Group 1: Company Development Plans - The company is focusing on the development of traditional Chinese medicine formula granules and is conducting research on processes and quality standards [3] - The company is optimistic about the market prospects for traditional Chinese medicine slices and aims to promote their industrialization [3] Group 2: Clinical Research and Collaborations - The first phase of clinical research on specific T cell adoptive immunotherapy for solid tumors in collaboration with Hospital 458 has been completed, and data is currently being organized [3] - The company is cautiously considering mergers and acquisitions as a path for external development, focusing on companies that complement its products, technology, and channels [4] Group 3: Strategic Partnerships - The company has signed letters of intent for cooperation with Hubei Tianji Traditional Chinese Medicine Slices Co., Ltd. and Anhui Dechang Pharmaceutical Slices Co., Ltd., and is progressing according to plan [4] Group 4: Sales and Growth - Jiujibiotech has made adjustments to its sales policies and is expected to achieve steady growth this year compared to last year [4] Group 5: Employee Stock Ownership Plan - The first phase of the employee stock ownership plan is being implemented according to the asset management contract [4]

证券代码：300147 证券简称：香雪制药 编号：20141106 广州市香雪制药股份有限公司投资者关系活动记录表 | --- | --- | --- | |----------------|--------------------------------|------------------------------------------| | | | | | 投资者关系活动 | √特定对象调研 □分析师会议 | | | 类别 | □媒体采访 □业绩说明会 | | | | □ 新闻发布会 □路演活动 | | | | □现场参观 | □ 一对一沟通 | | | □ | 其他 （请文字说明其他活动内容） | | 参与单位名称及 | | 中国中投证券有限责任公司：池陈森； | | 人员姓名 | | 广州广证恒生证券投资咨询有限公司：张伟； | | | 广东银石投资有限公司：谢成长； | | | | 招商证券股份有限公司：王准飞 | | | | 国信证券股份有限公司：邵燕芳； | | | | 大成基金管理有限公司：杨挺。 | | | 时间 | 2014-11-6 15:00 | 至 17:00 | | 地点 | 公 ...

Group 1: Company Development Strategy - The company focuses on the development of traditional Chinese medicine modernization as its strategic direction, emphasizing endogenous growth, external expansion, business model innovation, and leading-edge technology as four driving forces [3][4] - The company has competitive advantages in the development strategy, operational mechanism, management model, technology, and marketing aspects of the traditional Chinese medicine sector [3] Group 2: Clinical Research and Collaborations - The first phase of the clinical research project on specific T cell adoptive immunotherapy for solid tumors in collaboration with 458 hospitals has been completed, with the initial clinical summary report drafted [4] - The company is cautiously pursuing mergers and acquisitions as a path for external development, focusing on companies that complement its products, technology, and channels [4] Group 3: Employee Stock Ownership and Banking Progress - The first phase of the employee stock ownership plan is being implemented according to the asset management contract [5] - The establishment of Huacheng Bank is currently in the application process [5]

Group 1: Marketing and Sales Strategy - The company is transitioning its traditional Chinese medicine sales model from a distributor-based approach to a self-managed direct sales model, enhancing control over terminal sales [2][3] - The sales team is being restructured to operate OTC and prescription drugs independently, while also implementing nationwide price maintenance and abandoning low-bid regions [3] Group 2: Development Plans - The company aims to establish technical standards for approximately 400 varieties of traditional Chinese medicine granules within two years, focusing on industry policy and quality standards [3] - Production bases are being developed in Ningxia Longde and Sichuan Nanchong to support the future production of granules [3] Group 3: Clinical Projects - The company is collaborating with 458 hospitals on a specific T-cell therapy project for solid tumors, with the first phase of clinical trials completed and the second phase currently in patient selection [4] Group 4: Employee Stock Ownership Plan - The first phase of the employee stock ownership plan is currently at a loss, and the company will consider follow-up measures before the plan's expiration, subject to official announcements [4] Group 5: Future Directions - The company continues to focus on the pharmaceutical and healthcare industry, with an emphasis on traditional Chinese medicine and plans to expand into precision medicine [4] - The investment in Huacheng Life Insurance is based on future business synergies, with the company awaiting regulatory approval [5]

Financial Performance - The company's operating revenue for the first half of 2022 was ¥1,190,988,260.24, a decrease of 22.44% compared to ¥1,535,511,803.60 in the same period last year[22]. - The net profit attributable to shareholders was a loss of ¥170,458,116.42, representing a decline of 438.83% from a profit of ¥50,307,171.06 in the previous year[22]. - The net profit after deducting non-recurring gains and losses was a loss of ¥222,166,077.35, down 1,088.59% from ¥22,472,960.09 in the same period last year[22]. - The cash flow from operating activities was ¥57,684,468.54, a decrease of 52.34% compared to ¥121,038,887.20 in the previous year[22]. - The basic earnings per share were -¥0.26, a decline of 425.00% from ¥0.08 in the same period last year[22]. - The operating profit was -115.11 million yuan, a decrease of 230.08% year-on-year[41]. - The company reported a net profit of -222,166,077.35 yuan for the current period, a decrease of 1,088.59% compared to the same period last year, which had a profit of 22,472,960.09 yuan[186]. Assets and Liabilities - Total assets at the end of the reporting period were ¥10,941,414,003.48, down 3.86% from ¥11,380,592,438.86 at the end of the previous year[22]. - The net assets attributable to shareholders decreased by 5.76% to ¥2,775,750,574.46 from ¥2,945,552,554.18 at the end of the previous year[22]. - The company's total liabilities decreased from CNY 4,840,261,233.04 in the first half of 2021 to CNY 4,561,330,326.26 in the first half of 2022, reflecting a reduction of approximately 5.8%[198]. - The total current liabilities amounted to CNY 4,487,635,433.95 in the first half of 2022, down from CNY 4,781,507,886.47 in the first half of 2021, a decrease of approximately 6.1%[198]. - The company's long-term borrowings decreased from CNY 22,850,577.72 in the first half of 2021 to CNY 16,224,329.01 in the first half of 2022, a reduction of about 29%[198]. Investment and R&D - The company is developing a new drug for glioblastoma treatment (KX02), which is a key part of its new drug development and technological innovation[41]. - The company has completed Phase I clinical trials for a new TCR cell therapy drug (TAEST16001) and is preparing to start Phase II clinical research[41]. - The company’s subsidiary, Xiangxue Life Sciences, is advancing two clinical products: TAEST16001 for soft tissue sarcoma and TAEST1901 for primary liver cancer, with the former entering Phase II clinical trials[32]. - The company has completed the registration of 35 national standard varieties for formula granules and has made progress in the development of various antiviral products[32][34]. - Research and development expenses increased by 81.28% to approximately ¥40.92 million, up from ¥22.57 million in the previous year[54]. Operational Changes and Strategies - The company is focusing on optimizing its asset structure and resource allocation to enhance overall operational efficiency[79]. - The company is strategically expanding its market presence by deepening marketing reforms and increasing control over terminal channels[80]. - The company is exploring various R&D models, including independent development and technology transfer, to strengthen its technical reserves[39]. - The company has outlined potential risks and countermeasures in its management discussion and analysis section[3]. - The company is actively optimizing its management structure and has begun divesting non-core subsidiaries to improve asset liquidity and operational efficiency[86]. Legal and Compliance Issues - The company is currently facing multiple legal lawsuits, with significant amounts involved: 300 million CNY from a lawsuit by Kangxiang Co., 299 million CNY from Huasheng Fund Management, 123 million CNY from Guangzhou High-tech Zone Financing Leasing Co., and 280 million CNY from Guangzhou High-tech Zone Investment Group[94]. - The company is actively seeking reasonable solutions to the lawsuits and is in communication with relevant parties to protect shareholder interests[94]. - The company received a warning letter from the China Securities Regulatory Commission regarding compliance issues[150]. - The company was fined 250,000 yuan for violating advertising laws, but the impact on operations was not significant[121]. Shareholder and Capital Management - The company plans not to distribute cash dividends or issue bonus shares[4]. - The company has implemented a stock incentive plan, granting 8,767,604 restricted shares at a price of 3.32 CNY per share to 203 individuals, including directors and key personnel[100]. - The largest shareholder, Guangzhou Kunlun Investment Co., Ltd., holds 24.75% of the shares, totaling 163,670,578 shares, with a decrease of 3,130,000 shares during the reporting period[166]. - The total amount of shares pledged by the largest shareholder is 158,215,629 shares, which represents a significant portion of their holdings[169]. - The company has a total of 3,414,001 shares available for release from restrictions, accounting for 0.52% of the total share capital[103]. Environmental and Social Responsibility - The company has established a third-party monitoring scheme for environmental emissions, with monthly reports submitted to the environmental protection bureau[109]. - The company has actively promoted energy-saving measures and adhered to national environmental protection standards[111]. - The company has made charitable donations valued at 1.9273 million RMB to various social organizations, including medical and educational foundations[111]. - The company has implemented a quality management system to ensure product quality and has maintained zero production or equipment accidents in the first half of 2022[111].

Financial Performance - The net profit attributable to shareholders for 2021 was -688.4691 million RMB, primarily impacted by the pandemic, medical policies, market competition, impairment provisions, and financial costs[5]. - The company's operating revenue for 2021 was CNY 2,970,575,841.91, a decrease of 3.30% compared to CNY 3,072,090,655.97 in 2020[23]. - The net profit attributable to shareholders was a loss of CNY 688,469,145.4, representing a decline of 799.51% from a profit of CNY 98,420,950.34 in 2020[22]. - The total profit for 2021 was CNY -635.78 million, a decline of 482.68% compared to the previous year[61]. - The company's gross profit margin declined by approximately 6.08% due to increased promotional efforts, including price reductions and higher discount rates[76]. - The company reported a net loss of CNY 658,697,282.65, primarily due to provisions for goodwill impairment and asset impairment[100]. - The company’s financial expenses increased by 53.72% year-on-year, impacting overall profitability[62]. Strategic Focus and Development - The company is committed to transitioning from rapid growth to high-quality development in the pharmaceutical sector[5]. - The company aims to enhance its market share by leveraging brand advantages and promoting product marketing efforts[51]. - The company is focused on maintaining a fair and efficient value distribution system to enhance team cohesion and promote sustainable business growth[190]. - The company aims to modernize traditional Chinese medicine, focusing on internal growth, external expansion, business model innovation, and cutting-edge technology[125]. - The company plans to optimize its asset structure and resource allocation to enhance core competitiveness and overall market position[51]. - The company is exploring potential mergers and acquisitions to further strengthen its market position and expand its product portfolio[166]. Industry Challenges and Opportunities - The pharmaceutical industry is facing challenges and opportunities due to the dual impact of the COVID-19 pandemic and medical policies, leading to difficulties in raw material procurement, production organization, and logistics[5]. - The medical reform policies, including "volume-based procurement" and dynamic adjustments to the medical insurance catalog, have had a short-term negative impact on the traditional Chinese medicine industry[5]. - The company has faced significant pressure on internal cost control due to policies like "volume-based procurement" and dynamic adjustment of the medical insurance catalog, leading to intense competition in the industry[48]. - The ongoing medical reform policies are pressuring the pharmaceutical industry, necessitating the company to seek new growth opportunities amidst competitive challenges[137]. Research and Development - The company is currently conducting Phase I clinical trials for its T-cell immunotherapy product TAEST16001, aimed at treating synovial sarcoma[60]. - The company has developed a complete TCR-T technology platform for tumor-specific antigen discovery and TCR screening, achieving international advanced levels[64]. - The company’s R&D efforts focus on innovative products, including antiviral oral liquids and environmentally friendly medical aerosol products[63]. - Research and development expenses increased by 35.25% to CNY 90.60 million, reflecting higher investment in new drug development projects[95]. Governance and Compliance - The company emphasizes strict compliance with information disclosure regulations, ensuring accurate and timely communication with investors[155]. - The company has a robust governance structure that aligns with legal and regulatory requirements, with no significant discrepancies noted[156]. - The company has established a complete system for labor, personnel, and salary management, independent from its controlling shareholders[159]. - The company actively engages with stakeholders to balance interests and promote sustainable development[156]. Market Trends and Sales Performance - In the first half of 2021, the pharmaceutical industry saw a sales growth of 8.8%, with total sales reaching 839.3 billion yuan[35]. - The online medical and e-commerce market saw a significant sales increase of 60.9% compared to 2020, driven by the pandemic[35]. - The traditional Chinese medicine segment's revenue was CNY 120,895.98 million, an increase of 10.01% year-on-year[73]. - The pharmaceutical distribution segment achieved revenue of CNY 86,886.01 million, up 40.54% year-on-year[73]. Employee and Management Structure - The total number of employees at the end of the reporting period was 3,378, with 1,082 in the parent company and 1,905 in major subsidiaries[189]. - The company has implemented a salary policy that includes basic salary, performance salary, bonuses, social security, housing fund, and living allowances to motivate employees[190]. - The company has a total of 706 technical personnel, 680 sales personnel, and 1,192 production personnel, indicating a diverse workforce[189]. - The company has a comprehensive compensation structure based on performance and responsibilities for its executives[175]. Financial Management and Investments - The company plans to optimize its debt structure through self-funding and utilizing remaining credit lines to manage repayment obligations[138]. - The company reported a total of CNY 747,351,437.08 in ongoing non-equity investments, with a cumulative actual investment of CNY 4,461,468.00 by the end of the reporting period[114]. - The company made a significant equity investment of CNY 1,500,000,000 in Guangzhou Xianglan Health Industry Co., acquiring 100% ownership[110]. - The company sold 100% equity of Guangdong Zhaoyang Biotechnology Co., Ltd., optimizing asset structure and improving liquidity, resulting in a positive cash flow and cooperation benefits[120].

Financial Performance - The company's revenue for Q1 2022 was ¥613,719,586.39, representing a decrease of 22.41% compared to the same period last year[3] - The net profit attributable to shareholders was a loss of ¥54,380,193.73, a decline of 320.85% year-over-year[3] - The net cash flow from operating activities was negative at ¥14,969,306.51, down 131.19% from the previous year[3] - The company reported a basic earnings per share of -¥0.082, a decrease of 305.00% compared to the previous year[3] - Total operating revenue for the current period is $613.72 million, a decrease of 22.4% compared to $790.93 million in the previous period[23] - Operating profit turned negative at -$41.30 million, compared to a profit of $37.23 million in the previous period[24] - Net profit for the current period is -$41.90 million, a significant decline from a profit of $32.23 million in the previous period[24] - Basic and diluted earnings per share are both -$0.082, down from $0.040 in the previous period[25] Assets and Liabilities - The total assets at the end of the reporting period were ¥11,170,462,439.30, a decrease of 1.85% from the end of the previous year[4] - As of March 31, 2022, the company's total assets amounted to 11.17 billion CNY, a decrease from 11.38 billion CNY at the beginning of the year[20] - The company's total liabilities decreased to approximately 7.45 billion CNY from 7.62 billion CNY, a reduction of about 2.2%[21] - The company's cash and cash equivalents increased to approximately 356.83 million CNY from 196.12 million CNY at the beginning of the year, representing an increase of about 81.9%[19] - Accounts receivable rose to approximately 1.16 billion CNY from 1.10 billion CNY, reflecting an increase of about 6%[19] - The company reported a decrease in inventory from approximately 761.46 million CNY to 709.49 million CNY, a decline of about 6.8%[19] Investment and Financing Activities - The company received government subsidies amounting to ¥5,900,042.62 during the reporting period[6] - The investment income increased by 2454.75% due to the sale of a subsidiary, Guangzhou Xiangxue Asia Beverage Co., Ltd.[8] - Cash flow from investing activities generated a net inflow of $282.87 million, a turnaround from a net outflow of -$142.31 million in the previous period[29] - Cash flow from financing activities resulted in a net outflow of -$111.11 million, slightly improved from -$123.26 million in the previous period[29] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 57,935[10] - The company approved the repurchase and cancellation of 82,390 restricted shares at a price of 3.274 CNY per share, reducing total share capital from 661,361,435 shares to 661,279,045 shares[15] - The total number of restricted shares at the beginning of the period was 4,763,909, with no shares released or added during the reporting period[13] Corporate Actions and Developments - The company completed a capital increase of RMB 100 million for its wholly-owned subsidiary, raising its registered capital from RMB 160 million to RMB 260 million[14] - The company transferred 63% equity of its subsidiary, Guangzhou Xiangxue Asia Beverage Co., Ltd., for a total of RMB 81.9 million, with all transfer procedures completed by the end of the reporting period[14] - The company agreed to transfer a fund share of 50 million CNY from Guangzhou Huacheng Venture Capital Partnership to Jiadu Group for 56.44 million CNY, and an 18% stake in Guangzhou Huacheng Venture Capital Management for 9.52 million CNY[15] - The company decided to terminate the preparation for establishing Huacheng Life Insurance Co., Ltd., with a planned investment of 160 million CNY for a 16% stake due to macroeconomic and financial policy changes[16] - The subsidiary, Xiangxue Life Science Technology, received approval for clinical trials of the new drug TAEST1901, aimed at treating advanced liver cancer and other late-stage tumors[16] Audit and Reporting - The first quarter report has not been audited[30] - The report was presented by the Chairman, Wang Yonghui, on April 28, 2022[31]

Financial Performance - The net profit attributable to shareholders for 2021 was -688.4691 million RMB, primarily impacted by the pandemic, medical policies, market competition, impairment provisions, and financial expenses [5]. - The company's operating revenue for 2021 was CNY 2,970,575,841.91, a decrease of 3.30% compared to CNY 3,072,090,655.97 in 2020 [23]. - The net profit attributable to shareholders was a loss of CNY 688,469,145.4, representing a decline of 799.51% from a profit of CNY 98,420,950.34 in 2020 [23]. - The basic earnings per share for 2021 was -CNY 1.04, down 793.33% from CNY 0.15 in 2020 [23]. - The total assets at the end of 2021 amounted to CNY 11,380,592,438, a decrease of 6.69% from CNY 12,196,636,876 at the end of 2020 [23]. - The net assets attributable to shareholders decreased by 18.47% to CNY 2,945,552,554.18 from CNY 3,612,685,390 at the end of 2020 [23]. - The total profit for 2021 was CNY -635.78 million, a decrease of 482.68% year-on-year [61]. - The company reported a total revenue of CNY 297,057.58 million in 2021, a decrease of 3.30% year-on-year, with a net profit attributable to shareholders of CNY -68,846.91 million, down 799.51% [72]. Strategic Plans and Governance - The company plans not to distribute cash dividends, issue bonus shares, or increase share capital from reserves [8]. - Future plans and forward-looking statements are subject to risks, and investors are advised to understand the differences between plans, forecasts, and commitments [7]. - The company will continue to improve governance and assessment across various business segments [5]. - The company emphasizes its core competitiveness and sustainable operational capabilities, aiming to enhance profitability and achieve steady growth [5]. - The company is committed to optimizing asset structure and resource allocation to enhance core competitiveness and promote sustained growth in performance [51]. - The company aims to enhance market share through brand advantages and product promotion, while focusing on industry advantages to drive technological innovation [51]. - The company is focused on maintaining the interests of all shareholders, especially minority shareholders, through fair pricing in related transactions [186]. Industry Challenges and Opportunities - The pharmaceutical industry is facing challenges and opportunities due to the dual impact of the pandemic and medical policies, with significant government policies aimed at reducing drug prices [5]. - The transition of the pharmaceutical industry from rapid growth to high-quality development presents both challenges and opportunities [5]. - The company has faced significant pressure from policies such as "volume-based procurement" and "two-invoice system," which have led to increased competition and reduced drug prices [48]. - The company has been impacted by the government's policies aimed at reducing drug prices and improving the efficiency of the pharmaceutical supply chain [48]. Research and Development - The company has developed a complete TCR-T technology platform for tumor-specific antigen discovery and TCR screening, achieving international advanced levels [64]. - The company is actively exploring various R&D models, including independent research, technology transfer, and collaborative development [60]. - The company is currently conducting Phase I clinical trials for a new small molecule drug aimed at treating malignant gliomas [94]. - The company is accelerating clinical trials for the new drug TAEST16001 injection and expanding its research pipeline in cell immunotherapy [125]. Market Dynamics - The pharmaceutical industry in China saw a drug sales growth of 8.8% year-on-year in the first half of 2021, with total sales reaching 839.3 billion yuan [35]. - Public medical institutions accounted for the largest share of drug sales at 63.8%, followed by retail pharmacies at 26.4% and public grassroots medical institutions at 9.8% [35]. - The revenue of listed pharmaceutical companies in the first three quarters of 2021 reached 1,583 billion yuan, a year-on-year increase of 18.88%, with net profit attributable to shareholders growing by 25.3% [36]. - The traditional Chinese medicine (TCM) sector experienced revenue and net profit growth rates of 11.28% and 20.77% respectively in the first three quarters of 2021 [36]. Operational Efficiency - The company has established a comprehensive supply chain management system to maximize production capacity utilization and ensure product supply quality [70]. - The company has implemented a strategic procurement model to ensure stable and high-quality material supply, with a focus on long-term partnerships [56]. - The company has established a GMP-compliant quality management system to ensure product quality from R&D to commercialization [69]. - The company has a commitment to technological innovation, with a dedicated research and development center led by Kang Zhiying [176]. Employee and Management Structure - The total number of employees at the end of the reporting period was 3,378, with 1,082 in the parent company and 1,905 in major subsidiaries [187]. - The company has a professional composition of 1,192 production personnel, 680 sales personnel, 706 technical personnel, 98 financial personnel, 303 administrative personnel, and 399 others [187]. - The company has implemented a salary policy that includes basic salary, performance salary, bonuses, social security, housing fund, and living allowances, linking sales personnel's salaries to individual sales performance [188]. - The company has established a scientific assessment system to enhance employee motivation and align compensation with company performance [188]. Corporate Governance - The company emphasizes the importance of information disclosure, adhering to regulations and ensuring timely and accurate communication with investors [153]. - The company maintains independence from its controlling shareholders in business, personnel, assets, organization, and finance, ensuring a complete operational system [155]. - The company has a robust governance structure that complies with legal and regulatory requirements, with no significant discrepancies noted [154]. - The company has a diverse board of directors and management team, with ongoing changes in shareholding among key personnel [159]. Financial Management - The company has established a risk internal control management organization to supervise and evaluate internal control management [200]. - The internal control design is sound and reasonable, with no significant omissions identified in the evaluation [200]. - The company has a complete and independent financial accounting system, ensuring autonomous financial decision-making [157]. - The company reported a fair value change of CNY 9,366,578.75 for its financial assets, with a total initial investment cost of CNY 124,720,151.66 [114].

Financial Performance - The company's revenue for Q3 2021 was ¥700,940,780, representing a 3.38% increase compared to ¥678,000,020 in the same period last year[4]. - The net profit attributable to shareholders was a loss of ¥33,412,770, a decrease of 595.06% from a profit of ¥6,749,185 in the previous year[4]. - Total operating revenue for Q3 2021 was CNY 2,236,452,584.17, a decrease of 10.35% compared to CNY 2,494,461,040.41 in the same period last year[20]. - Net profit for Q3 2021 was CNY 47,734,307.87, a significant decline of 73.5% from CNY 180,045,818.85 in Q3 2020[22]. - The net profit attributable to shareholders of the parent company was CNY 16,894,395.35, down 88.6% from CNY 147,886,620.46 in the previous year[22]. - The company reported a total comprehensive income of CNY 48,668,039.84, compared to CNY 178,656,822.52 in Q3 2020, a decrease of 72.8%[22]. Cash Flow - The net cash flow from operating activities increased by 1460.23%, reaching ¥168,367,470 compared to a loss of ¥12,377,840 in the previous year[4]. - The net cash flow from operating activities was 168,367,470.08 CNY, a significant improvement compared to a loss of 12,377,848.16 CNY in the previous period[25]. - Total cash inflow from operating activities was 2,383,865,867.55 CNY, down 10.55% from 2,665,729,201.18 CNY in the prior period[25]. - Cash outflow from operating activities totaled 2,215,498,397.47 CNY, a decrease of 17.29% from 2,678,107,049.34 CNY in the previous period[25]. - The net cash flow from investing activities was -304,319,283.56 CNY, an improvement from -829,642,669.40 CNY in the prior period[26]. - Cash inflow from financing activities was 3,577,598,708.10 CNY, an increase from 3,075,980,000.00 CNY in the previous period[26]. - The net cash flow from financing activities was -196,824,471.30 CNY, compared to a positive flow of 1,370,285,846.44 CNY in the prior period[26]. - The ending balance of cash and cash equivalents was 144,566,701.01 CNY, down from 862,078,289.23 CNY in the previous period[26]. Assets and Liabilities - Total assets at the end of the reporting period were ¥11,636,374,813.18, a decrease of 4.59% from ¥12,196,636,876.12 at the end of the previous year[5]. - Total liabilities decreased to CNY 7,176,204,513.48 from CNY 7,947,453,059.37, a decline of 9.7%[18]. - The total equity of the company reached approximately CNY 4.25 billion, with total assets amounting to CNY 12.20 billion[31]. - The company holds CNY 725.72 million in long-term loans and CNY 221.20 million in bonds payable[30]. - The report indicates a total of CNY 85.01 million in contract liabilities, reflecting future revenue obligations[30]. Investments and R&D - The company reported a significant increase in R&D expenses by 44.18%, indicating higher investment in ongoing projects[10]. - The company's R&D expenses increased to CNY 49,336,607.34, up from CNY 34,219,547.32, representing a growth of 44.3%[21]. - The company made a strategic investment in SIRNAOMICS LTD, resulting in a 114.18% increase in other non-current financial assets[10]. - The company experienced a 67.25% increase in other income related to government subsidies, reflecting enhanced support from governmental policies[10]. - The company reported a 16247.33% increase in cash received from investments, indicating a significant inflow from new investments[10]. Shareholder Information - The company’s major shareholder, Guangzhou Kunlun Investment Co., Ltd., holds 26.22% of the shares, with a total of 173,390,578 shares pledged[13]. - The total owner's equity attributable to shareholders is approximately CNY 3.61 billion[31]. Miscellaneous - The company has not undergone an audit for the third quarter report[32]. - The report was released by the board of directors on October 27, 2021[33].

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 1,535,511,803.60, a decrease of 15.47% compared to the same period last year[23]. - The net profit attributable to shareholders was CNY 50,307,171.06, down 64.36% year-on-year[23]. - The net profit after deducting non-recurring gains and losses was CNY 22,472,960.09, representing an 83.72% decline compared to the previous year[23]. - Basic earnings per share decreased to CNY 0.08, down 61.90% from CNY 0.21 in the previous year[24]. - The total assets at the end of the reporting period were CNY 11,604,762,271.96, a decrease of 4.85% compared to the end of the previous year[24]. - The net assets attributable to shareholders increased slightly by 1.76% to CNY 3,676,318,628.76[24]. - The company's revenue for the reporting period was CNY 1,535,511,803.60, a decrease of 15.47% compared to CNY 1,816,461,012.61 in the same period last year[61]. - The operating costs decreased by 13.37% to CNY 1,084,978,826.64 from CNY 1,252,496,900.59[62]. - Research and development investment dropped significantly by 62.89% to CNY 71,800,231.40, down from CNY 193,486,076.32 due to reduced project funding[63]. - The net cash flow from operating activities improved to CNY 121,038,887.20, a significant increase of 186.00% from a negative cash flow in the same period last year[23]. Operational Highlights - The company operates in the traditional Chinese medicine sector, focusing on the R&D, production, and sales of modern Chinese medicine and related products[32]. - The main product lines include traditional Chinese medicine, medical devices, and soft drinks, with a focus on antiviral oral liquids and other herbal products[33]. - The company has implemented a "sales-driven production" model, aligning production plans with market demand[35]. - The company has established a comprehensive supply chain management system to ensure stable and high-quality material supply[34]. - The company is leveraging an "Internet + IoT + traditional Chinese medicine" model to connect its entire industry chain with consumers[37]. - The company has established multiple traditional Chinese medicine production bases across several provinces, enhancing raw material supply and quality assurance[53]. - The company is actively involved in the research and development of medical technologies and health science projects[81]. Strategic Initiatives - The company is exploring various R&D models, including independent research and technology transfer, to strengthen its technological capabilities[39]. - The company aims to leverage opportunities in the evolving regulatory landscape of traditional Chinese medicine to strengthen its market position[45]. - The company is focusing on digital transformation in the pharmaceutical industry, accelerated by the pandemic, with new models like "Internet + Medicine + Pharmacy" emerging[44]. - The company aims to expand its market presence and enhance its competitive strength through strategic investments in technology and production capabilities[54]. - The company has a strategic plan for market expansion and potential mergers and acquisitions to enhance its competitive position[84]. Investment and Acquisitions - The company made a significant equity investment of CNY 1,000,000 in Guangzhou Xiangxue Health Management Consulting Co., holding a 100% stake[79]. - An investment of CNY 5,000,000 was made in Xiangxue Biomedical Technology Co., acquiring a 54.40% stake, with a reported loss of CNY 13,077,000 for the period[79]. - The company acquired Guangzhou Xiangxue Health Industry Co., investing CNY 1,500,000 for a 100% stake, with no reported gains or losses[79]. - The company has ongoing investments in multiple healthcare-related projects, with a focus on self-funded initiatives[83]. - The company signed an agreement to acquire 100% equity of Guangzhou Xiehe Precision Medical Co., Ltd. for RMB 150 million, based on asset evaluation reports[171]. Legal and Compliance - The company won a lawsuit against Kangxiang Co., Ltd. regarding investment rights, with a claim amount of 30 million yuan, but the case is currently under appeal[141]. - The company lost a lawsuit against Shenzhen Nanyue Asset Management Co., Ltd. regarding capital increase, with a claim amount of 4 million yuan, which will negatively impact profits[141]. - The company won a lawsuit against Guangdong Qide Hotel Co., Ltd. regarding a transaction related to Bio Island, with a claim amount of 27 million yuan, but the final impact on profits remains uncertain[141]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties during the reporting period[136]. - There were no violations regarding external guarantees during the reporting period[137]. Environmental and Social Responsibility - The company has been proactive in addressing environmental responsibilities, ensuring that all emissions are compliant with standards[119]. - The company donated 5 million yuan to the Zhong Nanshan Foundation for research projects related to traditional Chinese medicine in respiratory health[130]. - The company developed new products such as "Yue Kang No. 1" herbal tea and "Yue Kang No. 1" special herbal tea granules in response to the COVID-19 pandemic[130]. - The company has established an EHS management committee to oversee environmental protection and safety, ensuring compliance with relevant laws and regulations[129]. - The company has set up six specialized environmental emergency response teams to handle potential environmental risk incidents[122]. Shareholder Engagement - The company actively engages with shareholders through various channels, enhancing communication and transparency[125]. - The company’s stock incentive plans aim to align the interests of shareholders, the company, and employees for long-term development[113]. - The first phase of the employee stock ownership plan was extended for 36 months until January 19, 2023, with a total of 7,810,147 shares acquired at an average price of 10.52 CNY per share, representing 1.18% of the total share capital[112]. - A total of 8,767,604 restricted shares were granted to 203 individuals at a price of 3.32 CNY per share as part of the 2019 restricted stock incentive plan[113]. - The company has a total of 54,114 common shareholders at the end of the reporting period[189].