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 was -¥1,771,791,468.01, a significant decrease of 917.78% from ¥216,659,914.80 in the previous year[24]. - The net cash flow from operating activities increased by 392.55% to ¥212,689,512.07 from ¥43,181,115.38 in 2018[24]. - The total assets at the end of 2019 were ¥3,237,850,160.93, down 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 from ¥2,207,791,166.44 in 2018[24]. - The total profit amounted to -¥1,747,411,123.23, a decrease of 715.89% year-on-year, with net profit attributable to shareholders at -¥1,771,791,468.01, down 917.78%[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, representing 21.76% of total revenue, with a year-on-year increase of 6.97%[50]. Acquisitions and Goodwill - The company formed goodwill amounting to CNY 376,678,064.45 from acquisitions of Jinbao Pharmaceutical, Liaoning Meiluo, Yuanda Kanghua, Yali Dajiao Wan, and Puhua Pharmaceutical[8]. - The company acknowledges the risk of goodwill impairment if the acquired assets' operational performance deteriorates[8]. - The company acquired 70% of Liaoning Meiluo for a cash consideration of 28 million RMB, with a commitment for net profits of 4 million RMB, 4.4 million RMB, and 4.8 million RMB for 2018, 2019, and 2020 respectively, totaling 13.2 million RMB over three years[91]. - Liaoning Meiluo achieved a net profit of 4,147,616.23 RMB in 2019, exceeding the commitment by 147,616.23 RMB, resulting in a completion rate of 103.69%[93]. - The company purchased 100% of Zhejiang Yalida for 230 million RMB, with profit commitments of 20 million RMB, 30 million RMB, and 42 million RMB for 2018, 2019, and 2020 respectively, totaling 92 million RMB over three years[93]. - Zhejiang Yalida achieved a net profit of 21,233,424.85 RMB in 2019, exceeding the commitment by 1,233,424.85 RMB, resulting in a completion rate of 106.17%[95]. Research and Development - The company is committed to improving new drug development management to mitigate risks associated with long approval times and high investment costs[7]. - The company is focused on cultivating a skilled talent pool to support its research and development initiatives[7]. - The company has a strong R&D advantage, collaborating with influential pharmaceutical research institutions to enhance its drug development capabilities[44]. - R&D expenses increased to ¥91,867,129.42, a significant rise of 518.87% due to changes in the scope of consolidation from the acquisition of a subsidiary in the second half of 2018[61]. - R&D investment amounted to ¥90,937,988.20, representing 8.53% of operating revenue, up from 1.89% in 2018[62]. - The number of R&D personnel rose to 173, accounting for 12.37% of total employees, compared to 9.00% in 2018[62]. Market Strategy and Operations - The company aims to enhance production efficiency and reduce material and energy consumption to counteract increased competition in the chemical industry[10]. - The company will actively respond to market changes by increasing promotional efforts and accelerating the launch of new products to offset declines in clinical product sales[8]. - The company has shifted its focus towards OTC terminal sales, with a significant increase in sales from terminal products during the reporting period[38]. - The integration of the acquired Puhua Pharmaceutical has enhanced the overall sales coordination, with a clear strategy to prioritize terminal sales channels moving forward[39]. - The company is focused on expanding its retail and terminal sales channels to increase market penetration and consumer recognition[77]. - The company aims to expand its pharmaceutical business across China, focusing on both traditional Chinese medicine and Western medicine, with a strategic emphasis on biopharmaceuticals and OTC market sales[77]. Compliance and Governance - The company faced penalties for information disclosure violations, including a fine of 600,000 CNY imposed by the China Securities Regulatory Commission[100]. - The company received a public reprimand and was fined for violations from environmental, safety supervision, and tax authorities[100]. - The company is committed to compliance and improving its corporate governance practices following past penalties[165]. - The company has established a transparent information disclosure system to ensure all shareholders have equal access to information[175]. - The board of directors consists of 7 members, including 3 independent directors, ensuring compliance with governance regulations[174]. Shareholder Relations and Dividends - The company plans to not distribute cash dividends, issue bonus shares, or increase capital from reserves[11]. - The company has established a clear profit distribution policy, ensuring transparency and protection of shareholders' rights, particularly for minority shareholders[80]. - No cash dividends were distributed in 2019, 2018, or 2017, with the total cash dividend amounting to 0 CNY, representing 0.00% of the total profit distribution[86]. - The company has committed to protecting the rights and interests of minority shareholders, ensuring they have opportunities to express their opinions[81]. Employee and Management Structure - Total number of employees is 1,399, with 1,388 in major subsidiaries and 11 in the parent company[168]. - The company conducts weekly training sessions for production skills and safety knowledge[170]. - The total remuneration paid to the board of directors, supervisors, and senior management in 2019 amounted to 1.5429 million yuan[166]. - The management team is composed of experienced professionals with significant industry expertise, contributing to the company's strategic direction[157][158][159]. Risks and Challenges - The company faces risks from industry policy changes, including price reductions and increased competition, which may impact operational costs and profitability[5]. - The company is monitoring industry competition closely to adapt its strategies and maintain market position[10]. - The company emphasizes the importance of adhering to national policies and guidelines in its research and development processes[7].

Financial Performance - The company's operating revenue for 2020 was ¥648,546,128.84, a decrease of 39.15% compared to ¥1,065,807,539.96 in 2019[23]. - The net profit attributable to shareholders was -¥380,305,063.00, an improvement of 78.54% from -¥1,771,791,468.01 in the previous year[23]. - The net cash flow from operating activities was -¥141,792,383.33, a decline of 166.67% compared to ¥212,689,512.07 in 2019[23]. - The total assets at the end of 2020 were ¥2,739,752,697.28, down 15.38% from ¥3,237,850,160.93 at the end of 2019[23]. - The net assets attributable to shareholders decreased by 91.65% to ¥31,471,734.56 from ¥377,063,797.56 in 2019[23]. - The company reported a basic and diluted earnings per share of -¥0.57, improving by 78.57% from -¥2.66 in 2019[23]. - The company's total revenue for the reporting period was 648,546,128.84 yuan, a decrease of 39.15% compared to the previous year[50]. - The pharmaceutical sector generated revenue of 437,357,587.39 yuan, accounting for 67.44% of total revenue, with a year-on-year decline of 47.55%[52]. - The chemical sector contributed 211,188,541.45 yuan, representing 32.56% of total revenue, with a year-on-year decrease of 8.94%[52]. - The gross profit margin for the pharmaceutical sector was 22.75%, down 4.70% year-on-year, while the chemical sector's gross profit margin was 19.06%, down 7.12% year-on-year[54]. Operational Challenges - The company faces increased operational risks due to rising labor and logistics costs, intensified global competition, and regulatory changes in the pharmaceutical industry[7]. - The company has experienced slow receivables recovery due to changes in sales channels and increased competition in the OTC market[10]. - The company reported a significant reduction in non-operating income, with a total of -¥51,969,513.58 in 2020 compared to previous years[32]. - The company faced challenges due to the pandemic, leading to decreased sales across subsidiaries and financial constraints impacting operations[57]. Strategic Initiatives - The company plans to enhance its new product development management and carefully select R&D projects to mitigate risks associated with long and unpredictable drug approval processes[8]. - The company is committed to accelerating the launch of new products to offset declines in clinical product sales and mitigate market risks[10]. - The company aims to improve production efficiency and reduce material and energy consumption to counteract the impact of intensified competition in the chemical industry[11]. - The company is focusing on upgrading product standards and enhancing the quality of its offerings[46]. - The company plans to focus on the development of biopharmaceuticals and expand its OTC market sales, aiming to enhance product quality and service[81]. - The company aims to strengthen group management and enhance talent cultivation to support its long-term development strategy[83]. Shareholder and Dividend Policy - The company will not distribute cash dividends or issue bonus shares for the year[12]. - The company did not distribute any cash dividends for the years 2018, 2019, and 2020, maintaining a consistent policy due to ongoing losses[92]. - The company's cash dividend total for 2020 was ¥0, representing 0.00% of the net profit attributable to ordinary shareholders[92]. - The company's profit distribution plan for 2020 aligns with its articles of association, emphasizing long-term development over immediate shareholder returns[90]. Acquisitions and Investments - The company acquired 70% of Liaoning Meiluo for 28 million CNY, with a commitment for net profits of at least 400,000 CNY, 440,000 CNY, and 480,000 CNY for the years 2018, 2019, and 2020 respectively[100]. - The company plans to purchase 100% of Zhejiang Yalida for 230 million CNY, with profit commitments of 20 million CNY, 30 million CNY, and 42 million CNY for the years 2018, 2019, and 2020 respectively[102]. - The acquisition of Zhejiang Yalida is expected to enhance the company's market position and financial performance[102]. Governance and Compliance - The company has established a comprehensive governance structure to enhance operational standards and protect shareholder rights[144]. - The company maintains a transparent communication strategy with investors through various channels[144]. - The company has a strong commitment to corporate governance and compliance, as evidenced by the recent changes in its board and management[183]. - The company has not faced any penalties or rectifications during the reporting period[116]. Employee and Management Structure - The total number of employees in the company is 1,338, with 759 in production, 219 in sales, 128 in technical roles, 48 in finance, and 184 in administration[198]. - The company paid a total of 4.03 million CNY in compensation to 17 directors, supervisors, and senior management personnel in 2020[195]. - The company has implemented weekly training sessions for employees focusing on production skills and safety knowledge[200]. - The company has a talent development strategy that includes a diverse incentive system for different roles[145]. Legal and Litigation Matters - The company is currently involved in litigation with a claim amount of 26,239,200 RMB, which is still in execution[109]. - The company reached a settlement in a dispute with Haitong Hengxin Guojin involving a claim amount of 81,381,600 RMB[109]. - The company has received a civil judgment from the Jilin Changchun Intermediate People's Court, requiring repayment of 259.91 million yuan to Industrial Bank[113].

Financial Performance - The company's revenue for Q1 2021 was ¥165,254,931.72, representing a 17.16% increase compared to ¥141,053,032.34 in the same period last year[8]. - The net profit attributable to shareholders was a loss of ¥34,336,148.03, an improvement of 15.71% from a loss of ¥40,737,284.11 in the previous year[8]. - The basic and diluted earnings per share were both ¥-0.0516, showing a 15.76% improvement from ¥-0.0612 in the same period last year[8]. - The company reported a net profit loss of ¥15,122,055.85 for the current period, an improvement from a loss of ¥16,871,531.64 in the previous period, indicating a reduction in losses by approximately 10.4%[56]. - The total comprehensive loss for the current period was ¥15,122,055.85, compared to a loss of ¥16,871,531.64 in the previous period, showing a reduction in overall losses[57]. Cash Flow - The net cash flow from operating activities was ¥20,078,180.87, a significant increase of 126.18% compared to a negative cash flow of ¥76,683,121.92 in the same period last year[8]. - Operating cash flow for the current period was ¥20,078,180.87, a significant recovery compared to a negative cash flow of ¥76,683,121.92 in the previous period[61]. - The company reported cash inflows from operating activities totaling ¥147,564,850.90, down from ¥193,277,210.67 in the previous period[61]. - The cash balance at the end of the period was ¥25,883,304.23, a decrease of 45.63% compared to the beginning of the period, primarily due to tight liquidity[19]. - Cash and cash equivalents at the end of the period stood at ¥4,146,358.00, down from ¥31,182,430.40 at the end of the previous period[63]. Assets and Liabilities - The total assets at the end of the reporting period were ¥2,700,314,202.26, a decrease of 1.44% from ¥2,739,752,697.28 at the end of the previous year[8]. - Total current assets decreased to ¥892,862,992.53 from ¥908,536,195.57, reflecting a decline of about 1.7%[36]. - Total liabilities increased to CNY 1,313,478,034.92 from CNY 1,295,705,820.19, indicating a rise of 1.4%[46]. - The company's total liabilities decreased to ¥2,708,592,371.12 from ¥2,712,552,815.99, a reduction of approximately 0.1%[39]. - Current liabilities increased by 38.83% to ¥4,778,569.58, mainly due to an increase in advance sales payments[21]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 27,474[12]. - The top shareholder, Sun Jun, held 19.13% of the shares, amounting to 127,388,759 shares, with a significant portion pledged[12]. - The equity attributable to shareholders of the parent company was CNY 129,507,446.33, down from CNY 144,629,502.18[46]. Government Support and Investments - The company received government subsidies amounting to ¥580,686.83 during the reporting period[9]. - The company received tax refunds amounting to ¥691,911.11 during the current period[61]. - The company aims to expand its pharmaceutical business across China, focusing on biopharmaceuticals and OTC market sales, while enhancing group management[23]. - The company plans to accelerate investment project implementation to establish a well-known brand in the domestic market[24]. Operational Expenses - Sales expenses for the period were ¥22,404,827.77, an increase of 34.87% year-on-year, largely due to the resumption of sales activities after COVID-19 disruptions[22]. - Financial expenses for the period reached ¥30,427,505.34, up 78.09% year-on-year, primarily due to overdue borrowings and rising interest rates[22]. - The company incurred management expenses of ¥1,245,749.11, down from ¥7,256,104.91 in the previous period, reflecting a decrease of approximately 82.8%[56]. - Financial expenses increased to ¥13,876,107.43 from ¥9,617,271.73, with interest expenses accounting for ¥13,875,257.00, up from ¥9,429,259.98[56]. Inventory and Receivables - Accounts receivable increased to ¥379,399,390.51 from ¥356,718,305.95, showing a growth of about 6.3%[36]. - Inventory rose to ¥297,010,033.34 from ¥291,929,087.26, indicating an increase of approximately 1.7%[36]. - Other receivables at the end of the period amounted to ¥31,254,623.48, a decrease of 36.61% from the beginning of the period, attributed to enhanced management of receivables due to financial constraints[20]. Audit and Compliance - The company reported no violations of external guarantees during the reporting period[30]. - The company did not undergo an audit for the first quarter report[65].

Financial Performance - Operating revenue for the reporting period was CNY 196,716,998.45, a decline of 29.11% compared to the same period last year[7] - Net profit attributable to shareholders of the listed company was a loss of CNY 111,805,937.18, representing a decrease of 1,164.72% year-on-year[7] - Basic earnings per share were CNY -0.1679, a decrease of 962.66% year-on-year[7] - Total operating revenue for the current period is ¥196,716,998.45, a decrease of 29.1% from ¥277,486,002.97 in the previous period[39] - Operating profit for the current period is a loss of ¥117,301,563.49, compared to a loss of ¥4,090,081.49 in the previous period[41] - Net profit for the current period is a loss of ¥116,612,896.31, worsening from a loss of ¥10,550,814.91 in the previous period[41] - Total comprehensive income for the current period is a loss of ¥116,612,896.31, compared to a loss of ¥10,550,814.91 in the previous period[42] - The net profit for Q3 2020 was -206,130,118.79 CNY, compared to a net profit of 11,541,722.08 CNY in the same period last year, indicating a significant decline[49] - The operating profit for Q3 2020 was -200,894,770.26 CNY, a decrease from the operating profit of 23,682,504.25 CNY in Q3 2019[49] - The total profit for Q3 2020 was -205,054,324.58 CNY, compared to a profit of 23,479,253.67 CNY in Q3 2019[49] Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,896,663,505.54, a decrease of 10.54% compared to the end of the previous year[7] - Current assets totaled CNY 1,040,250,716.23, down from CNY 1,337,935,968.32, indicating a decrease of about 22.19%[30] - The company's total equity decreased from CNY 410,571,504.28 to CNY 204,441,385.49, reflecting a decline of about 50.19%[34] - Total liabilities decreased from CNY 2,827,278,656.65 to CNY 2,692,222,120.05, a reduction of approximately 4.78%[32] - Short-term borrowings increased to CNY 908,020,756.87 from CNY 867,560,930.16, representing a rise of about 4.88%[32] - Long-term borrowings decreased from CNY 829,104,228.17 to CNY 781,932,836.32, indicating a reduction of about 5.71%[32] Cash Flow - The net cash flow from operating activities was a negative CNY 337,889.12, a decline of 100.73% compared to the previous year[7] - Cash inflow from operating activities was 629,689,609.80 CNY, down from 1,090,356,734.83 CNY in the same period last year, indicating a decrease of approximately 42.2%[56] - The cash inflow from operating activities was ¥56,913,249.79, a decrease from ¥416,197,045.42 in the previous period, reflecting reduced sales or service revenue[61] - The company reported a total cash outflow from investing activities of ¥15,889,061.51, leading to a net cash flow of -¥15,562,413.51 from investing activities[58] - The total cash inflow from financing activities was ¥512,605,359.72, while cash outflow was ¥342,186,517.90, resulting in a net cash flow of ¥170,418,841.82[59] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 32,519[11] - The largest shareholder, Lu Zhongkui, held 23.09% of the shares, amounting to 153,778,980 shares[11] Non-Recurring Items and Other Information - The company reported non-recurring gains and losses totaling CNY 3,877,819.06 for the reporting period[8] - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period[25] - There were no violations of external guarantees during the reporting period[24] - The company has not conducted any research, communication, or interview activities during the reporting period[26] - The company has committed to not transferring shares for 36 months post-IPO, and this commitment has been strictly adhered to[21] Cost and Expense Management - Operating costs decreased by 39.09% to ¥381,478,461.81 from ¥626,339,223.72 year-on-year, reflecting the decline in revenue[19] - Other income dropped by 79.09% to ¥9,356,706.73 from ¥44,747,987.30 year-on-year, due to a decrease in government subsidies received[19] - Income tax expenses decreased by 90.99% to ¥1,075,794.21 from ¥11,937,531.59 in the same period last year, attributed to a decline in total profit[20] - Financial expenses for the current period are ¥29,999,861.95, up from ¥23,846,761.58 in the previous period, primarily due to increased interest expenses[40] - Sales expenses amounted to 77,224,950.42 CNY, down from 85,266,993.27 CNY year-over-year, reflecting a reduction of approximately 9.5%[49] - Research and development expenses increased to ¥3,322,417.28 from ¥528,940.72, reflecting a significant investment in innovation[40] - Research and development expenses were 10,269,927.57 CNY, slightly decreased from 10,325,124.95 CNY in the previous year[49]

Financial Performance - The company's operating revenue for the reporting period was ¥324,692,559.89, a decrease of 43.81% compared to the same period last year [23]. - The net profit attributable to shareholders was a loss of ¥86,825,896.39, representing a decline of 513.40% year-over-year [23]. - The net cash flow from operating activities was negative at ¥165,638,857.48, a decrease of 194.63% compared to the previous year [23]. - The total assets at the end of the reporting period were ¥3,029,928,655.98, down 6.42% from the end of the previous year [23]. - The net assets attributable to shareholders decreased by 23.03% to ¥290,237,901.17 compared to the end of the previous year [23]. - The total profit amounted to -¥88,598,671.94, representing a decrease of 418.92% year-on-year, with net profit attributable to shareholders at -¥86,825,896.39, down 513.40% [45]. - The company reported a significant increase in other income to CNY 6,187,284.25 from CNY 28,244,105.50, indicating a shift in revenue sources [145]. - The company's total comprehensive loss for the period was ¥89,517,222.48, compared to a comprehensive income of ¥22,092,536.99 in the prior year [148]. Risks and Challenges - The company faces increased risks from industry policy changes, including price reductions and stricter regulations, which may impact the pharmaceutical operating environment [6]. - The company acknowledges significant risks in new drug development due to rising costs and longer approval times, which could adversely affect profitability [7]. - The company faces risks from industry policy changes, including increased costs and intensified competition due to healthcare reforms [64]. - New drug development poses risks due to rising costs, longer approval times, and market uncertainties, impacting profitability [64]. - Risks related to goodwill impairment may arise due to slow receivables recovery and increased competition in the OTC market, leading to potential adverse impacts on current profits [65]. - The company is facing challenges in accounts receivable collection due to changes in sales channels and increased competition in the OTC market [9]. Strategic Initiatives - 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 [9]. - The company aims to optimize production processes and reduce material and energy consumption to counteract intensified competition in the chemical industry [10]. - The company is committed to improving new drug project management and cultivating skilled talent to reduce risks in drug development [7]. - The company is integrating its OTC sales teams to enhance terminal sales channels, aiming for all sales to be conducted through terminal channels in the future [37]. - The company is focusing on transforming its medical channel towards OTC terminal sales, adjusting its product structure to reduce low-margin products [32]. - The strategic task of implementing OTC marketing strategies has been fully launched and is progressing as planned [32]. Financial Management - The company will not distribute cash dividends or issue bonus shares for the year [11]. - The company has tightened credit policies and eliminated low-value-added products, effectively reducing inventory levels [37]. - The company is committed to improving new drug project management and talent development to mitigate R&D risks [64]. - The company has implemented an employee stock ownership plan, which was approved by the board and the supervisory board, ensuring compliance with relevant regulations [80]. - The company has a commitment that during the lock-up period, the annual transfer of shares by Lu Zhongkui will not exceed 25% of his total shareholding [74]. Market and Product Development - The company has approximately 170 pharmaceutical products, including 6 exclusive national pharmaceutical products [31]. - The company has two new drugs under research and development, along with three raw materials [31]. - The pharmaceutical sales business is focusing on high-value-added products, with a strategy to enhance product value as the core of operations [37]. - The company is actively working on product transformation and improving its product structure through a three-tiered sales management system [37]. - The company reported a 40.82% decrease in operating costs, amounting to ¥244,795,810.54, due to the same pandemic-related challenges [46]. Shareholder Information - The total number of shares before the recent change was 666,014, with a change of -11,467 shares, resulting in a new total of 654,547 shares [110]. - The proportion of limited shares decreased from 35.43% to 33.70% after the recent change [110]. - The total number of ordinary shareholders at the end of the reporting period was 20,019 [116]. - Lu Zhongkui holds 23.09% of the shares, totaling 152,632,569 shares, with 4,745,000 shares pledged [116]. - Sun Jun holds 19.13% of the shares, totaling 126,434,749 shares, with 31,840,000 shares pledged and 7,190,000 shares frozen [116]. Legal and Compliance - The company has reached settlements in major litigation cases, including a loan dispute with Guoyao Holdings involving an amount of 41.64 million yuan and another with Haitong Hengxin involving 81.38 million yuan [77]. - The company reported no violations regarding external guarantees during the reporting period [99]. - The company did not conduct any investor communications or interviews during the reporting period [66]. Operational Overview - The company operates in the pharmaceutical manufacturing industry and was listed on the Shenzhen Stock Exchange on August 25, 2010 [177]. - The financial statements are prepared based on the going concern assumption and comply with the relevant accounting standards [180][181]. - The company has several subsidiaries, including Jilin Jinbao Pharmaceutical Co., Ltd. and Jiangxi Shuanglong Silicon Materials Technology Co., Ltd. [179].

证券代码：300108 证券简称：吉药控股 公告编号：2020-082 吉药控股集团股份有限公司 关于参加投资者网上集体接待日活动的公告 本公司及董事会全体成员保证信息披露内容的真实、准确和完整，不存 在虚假记载、误导性陈述或重大遗漏。 为进一步加强与投资者的互动交流，吉药控股股份有限公司（以下简称"公 司"）将参加由吉林证监局、吉林省证券业协会、深圳市全景网络有限公司共同 举办的"提高公司质量 做受尊敬的上市公司--2020年吉林辖区上市公司投资者 网上集体接待日"活动，现将有关事项公告如下： 本次集体接待日活动将通过深圳市全景网络有限公司提供的互联网平台举 行，投资者可以登陆"全景·路演天下"网站（http://rs.p5w.net）参与公司本次 投资者集体接待日活动,时间为2020年8月21日（周五）15:30至17:00。 届时公司董事长孙军先生、实际控制人卢忠奎先生、财务总监张忠伟先生拟 通过网络在线问答互动的形式，与投资者就公司治理、发展经营情况、融资情况 和可持续发展等投资者关注的问题进行交流。期间，公司高管将全程在线，实时 回答投资者的提问。 欢迎广大投资者积极参与。 特此公告 吉药控股集团股 ...

Financial Performance - The company's operating revenue for 2019 was ¥1,065,807,539.96, representing a year-over-year increase of 13.11% compared to ¥942,251,629.65 in 2018[19]. - The net profit attributable to shareholders for 2019 was -¥1,771,791,468.01, a significant decline of 917.78% from ¥216,659,914.80 in 2018[19]. - 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[19]. - 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[19]. - The net assets attributable to shareholders dropped 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[19]. - The company reported a basic and diluted earnings per share of -¥2.66 for 2019, compared to ¥0.33 in 2018, marking a decline of 906.06%[19]. - The total profit amounted to CNY -1,747,411,123.23, a decrease of 715.89% year-on-year, with net profit attributable to shareholders at CNY -1,771,791,468.01, down 917.78%[45]. - The company reported a significant non-recurring loss of -¥195,426,795.00 in 2019, primarily due to various non-operating expenses[26]. Operational Challenges - The company faces increased operational risks due to rising labor and logistics costs, intensified global competition, and regulatory changes in the pharmaceutical industry[4]. - The company acknowledges the challenges posed by the "two-invoice system" and price reductions in the pharmaceutical sector, which may affect its operating environment[4]. - The company will closely monitor industry policy changes and take proactive measures to control and reduce operational risks[4]. Strategic Initiatives - The company plans to enhance its new drug development management and talent cultivation to mitigate risks associated with long and uncertain R&D cycles[5]. - The company aims to improve production efficiency and reduce material and energy consumption to counteract the impact of intensified competition in the chemical industry[5]. - The company is actively responding to market risks by increasing promotional efforts and accelerating the launch of new products to offset declines in clinical product sales[5]. - The company emphasizes the importance of adhering to national policies and guidelines in its R&D efforts to ensure successful new drug development[5]. - The company is committed to optimizing management processes and enhancing product quality to achieve steady growth in performance[5]. Research and Development - The company is actively developing new drugs, including the Dilaweidin dispersible tablets and the Mesylate Dilaweidin raw materials, with clinical trials and stability assessments currently underway[40]. - The company has successfully added the Compound Bear Bile Eye Drops to the National Medical Insurance Directory, while Bone Peptide Injection and Sanqi Tablets have been removed from the directory[41]. - The company is leveraging its research and development capabilities through collaborations with influential pharmaceutical research institutions to enhance its product pipeline[40]. - R&D expenses increased significantly to ¥90,937,988.20 in 2019, representing 8.53% of total revenue, up from 1.89% in 2018[59]. - The number of R&D personnel increased to 173, representing 12.37% of the total workforce, up from 9.00% in 2018[59]. Market Position and Sales - The pharmaceutical sector contributed CNY 833,886,662.66, accounting for 78.24% of total revenue, with a year-on-year growth of 14.95%[47]. - The chemical sector generated CNY 231,920,877.30, representing 21.76% of total revenue, with a year-on-year increase of 6.97%[47]. - The company has shifted its focus towards OTC terminal sales, resulting in a gradual increase in terminal product sales while medical channel products have seen a decline[34]. - The integration of the acquired Puhua Pharmaceutical has enhanced the company's terminal sales channels, with plans to accelerate sales synergy and integrate sales teams[35]. - The company is implementing a three-tiered control sales management strategy, gradually eliminating low-margin products and reducing inventory levels[35]. Dividend Policy - The company will not distribute cash dividends or issue bonus shares for the reporting period[6]. - The cash dividend policy was strictly followed, with no cash dividends distributed during the reporting period, maintaining a clear and transparent decision-making process[78]. - The company plans not to distribute cash dividends, issue bonus shares, or increase capital from reserves for 2019 due to the losses incurred[82]. - The company has not proposed any cash dividend distribution plan for the reporting period despite having positive distributable profits in previous years[82]. - The company’s commitment to long-term development and shareholder interests influenced the decision to withhold dividends in 2019[82]. Governance and Compliance - The company received a warning and was fined 600,000 yuan for information disclosure violations by the China Securities Regulatory Commission[96]. - The company faced significant administrative penalties from environmental, safety, and tax authorities, including public reprimands from the Shenzhen Stock Exchange[96]. - The company has maintained its accounting firm, Zhongzhun CPA, for nine consecutive years, with an audit fee of CNY 1.8 million for the current period[93]. - The company’s financial reports are audited by Zhongzhun Accounting Firm, which confirms the accuracy of the financial data presented[81]. - The company adheres to strict information disclosure practices, ensuring transparency and fairness for all shareholders[171]. Shareholder Information - The company has a total of 66,604,674 shares as the basis for profit distribution, with no cash dividends declared[78]. - The largest shareholder, Lu Zhongkui, holds 23.09% of the shares, totaling 119,459,235 shares after a decrease of 5,500,000 shares[138]. - The second-largest shareholder, Sun Jun, holds 19.13% of the shares, totaling 95,541,569 shares after a decrease of 33,400,000 shares[138]. - The company has a total of 19,744 common stock shareholders at the end of the reporting period[138]. - The company’s share repurchase program has been implemented through centralized bidding, affecting the earnings per share and net asset value per share[132]. Internal Controls and Audit - The company maintained effective internal controls related to financial reporting as of December 31, 2019, with no significant deficiencies identified in either financial or non-financial reporting[188]. - The internal control audit report was disclosed on April 30, 2020, confirming alignment with the board's self-evaluation report[189]. - The audit opinion issued by the accounting firm was a standard unqualified opinion, confirming that the financial statements fairly reflect the company's financial position and results of operations[195]. - The company conducts annual goodwill impairment tests based on external valuation reports, which involve significant judgments and estimates, particularly regarding revenue growth rates and discount rates[200]. - The company performed sensitivity analyses on key assumptions such as forecasted revenue and discount rates to assess their impact on impairment evaluations[200].

Financial Performance - Total revenue for Q1 2020 was ¥141,053,032.34, a decrease of 52.89% compared to ¥299,392,674.72 in the same period last year[7] - Net profit attributable to shareholders was -¥40,737,284.11, representing a decline of 241.04% from ¥28,883,003.58 year-on-year[7] - Basic and diluted earnings per share were both -¥0.06, a decrease of 250.00% compared to ¥0.04 in the same period last year[7] - Operating revenue for the period was CNY 141,053,032.34, a decrease of 52.89% compared to CNY 299,392,674.72 in the same period last year, mainly due to the impact of COVID-19 on product sales[18] - Net loss for Q1 2020 was ¥41,680,710.04, compared to a net profit of ¥28,585,467.21 in Q1 2019[41] - The total comprehensive income for the current period is -41,680,710.04 CNY, compared to 28,585,467.21 CNY in the previous period[42] - The net profit for the current period is -16,871,531.64 CNY, a significant decline from 24,604,308.19 CNY in the previous period[46] Cash Flow and Liquidity - Net cash flow from operating activities was -¥76,683,121.92, down 141.55% from ¥184,559,901.94 in the previous year[7] - The company's cash and cash equivalents decreased by 36.74% from CNY 244,981,737.35 at the beginning of the period to CNY 154,969,430.40 at the end of the period, primarily due to the payment of bank bills[16] - Cash and cash equivalents at the end of the period are 31,182,430.40 CNY, down from 377,186,830.10 CNY in the previous period[50] - The company received ¥7,972,286.02 in cash related to operating activities, a sharp decline from ¥186,474,705.00 in the previous year[52] - The net cash flow from operating activities for Q1 2020 was ¥1,060,997.86, a significant improvement compared to a net outflow of ¥-135,670,280.10 in the same period last year[52] Assets and Liabilities - Total assets at the end of the reporting period were ¥3,268,534,183.84, an increase of 0.95% from ¥3,237,850,160.93 at the end of the previous year[7] - The company's total liabilities increased from ¥2,827,278,656.65 to ¥2,898,453,143.13, which is an increase of approximately 2.5%[32] - The company's equity attributable to shareholders decreased to ¥266,098,132.05 from ¥282,969,663.69 in the previous quarter[37] - The company reported a significant increase in other payables from ¥374,114,473.52 to ¥546,181,958.45, which is an increase of approximately 46%[32] Operational Changes - Operating costs decreased by 51.36%, from CNY 233,624,790.30 to CNY 113,644,215.87, also due to the impact of COVID-19 on product sales[18] - Management expenses increased by 86.95%, from CNY 17,555,417.31 to CNY 32,819,173.95, primarily due to the consolidation of a subsidiary acquired in the second half of 2018[18] - Financial expenses are expected to rise compared to the previous year due to an increase in bank borrowings[24] - The company anticipates a potential net loss for the year due to decreased demand for pharmaceuticals and operational disruptions caused by the COVID-19 pandemic[24] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 21,115[10] - The largest shareholder, Lu Zhongkui, held 23.09% of the shares, amounting to 153,778,980 shares[10] - The company did not engage in any repurchase transactions among the top 10 shareholders during the reporting period[11] - The company has committed to fulfilling its promises to minority shareholders without any violations reported during the period[23] Strategic Plans - The company aims to expand its pharmaceutical business across China, focusing on biopharmaceuticals and OTC market sales, while enhancing group management[19] - The company is committed to quality products and services, with a focus on developing a well-recognized brand in the domestic market[19] - The company plans to accelerate investment projects to establish itself as a leading brand in the pharmaceutical industry[19] Miscellaneous - There were no significant changes in major suppliers or customers during the reporting period[21] - The company did not undergo an audit for the Q1 2020 report, indicating that the figures may be subject to further review[54] - The company has not applied new revenue and leasing standards for the financial statements, indicating a potential area for future compliance adjustments[54] - The cash flow from tax refunds was not reported, indicating a potential area for improvement in cash management strategies[52]

Financial Performance - Operating revenue for the reporting period was ¥277,486,002.97, representing a year-on-year increase of 41.36%[9] - Net profit attributable to shareholders was a loss of ¥8,840,344.21, a decrease of 133.59% compared to the same period last year[9] - Basic earnings per share for the reporting period was -¥0.0158, a decline of 137.62% year-on-year[9] - The company reported a significant decrease of 53.70% in income tax expenses to ¥11,937,531.59 from ¥25,784,033.15 in the same period last year due to a reduction in total profit[27] - Net profit for the current period was a loss of ¥10,550,814.91, compared to a profit of ¥27,951,547.15 in the previous period[55] - The company reported a total comprehensive income of ¥11,541,722.08 for the current period, down from ¥103,242,672.21 in the previous period[68] - The net profit for the current period is -12,210,437.85, compared to a profit of 19,485,886.35 in the previous period[73] Assets and Liabilities - Total assets at the end of the reporting period reached ¥5,049,708,440.69, an increase of 4.06% compared to the end of the previous year[9] - Total current assets increased to ¥1,970,074,224.61 as of September 30, 2019, up from ¥1,771,371,129.25 as of December 31, 2018, representing an increase of approximately 11.25%[38] - Total liabilities increased to ¥2,789,667,967.08 from ¥2,604,319,234.41, which is an increase of about 7.1%[42] - The company's total liabilities to equity ratio stands at approximately 1.25, indicating a leveraged position in its capital structure[42] - Non-current assets totaled ¥3,079,634,216.08, slightly down from ¥3,081,446,856.69, showing a marginal decrease of about 0.06%[40] - The company's equity attributable to shareholders increased to ¥2,219,953,844.18 from ¥2,207,791,166.44, reflecting a growth of about 0.99%[43] Cash Flow - The net cash flow from operating activities for the year-to-date was ¥221,217,659.30, an increase of 777.14%[9] - Cash inflow from operating activities totaled 1,090,356,734.83, an increase from 617,092,507.65 in the previous period[76] - The net cash flow from operating activities is 221,217,659.30, significantly higher than 25,220,474.30 in the previous period[79] - Cash outflow from investing activities was 565,623,582.20, compared to 521,802,463.06 in the previous period[80] - The net cash flow from investing activities is -520,480,633.46, worsening from -458,185,851.03 in the previous period[80] - Cash inflow from financing activities was 1,165,898,502.47, up from 753,409,000.00 in the previous period[81] - The net cash flow from financing activities is 152,297,290.49, down from 253,571,287.03 in the previous period[81] - The ending cash and cash equivalents balance is 21,517,144.65, a decrease from 190,452,186.01 in the previous period[81] Shareholder Information - The total number of shareholders at the end of the reporting period was 17,973[13] - The top shareholder, Lu Zhongkui, held 23.09% of the shares, amounting to 153,778,980 shares[13] - The company did not conduct any repurchase transactions among the top 10 shareholders during the reporting period[15] Operational Costs - Operating costs increased by 51.93% to ¥626,339,223.72 from ¥412,243,507.20 in the same period last year, also due to an increase in the scope of consolidation[26] - Sales expenses surged by 275.03% to ¥85,266,993.27 from ¥22,736,283.16 in the same period last year, primarily due to the expanded consolidation scope[26] - Management expenses rose by 97.53% to ¥77,995,731.49 from ¥39,485,430.83 in the same period last year, reflecting the increased consolidation scope[26] - Financial expenses increased by 73.82% to ¥68,157,432.67 from ¥39,210,763.15 in the same period last year, driven by higher bank loan interest payments[26] Future Outlook - The company anticipates a significant decline in operating revenue and net profit for the year due to the temporary shutdown of a wholly-owned subsidiary starting in August 2019[31] - The company plans to continue expanding its market presence and investing in new product development to drive future growth[65] Other Financial Metrics - The company reported non-recurring gains and losses totaling ¥38,322,795.73 for the year-to-date[10] - Research and development expenses were ¥528,940.72, a decrease from ¥2,022,232.34 in the previous period, indicating a reduction in R&D investment[54] - Research and development expenses increased to ¥10,325,124.95, compared to ¥7,956,285.71 in the previous period, reflecting a growth of 29.6%[64] - The company recorded an investment income of ¥30,002,009.33, slightly down from ¥32,976,791.80 in the previous period[70] - Other income for the current period was ¥16,503,881.80, down from ¥25,433,730.25 in the previous period, indicating a decline in non-operating income[54] - The company has implemented new financial instrument standards and new revenue standards starting from 2019[88]

Financial Performance - Total revenue for the first half of 2019 was CNY 577,799,300.06, representing a 42.47% increase compared to CNY 405,564,555.26 in the same period last year[25]. - Net profit attributable to shareholders decreased by 72.10% to CNY 21,003,021.95 from CNY 75,291,125.06 year-on-year[25]. - The total profit decreased by 70.82% to CNY 27,781,063.26, while the net profit attributable to shareholders dropped by 72.10% to CNY 21,003,021.95[46]. - The company reported a total comprehensive income of CNY 22,092,536.99 for the first half of 2019, compared to CNY 75,291,125.06 in the same period of 2018[160]. - The company reported a net profit of 81.14 million, which is a decrease of 5.85% compared to the previous period[190]. Cash Flow and Liquidity - The net cash flow from operating activities surged by 507.66% to CNY 175,037,398.80, up from CNY 28,805,267.44 in the previous year[25]. - The cash flow from operating activities for the first half of 2019 was 175,037,398.80, up from 28,805,267.44 in the same period of 2018, showing a strong increase in operational cash generation[169]. - The total cash and cash equivalents at the end of the first half of 2019 were 39,535,566.65, a decrease from 345,500,451.80 at the end of the first half of 2018, indicating a decline in liquidity[174]. - The company is actively managing its cash flow, as evidenced by the substantial changes in cash and cash equivalents and financing activities[180]. Assets and Liabilities - Total assets increased by 3.92% to CNY 5,043,096,323.96 from CNY 4,852,817,985.94 at the end of the previous year[25]. - The total liabilities of the company were CNY 2,772,505,035.44 as of June 30, 2019, compared to CNY 2,604,319,234.41 at the end of 2018, which is an increase of about 6.5%[146]. - Accounts receivable increased to CNY 829,933,718.00, accounting for 16.46% of total assets, while inventory rose to CNY 530,631,342.00, making up 10.52%[57]. Operational Strategy - The company plans to address industry changes by enhancing promotional efforts and accelerating the launch of new products to mitigate market risks[10]. - The company is focusing on improving product quality and optimizing management processes to achieve steady growth in performance[12]. - The company has adjusted its product structure to reduce low-margin products and increase sales through terminal channels, reflecting a strategic shift in its marketing approach[36]. - The company is focusing on high-value-added products and has implemented a three-tiered sales management system to optimize product structure and reduce inventory[37]. Research and Development - Research and development expenses rose by 65.08% to CNY 9,796,184.23 from CNY 5,934,053.37, attributed to the increased consolidation scope[48]. - The company is developing new drugs, including sodium dequalinium eye drops and dequalinium dispersible tablets, with various stages of research and regulatory approval[42][43]. - The company is focusing on improving its new drug research and development management to address the uncertainties in the development cycle[72]. Market and Competition - The company is facing increased operational costs due to rising labor and logistics expenses, alongside intensified global competition and regulatory changes in the pharmaceutical industry[71]. - The company has identified risks related to slow receivables recovery and increased sales expenses in the OTC market due to heightened competition[72]. - The company faces risks of declining profitability and increased accounts receivable due to intensified competition in the chemical industry[73]. Shareholder Information - The company reported a total of 13,198 common stock shareholders at the end of the reporting period[119]. - The largest shareholder, Lu Zhongkui, holds 34,319,745 shares, accounting for approximately 23.09% of the total shares[121]. - The company has not implemented any share buyback or repurchase plans during the reporting period[114]. Future Outlook - The company plans to enhance its market promotion efforts and accelerate the launch of new products to mitigate risks associated with declining sales of clinical products[72]. - The company has set a performance guidance for the next quarter, targeting a revenue growth of 10%[190]. - Future outlook and performance guidance were not explicitly detailed in the provided content, indicating a need for further information from the company[198].