was reported at -¥45,639,354.14, compared to -¥34,548,937.69 in the previous year[25] Cash Flow - The net cash flow from operating activities was ¥3,897,872.36, down 80.59% from ¥20,078,180.87 in the previous year[4] - Cash inflows from operating activities totaled ¥91,580,873.55, down from ¥147,564,850.90, a decline of 38.0%[32] - The total cash outflow from operating activities amounted to ¥87,683,001.19, down from ¥127,486,670.03, indicating a reduction of 31.2%[34] - Cash received from sales of goods and services was ¥77,852,688.53, down 35% from ¥118,931,499.72 in the same period last year[8] - Cash and cash equivalents decreased to CNY 13,032,765.01 from CNY 25,653,885.94, representing a decline of about 49.1%[20] Assets and Liabilities - Total assets at the end of the reporting period were ¥2,406,468,647.56, a slight decrease of 0.34% from ¥2,414,668,261.93 at the end of the previous year[4] - The total liabilities increased to ¥2,909,474,302.52 from ¥2,865,398,522.51, reflecting a rise of 1.5%[24] - The equity attributable to shareholders was -¥475,753,055.59, a decrease of 12.31% from -¥423,603,104.69 at the end of the previous year[4] - Current assets totaled CNY 655,508,655.18, compared to CNY 646,447,197.41 at the beginning of the year, indicating a growth of approximately 1.64%[22] Expenses - The company reported a significant increase of 1413% in non-operating expenses, totaling ¥4,587,516.92, primarily due to penalties related to overdue financing leases and entrusted loans[8] - Total operating costs decreased to ¥163,961,790.14 from ¥200,148,795.52, reflecting a reduction of 18.0%[25] - The company reported a financial expense of ¥37,711,830.27, which increased from ¥30,427,505.34, marking a rise of 23.5%[25] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 62,271[11] - The company reported a total of 183,183,563 restricted shares, with 64,842,560 shares released during the period[16] Research and Development - The company has ongoing research and development efforts, although specific new products or technologies were not detailed in the provided content[19] Audit and Reporting - The company did not conduct an audit for the first quarter report[37] - The report was released on June 28, 2022, indicating the company's commitment to timely financial disclosures[37]

Financial Performance - The company's operating revenue for 2021 was ¥684,752,355.71, an increase of 5.58% compared to ¥648,546,128.84 in 2020[20] - The net profit attributable to shareholders for 2021 was a loss of ¥451,317,877.99, representing an increase in loss of 18.67% from a loss of ¥380,305,063.00 in 2020[20] - The total profit amounted to -¥463,682,133.25, a decrease of 12.17% year-on-year[39] - The company reported a total revenue of ¥682,752,097.72 after deducting certain amounts, compared to ¥646,653,766.20 in 2020[22] - Total revenue for 2021 reached ¥684,752,355.71, representing a year-on-year increase of 5.58% compared to ¥648,546,128.84 in 2020[41] Cash Flow and Assets - The net cash flow from operating activities improved significantly to ¥33,159,137.37, a 123.39% increase from a negative cash flow of ¥141,792,383.33 in 2020[20] - The total assets at the end of 2021 were ¥2,414,668,261.93, a decrease of 11.87% from ¥2,739,752,697.28 at the end of 2020[20] - The company reported a net decrease in cash and cash equivalents of ¥8,196,964.75, an improvement of 54.51% compared to the previous year[59] - Operating cash inflow totaled ¥602,422,300.78 in 2021, down 16.90% from ¥724,950,200.70 in 2020[58] Shareholder and Dividend Information - The company plans not to distribute cash dividends or issue bonus shares for the year[5] - The company’s profit distribution policy was executed in accordance with its articles of association, ensuring transparency and protection of minority shareholders' rights[120] - The company did not distribute cash dividends or issue bonus shares for the reporting period due to negative distributable profits, ensuring long-term interests of all shareholders[120] Operational Challenges - The company faced significant operational impacts due to severe liquidity shortages, leading to overdue loans and multiple lawsuits[4] - The company is currently involved in multiple lawsuits due to overdue debts and defaults on loans from multiple financial institutions[158] - The company is expected to provide updates on its financial strategies in response to these legal challenges[158] Research and Development - The company is currently developing one new drug, indicating ongoing investment in research and development[35] - Research and development expenses for 2021 were ¥16,631,400.91, reflecting a 1.24% increase from ¥16,427,118.51 in 2020[53] - R&D investment amounted to ¥11,264,141.84 in 2021, representing 1.64% of operating revenue, a decrease from 2.36% in 2020[56] Market and Product Information - The company operates in the pharmaceutical industry, which is increasingly important due to the aging population in China, with 264 million people aged 60 and above[33] - The pharmaceutical sector contributed ¥473,067,414.23, accounting for 69.09% of total revenue, with an 8.16% increase from ¥437,357,587.39 in 2020[41] - The company’s pharmaceutical segment includes various dosage forms, such as tablets, capsules, and injections, highlighting its diverse product offerings[35] Governance and Compliance - The company strictly adheres to corporate governance regulations, ensuring compliance with laws and enhancing operational standards for sustainable growth[78] - The board of directors consists of 5 members, including 2 independent directors, fulfilling legal requirements for governance structure[79] - The company emphasizes transparency in information disclosure, ensuring all shareholders have equal access to relevant information[80] Legal and Financial Issues - The company is involved in multiple lawsuits due to overdue debts, including cases with China Minmetals and Nanjing Bank, with amounts of 4,511.54 million and 1,545.15 million respectively[156] - The company has acknowledged the ongoing execution of legal proceedings related to its financial obligations[156] - Ji Pharmaceutical Holdings is actively working to address its debt issues and is in discussions with creditors to find resolutions[162] Employee and Management Information - The total number of employees at the end of the reporting period was 1,166, including 9 from the parent company and 1,157 from major subsidiaries[117] - The total remuneration paid to the board of directors, supervisors, and senior management was 2.5269 million yuan in 2021[101] - The company conducted weekly training sessions for employees on production skills and safety knowledge[119]

Financial Performance - The company's operating revenue for Q3 2021 was ¥151,879,835.67, a decrease of 22.79% compared to the same period last year[3]. - The net profit attributable to shareholders was -¥71,999,121.20, down 35.60% year-on-year, while the year-to-date net profit reached -¥306,362,090.68, an increase of 54.24%[3]. - The company reported a net loss of ¥310,099,673.46 for the quarter, compared to a net loss of ¥206,130,118.79 in the same period last year, indicating a worsening of 50.5%[31]. - The gross profit margin decreased, with operating profit recorded at -¥279,789,227.91, compared to -¥200,894,770.26 in the previous year[29]. - Basic and diluted earnings per share were both reported at -0.4600, compared to -0.2982 in the previous year, indicating a decline in shareholder value[31]. Cash Flow and Liquidity - The cash flow from operating activities showed a net outflow of ¥66,334,718.94, representing a 139.97% decline compared to the beginning of the year[3]. - The company's cash flow from operating activities showed a significant decline, impacting liquidity and operational flexibility[33]. - The net cash flow from operating activities was ¥66,334,718.94, a significant improvement from the previous period's net cash flow of -¥165,976,746.60[34]. - Cash inflows from operating activities totaled ¥441,383,406.42, down 29.9% from ¥629,689,609.80 in the prior period[34]. - Cash outflows from operating activities decreased to ¥375,048,687.48, a reduction of 52.9% compared to ¥795,666,356.40 in the previous period[34]. - The ending balance of cash and cash equivalents was ¥8,103,627.77, down from ¥30,074,419.06 in the previous period[36]. Assets and Liabilities - The total assets at the end of the reporting period were ¥2,521,313,888.19, a decrease of 7.97% from the end of the previous year[3]. - The total assets decreased from ¥2,739,752,697.28 to ¥2,521,313,888.19, a decline of 8.0%[25]. - Total liabilities increased to ¥2,808,373,398.36 from ¥2,712,552,815.99, marking a rise of 3.5%[25]. - The company's total equity attributable to shareholders decreased to -¥274,890,356.12 from ¥31,471,734.56, reflecting a negative shift in financial health[25]. Shareholder Information - The total number of common shareholders at the end of the reporting period is 32,773[13]. - The largest shareholder, Sun Jun, holds 19.13% of shares, totaling 127,388,759 shares, with 95,541,569 shares pledged[13]. - The second-largest shareholder, Lu Zhongkui, holds 17.94% of shares, totaling 119,459,946 shares, with 115,334,235 shares pledged[13]. - The company has a significant number of shares pledged by major shareholders, indicating potential liquidity risks[13]. Income and Expenses - Financial expenses for the period amounted to ¥125,153,670.15, an increase of 43.62% year-on-year, attributed to overdue bank loans and rising interest rates[9]. - Other income decreased by 85.56% to ¥1,351,332.67, primarily due to a reduction in government subsidies received[9]. - The company reported an increase of 606.94% in non-operating income to ¥6,325,579.98, mainly due to tax reductions granted by the government[9]. - Research and development expenses were reported at ¥11,334,977.57, slightly up from ¥10,269,927.57, indicating continued investment in innovation[29]. Inventory and Receivables - The accounts receivable balance decreased by 29.11% to ¥252,894,778.39, mainly due to the provision for bad debts[8]. - Accounts receivable decreased to ¥252,894,778.39 from ¥356,718,305.95 at the end of 2020[21]. - Inventory increased to ¥297,571,442.08 from ¥291,929,087.26 at the end of 2020[21]. Future Outlook - The company is focusing on expanding its market presence and developing new products, although specific details were not provided in the report[18]. - Future guidance and performance outlook were not explicitly detailed in the available documents[18].

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 349,067,582.49, representing a 7.51% increase compared to CNY 324,692,559.89 in the same period last year[24]. - The net profit attributable to shareholders of the listed company was a loss of CNY 234,362,969.48, a decrease of 169.92% compared to a loss of CNY 86,825,896.39 in the previous year[24]. - The net cash flow from operating activities was CNY 39,800,916.49, a significant improvement of 124.03% from a negative cash flow of CNY 165,638,857.48 in the same period last year[24]. - The total assets at the end of the reporting period were CNY 2,543,146,292.37, down 7.18% from CNY 2,739,752,697.28 at the end of the previous year[24]. - The net assets attributable to shareholders of the listed company were negative CNY 202,891,234.92, a decrease of 744.68% compared to CNY 31,471,734.56 at the end of the previous year[24]. - The basic and diluted earnings per share were both negative CNY 0.3519, reflecting a decrease of 169.86% from negative CNY 0.1304 in the same period last year[24]. - The company reported a total revenue of 1,627,144,320.80 CNY for the first half of 2021, with a net loss of 161,052,072 CNY[61]. - The net loss for the first half of 2021 was CNY 237,103,562.87, worsening from a net loss of CNY 89,517,222.48 in the same period of 2020[166]. - The company's operating profit for the first half of 2021 was a loss of CNY 226,692,657.05, compared to a loss of CNY 83,593,206.77 in the first half of 2020[166]. Operational Strategy - The pharmaceutical segment is primarily driven by the transformation towards OTC terminal sales, with a focus on adjusting product structure and sales channels[36]. - The company has implemented a strategic task to expand cooperation with chain pharmacies and build a provincial-level pure sales pharmaceutical marketing network[38]. - The sales of pharmaceutical products have shown a downward trend in medical channels, while terminal product sales are gradually increasing[38]. - The company has tightened credit policies and gradually eliminated low-value-added products, effectively reducing inventory levels[38]. - The pharmaceutical commercial segment has achieved steady sales expansion, enhancing the integration of distribution and terminal sales[38]. - The company is focusing on new product development and has identified risks associated with long approval times and high costs in new drug research[65]. - The company plans to enhance promotional efforts and accelerate new product launches to mitigate market risks from declining sales of clinical products[66]. - The company is actively monitoring industry policy changes to manage operational risks effectively[65]. Financial Management - The company reported a significant increase in income tax expenses, which rose by 193.57% to ¥2,696,589.01 from ¥918,550.54 in the previous year[45]. - The company has a goodwill amount of 376,678,064.45 CNY from acquisitions, which is subject to annual impairment testing[66]. - The company is currently negotiating with a leasing company regarding a breach of contract and aims to reduce penalties[89]. - The company has received a civil judgment from the Jilin Province Changchun Intermediate People's Court regarding a debt of 4,511.54 million yuan, which is currently under execution[92]. - The company is actively discussing settlement plans with multiple financial institutions, including Industrial Bank and China Merchants Bank, to resolve outstanding debts totaling 28,384.76 million yuan[93]. - The company is focused on ensuring financial stability through active communication with creditors and exploring refinancing options[93]. - The company reported a total debt of approximately 25,990.86 million yuan, with ongoing negotiations for repayment solutions with various banks[93]. - The company has ongoing discussions with various stakeholders to address overdue debts and potential settlements[92]. Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares for the reporting period[7]. - The participation ratio of investors in the 2021 first extraordinary general meeting was 0.23%[70]. - The company has implemented an employee stock incentive plan, granting 30 million restricted shares to 33 incentive objects[74]. - The first unlock period of the employee stock incentive plan has been achieved, allowing 1.2 million shares to be unlocked[74]. - The company has adjusted the repurchase price of the first phase of the stock incentive plan from 4.06 yuan/share to 4.01 yuan/share[75]. - The company plans to repurchase and cancel 900,000 shares of restricted stock that have not yet been unlocked[75]. - The total number of shares before the change was 666,014,674, with a breakdown of 224,689,610 restricted shares (33.74%) and 441,325,064 unrestricted shares (66.26%)[125]. - The total number of shares held by major shareholders includes 33,300,734 shares by Jilin Province Bencao Huayi Pharmaceutical Technology Co., Ltd., representing 5.00% of total shares[134]. Legal and Compliance - The company has not experienced any changes in its board of directors, supervisors, or senior management during the reporting period[71]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[78]. - The company has not engaged in any violations regarding external guarantees during the reporting period[86]. - The semi-annual financial report has not been audited[87]. - The company has not reported any major contracts or leasing situations during the reporting period[105]. - There were no significant related party transactions during the reporting period[99]. - The company has not engaged in any joint external investments during the reporting period[101]. Market and Competition - The company is experiencing intensified competition in the chemical industry, affecting pricing and revenue stability[66]. - The company has a total outstanding loan amount of 16,857.99 million yuan, with intentions to support continued lending after repayment of prior interest[93]. - The company is currently in discussions with legal advisors regarding performance compensation matters with the previous shareholders[121]. - The company faced challenges in fulfilling performance commitments due to cash flow issues and supply chain disruptions caused by the COVID-19 pandemic[121]. Risk Management - The company faced various operational risks, which are detailed in the management discussion section of the report[6]. - The company is working on a repayment plan for a total of 25,990.86 million yuan owed to Industrial Bank, with partial repayments expected[93]. - The company has initiated new strategies for risk management and capital allocation[190]. - The overall financial health of the company shows a need for strategic adjustments to improve profitability[190].

Financial Performance - The company's operating revenue for 2019 was ¥1,065,807,539.96, representing a 13.11% increase compared to ¥942,251,629.65 in 2018[24]. - The net profit attributable to shareholders for 2019 was -¥1,771,791,468.01, a decrease of 917.78% from ¥216,659,914.80 in 2018[24]. - The net cash flow from operating activities increased by 392.55% to ¥212,689,512.07 in 2019, up from ¥43,181,115.38 in 2018[24]. - The total assets at the end of 2019 were ¥3,237,850,160.93, a decrease of 33.28% from ¥4,852,817,985.94 at the end of 2018[24]. - The net assets attributable to shareholders decreased by 82.92% to ¥377,063,797.56 at the end of 2019, down from ¥2,207,791,166.44 at the end of 2018[24]. - The total profit amounted to -¥1,747,411,123.23, a decrease of 715.89% year-on-year[48]. - The pharmaceutical sector contributed ¥833,886,662.66, accounting for 78.24% of total revenue, with a year-on-year growth of 14.95%[50]. - The chemical sector generated ¥231,920,877.30, making up 21.76% of total revenue, with a year-on-year increase of 6.97%[50]. - The company reported a significant loss in Q4 2019, with a net profit attributable to shareholders of -¥1,783,954,145.74[26]. - The company reported a net profit of -1,269,690,097.74 CNY for the parent company and -1,771,791,468.01 CNY for the consolidated profit statement in 2019, indicating an overall loss for the year[83]. Operational Strategy - The company plans to enhance promotional efforts and accelerate the launch of new products to mitigate market risks associated with declining sales of clinical products[8]. - The company aims to optimize production processes and improve product quality to maximize economic benefits amid increasing competition in the chemical industry[10]. - The company will continue to explore market expansion opportunities and potential mergers and acquisitions to enhance its competitive position[8]. - The company has shifted its focus towards OTC terminal sales, increasing collaboration with chain pharmacies and retail enterprises, resulting in a gradual increase in terminal product sales[38]. - The company has implemented a strategy to reduce low-margin product production and adjust sales channels, leading to a significant increase in sales expenses during the transition period[38]. - The company is committed to monitoring industry policy changes and implementing measures to control operational risks arising from intensified competition and regulatory pressures[5]. Research and Development - The company is focused on cultivating a skilled talent pool to support its new drug development projects and ensure successful outcomes[7]. - The company has two new drugs under research and development, along with three active pharmaceutical ingredients[34]. - The company has a strong R&D advantage, collaborating with influential domestic pharmaceutical research institutions to enhance its drug development capabilities[44]. - The company emphasizes the importance of strict adherence to national policies and guidelines in its research and development efforts to reduce risks[7]. - The company is actively developing new drugs, including the Dilaweidin dispersible tablets and the mesylate Dilaweidin raw material, with clinical trials and stability assessments ongoing[44]. Financial Risks and Challenges - The company faces significant risks in new drug development due to increased evaluation costs and longer approval times, which may adversely affect profitability[7]. - The company acknowledges the impact of rising labor and logistics costs on its operations due to ongoing healthcare reforms in the industry[5]. - The company reported a decrease in expected profits due to new financial instrument standards leading to increased bad debt provisions[90]. - The company plans to implement measures to improve its financial situation, although its ability to continue as a going concern remains uncertain[199]. Shareholder and Governance - The company will not distribute cash dividends or issue bonus shares for the reporting period[11]. - The company has established a comprehensive decision-making process for profit distribution, ensuring the protection of minority shareholders' rights[80]. - The company has not made any adjustments to its cash dividend policy during the reporting period, maintaining compliance with relevant regulations[81]. - The company has not engaged in any significant related party transactions during the reporting period[108]. - The company has a commitment to accelerate investment project implementation to build a well-known domestic brand, "Jiyao Group"[79]. Compliance and Regulatory Issues - The company faced administrative penalties for information disclosure violations, including a fine of 600,000 RMB imposed by the China Securities Regulatory Commission[100]. - The company reported no major litigation or arbitration matters during the year[99]. - The company has not undergone any bankruptcy reorganization during the reporting period[98]. - The auditing firm, Zhongzhun Certified Public Accountants, has been engaged for 9 consecutive years, with an audit fee of 1.8 million RMB for the current period[97]. Employee and Management Structure - The total number of employees in the company is 1,399, with 1,388 in major subsidiaries and 11 in the parent company[166]. - The professional composition includes 745 production personnel, 246 sales personnel, 202 technical personnel, and 47 financial personnel[167]. - The company has 8 employees with a master's degree or above, and 239 with a bachelor's degree[167]. - The company has a diverse board of directors with expertise in various industries, contributing to its strategic direction[159][160]. Internal Control and Audit - The company maintained effective internal controls related to financial reporting as of December 31, 2019, with no significant deficiencies identified[190]. - The internal control audit report issued a standard unqualified opinion, confirming the absence of significant deficiencies in non-financial reporting[191]. - The internal control self-assessment report was disclosed on April 29, 2020, ensuring transparency in internal control evaluations[191]. - The internal control evaluation report was fully disclosed on April 30, 2020, providing stakeholders with insights into the company's internal control effectiveness[191].