Financial Performance - The company's revenue for Q1 2023 was ¥183,185,038.02, a decrease of 4.46% compared to ¥191,735,280.29 in the same period last year[5] - The net loss attributable to shareholders was ¥2,156,812.13, representing a 40.00% increase in losses from ¥1,540,598.15 year-on-year[5] - Total operating revenue for Q1 2023 was CNY 183,185,038.02, a decrease of 4.06% compared to CNY 191,735,280.29 in Q1 2022[23] - Net profit for Q1 2023 was CNY 2,981,088.59, a decline from CNY 3,850,295.44 in Q1 2022[24] - The total comprehensive income for the period was CNY 2,981,088.59, compared to CNY 3,850,295.44 in the previous period[25] - The company's basic and diluted earnings per share were both -¥0.0089, a decrease of 30.88% from -¥0.0068 in the same period last year[5] - The company reported a basic and diluted earnings per share of CNY -0.0089, compared to CNY -0.0068 in the previous period[25] Cash Flow and Liquidity - The net cash flow from operating activities was -¥6,564,702.62, a decline of 120.37% compared to a positive cash flow of ¥32,222,075.16 in the previous year[5] - The company reported a net cash flow from operating activities of CNY -6,564,702.62, a significant decrease from CNY 32,222,075.16 in the previous period[28] - Cash inflow from operating activities totaled CNY 195,669,573.00, down from CNY 237,810,837.66 year-over-year[27] - The balance of cash and cash equivalents at the end of the reporting period was ¥343,318,600, an increase of 30.07% due to the receipt of a ¥100,000,000 performance bond from asset sales[9] - The company reported a cash balance of CNY 343,318,562.95 as of March 31, 2023, up from CNY 263,945,639.30 at the beginning of the year, indicating a growth of approximately 30.1%[20] - Cash and cash equivalents at the end of the period amounted to CNY 341,918,562.95, an increase from CNY 114,720,149.01 at the end of the previous period[28] - The net cash flow from investing activities was CNY 94,530,117.73, a turnaround from CNY -8,937,432.09 in the previous period[28] - The total cash outflow from financing activities was CNY 10,892,491.46, compared to CNY 12,169,773.54 in the previous period[28] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,644,516,932.21, an increase of 3.80% from ¥1,584,324,080.78 at the end of the previous year[5] - The company's total assets increased to CNY 1,644,516,932.21 in Q1 2023, up from CNY 1,584,324,080.78 in Q1 2022[22] - Total liabilities rose to CNY 911,856,123.42 in Q1 2023, compared to CNY 854,644,360.58 in the previous year[22] - The balance of prepayments decreased by 39.02% to ¥13,088,600, primarily due to reduced advance payments for goods[9] - Other non-current assets increased by 142.45% to ¥2,246,200, mainly due to increased advance payments for long-term asset purchases[9] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 19,008[13] - The total number of restricted shares at the end of the period was 17,985,699, with no shares released during the reporting period[16] - The top ten unrestricted shareholders hold a total of 50,000,000 shares, with the largest shareholder holding 15,772,409 shares[14] Strategic Initiatives - The company completed the election of the fifth board of directors and management team, appointing key personnel including Huang Lequn as chairman and Zhao Qun as president[17] - The subsidiary Jiangsu Jiayi Pharmaceutical Co., Ltd. received drug registration certificates for two new products, indicating ongoing product development efforts[17] - The company signed an asset sale framework agreement with Shanxi Shuangyan Pharmaceutical Co., Ltd. to optimize asset structure and reduce operational costs[18] - The company’s subsidiary Sichuan Qianyuan Traditional Chinese Medicine Co., Ltd. received a high-tech enterprise certificate, enhancing its market position[18] - The company aims to centralize production to lower costs and improve profitability, aligning with its strategic goals[18] - The company’s financial strategy includes avoiding large-scale fixed asset investments while enhancing operational efficiency through asset optimization[18] Operating Costs and Expenses - Total operating costs for Q1 2023 were CNY 185,981,096.81, down 7.26% from CNY 200,523,656.60 in the same period last year[23] - The company reported a decrease in sales expenses to CNY 76,345,934.29 in Q1 2023, down from CNY 94,256,873.49 in Q1 2022[23] - Research and development expenses for Q1 2023 were CNY 8,927,664.99, a decrease of 5.5% from CNY 9,449,694.89 in Q1 2022[24]

Financial Performance - The net profit attributable to shareholders for the year was -118.5746 million yuan, primarily impacted by the failure of Ebastine tablets to win the national centralized procurement bid in Q4 2022, leading to a 10.9% year-over-year decline in operating revenue[5]. - The company's operating revenue for 2022 was ¥828,997,054.54, a decrease of 10.90% compared to ¥930,374,948.87 in 2021[24]. - The net profit attributable to shareholders was -¥118,574,644.28, representing a decline of 29.68% from -¥91,437,557.03 in the previous year[24]. - The cash flow from operating activities was ¥74,876,116.47, down 22.75% from ¥96,921,058.52 in 2021[24]. - The basic and diluted earnings per share were both -¥0.5002, a decrease of 24.71% from -¥0.4011 in 2021[24]. - The net cash flow from operating activities decreased by 22.75% to ¥74,876,116.47 compared to the previous year[65]. - The net cash flow from financing activities increased significantly by 173.91% to ¥112,563,796.19, primarily due to funds raised from a simplified refinancing process[65]. - The total cash and cash equivalents increased by 303.82% to ¥164,240,359.82, reflecting improved liquidity[65]. - The company reported a total distributable profit of 0.00 yuan, with no cash dividends or stock bonuses proposed for the 2022 fiscal year[142]. - The cash dividend amount, including other methods, was also reported as 0.00 yuan, indicating no distribution to shareholders[142]. Strategic Focus and Development - The company is focusing on the development of new products and technologies, although specific details were not provided in the report[5]. - The company is exploring potential mergers and acquisitions to enhance its market position, although no specific targets were disclosed[5]. - The company is committed to enhancing its research and development capabilities to meet the growing demand for health products and improve product competitiveness[35]. - The company aims to focus on high-end drug research and development, transitioning from generic drugs to high-quality generics, and plans to enhance its core competitiveness through increased R&D efforts[93]. - The company plans to enhance sales by focusing on new product launches and optimizing existing product strategies, with an emphasis on expanding the OTC market and improving online sales efficiency[94]. - The company plans to increase R&D efficiency and accelerate new product development, with a focus on high-difficulty generic projects and innovative drug research[94]. Market Environment and Challenges - The pharmaceutical industry faced a complex external environment in 2022, with a 1.6% decline in revenue and a 31.8% drop in total profit for the industry[33]. - The decline in revenue was primarily due to the failure of Ebasitine tablets to win the national centralized procurement bid, significantly impacting Q4 2022 results[40]. - The company continues to face uncertainty regarding its ability to continue as a going concern, as indicated by the negative net profits over the last three years[24]. - The company faces risks from industry policy changes, including drug price reductions and potential exits from the National Medical Insurance Directory, which could significantly impact revenue[96][98]. - Rising raw material costs pose a risk, prompting the company to implement lean production practices to improve efficiency and reduce costs[99]. Governance and Compliance - The company strictly adheres to the requirements of the Company Law and relevant regulations, ensuring compliance in corporate governance and enhancing information disclosure practices[103]. - The board of directors has established four specialized committees, including the Innovation and Strategy Committee, Audit Committee, Nomination Committee, and Compensation and Assessment Committee, to provide professional opinions for decision-making[104]. - The company has a complete and independent financial institution, with a robust accounting system and independent financial decision-making capabilities[109]. - The board approved the adjustment of the 2021 private placement plan for specific targets[125]. - The company emphasized the importance of considering the interests of minority shareholders in decision-making processes[129]. Human Resources and Talent Development - The total number of employees at the end of the reporting period was 1,217, including 458 at the parent company and 759 at major subsidiaries[135]. - The company emphasizes talent introduction and training, continuously improving training mechanisms to enhance employee skills[138]. - The company has established a salary policy that matches job value and performance, enhancing employee motivation and satisfaction[137]. - The company has 54 employees with a postgraduate degree or above, 340 with a bachelor's degree, 403 with a diploma, and 420 with a high school education or below[135]. Environmental Responsibility - The company strictly adheres to environmental protection laws and standards, confirming compliance with various national and local regulations[150]. - The company invested 1.2365 million yuan in environmental governance and protection in 2022[155]. - The concentration of ammonia nitrogen in wastewater was reduced to 458 mg/L, with a total discharge of 2 tons/year[152]. - The company has implemented an online monitoring system for chemical oxygen demand, ammonia nitrogen, flow, and pH at the wastewater discharge outlet[155]. - The company has established a comprehensive emergency response plan for environmental incidents, filed with the local ecological environment bureau[154]. Financial Management and Fundraising - The company raised RMB 110 million through a private placement of shares in May 2022, aimed at optimizing product structure and enhancing R&D capabilities[51]. - The company plans to use RMB 11,500 million from the 2020 fundraising to increase capital in its subsidiary, Qianyuan Baoling[78]. - The company has committed to invest RMB 25,000 million in various projects, with RMB 12,238 million already utilized by the end of the reporting period[81]. - The company has significant assets pledged for bank loans, totaling ¥710,563,168.94, indicating a reliance on external financing[72]. - The company has not made any major acquisitions or disposals of assets during the reporting period[172].

Group 1: Company Operations - The company operates in gene preservation and prenatal environment testing through self-operated and agency models, with a team of approximately 50 people established for sample hospitals across multiple provinces [2] - The company aims to exceed 500 hospitals covered by signed distributors nationwide this year, having already surpassed 200 [3] - The current price for gene preservation is 4,960 yuan per case, with a high gross profit margin [3] Group 2: Investment and Partnerships - The company has invested in a new drug research and development company and is preparing to discuss another investment in a small RNA innovative drug company [4] - The company has not yet engaged with state-owned pharmaceutical enterprises regarding reform [4] - The acquisition of Sichuan Guanghan Traditional Chinese Medicine Co., Ltd. was driven by the potential for development in the traditional Chinese medicine sector and the opportunity to create products related to maternal and infant health [4] Group 3: Financial Activities - The funds for the non-public issuance of shares are in place, pending approval from the China Securities Regulatory Commission for the issuance plan [3]

证券代码：300254 证券简称：仟源医药 山西仟源医药集团股份有限公司 投资者关系活动记录表 编号：2022-002 | --- | --- | --- | --- | --- | --- | --- | |-----------------------------|-----------------------------------|---------------------------------------------------------------------------------|------------------------------------------|--------|-------|------------------| | | | | | | | | | | | □特定对象调研 □分析师会议 □媒体采访 □业绩说明会 | | | | | | 投资者关系活动 | □新闻发布会 | □路演活动 | | | | | | 类别 | □现场参观 √其他（ 2022 | | 年山西辖区上市公司投资者网上集体接待日暨 | | | | | 参与单位名称 | 年报业绩说明会） 线上参与 2 ...

Financial Performance - The company's revenue for Q3 2022 was ¥228,896,813.46, a decrease of 11.84% compared to the same period last year[5] - The net profit attributable to shareholders was -¥2,546,073.37, representing a decline of 100.65% year-on-year[5] - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥5,020,360.17, down 43.26% from the previous year[5] - Total operating revenue for Q3 2022 was CNY 633.85 million, a decrease of 11.7% compared to CNY 717.45 million in Q3 2021[23] - The net profit for Q3 2022 was a loss of CNY 2.87 million, compared to a profit of CNY 6.64 million in Q3 2021[24] - The company reported a loss attributable to shareholders of CNY 25.37 million in Q3 2022, compared to a loss of CNY 5.39 million in the previous year[24] - The company reported a total comprehensive loss of CNY 2.87 million for Q3 2022, compared to a comprehensive income of CNY 6.64 million in the same quarter last year[24] Assets and Liabilities - The total assets at the end of the reporting period were ¥1,648,939,537.32, an increase of 8.00% compared to the end of the previous year[5] - Total assets increased to CNY 1.65 billion in Q3 2022, up from CNY 1.53 billion in Q3 2021, reflecting a growth of 8.0%[22] - Total liabilities rose to CNY 848.14 million in Q3 2022, compared to CNY 782.23 million in Q3 2021, marking an increase of 8.4%[22] - The company's total current assets increased to ¥523,907,396.16 from ¥375,891,284.85 at the beginning of the year, representing a growth of approximately 39.3%[20] Shareholder Information - The total number of common shareholders at the end of the reporting period is 17,562[12] - The top shareholder, Weng Zhangguo, holds 15,772,409 shares, representing 6.53% of total shares[12] - Zhao Qun, the second-largest shareholder, holds 13,401,892 shares, which is 5.55% of total shares, with 10,051,419 shares under lock-up[12] - The total number of unrestricted shares held by the top ten shareholders includes 15,772,409 shares from Weng Zhangguo and 10,000,000 shares from Shanghai Tongyi Investment Management[12] - The company has not disclosed any relationships or concerted actions among the top ten unrestricted shareholders[12] Cash Flow - The cash flow from operating activities for the year-to-date was ¥61,939,568.65, a decrease of 19.54%[5] - The cash inflow from operating activities for the current period was ¥689,602,195.84, a decrease of 14.3% compared to ¥804,665,843.06 in the previous period[25] - The net cash flow from operating activities was ¥61,939,568.65, down 19.6% from ¥76,981,749.49 in the previous period[25] - The cash inflow from financing activities was ¥327,949,994.52, significantly higher than ¥62,880,000.00 in the previous period[26] - The net cash flow from financing activities was ¥133,646,525.75, improving from -¥108,492,628.30 in the previous period[26] Investments and Expenses - Research and development expenses for Q3 2022 were CNY 36.54 million, a decrease of 11.8% from CNY 41.28 million in Q3 2021[23] - The company terminated the project for the production line upgrade at Hangzhou Qianyuan Baoling Pharmaceutical Co., Ltd., reallocating the remaining fundraising of ¥6,560.53 million to supplement working capital permanently[17][18] - Long-term equity investments slightly decreased to ¥89,157,335.35 from ¥90,923,391.56, a reduction of about 1.9%[20] - The company's fixed assets decreased to ¥293,108,187.91 from ¥300,260,615.40, showing a decline of approximately 2.4%[20] - The company's inventory increased slightly to ¥109,723,545.83 from ¥108,384,753.42, indicating a growth of about 1.2%[20]

Financial Performance - The company's operating revenue for the first half of 2022 was ¥404,957,861, a decrease of 11.55% compared to ¥457,827,466 in the same period last year[23]. - The net profit attributable to shareholders was a loss of ¥22,825,620, representing a significant decline of 454.21% from a loss of ¥4,118,613 in the previous year[23]. - The net profit after deducting non-recurring gains and losses was a loss of ¥43,410,241, which is 60.60% worse than the loss of ¥27,029,711 in the same period last year[23]. - The net cash flow from operating activities decreased by 27.05% to ¥31,340,381.99 from ¥42,959,134.17 in the previous year[23]. - The basic and diluted earnings per share were both -¥0.0982, a decline of 442.54% from -¥0.0181 in the same period last year[23]. - The weighted average return on net assets was -3.73%, a decrease of 3.13% compared to -0.60% in the previous year[23]. - The company reported a significant decrease in investment cash flow, down 6,954.39% to -¥16.02 million, primarily due to reduced cash recovered from investments and asset disposals[45]. - The company reported a net loss of CNY 212,811,715.02 in the first half of 2022, compared to a loss of CNY 189,986,094.86 in the same period of 2021[147]. - The total comprehensive income for the first half of 2022 was -¥5,463,894.16, compared to ¥6,169,075.44 in the same period of 2021[153]. Assets and Liabilities - The total assets at the end of the reporting period were ¥1,597,545,851.34, an increase of 4.63% from ¥1,526,809,366.43 at the end of the previous year[23]. - The total liabilities decreased to CNY 759,339,472.18 from CNY 782,229,490.93 at the start of the year[147]. - The company's equity attributable to shareholders rose to CNY 670,670,326.51, up from CNY 589,405,548.85 at the beginning of the year[147]. - The total current assets increased to ¥462,770,936.13 from ¥375,891,284.85, marking an increase of about 23.1%[145]. - The company's cash and cash equivalents increased to ¥199,719,893.74 from ¥107,255,279.48 at the beginning of the year, representing an increase of approximately 86.3%[145]. Research and Development - The company emphasized a strategy of "transformation and integration" while focusing on high-precision pharmaceutical development and expanding its OTC brand business[35]. - The company increased its R&D investment and accelerated the development of new drug projects, with a subsidiary obtaining a patent for a purification device for a specific drug[35]. - The company has established a development strategy focused on high-end pharmaceuticals, with a product range that includes antibiotics, anti-allergy drugs, and urological medications, among others[39]. - The company is currently advancing several key drug projects, including the evaluation of the drug for adult smoking cessation, which is in the approval process, and the drug for treating anemia in chronic kidney disease patients, which is in the pharmaceutical research stage[37]. - The company aims to enhance its research and development capabilities to innovate new technologies and products[165]. Market and Competition - The company faced challenges due to the ongoing impact of COVID-19, leading to a decline in sales of anti-infection drugs and unsuccessful bids in centralized procurement for certain products[34]. - The company is actively participating in the national healthcare policy changes, including the adjustment of the medical insurance drug list, which is expected to intensify industry competition[36]. - The company has acknowledged the significant impact of centralized procurement on drug pricing and market share, affecting future profitability[64]. - The company plans to focus on expanding its market presence and enhancing its product offerings in the upcoming quarters[162]. Financing and Capital Structure - The company completed a private placement of shares, raising a total of CNY 110 million to enhance its product structure and R&D capabilities[35]. - The company raised a total of RMB 140 million through a share issuance at a price of RMB 7.12 per share, with a net amount of RMB 133.58 million after expenses[60]. - The company plans to issue additional shares to specific investors, with 2,007,444 shares allocated to one investor[126]. - The total number of shares issued in the private placement was 13,647,642, which represents a significant capital influx for the company[130]. - The funds raised will be utilized for business expansion and operational enhancements, aligning with the company's long-term strategic goals[130]. Environmental and Social Responsibility - The company has a wastewater treatment facility with a capacity of 150m³/day, utilizing biochemical treatment methods[87]. - The company has installed online monitoring systems for wastewater discharge, ensuring compliance with environmental standards[89]. - The company actively participates in social welfare initiatives, supporting local education and healthcare[91]. - The company has a commitment to environmental protection and resource conservation in its operations[89]. Governance and Compliance - The company emphasizes the protection of shareholder and creditor rights, adhering to relevant laws and regulations[90]. - The company has established a comprehensive performance evaluation system to enhance employee training and development[90]. - The company has maintained compliance with all commitments and has not faced any violations[94]. - The semi-annual financial report has not been audited[97]. - There were no major litigation or arbitration matters during the reporting period[100].

Financial Performance - The company's revenue for Q1 2022 was ¥191,735,280.29, a decrease of 14.05% compared to ¥223,082,273.77 in the same period last year[3] - The net profit attributable to shareholders was a loss of ¥1,540,598.15, representing a decline of 251.26% from a profit of ¥1,018,515.83 in the previous year[3] - Total operating revenue for the current period is ¥191,735,280.29, a decrease of 13.98% from ¥223,082,273.77 in the previous period[22] - Net profit for the current period is ¥3,850,295.44, a decline of 55.54% compared to ¥8,653,901.87 in the previous period[24] - Basic and diluted earnings per share for the current period are -¥0.0068, compared to ¥0.0045 in the previous period[24] Cash Flow and Assets - The net cash flow from operating activities increased by 107.16% to ¥32,222,075.16, up from ¥15,554,487.31 year-on-year[3] - Cash and cash equivalents at the end of the period are ¥114,720,149.01, a decrease from ¥146,598,939.52 in the previous period[27] - The company's cash and cash equivalents rose to CNY 120,370,149.01 from CNY 107,255,279.48, an increase of about 12.3%[18] - Total current assets increased from CNY 375,891,284.85 at the beginning of the year to CNY 394,086,713.84, representing a growth of approximately 4.3%[19] - Total cash outflow from operating activities is ¥205,588,762.50, down from ¥248,497,204.10 in the previous period[27] Liabilities and Equity - The equity attributable to shareholders decreased by 0.26% to ¥587,864,950.70 from ¥589,405,548.85 at the end of the last year[3] - Total liabilities rose slightly from CNY 782,229,490.93 to CNY 787,141,917.25, an increase of approximately 0.5%[20] - The total assets at the end of the reporting period were ¥1,530,572,088.19, reflecting a slight increase of 0.25% from ¥1,526,809,366.43 at the end of the previous year[3] Income and Expenses - Total operating costs decreased to ¥200,523,656.60, down 14.31% from ¥234,008,178.78 in the previous period[22] - Other income decreased by 94.40% to ¥45,240.00 due to a reduction in government subsidies received[8] - The company recorded a 65.60% increase in non-operating income to ¥12,900,100.00, primarily due to increased support funds received[8] Business Expansion and Strategy - The company has expanded its business scope by obtaining approval for COVID-19 nucleic acid testing, enhancing its market competitiveness[15] - A cooperation agreement was signed with Laos Alliance Pharmaceutical Group for contract processing, indicating market expansion efforts[15] - The company plans to raise up to CNY 11 million for drug research and development through a specific stock issuance[16] - The company is exploring potential acquisitions to enhance its market presence, targeting a deal by the end of 2022[29] - Market expansion efforts are set to enter three new provinces, expected to contribute an additional 150 million CNY in revenue[29] Future Outlook - Future outlook includes an estimated revenue growth of 20% for the full year 2022, driven by market expansion strategies[29] - Overall, the company maintains a positive outlook, with a performance guidance of 1.5 billion CNY in revenue for the full year 2022[29] - R&D investment increased by 30% compared to the previous year, focusing on innovative drug development[29] - The company plans to launch two new products in Q3 2022, aiming for a projected revenue contribution of 200 million CNY[29] Customer and Market Data - User data indicated a growth in active customers by 25%, totaling 500,000 users by the end of Q1 2022[29] - The company has implemented new digital marketing strategies, resulting in a 40% increase in online sales[29] - Shanxi Qianyuan Pharmaceutical Group reported a revenue increase of 15% year-over-year for Q1 2022, reaching 1.2 billion CNY[29] - The company achieved a net profit margin of 10%, translating to a net profit of 120 million CNY for the same period[29]

Financial Performance - The net profit attributable to shareholders for the reporting period was -91.44 million yuan, primarily impacted by the failure to win bids for key products and the effects of the COVID-19 pandemic [4]. - The company's operating revenue for 2021 was ¥930,374,948.87, representing a 9.70% increase from ¥848,072,527.70 in 2020 [16]. - The net profit attributable to shareholders was -¥91,437,557.03, an improvement of 65.15% compared to -¥262,367,450.85 in 2020 [16]. - The net cash flow from operating activities reached ¥96,921,058.52, a significant increase of 564.25% from -¥20,877,122.80 in 2020 [16]. - The total assets at the end of 2021 were ¥1,526,809,366.43, a decrease of 15.20% from ¥1,800,518,724.44 at the end of 2020 [16]. - The company's basic earnings per share improved to -¥0.4011 from -¥1.2305 in 2020, reflecting a 67.40% increase [16]. - The company reported a total of ¥41,242,972.80 in non-recurring gains and losses for 2021, compared to ¥24,952,240.33 in 2020 [22]. - The company reported a net loss of ¥7,454,600.00 for the year, despite a positive cash flow from operating activities, attributed to significant impairment losses and depreciation expenses [64]. Market and Industry Context - The pharmaceutical manufacturing industry in China saw a revenue growth of 20.1% in 2021, with total profits increasing by 77.9% [27]. - The company is positioned in a rapidly evolving pharmaceutical industry, driven by policies promoting innovation and cost control [26]. - The government implemented several policies in 2021 to standardize and enhance drug procurement processes, impacting the pharmaceutical market dynamics [28]. - The health supplement market in China is expected to maintain a high growth level post-pandemic, driven by increased health awareness and demographic changes [30]. - The company anticipates a favorable industry outlook due to increasing healthcare spending and a growing demand for pharmaceuticals driven by an aging population and rising chronic disease rates [88]. Strategic Focus and R&D - The company plans to focus on high-end pharmaceuticals and increase R&D efforts to enrich its product offerings [4]. - The company is focusing on expanding its market share through brand investment and enhancing competitiveness in the health supplement sector [30]. - The company has several drug development projects, including the Tartrate Varenicline project, which is currently under review, and the Rosasatin project, which is in the pharmaceutical research stage [35]. - The company is actively engaged in the development of new drugs, with several projects at various stages of research and evaluation [35]. - The company is focusing on digital transformation and cost control to enhance its competitive edge in the pharmaceutical industry [42]. - The company plans to strengthen its R&D capabilities, emphasizing high-end generic drugs and innovative drug research to support its transformation into a research-driven pharmaceutical enterprise [91]. Operational Challenges - The company is facing severe challenges due to dual impacts from pharmaceutical policies and the COVID-19 pandemic, particularly affecting generic drug manufacturers [4]. - The company is still in a loss position, primarily due to factors such as the failure to win bids for the fifth batch of centralized procurement for products like sodium sultamicillin and rivaroxaban, as well as impacts from the COVID-19 pandemic [34]. - The company recognizes potential risks from ongoing healthcare reforms, including changes in drug procurement and pricing policies, which may impact the pharmaceutical industry [92]. - The ongoing COVID-19 pandemic has posed operational risks, affecting normal production and business activities [95]. Corporate Governance and Management - The company emphasizes strict compliance with corporate governance regulations, ensuring transparency and accountability in its operations [99]. - The board of directors consists of 7 members, including 3 independent directors, ensuring a balanced decision-making process [100]. - The company maintains a high level of information disclosure, ensuring that all shareholders have equal access to information [101]. - The company operates independently without a controlling shareholder, maintaining autonomy in its business operations [102]. - The company is committed to transparency and regular communication with investors, as evidenced by the detailed disclosures during shareholder meetings [103]. Investment and Financial Strategy - The company plans to raise up to ¥11,000,000 through a simplified procedure for issuing shares, with proceeds allocated entirely to drug research and development projects [44]. - The company has adjusted its investment strategy, shifting focus to new drug research and development projects, including the study of Rosuvastatin and Arginine Perindopril [79]. - The company aims to enhance its brand influence and optimize product structure through the new product development strategy [79]. - The company plans to utilize the raised funds for specific projects as outlined in the feasibility analysis report [11]. Environmental and Social Responsibility - The company has implemented measures to ensure compliance with environmental regulations, including regular monitoring and reporting of emissions [146]. - The company actively participates in social welfare initiatives, supporting education, culture, and healthcare in local communities [149]. - The company has committed to protecting the interests of minority investors by enhancing the engagement of independent directors [142]. Employee and Workforce Management - The company has a total of 54 employees with a postgraduate degree or higher, and 440 employees with a high school education or below [129]. - The company emphasizes continuous employee training to enhance skills and maintain a stable management team [131]. - The company has implemented a strict salary policy that aligns with national labor laws and provides various types of insurance for employees [130].

Financial Performance - The company's revenue for Q3 2021 was ¥259,627,467.85, representing a 26.65% increase year-over-year, while the year-to-date revenue reached ¥717,454,934.17, up 19.65% compared to the same period last year [3] - The net profit attributable to shareholders was a loss of ¥1,268,883.99 for Q3 2021, a 97.38% increase in loss compared to the same period last year, with a year-to-date loss of ¥5,387,497.77, reflecting a 95.65% increase in loss [3] - The basic and diluted earnings per share for Q3 2021 were both -¥0.0056, indicating a 97.59% increase in loss per share year-over-year [3] - The total operating revenue for the third quarter was CNY 717,454,934.17, an increase of 19.7% compared to CNY 599,609,116.26 in the same period last year [22] - The net profit for the period was CNY 6,638,870.37, a significant recovery from a net loss of CNY 123,176,402.66 in the previous year [23] - The company reported a gross profit margin of approximately 1.0% for the quarter, compared to a negative margin in the same quarter last year [23] Cash Flow - The cash flow from operating activities for the year-to-date period was ¥76,981,749.49, showing a significant increase of 1,133.70% compared to the previous year [3] - The net cash flow from operating activities for Q3 2021 was ¥76,981,749.49, a significant improvement compared to a net outflow of ¥7,447,173.00 in Q3 2020 [27] - Total cash inflow from operating activities reached ¥804,665,843.06, while cash outflow was ¥727,684,093.57, resulting in a net increase in cash flow [27] - Cash flow from investment activities showed a net outflow of ¥8,241,753.26, compared to a smaller outflow of ¥4,543,129.61 in the same period last year [27] - The net cash flow from financing activities was negative at ¥108,492,628.30, indicating a decrease in cash from financing compared to a positive flow of ¥62,500,740.44 in Q3 2020 [28] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,640,618,686.10, down 8.88% from the end of the previous year [3] - The total assets decreased to CNY 1,640,618,686.10 from CNY 1,800,518,724.44, a decline of 8.9% [20] - The total liabilities decreased to CNY 814,855,621.02 from CNY 927,906,148.41, a reduction of 12.2% [20] - The company’s total equity decreased to CNY 825,763,065.08 from CNY 872,612,576.03, a decline of 5.4% [20] - The total liabilities of the company as of the end of Q3 2021 were ¥1,800,518,724.44, indicating a stable financial position [31] Shareholder Information - The total number of common shareholders at the end of the reporting period is 13,255 [12] - The top 10 shareholders hold a total of 56,000,000 shares, with the largest shareholder, Weng Zhangguo, owning 6.92% (15,772,409 shares) [12] - The total number of restricted shares held by major shareholders remains unchanged at 15,676,966 shares, with no new restrictions imposed during the reporting period [15] Research and Development - The company experienced a 136.39% increase in development expenditures, amounting to ¥7,967,700, attributed to capitalized R&D investments [7] - Research and development expenses were CNY 41,276,842.49, slightly down from CNY 41,926,381.74 in the previous year [23] - The company has not disclosed any new product or technology developments during this reporting period [13] Inventory and Receivables - The company reported a 69.33% increase in receivables financing, totaling ¥5,625,300, primarily due to increased use of bank acceptance bills for settling payments [7] - Accounts receivable decreased from 197,477,573.70 yuan at the end of 2020 to 157,044,385.70 yuan, a reduction of about 20.5% [18] - The company reported a decrease in inventory from 122,439,751.31 yuan at the end of 2020 to 128,793,329.47 yuan, indicating a slight increase of about 5.5% [18] Borrowings and Financing - The company’s long-term borrowings decreased by 65% to ¥37,300,000, as a result of reclassifying long-term bank loans to current liabilities [7] - The company’s cash inflow from financing activities included ¥62,000,000.00 from borrowings, highlighting reliance on debt financing [28] - The company’s cash outflow for repaying debts was ¥114,260,000.00, which reflects its commitment to managing liabilities [28] Audit and Compliance - The report for the third quarter of 2021 was not audited [33] - The company has not applied the new leasing standards retrospectively for prior comparative data [33]

Financial Performance - The company's operating revenue for the reporting period was ¥457,827,466.32, representing a 16.02% increase compared to ¥394,615,196.44 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was a loss of ¥4,118,613.78, a significant improvement of 94.53% from a loss of ¥75,229,590.64 in the previous year[18]. - The net cash flow from operating activities was ¥42,959,134.17, a remarkable increase of 280.26% compared to a negative cash flow of ¥23,831,317.61 in the same period last year[18]. - The total assets at the end of the reporting period were ¥1,683,535,020.73, down 6.50% from ¥1,800,518,724.44 at the end of the previous year[18]. - The net assets attributable to shareholders of the listed company decreased by 1.01%, amounting to ¥680,187,613.01 compared to ¥687,099,034.95 at the end of the previous year[18]. - The basic earnings per share were -¥0.0181, showing a 94.99% improvement from -¥0.3611 in the same period last year[18]. - The weighted average return on net assets was -0.60%, an improvement of 9.07% from -9.67% in the previous year[18]. Revenue and Cost Management - The increase in revenue was primarily due to the recovery of hospital operations following the control of the domestic pandemic, leading to increased sales of pharmaceutical products[29]. - Operating costs increased by 32.17% to ¥140,568,790.49, primarily due to a significant increase in sales volume of centrally procured products during the reporting period[38]. - Research and development expenses rose by 13.48% to ¥30,280,119.33, indicating a continued investment in innovation[38]. - The company implemented cost-saving measures, resulting in a decrease in various expenses, excluding R&D costs[29]. Strategic Focus and Development - The company is focusing on optimizing its marketing strategy and has established an OTC sales team to explore new sales models[30]. - R&D efforts are being intensified, with an emphasis on new product selection and accelerating the development of consistency evaluation projects and new drug research[30]. - The company is actively participating in centralized procurement while also enhancing its channel layout in non-procurement markets[30]. - The production model is based on "sales-driven production," ensuring that production aligns with market demand[28]. Research and Development - The company has reported progress on its research projects, including the approval status of the drug Anlisentan for treating pulmonary arterial hypertension, which is currently under review[32]. - The company has completed the consistency evaluation for its product Sertraline Hydrochloride tablets, which treats symptoms of depression, including anxiety[33]. - The company has established a professional R&D team and a comprehensive innovation system, with several products, including Aripiprazole and Rivaroxaban, having received drug registration approvals[35]. - The company is shifting its funding focus from "drug research projects" to "new drug research projects," which includes the development of new drugs like Rosuvastatin and Argipressin[35]. Financial Risks and Challenges - The company faces risks including industry policy risks, new drug development risks, and potential product delisting from the National Medical Insurance Directory[4]. - The company faces risks from industry policy changes, which may impact drug sales and increase competition in the pharmaceutical sector[63]. - The average profit margin in the pharmaceutical industry has declined, leading to potential pricing pressures on the company's products[65]. - The company is implementing cost control measures, including group purchasing strategies to mitigate rising raw material costs[65]. Environmental Compliance - The company has established a wastewater treatment facility with a capacity of 150 m³/day, ensuring compliance with environmental standards[75]. - The company operates two steam boilers using clean natural gas, achieving emissions compliance through advanced low-nitrogen burners[75]. - The company has installed online monitoring devices for wastewater discharge, tracking COD, ammonia nitrogen, flow, and pH levels, with data uploaded to monitoring platforms[77]. - No administrative penalties were imposed on the company during the reporting period due to environmental issues[77]. Shareholder and Equity Information - The company’s major shareholder reduced their stake by 4,149,000 shares, accounting for 1.82% of the total share capital[103]. - The company’s subsidiaries received high-tech enterprise certification from relevant authorities during the reporting period[106]. - The total number of shares before the change was 227,970,921, with 35,339,887 shares (15.50%) being subject to restrictions[112]. - The number of unrestricted shares increased to 212,293,955, representing 93.12% of total shares after the issuance of 19,662,921 new shares[112]. Government Support and Subsidies - The company received a total of 10,750,000 yuan in industrial development support funds from the Tibet Autonomous Region during the reporting period[103]. - Subsidiaries received rewards for the consistency evaluation of generic drugs totaling 9,100,000 yuan, including 4,000,000 yuan for Ebastine tablets and 3,100,000 yuan for Tamsulosin sustained-release capsules[104]. - The company received a tax deduction reward of 1,450,000 yuan for R&D expenses under the "Innovation Capability Cultivation" project[104]. Financial Reporting and Compliance - The semi-annual financial report for the company has not been audited[83]. - The company reported no significant doubts regarding its ability to continue as a going concern for the next 12 months[172]. - The company’s accounting policies comply with the requirements of the enterprise accounting standards, reflecting the financial position as of June 30, 2021[173]. - The company’s consolidated financial statements include all subsidiaries under its control[178].