一、会议召开的时间、地点和方式 证券代码：300233 证券简称：金城医药 公告编号：2023-041 山东金城医药集团股份有限公司 关于举行2022年度网上业绩说明会的公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚 假记载、误导性陈述或重大遗漏。 山东金城医药集团股份有限公司（以下简称"公司"）已于 2023 年 3 月 31 日在巨潮资讯网上披露了《2022 年年度报告》及《2022 年年度报告摘要》。为 便于广大投资者更加全面深入地了解公司经营业绩、发展战略等情况，公司定于 2023 年 04 月 10 日（星期一）15:00-17:00 在"价值在线"（www.ir-online.cn） 举行山东金城医药集团股份有限公司 2022 年度业绩说明会，与投资者进行沟通 和交流，广泛听取投资者的意见和建议。 会议召开时间：2023 年 04 月 10 日（星期一）15:00-17:00 会议召开地点：价值在线（www.ir-online.cn） 会议召开方式：网络互动方式 二、参加人员 出席本次网上业绩说明会的人员有：董事长赵叶青先生，总裁李家全先生， 财务总监孙瑞梅女士，董事会秘书 ...

Financial Performance - The company reported a non-operating income of 9,187,941.35 in 2022, a decrease from 12,720,543.88 in 2021[4]. - In 2022, the company achieved a revenue of 3.506 billion yuan, representing a year-on-year growth of 11.70%[39]. - The net profit attributable to shareholders reached 273 million yuan, a significant increase of 153.15%, with basic earnings per share of 0.71 yuan[39]. - The company's total equity attributable to shareholders at the end of the period was 3.607 billion yuan, up 6.27% year-on-year[39]. - The total operating revenue for the year 2022 reached ¥3,505,716,962.18, representing an increase of 11.70% compared to ¥3,138,454,280.12 in 2021[53]. - The revenue from the cephalosporin side-chain active ester series products was ¥842,208,709.22, accounting for 24.02% of total revenue, with a year-on-year growth of 21.29%[55]. - The company achieved a gross profit margin of 46.22% in 2022, which is a decrease of 6.40% from the previous year[55]. - Domestic sales contributed ¥2,759,545,004.79, representing 78.72% of total revenue, with a year-on-year increase of 13.58%[55]. - The contract research and production services segment saw a remarkable growth of 339.31%, with revenue reaching ¥231,058,425.65[55]. Research and Development - The company has maintained R&D investment at over 7% annually, employing 525 R&D personnel, including 135 with master's degrees or higher[28]. - The company has established a three-tier R&D innovation system, collaborating with universities to enhance its technological capabilities[28]. - The company has several ongoing R&D projects, including the development of new products such as sodium choline injection and the consistency evaluation of cefuroxime axetil capsules, which are expected to enhance market competitiveness[76]. - The establishment of a unified R&D platform and partnerships with academic institutions have accelerated innovation in synthetic biology[46]. - The capitalized R&D expenditure was ¥111,346,445.83, accounting for 44.16% of total R&D investment in 2022[79]. - R&D investment amounted to ¥252,126,641.05 in 2022, representing 7.19% of operating revenue, a decrease from 8.01% in 2021[79]. Market Expansion and Product Development - The company is actively expanding its market presence and product offerings in response to evolving healthcare needs and regulatory changes[9]. - The company is focusing on a "vertical integration" development strategy, enhancing its capabilities from fine chemicals to specialty APIs and terminal formulations[39]. - The company completed 10 new product registrations and achieved 3 domestic and 3 international approvals for APIs during the reporting period[46]. - The company is actively pursuing market expansion through new product development and international certifications[44]. - The formulation segment is expected to maintain strong momentum by cultivating key products and increasing market coverage and terminal growth[124]. Production and Operations - The company operates under strict GMP standards across its production subsidiaries, ensuring quality and compliance in manufacturing[16]. - The company has developed multiple drug formulation production lines, including injectables and various oral dosage forms[15]. - The company operates nine production bases across multiple provinces, focusing on cephalosporin intermediates and various dosage forms, with a leading market share in glutathione raw materials[29]. - The company has established two chemical raw material production platforms to enhance its product range and market competitiveness[15]. - The company has a production capacity ranging from milligram to ton levels, with a maximum total reaction volume of 5000 cubic meters for both chemical synthesis and biological fermentation[33]. Financial Management and Investments - The company has implemented significant investments in environmental safety and automation to enhance production efficiency and safety[40]. - The total investment during the reporting period was 89,640,000.00 CNY, representing a 59.05% increase compared to 56,360,000.00 CNY in the same period last year[91]. - The company is committed to ensuring that the total amount of raised funds remains unchanged despite adjustments in the internal investment structure due to rising costs and safety requirements[115]. - The company has established a management system for forward foreign exchange transactions to mitigate risks associated with currency fluctuations[103]. Risk Management - The company faces risks from industry policies, including price reductions and procurement policies, which could impact its R&D, production, and sales[133]. - The company acknowledges the high investment and long cycle risks associated with drug R&D, which may lead to project interruptions or market changes[134]. - The company is exposed to risks from raw material supply and price fluctuations, which could impact profitability; it aims to enhance supply chain management[136]. - The company is aware of risks related to export tax rebate rates and exchange rate fluctuations, and it plans to use hedging tools to manage these risks[140]. Corporate Governance and Compliance - The company emphasizes strict compliance with laws and regulations in its operations and governance[179]. - The company has established a transparent performance evaluation and incentive mechanism for senior management, ensuring accountability and alignment with corporate goals[153]. - The company has a complete and independent financial institution, with independent accounting and financial management systems[164]. - The company has clear ownership of intellectual property rights, including patents and real estate[163]. Employee Development and Management - The company has established a comprehensive training system focusing on key positions and core personnel to enhance employee skills and adaptability to business needs[192]. - The company has implemented a "Starfire Plan" to select high-potential talents from recent graduates for grassroots talent reserves, aiming to build a talent pipeline[192]. - The company has a structured approach to employee development, including the "Torch Plan" for nurturing management-level talents from recent graduates[192].

Group 1: Market Demand and Product Advantages - The domestic market for glutathione raw materials is primarily driven by formulations, with major domestic manufacturers now relying on local suppliers instead of imports [2][3] - The company has advantages over Japanese imports due to guaranteed product quality and technological upgrades [3][4] - The main barriers to glutathione products are fermentation and purification stages, particularly in strain cultivation [3] Group 2: Export Markets and Sales Proportions - The company exports to North America, Southeast Asia, and Europe, with products already present in over ten countries including the USA, Italy, Germany, and Brazil [3][4] - The sales ratio of glutathione products is approximately 60% domestic and 40% international [4][5] Group 3: Strategic Developments - The acquisition of Tianchen Pharmaceutical is aimed at adapting to the company's strategic transformation and extending its operations into downstream industries [5] - The company is conducting market research and planning for the sales of its newly approved "Yikang Peptide" product while maintaining communication with health product enterprises [4][5]

Company Overview - Shandong Jincheng Pharmaceutical Co., Ltd. has been actively pursuing a comprehensive development strategy in the pharmaceutical and healthcare sectors since its IPO, focusing on internal growth, external expansion, and mergers and acquisitions [3][4]. Business Development - The company has successfully completed the acquisition of Shanghai Tianchen Pharmaceutical in 2014 and is planning significant asset restructuring to invest in Beijing Langyi Pharmaceutical in 2015, along with additional investments in Guangzhou Jincheng Daobofa Pharmaceutical [3][4]. - As of now, the company has established a complete industrial chain from intermediates and raw materials to finished formulations, forming three major business systems: antibiotics, biopharmaceuticals, and gynecological and immune-regulating preparations [3][4]. Financial Performance - The company reported a significant growth of over 60% in the first three quarters of the year, primarily driven by the robust performance of the antibiotics segment, which contributes approximately two-thirds of the overall revenue [4][5]. - Domestic and foreign trade revenues are roughly equal, each accounting for about half of the total revenue [4][5]. Product Development - The intermediates business has shown steady growth, with major product sales increasing and prices rising compared to the same period last year, attributed to the company's leading market position and continuous innovation [4][5]. - The biopharmaceutical product glutathione has established business collaborations with major domestic formulation manufacturers and is exported to Europe, America, and Southeast Asia, despite facing some revenue pressure due to price adjustments [4][5]. Future Plans - The company is focused on enhancing its terminal formulation sales channels and has initiated the construction of a sales platform, with core sales personnel already in place [5][6]. - Following the acquisition of Beijing Langyi Pharmaceutical, the company aims to expand its product offerings in antibiotics, biopharmaceuticals, and gynecological and immune-regulating sectors, while also exploring strategic investments in liver disease treatment and other health sectors [6].

Group 1: Company Overview - Jincheng Pharmaceutical has a diverse product range, including approved chemical drugs such as Nitrofurantoin Vaginal Gel Capsules and Pidotimod Dispersible Tablets, which have significant market potential [2] - The company possesses self-supply capabilities for raw materials, ensuring good quality assurance for its products [2] - Jincheng employs a combined marketing model of distribution and direct sales, supported by academic promotion and brand marketing strategies [2] Group 2: Key Products - The main products of Jincheng Pharmaceutical focus on gynecological and immune-regulating medications, with Nitrofurantoin Vaginal Gel Capsules being a leading product in the domestic market, holding the top market share across 34 provinces [3] - Pidotimod Dispersible Tablets, aimed at immune regulation, also lead the market among four main manufacturers [3] Group 3: Business Operations - The pricing and market demand for cephalosporin antibiotics remain stable [3] - Recent share reductions by company executives were attributed to personal financial needs rather than a lack of confidence in the company, with management expressing optimism about future development [3] Group 4: Future Development - Jincheng Pharmaceutical plans to utilize various development strategies, including potential acquisitions of companies that align with its growth direction and industrial goals [4]

Group 1: Sales and Market Strategy - The company plans to continue using the existing sales model for Langyi, leveraging its brand and channel management advantages, with no significant competitors currently in the market [2][3] - Langyi's sales budget and targets for 2015 have been communicated to sales personnel, ensuring accountability [3] - The company is actively working on integrating Langyi's products into local medical insurance systems, with tender processes expected to resume after June due to policy changes [3] Group 2: Production and Development - The construction of Langyi's facilities is progressing as planned, with the formulation workshop nearing completion and raw material workshops still under construction, primarily funded through self-raised capital [3][4] - The acquisition of Langyi is expected to enhance the company's raw material production capabilities and quality control, thereby improving product quality and reducing production costs [3][4] Group 3: Product Portfolio and Market Position - Langyi's main products, such as Nitrofurantoin and Pidotimod, are positioned well in the market, with Nitrofurantoin being the only dual-category product (prescription + OTC) and holding the highest market share in 34 provinces [4] - Pidotimod is a leading immune regulator with a significant market share, and the company anticipates substantial revenue growth from this product over the next five years [4][5] Group 4: Future Opportunities and Challenges - The company is cautious about entering the health supplement market due to stringent approval processes but will consider products with competitive advantages [5] - There are no current plans to enter the medical device and service sectors [5] - The market for glutathione is expected to grow due to its wide range of applications, with potential demand increases in agriculture, health supplements, and food sectors [5]

Company Overview - Shandong Jincheng Pharmaceutical Group Co., Ltd. was established in 2004 and listed on the Shenzhen Growth Enterprise Market in 2011, with a full industry chain from cephalosporin intermediates to specialty raw materials and finished formulations [3][4] - The company has over 20 subsidiaries and approximately 3,000 employees, with a steady growth in operating indicators, achieving a revenue of CNY 2.795 billion in 2019 [4] Financial Performance - In 2019, the company reported a total asset value of CNY 5.592 billion and paid taxes amounting to CNY 288 million, with a net profit of CNY 101 million in 2020 [4] Business Segments 1. Pharmaceutical Chemical Segment - This segment includes three wholly-owned subsidiaries, with over 30 products currently on sale and an average market share exceeding 60% for key products [4][5] - The segment has received national awards for technological advancements and is focused on continuous innovation to maintain its market leadership [4] 2. Biological Segment - The biological segment, primarily represented by Shandong Jincheng Biopharmaceutical Co., Ltd., has products like glutathione and adenosylmethionine, with a revenue of CNY 323 million and a net profit of CNY 95 million, showing a nearly 30% year-on-year growth [5] - The company holds over 80% of the global market share for glutathione raw materials, establishing itself as an industry leader [5] 3. Finished Formulations Segment - The finished formulations segment includes subsidiaries like Beijing Jincheng Tail Pharmaceutical Co., Ltd. and Guangdong Jincheng Jinsuo Pharmaceutical Co., Ltd. [5] - Key products include the immune modulator Pidotimod, which ranks first in market share, and the nitrofurantoin soft capsule, which has over 50% market share [5][6] Future Prospects - The company is expanding its product offerings, with new products like Cabergoline injection expected to receive approval by September or October 2020, and a focus on developing a raw material drug platform [7][8] - Plans are in place to build a high-standard raw material drug workshop compliant with FDA certification requirements, enhancing competitiveness in both domestic and international markets [8]

Group 1: Investor Relations Activity - A total of 69 investors participated in the investor relations activity, which was conducted as a telephone conference [2] - The meeting took place on December 1, 2021, and was held online [3] Group 2: Regulatory Insights - The National Tobacco Monopoly Administration released a draft national standard for electronic cigarettes on November 30, 2021, which is expected to have minimal differences from the 2017 policy [3] - The formal implementation of the policy is anticipated to take three to five months, with many variables still in play [4] Group 3: Nicotine Market Demand - The global nicotine demand is estimated to exceed 800 tons, with over 90% of this demand coming from overseas markets [4] - The average nicotine consumption per smoker is over 10g annually, leading to a theoretical market demand of at least 4,500 tons, excluding high-value nicotine products [4] Group 4: Production and Licensing - The company’s subsidiary, Jincheng Yihua, obtained a safety production license on November 10, 2021, allowing for the production of 200 tons of nicotine per year [4] - The company expects to produce 25-30 tons of nicotine by the end of 2021, depending on downstream customer processes [4] Group 5: Cost and Pricing Strategies - The cost of extracting nicotine from tobacco is significantly higher than synthetic nicotine, with extraction costs estimated at 1.5% yield leading to a procurement cost of approximately 1.5 million [5] - Overseas synthetic nicotine prices are around 10 million per ton, while domestic extracted nicotine prices can exceed 8 million per ton [5] - The company is leaning towards a consignment sales strategy, aiming to negotiate favorable prices while maintaining a price adjustment mechanism [5] Group 6: Competitive Advantages - The synthetic nicotine project has advantages over extraction methods, including the absence of harmful impurities and stable quality [5] - The company possesses advanced chemical synthesis and enzyme catalysis technologies, leading to a significant cost advantage in synthetic nicotine production [5]

Financial Performance - The company's revenue for Q3 2022 was ¥739,470,118.84, a decrease of 7.61% compared to the same period last year[8] - Net profit attributable to shareholders was ¥39,423,509.54, an increase of 44.23% year-on-year[8] - The net profit excluding non-recurring gains and losses was ¥34,215,800.49, up 102.90% compared to the previous year[8] - Basic earnings per share for the period was ¥0.10, representing a 42.86% increase year-on-year[8] - Total operating revenue for the current period reached ¥2,591,255,169.47, an increase from ¥2,095,524,809.86 in the previous period, representing a growth of approximately 23.7%[35] - Net profit for the period reached 267,089,226.39, a significant increase from 129,756,225.21 in the previous period, representing a growth of approximately 106.5%[38] - Operating profit increased to 338,944,390.07 from 173,269,596.37, reflecting a growth of about 95.7%[38] - Basic earnings per share rose to 0.67 from 0.31, marking an increase of 116.1%[40] - The company reported a total comprehensive income of 267,089,226.39, compared to 134,999,223.02 in the previous period, showing an increase of about 97.6%[40] Assets and Liabilities - Total assets at the end of the reporting period reached ¥5,674,992,548.08, a 7.58% increase from the end of the previous year[8] - The company's total assets increased to ¥5,674,992,548.08 from ¥5,275,153,179.53, reflecting a growth of approximately 7.6%[31] - Current assets totaled ¥2,172,293,095.83, slightly up from ¥2,139,270,567.35, showing a marginal increase of about 1.6%[31] - Non-current assets rose to ¥3,502,699,452.25 from ¥3,135,882,612.18, marking an increase of approximately 11.7%[31] - The total liabilities increased to ¥2,020,062,334.69 from ¥1,835,731,359.76, which is an increase of about 10.1%[34] - The company's equity attributable to shareholders reached ¥3,607,256,546.17, up from ¥3,394,465,354.19, indicating a growth of approximately 6.3%[34] Cash Flow - Cash flow from investing activities showed a net outflow of ¥348,083,859.42, a significant increase of 440.50% compared to the previous period[18] - The company reported a net cash inflow from financing activities of ¥99,140,461.81, a 225.74% increase year-on-year, mainly due to increased bank borrowings[18] - Cash flow from operating activities generated a net amount of 208,227,671.15, down from 232,213,332.77 in the previous period, a decrease of approximately 10.3%[44] - Cash and cash equivalents decreased from ¥981,084,481.31 to ¥889,390,294.90, a decline of about 9.3%[31] - Cash and cash equivalents at the end of the period were 843,296,253.96, down from 964,698,230.63, a decrease of approximately 12.5%[47] - Investment activities resulted in a net cash outflow of -348,083,859.42, compared to -64,400,662.19 in the previous period, reflecting a larger outflow[44] Shareholder Information - The total number of common shareholders at the end of the reporting period is 25,131[19] - The largest shareholder, Zibo Jincheng Industrial Investment Co., Ltd., holds 20.28% of the shares, totaling 78,552,154 shares, with 18,829,799 shares pledged[22] - The second largest shareholder, Industrial and Commercial Bank of China - Guangfa Stable Growth Securities Investment Fund, holds 3.67% of the shares, totaling 14,200,000 shares[22] - The third largest shareholder, National Social Security Fund Combination One, holds 3.59% of the shares, totaling 13,900,000 shares[22] - Shareholder Peng Guohua holds 2.90% of the shares, totaling 11,220,000 shares[22] - Shareholder Zhao Hongfu holds 2.50% of the shares, totaling 9,676,000 shares, with 7,257,000 shares under lock-up[22] - Shareholder Zhao Yeqing holds 1.87% of the shares, totaling 7,227,500 shares, with 5,420,625 shares under lock-up[22] - Shareholder Fu Miaoqing holds 1.58% of the shares, totaling 6,138,332 shares, with 4,626,249 shares under lock-up[22] - The total number of restricted shares at the beginning of the period was 26,115,424, with 32,500 shares released during the period[25] Inventory and Operating Costs - The company's inventory increased by 39.89% to ¥547,416,758.01, attributed to increased stocking and rising raw material prices[12] - Operating costs rose by 43.01% to ¥1,377,627,180.93, primarily due to increased sales volume and raw material costs[15] - Total operating costs amounted to ¥2,283,411,856.62, up from ¥1,971,667,778.59, indicating an increase of about 15.8%[35] - Inventory increased significantly from ¥391,322,226.99 to ¥547,416,758.01, representing a growth of approximately 40%[31] Future Outlook - The company has not disclosed any new strategies or future outlook in the provided documents[26] - The company reported a net profit margin improvement, with net income figures to be detailed in future reports[35]

[Important Notice, Table of Contents, and Definitions](index=3&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA%E3%80%81%E7%9B%AE%E5%BD%95%E5%92%8C%E9%87%8A%E4%B9%89) This section provides essential disclaimers, the report's table of contents, and key definitions [Company Profile and Key Financial Indicators](index=7&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section introduces the company's background and presents its key financial performance metrics [Company Profile](index=7&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) Shandong Jincheng Pharmaceutical Group Co., Ltd. (stock abbreviation: Jincheng Pharmaceutical, stock code: 300233) is a company listed on the Shenzhen Stock Exchange, with Zhao Yeqing as its legal representative Company Basic Information | Item | Content | | :--- | :--- | | **Stock Abbreviation** | Jincheng Pharmaceutical | | **Stock Code** | 300233 | | **Listing Exchange** | Shenzhen Stock Exchange | | **Company Full Name** | Shandong Jincheng Pharmaceutical Group Co., Ltd. | | **Legal Representative** | Zhao Yeqing | [Key Accounting Data and Financial Indicators](index=8&type=section&id=%E5%9B%9B%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) In the first half of 2022, the company achieved operating revenue of **CNY 1.852 billion**, a **42.98% year-on-year increase**; net profit attributable to shareholders reached **CNY 219 million**, up **135.44%** Key Financial Indicators | Key Financial Indicator | Current Period (H1 2022) (CNY) | Prior Year Period (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 1,851,785,050.63 | 1,295,172,553.06 | 42.98% | | **Net Profit Attributable to Shareholders** | 218,970,919.44 | 93,005,351.63 | 135.44% | | **Non-recurring Net Profit Attributable to Shareholders** | 218,762,725.63 | 74,254,182.51 | 194.61% | | **Net Cash Flow from Operating Activities** | -15,652,575.32 | 67,896,552.33 | -123.05% | | **Basic Earnings Per Share** | 0.57 | 0.24 | 137.50% | | **Weighted Average Return on Net Assets** | 6.27% | 2.68% | Increased by 3.59 percentage points | | **Total Assets** | 5,622,513,848.42 | - | Increased by 6.58% from end of prior year | | **Net Assets Attributable to Shareholders** | 3,552,551,615.30 | - | Increased by 4.66% from end of prior year | - Total non-recurring gains and losses for the reporting period amounted to **CNY 0.2082 million**, primarily including government grants of **CNY 9.03 million** and net non-operating expenses of **-CNY 5.727 million**[31](index=31&type=chunk)[34](index=34&type=chunk) [Management Discussion and Analysis](index=10&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section provides an in-depth analysis of the company's operational performance, financial position, investment activities, and risk management strategies [Overview of Main Business and Operations](index=10&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company's main business covers R&D, production, and sales of pharmaceutical intermediates, APIs, and preparations, forming a full industry chain from cephalosporin intermediates and specialty APIs to finished formulations - The company has established a full industry chain covering cephalosporin pharmaceutical intermediates, specialty APIs, and finished formulations, achieving synergistic development across intermediates, APIs, and preparations[38](index=38&type=chunk) Business Segment Revenue (H1 2022) | Business Segment | H1 2022 Revenue (Billion CNY) | YoY Growth Rate | | :--- | :--- | :--- | | **Intermediate Business** | 9.18 | 55.31% | | **Biopharmaceuticals and Specialty APIs** | 2.73 | 19.81% | | **Formulation Business** | 4.36 | -8.35% | | **CMO/CDMO Business** | 2.24 | - | - The company's key project constructions are progressing smoothly, including the activation of Guangdong Jincheng Jinsu Zhongshan new plant, the 300-ton/year 4AA project, and the Adenosylmethionine expansion project entering trial production, and Jincheng Medical Chemical Nicotine project obtaining a tobacco monopoly production enterprise license[57](index=57&type=chunk) - The company has made progress in centralized drug procurement, with Clindamycin Phosphate Injection selected for the seventh batch of national centralized procurement and Nifuratel Nystatin Vaginal Soft Capsules winning the bid in Guangdong Alliance centralized procurement[76](index=76&type=chunk)[79](index=79&type=chunk) [Analysis of Core Competencies](index=20&type=section&id=%E4%BA%8C%E3%80%81%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competencies primarily stem from its technological, talent, and brand advantages, supported by multiple R&D platforms and a focus on talent development - The company possesses **3 national-level and 6 provincial-level scientific research platforms**, including a national enterprise technology center, accumulating various distinctive advantageous technologies such such as high-pressure, catalytic hydrogenation, enzyme catalysis, and bio-fermentation[80](index=80&type=chunk) - Through continuous exploration of bio-fermentation and chemical synthesis technologies, the company has formed a complete synthetic biology platform from upstream R&D and pilot-scale amplification to industrialization[80](index=80&type=chunk)[82](index=82&type=chunk) - The company emphasizes talent team building and has received multiple honors, including being recognized as a "Top 100 Chinese Pharmaceutical Industrial Enterprise," demonstrating significant brand advantages[83](index=83&type=chunk)[84](index=84&type=chunk) [Financial Analysis of Main Business](index=21&type=section&id=%E4%B8%89%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) During the reporting period, the company's main business experienced significant growth, with operating revenue increasing by **42.98% year-on-year**, primarily driven by new CMO business and increased sales of API and intermediate products Key Financial Items (Current Period) | Financial Item | Current Period (CNY) | YoY Change | Primary Reason for Change | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 1,851,785,050.63 | 42.98% | New CMO business and increased sales of APIs and intermediates | | **Operating Cost** | 1,026,925,889.15 | 77.36% | Increased sales volume and rising raw material prices | | **Selling Expenses** | 258,020,352.33 | -28.16% | - | | **Financial Expenses** | 3,044,536.53 | -64.58% | RMB depreciation, increased exchange gains | | **Net Cash Flow from Operating Activities** | -15,652,575.32 | -123.05% | Increased collection of bank acceptance bills and higher material procurement expenses | | **Net Cash Flow from Investing Activities** | -269,347,244.59 | -378.38% | Decrease in bank time deposit business and increase in engineering project investment expenditures | | **Net Cash Flow from Financing Activities** | 143,231,378.09 | 345.99% | Increase in bank borrowings and receipt of equity incentive funds | Revenue and Cost by Major Product/Service | Major Product/Service | Operating Revenue (CNY) | Operating Cost (CNY) | Gross Margin | YoY Change in Operating Revenue | | :--- | :--- | :--- | :--- | :--- | | **Cephalosporin Side Chain Active Ester Series** | 444,629,966.98 | 302,937,502.94 | 31.87% | 58.76% | | **Biopharmaceuticals and Specialty APIs** | 272,733,766.90 | 119,093,829.32 | 56.33% | 19.81% | | **Formulation Products** | 436,391,275.33 | 104,734,506.18 | 76.00% | -8.35% | | **Other Pharmaceutical Chemical Products** | 473,851,583.19 | 362,041,706.98 | 23.60% | 52.21% | | **Contract Research and Manufacturing Services** | 224,178,458.23 | 138,118,343.73 | 38.39% | - | [Analysis of Assets and Liabilities](index=23&type=section&id=%E4%BA%94%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) As of the end of the reporting period, the company's total assets were **CNY 5.623 billion**, a **6.58% increase** from the beginning of the year, with a stable asset structure and **CNY 726 million** in restricted assets - As of the end of the reporting period, the company's total assets were **CNY 5.623 billion**, with fixed assets, monetary funds, and accounts receivable accounting for a higher proportion at **34.21%**, **14.64%**, and **11.70%**, respectively[92](index=92&type=chunk) Restricted Assets | Item | Book Value at Period End (CNY) | Reason for Restriction | | :--- | :--- | :--- | | **Monetary Funds** | 81,535,564.83 | Deposit | | **Notes Receivable** | 23,413,867.53 | Bill Pledge | | **Fixed Assets** | 180,808,590.27 | Loan Collateral | | **Intangible Assets** | 114,055,680.91 | Loan Collateral | | **Construction in Progress** | 130,155,540.75 | Loan Collateral | | **Long-term Equity Investment of Parent Company** | 195,600,000.00 | Loan Collateral | | **Total** | **725,569,244.29** | - | [Analysis of Investment Status](index=24&type=section&id=%E5%85%AD%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) During the reporting period, the company's investment amounted to **CNY 88.12 million**, a **264.74% year-on-year increase**, alongside foreign exchange derivative investments and the utilization of raised funds for API projects - During the reporting period, the company engaged in forward foreign exchange transactions, primarily forward settlements and foreign exchange options, to hedge against exchange rate risks, with an investment amount of **CNY 172 million** at period-end and an actual gain of **CNY 1.311 million** during the period[119](index=119&type=chunk) - The company issued shares to acquire assets and raised supporting funds totaling **CNY 289 million**, with a cumulative investment of **CNY 275 million** as of the end of the reporting period, primarily for Beijing Jincheng Taier Cangzhou Branch API project, repayment of bank loans, and supplementing working capital[107](index=107&type=chunk)[111](index=111&type=chunk) [Risks and Countermeasures](index=33&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E9%9D%A2%E4%B8%B4%E7%9A%84%E9%A3%8E%E9%99%A9%E5%92%8C%E5%BA%94%E5%AF%B9%E6%96%BD) The company faces key risks including industry policy and market changes, drug R&D uncertainties, product quality and environmental safety, raw material supply and price fluctuations, significant accounts receivable, exchange rate fluctuations, and new business underperformance - The company's primary risks include: - **Industry Policy and Market Risks**: Policies such as medical insurance cost control and volume-based procurement exert pressure on drug price reductions - **Drug R&D Risks**: High R&D investment, long cycles, and uncertain outcomes - **Product Quality and Environmental Safety Risks**: Potential quality, safety, and environmental risks in production processes - **Raw Material Supply and Price Fluctuation Risks**: Volatility in bulk commodity prices impacts costs - **Significant Accounts Receivable Risk**: Risk of customers failing to collect receivables - **Export Tax Rebate Rate and Exchange Rate Fluctuation Risks**: Macroeconomic and policy changes affecting export business - **New Product and New Business Underperformance Risks**: Uncertainty in CMO/CDMO business orders[135](index=135&type=chunk)[136](index=136&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk)[145](index=145&type=chunk) [Corporate Governance](index=36&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86) This section details the company's corporate governance structure, including equity incentive plans and changes in board and management [Equity Incentive and Corporate Governance Changes](index=36&type=section&id=%E5%9B%9B%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5) During the reporting period, the company held three shareholder meetings, implemented a restricted stock incentive plan, and experienced changes in its board and senior management - During the reporting period, the company implemented the 2022 Restricted Stock Incentive Plan and completed the grant registration on April 15, 2022[152](index=152&type=chunk)[155](index=155&type=chunk) - Changes occurred in the company's senior management, with non-independent director Liu Xingang resigning, Vice President Yang Xiuli dismissed, and Cui Xili elected as a non-independent director[150](index=150&type=chunk) [Environmental and Social Responsibility](index=38&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E7%8E%AF%E5%A2%83%E5%92%8C%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB) This section outlines the company's commitments and actions regarding environmental protection and its broader social responsibilities [Environmental Protection](index=38&type=section&id=%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E7%8E%AF%E4%BF%9D%E9%97%AE%E9%A2%98%E6%83%85%E5%86%B5) The company and its subsidiaries are designated as key pollutant discharge units, operating comprehensive treatment facilities to ensure compliance and actively reduce carbon emissions - The company and its subsidiaries, including Shandong Jincheng Pharmaceutical Chemical, Shandong Jincheng Bio-Pharmaceutical, and Shandong Jincheng Kerry Chemical, are all listed as key pollutant discharge units by environmental protection authorities[159](index=159&type=chunk) - Each subsidiary has constructed comprehensive pollution control facilities, including MVR high-efficiency low-temperature continuous evaporation systems and RTO regenerative incineration units, for treating wastewater, exhaust gas, and solid waste to ensure compliance with discharge standards[180](index=180&type=chunk)[183](index=183&type=chunk)[187](index=187&type=chunk) - The company reduces carbon dioxide emissions by adopting photovoltaic power generation, heat pump technology, optimizing production processes, and implementing automation, thereby improving resource utilization and lowering energy consumption[245](index=245&type=chunk)[247](index=247&type=chunk) [Social Responsibility](index=58&type=section&id=%E4%BA%8C%E3%80%81%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%83%85%E5%86%B5) The company upholds legal compliance, protects shareholder and employee rights, and actively engages in various social welfare initiatives - The company protects shareholder rights through compliant information disclosure and accessible investor communication channels[249](index=249&type=chunk) - The company actively participates in social welfare, including environmental protection, poverty alleviation, charitable donations, and local epidemic prevention and control efforts[252](index=252&type=chunk) [Significant Matters](index=59&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section details the company's significant legal proceedings, guarantees, and other material developments during the reporting period [Litigation, Guarantees, and Other Significant Matters](index=59&type=section&id=%E5%85%AB%E3%80%81%E8%AF%89%E8%AE%BC%E4%BA%8B%E9%A1%B9) During the reporting period, the company had no significant lawsuits or illegal guarantees, but provided substantial guarantees for subsidiaries, and achieved key product approvals - During the reporting period, the company had no significant litigation or arbitration matters, but there were several sales contract disputes involving small amounts[260](index=260&type=chunk)[262](index=262&type=chunk) - The company provided substantial guarantees for its subsidiaries, with the total actual guarantee balance for subsidiaries amounting to **CNY 553 million** at the end of the reporting period[284](index=284&type=chunk) - Significant progress includes: wholly-owned subsidiary Jincheng Medical Chemical obtaining a tobacco monopoly production enterprise license for e-cigarette nicotine; multiple products such as Clindamycin Phosphate Injection and Cefadroxil Capsules passing consistency evaluations; and Posaconazole API passing CDE approval[296](index=296&type=chunk)[299](index=299&type=chunk) [Share Changes and Shareholder Information](index=69&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) This section details changes in the company's share capital and provides an overview of its shareholder structure [Share Changes](index=69&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the company's total share capital remained unchanged, but restricted shares increased due to an equity incentive plan and executive departure - Share changes primarily resulted from the grant of **3,536,400 restricted shares** to **68 incentive recipients** and the lock-up of shares held by former senior executive Yang Xiuli upon his departure[307](index=307&type=chunk) [Shareholder Information](index=71&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had **28,350 common shareholders**, with its controlling shareholder holding **20.28%** of shares, of which **28.40%** are pledged Top Shareholders and Shareholding Status | Shareholder Name | Shareholding Nature | Shareholding Percentage | Number of Shares Held | Number of Restricted Shares Held | Pledge/Freeze Status | | :--- | :--- | :--- | :--- | :--- | :--- | | **Zibo Jincheng Industrial Investment Co., Ltd.** | Domestic Non-State-owned Legal Person | 20.28% | 78,552,154 | 0 | Pledged 22,309,799 | | **GF Stable Growth Securities Investment Fund** | Other | 3.67% | 14,200,000 | 0 | - | | **National Council for Social Security Fund 115 Portfolio** | Other | 3.59% | 13,900,000 | 0 | - | | **Peng Guohua** | Domestic Natural Person | 2.87% | 11,120,000 | 0 | - | | **Zhao Hongfu** | Domestic Natural Person | 2.50% | 9,676,000 | 7,257,000 | - | [Preferred Shares Information](index=75&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) This section confirms that the company has no preferred shares during the reporting period [Preferred Shares Information](index=75&type=section&id=%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) During the reporting period, the company had no preferred shares - The company had no preferred shares during the reporting period[331](index=331&type=chunk) [Bonds Information](index=76&type=section&id=%E7%AC%AC%E4%B9%9D%E8%8A%82%20%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) This section confirms that the company had no bond-related activities during the reporting period [Bonds Information](index=76&type=section&id=%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) During the reporting period, the company had no bond-related activities - The company had no bond-related activities during the reporting period[335](index=335&type=chunk) [Financial Report](index=77&type=section&id=%E7%AC%AC%E5%8D%81%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) This section presents the company's comprehensive financial statements, including balance sheet, income statement, and cash flow statement [Financial Statement Summary](index=77&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) Financial statements indicate that the company achieved steady growth in both total assets and net assets in the first half of 2022, with strong profitability despite negative operating cash flow 2022 Semi-Annual Key Financial Data (Consolidated Statements) | Indicator | Period-End Balance / Current Period Amount (CNY) | | :--- | :--- | | **Income Statement:** | | | Total Operating Revenue | 1,851,785,050.63 | | Operating Profit | 284,002,153.02 | | Net Profit | 224,207,085.73 | | **Balance Sheet (Period-End):** | | | Total Assets | 5,622,513,848.42 | | Total Liabilities | 2,025,747,197.02 | | Total Owners' Equity | 3,596,766,651.40 | | **Cash Flow Statement:** | | | Net Cash Flow from Operating Activities | -15,652,575.32 | | Net Cash Flow from Investing Activities | -269,347,244.59 | | Net Cash Flow from Financing Activities | 143,231,378.09 | | Net Increase in Cash and Cash Equivalents | -142,215,407.21 |