福建广生堂药业股份有限公司 关于举办 2022 年年度报告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。 福建广生堂药业股份有限公司（以下简称"公司"）将于 2023 年 4 月 21 日在 巨潮资讯网（http://www.cninfo.com.cn/）披露公司 2022 年年度报告。为便于投 资者更深入了解公司 2022 年度生产经营及财务情况，公司将于 2023 年 4 月 27 日下午 15:00-17:00 举行 2022 年度网上业绩说明会。本次网上业绩说明会采用网 络远程的方式举行，投资者可通过以下方式参与互动交流。为广泛听取投资者的 意见和建议，提前向投资者征集问题，提问通道自发出公告之日起开放。 方式一：在微信中搜索"广生堂投资者关系"； 证券代码：300436 证券简称：广生堂 公告编号：2023043 参加本次年度报告网上业绩说明会的人员有：公司董事长、总经理李国平先 生，独立董事任红先生，董事、副总经理、董事会秘书林晓辉先生，财务总监官 建辉先生，保荐代表人吴文杰先生。欢迎广大投资者积极参与！ 特此公告。 福建广生 ...

Group 1: Company Overview - Fujian Guangshengtang Pharmaceutical Co., Ltd. participated in the investor reception on October 30, 2015 [1] Group 2: Participants - Representatives from Guotai Junan included Jiang Fenglai, Que Yuansheng, Hu Boxin, Huang Hui, and Duan Jingjing [1] - Changcheng Guorui was represented by Huang Wenzhong and Guan Hui [1] - Other participants included Shi Yonghui from Bosera Fund, Chi Chensen from Yuxiu Capital, and Jiang Qi from Zhongou Fund [1] - Additional representatives from various funds included Chen Yi from Dongguan Securities Asset Management, Lan Shui from Shanghai Chengzhou Asset, and Wang Jianli from Huaxia Fund [1]

Group 1: Company Overview and Sales Model - The company employs both direct sales and distribution models, covering over 1,000 hospitals across regions like Beijing, Shanghai, Fujian, and Tianjin [1] - The sales team consists of more than 200 personnel [1] Group 2: Product Promotion and Market Strategy - The marketing department is responsible for promoting the company's drugs at various relevant conferences, showcasing clinical data from specialists [2] - A general trend of price decline in bidding processes is anticipated, although sales volume may increase [2] - The company plans to expand its sales network into second and third-tier cities to enhance market penetration [2] Group 3: Future Developments and Revenue Growth - The company is currently unable to estimate revenue growth over the next five years due to uncertainties in bidding policies and drug approval processes [2] - The joint venture with Beijing Boao aims to develop a genetic testing platform and precision treatment for hepatitis B [3] - The strategic goal is to provide scientific solutions for liver health in China while exploring suitable merger and acquisition opportunities [3]

Financial Performance - Revenue for Q3 2022 reached ¥104,961,700.94, an increase of 7.38% compared to the same period last year[4] - Net profit attributable to shareholders was -¥45,270,492.49, a significant decline of 1,218.14% year-on-year[4] - The company reported a basic and diluted earnings per share of -¥0.2842, a decrease of 1,215.74% year-on-year[4] - The net profit for Q3 2022 was a loss of ¥81.64 million, compared to a loss of ¥19.43 million in Q3 2021, reflecting a significant decline in profitability[23] - The total profit for Q3 2022 was a loss of ¥88.66 million, compared to a loss of ¥26.63 million in the same period last year[22] Research and Development - R&D expenses surged to ¥120,149,542.08, representing a 169.27% increase, primarily due to increased spending on innovative drugs[8] - Research and development expenses increased significantly to CNY 54.40 million, a year-on-year growth of 252.33%[11] - Cumulative research and development expenses for the first three quarters reached CNY 120.15 million, a year-on-year increase of 169.27%[11] - The innovative drug GST-HG171 for COVID-19 has shown excellent antiviral efficacy and safety, with clinical trials initiated on October 3, 2022[11] - The innovative drug GST-HG121 for hepatitis B has demonstrated significant efficacy in animal studies, with clinical trials starting on July 26, 2022[12] - The company has multiple ongoing clinical studies for new drugs targeting various diseases, including non-alcoholic fatty liver disease and liver fibrosis[12] Assets and Liabilities - Total assets as of September 30, 2022, amounted to ¥1,508,558,979.65, reflecting a 4.27% increase from the end of the previous year[4] - The company's total liabilities increased to CNY 492,982,617.94 from CNY 396,922,904.17, reflecting a rise of approximately 24.2%[20] - The company's non-current assets totaled CNY 1,053,111,384.06, an increase from CNY 896,876,285.31 at the beginning of the year, reflecting a growth of approximately 17.4%[19] Cash Flow - Cash flow from operating activities showed a net outflow of -¥77,728,318.34, worsening by 789.57% compared to the same period last year[8] - The company reported a net cash outflow from operating activities of approximately ¥77.73 million, worsening from a cash outflow of ¥8.74 million in the previous year[25] - Cash and cash equivalents at the end of Q3 2022 stood at ¥297.96 million, down from ¥442.77 million at the end of Q3 2021, indicating a decrease of 32.6%[26] - The financing activities generated a net cash inflow of approximately ¥143.54 million, a decrease from ¥429.17 million in Q3 2021[26] Shareholder Information - The total number of common shareholders at the end of the reporting period is 18,268[9] - The largest shareholder, Fujian Aohua Group Co., Ltd., holds 22.02% of shares, amounting to 35,068,651 shares, with 23,110,000 shares pledged[9] - The second-largest shareholder, Ye Liqing, holds 8.50% of shares, totaling 13,536,700 shares[9] - The controlling shareholder, Aohua Group, holds 35,068,651 shares, representing 22.02% of the total share capital after the redemption of 12.7 million shares used as collateral for bonds[16] - Aohua Group has pledged a total of 23.11 million shares, which is 65.90% of its holdings, equivalent to 14.51% of the company's total share capital[16] Government Support and Capital Management - The company received government subsidies amounting to ¥2,436,593.33 during the quarter, with a total of ¥6,697,068.83 for the year-to-date[5] - The company approved a capital increase of CNY 30 million to its wholly-owned subsidiary, increasing its registered capital from CNY 140 million to CNY 170 million[14] - The company plans to temporarily use CNY 50 million of idle raised funds to supplement working capital, with a repayment period not exceeding 12 months[14] Operating Costs - The total operating costs for Q3 2022 were approximately ¥446.06 million, an increase of 35.5% compared to ¥329.04 million in Q3 2021[22] - The company generated ¥330.68 million in cash from sales of goods and services, an increase from ¥307.70 million in the same quarter last year[24] - The company reported an investment income of ¥56.03 million, significantly higher than ¥21.89 million in Q3 2021, showing improved performance in investment activities[22]

Financial Performance - The company's operating revenue for the first half of 2022 was ¥192,504,751.73, representing an increase of 11.07% compared to ¥173,317,191.15 in the same period last year[22]. - The net profit attributable to shareholders of the listed company was a loss of ¥26,222,576.86, which is a decline of 53.37% from a loss of ¥17,097,496.37 in the previous year[22]. - The net cash flow from operating activities was -¥36,784,632.39, a significant decrease of 186.12% compared to -¥12,856,175.60 in the same period last year[22]. - The total assets at the end of the reporting period were ¥1,496,223,029.47, an increase of 3.42% from ¥1,446,766,520.34 at the end of the previous year[22]. - The net assets attributable to shareholders of the listed company decreased by 1.22% to ¥1,030,668,408.69 from ¥1,043,355,057.64 at the end of the previous year[22]. - The basic and diluted earnings per share were both -¥0.1649, reflecting a decrease of 35.05% from -¥0.1221 in the same period last year[22]. - The weighted average return on net assets was -2.55%, an improvement of 0.46% compared to -3.01% in the previous year[22]. Research and Development - R&D investment reached 66.54 million yuan, a significant increase of 108.33% year-on-year, with R&D expenses alone growing by 125.32%[30]. - The company is advancing the clinical registration application for the oral COVID-19 drug GST-HG171 and has completed Phase Ib clinical trials for the hepatitis B treatment GST-HG141[30]. - The company has invested in six innovative drugs targeting various diseases, with five of them approved for clinical trials and four in Phase I clinical stages, showcasing a first-mover advantage[40]. - The small molecule oral drug GST-HG171 has shown strong efficacy against multiple COVID-19 variants and is expected to be a competitive treatment option[41]. - The clinical cure for hepatitis B project, including GST-HG141, has shown significant viral load reduction in patients, outperforming existing nucleoside drugs[47]. - GST-HG131, a first-in-class hepatitis B surface antigen inhibitor, has completed all Phase I trial participant dosing and safety observations[48]. - The Phase I clinical trial for the new drug GST-HG151 targeting non-alcoholic fatty liver disease and liver fibrosis has successfully enrolled its first subject as of March 11, 2022[73]. Market and Industry Insights - Global pharmaceutical spending was approximately $1.4 trillion in 2021, projected to reach nearly $1.8 trillion by 2026, with a compound annual growth rate of 3%-6% from 2022 to 2026[52]. - China's pharmaceutical expenditure increased from $68 billion in 2011 to $169 billion in 2021, with an expected growth to $205 billion by 2026, driven by the launch of innovative drugs[53]. - The compound annual growth rate for original brand drugs in China from 2022 to 2026 is projected to be 10.4%[54]. - Chronic hepatitis B infection affects approximately 70 million people in China, with an overall diagnosis rate of 19% and treatment rate of 11%[57]. - Nucleoside (acid) drugs account for about 80% of the hepatitis B treatment market in China, with significant market potential for first-line antiviral treatments[58]. Product Development and Approvals - The company has developed a comprehensive product line for liver health, including treatments for hepatitis B, hepatitis C, fatty liver disease, and liver cancer[66]. - The company’s tadalafil product for male health has been approved for sale, complementing its liver health product offerings[36]. - The company has successfully invalidated the core patent of the original sofosbuvir compound, significantly promoting the domestic production process of the drug[39]. - The new drug GST-HG141 for hepatitis B treatment has completed Phase I clinical trials and is advancing to Phase II trials, indicating strong potential in the hepatitis treatment market[68]. - The company has launched a new oral antiviral drug GST-HG171 for COVID-19, which is currently progressing through clinical registration applications, contributing to the fight against the pandemic[69]. Financial Management and Investments - The company established a new subsidiary, Fujian Guangshentang Zhonglin Biotechnology Co., Ltd., focusing on innovative drug research and development, with an investment of ¥58,048,800 and a net loss of ¥60,162,200 during the reporting period[81]. - The company has not reported any significant equity investments during the reporting period[90]. - The total investment commitment for the integrated production of raw materials and preparations is CNY 24,070 million, with a cumulative investment of CNY 18,820 million, achieving 78.19% of the planned progress[96]. - The company has not engaged in any entrusted financial management, derivative investments, or entrusted loans during the reporting period[99][100][101]. Corporate Governance and Compliance - The company conducted over 100 investor consultations through various platforms, enhancing transparency and communication with shareholders[132]. - The company held three shareholder meetings and four board meetings during the reporting period, reinforcing its governance structure[131]. - The company has confirmed that there are no violations in the management and disclosure of raised funds, and all unused funds are stored in a dedicated bank account for project use[97]. - The company has established a strong intellectual property protection strategy for its innovative drugs, with PCT international patent applications and approvals in China and other regions[73]. Environmental Responsibility - The company reported a total nitrogen discharge of 0.0759 tons, which is below the regulatory limit of 30 mg/L, with an actual concentration of 15.657 mg/L[124]. - The company achieved a chemical oxygen demand (COD) discharge of 0.218 tons, meeting the standard limit of 100 mg/L, with a concentration of 40.883 mg/L[124]. - The company has established a dedicated environmental protection department and implemented strict environmental management systems, ensuring compliance with national laws and regulations[125]. - The company has not faced any environmental violations or accidents during the reporting period, indicating effective environmental risk management[125]. Employee and Social Responsibility - The company has implemented a comprehensive employee benefits program, including social insurance and health check-ups, to protect employee rights[132]. - The company has established a scholarship program that has supported over 1,000 students in Ningde, with the program running for 11 consecutive years[136]. - The company actively participates in social welfare activities, including donations and educational support, reflecting its commitment to corporate social responsibility[136]. - The company has set a goal to create ten job positions annually for the employment of disabled individuals[137].

Financial Performance - The company's operating income remained stable compared to the previous year, but net profit experienced a loss due to factors such as national drug procurement policies leading to price declines and increased R&D, sales, and management expenses [4]. - The company's operating revenue for 2021 was ¥370,442,190.29, representing a slight increase of 0.53% compared to ¥368,489,433.97 in 2020 [19]. - The net profit attributable to shareholders was -¥34,886,550.27 in 2021, a significant decline of 335.33% from ¥14,824,518.08 in 2020 [19]. - The net cash flow from operating activities was -¥17,764,779.27, down 213.90% from ¥15,597,456.96 in the previous year [19]. - The total assets at the end of 2021 reached ¥1,446,766,520.34, an increase of 43.85% from ¥1,005,780,979.42 at the end of 2020 [19]. - The net assets attributable to shareholders increased by 80.95% to ¥1,043,355,057.64 at the end of 2021, compared to ¥576,597,504.24 at the end of 2020 [19]. - The company reported a basic earnings per share of -¥0.2335 for 2021, a decrease of 320.49% from ¥0.1059 in 2020 [19]. - The weighted average return on equity was -4.40% in 2021, down 7.00% from 2.60% in 2020 [19]. - The company reported a total of ¥49,958.41 million raised through a private placement, with ¥25,676.24 million already utilized for designated projects [110]. Research and Development - The company plans to accelerate the research and development of innovative drugs and enhance marketing capabilities and sales channels to improve operational efficiency and risk resistance [5]. - R&D expenses increased significantly to CNY 68.99 million, up CNY 21.52 million year-on-year, contributing to a net loss of CNY 34.89 million [75]. - The company has invested significantly in innovative drug development, with a focus on liver health, and has six innovative drugs in the pipeline, five of which have received clinical approval [54]. - The innovative drug GST-HG141 has completed Phase Ia clinical trials and is preparing for Phase II trials, showing promising safety and efficacy [75]. - The company is actively pursuing the development of new drugs for non-alcoholic fatty liver disease and liver fibrosis, with the new drug GST-HG151 having successfully enrolled its first subject in Phase I clinical trials [68]. - The company aims to continue its innovation strategy by developing global first-class innovative drugs targeting COVID-19, hepatitis B clinical cure, liver cancer, and liver fibrosis [44]. Market and Industry Trends - The pharmaceutical industry is projected to grow at a compound annual growth rate of 3%-6% from 2022 to 2026, with global drug spending expected to reach nearly $1.8 trillion by 2026 [30]. - China's pharmaceutical expenditure is expected to grow at a compound annual growth rate of 3.8% over the next five years, reaching $205 billion by 2026 [31]. - The implementation of various policies such as "two-invoice system" and drug price negotiations has increased operational pressure on pharmaceutical companies, leading to a trend of industry consolidation and higher concentration [32]. - The market for drugs targeting non-alcoholic fatty liver disease (NAFLD) and non-alcoholic steatohepatitis (NASH) is projected to exceed $15 billion by 2025, highlighting a substantial opportunity for new therapies [37]. Product Development and Sales - The company has developed a comprehensive product line for liver health, including five major antiviral drugs for hepatitis B, positioning itself as a leading enterprise in the domestic antiviral field [44]. - The company’s antiviral drugs, including tenofovir and entecavir, have passed consistency evaluations, enhancing market competitiveness and accelerating the import substitution of generics [47]. - The company has successfully launched sildenafil and tadalafil, which are among the largest products in the erectile dysfunction market, further diversifying its product offerings [50]. - The company has expanded its cardiovascular product line with rivaroxaban and pitavastatin, both included in the 2021 National Basic Medical Insurance Drug List, enhancing its market presence [52]. - The company actively participates in national drug centralized procurement, which has improved its product market share significantly [48]. - The company’s sales of hepatitis B antiviral drugs are not affected by seasonal or cyclical factors, indicating stable demand [45]. Corporate Governance and Management - The company maintains strict independence from its controlling shareholder in terms of assets, personnel, finance, and operations, ensuring a complete and autonomous business capability [139]. - The company emphasizes transparency in information disclosure, adhering to regulations and ensuring timely and accurate communication with shareholders [138]. - The company has established a fair and transparent performance evaluation and incentive mechanism for its directors and senior management, enhancing employee motivation [138]. - The company has a dedicated investor hotline and communication channels to gather feedback from investors regarding its operations and management [138]. - The company has maintained a stable board of directors, with terms extending until January 2024 for key members [141]. Environmental Responsibility - The company has established a dedicated safety and environmental protection department to oversee environmental management and compliance [196]. - The company has implemented real-time monitoring systems for wastewater and VOC emissions, ensuring compliance with environmental standards [196]. - The company reported no environmental violations or accidents as of December 2021 [196]. - The company’s wastewater treatment meets the discharge standards with a COD concentration of 27.9 mg/L, below the limit of 100 mg/L [195]. - The company has successfully completed environmental impact assessments for all projects, adhering to national laws and regulations [196]. Employee Development and Welfare - The company emphasizes a performance-based compensation system, aligning salaries with job value and providing various employee benefits [174]. - In 2021, the company focused on talent development, implementing tailored training programs for core and potential talents [175]. - The training system was optimized to enhance employee skills and promote a competitive learning environment [176]. - The employee composition includes 317 production staff, 316 sales personnel, 89 technical staff, 17 financial staff, and 134 administrative staff [173]. - The company received the "Best Employer with Development Potential" award from Zhaopin and Peking University, reflecting its commitment to employee welfare and satisfaction [199].

Financial Performance - The company's revenue for Q1 2022 was ¥96,523,364.67, representing a year-on-year increase of 1.68% compared to ¥94,929,591.85 in the same period last year[4] - The net profit attributable to shareholders was a loss of ¥9,131,629.17, a significant decline of 615.90% from a profit of ¥1,770,052.55 in the previous year[4] - The net profit for Q1 2022 was a loss of CNY 11,085,643.29, compared to a profit of CNY 2,212,394.60 in Q1 2021, indicating a substantial decline[33] - The total comprehensive income for Q1 2022 was a loss of CNY 11,085,643.29, compared to a gain of CNY 2,212,394.60 in the same period last year[34] - Earnings per share (EPS) for Q1 2022 was -0.0575, down from 0.0126 in the same quarter last year[34] Cash Flow - The net cash flow from operating activities was -¥19,328,170.43, a decrease of 719.71% compared to a positive cash flow of ¥3,118,900.02 in the same period last year[8] - The net cash flow from operating activities was -19,328,170.43 CNY, compared to 3,118,900.02 CNY in the previous year[36] - The cash flow from operating activities showed a significant decline compared to the previous year[36] - Cash inflow from operating activities was CNY 114,180,960.32, slightly down from CNY 116,911,016.23 in the previous year[35] - Cash outflow from operating activities totaled CNY 133,509,130.75, an increase from CNY 113,792,116.21 year-on-year[35] - The net cash flow from investing activities was -63,575,697.42 CNY, a decrease from -30,839,510.51 CNY year-over-year[36] - The net cash flow from financing activities was 52,245,691.70 CNY, compared to -2,361,014.37 CNY in the previous year[36] - The company raised 25,100,000.00 CNY from minority shareholders during the financing activities[36] - The company obtained loans totaling 73,996,722.38 CNY, compared to 26,437,355.00 CNY in the previous year[36] - Cash outflow for debt repayment was 44,750,000.00 CNY, compared to 26,420,000.00 CNY in the previous year[36] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,493,133,372.25, an increase of 3.20% from ¥1,446,766,520.34 at the end of the previous year[4] - The company's current liabilities totaled 333,503,476.21 yuan, up from 302,312,036.51 yuan at the beginning of the year[29] - The company's long-term investments increased to 118,790,202.32 yuan from 99,977,002.91 yuan at the beginning of the year[28] - The company's total assets amounted to 1,493,133,372.25 yuan, an increase from 1,446,766,520.34 yuan at the beginning of the year[28] - The company's cash and cash equivalents decreased to 362,915,329.59 yuan from 393,573,505.74 yuan at the beginning of the year[27] Shareholder Information - The total number of common shareholders at the end of the reporting period is 27,156[11] - The largest shareholder, Fujian Aohua Group Co., Ltd., holds 14.05% of shares, totaling 22,368,651 shares, with 7,000,000 shares pledged[11] - The second-largest shareholder, Ye Liqing, holds 8.50% of shares, totaling 13,536,700 shares, with 10,152,525 shares unrestricted[11] - The company has a total of 44,765,674 restricted shares, with 18,777,000 shares released during the period[15] - The total number of shares held by the top ten unrestricted shareholders is 22,368,651 shares for Fujian Aohua Group Co., Ltd.[11] - The company has a total of 10,211,149 shares held by executive Li Guoping, which are subject to lock-up restrictions[14] - The company has not disclosed any other significant shareholder relationships beyond those mentioned[11] Research and Development - Research and development expenses increased by 63.68% to ¥25,840,978.81, up from ¥15,787,734.36, reflecting the company's commitment to innovative drug development[8] - The company is advancing the development of the innovative oral drug GST-HG171 for COVID-19, which has shown efficacy against various virus strains in preclinical models[16] - The company aims to expedite the research and development of GST-HG171 to contribute to pandemic control efforts[16] - The company has identified clinical candidates for GST-HG171 and is integrating resources for rapid development[16] - The company has initiated the Phase Ib clinical trial for the innovative hepatitis B treatment drug GST-HG141, showing good safety and efficacy results, and is preparing to advance to Phase II trials after obtaining necessary approvals[17] - The Phase I clinical trial for the new drug GST-HG151 targeting non-alcoholic fatty liver disease and liver fibrosis has successfully enrolled its first subject, with the trial conducted at Fujian Medical University[18] Investments and Contracts - The investment income from affiliated companies increased by 108.08% to ¥18,813,199.41, compared to ¥9,041,527.02 in the same period last year, driven by the growth in COVID-19 testing services[8] - The company signed a technical service contract with Fujian Ruitai Pharmaceutical Technology Co., Ltd., which will facilitate future drug commercialization and generate new business revenue[20] - The company has increased its investment in its wholly-owned subsidiary, Jin Tang Pharmaceutical, by 40 million yuan to support the construction of an integrated production base for raw materials[24] Tax and Compliance - The company received the High-tech Enterprise Certificate, allowing it to enjoy a reduced corporate income tax rate of 15% for three consecutive years from 2021 to 2023[25] - The company did not conduct an audit for the first quarter report[37]

Financial Performance - The company's revenue for Q3 2021 was ¥97,744,325.87, representing a slight increase of 0.19% compared to the same period last year[2]. - The net profit attributable to shareholders was -¥3,434,423.19, a significant decrease of 194.32% year-on-year[2]. - The net profit after deducting non-recurring gains and losses was -¥5,046,217.39, reflecting a decline of 485.01% compared to the previous year[2]. - The company reported a significant increase in capital reserves, which reached ¥657,768,634.69, up 272.83% from the previous year-end due to premium share issuance[6]. - The company reported a narrowing loss in Q3 2021 compared to previous quarters, indicating improved financial performance[13]. - Net profit for the third quarter of 2021 was CNY -19,429,076.04, compared to a net profit of CNY 16,527,419.15 in the same period of 2020, indicating a significant decline[22]. - The net profit attributable to the parent company was -20,531,919.56 CNY, compared to a profit of 15,012,979.21 CNY in the same period last year[23]. - The total comprehensive income attributable to the parent company was -20,531,919.56 CNY, while the previous year's figure was 15,012,979.21 CNY[23]. - The basic and diluted earnings per share were both -0.1404 CNY, compared to 0.1072 CNY in the same period last year[23]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥1,427,164,685.05, an increase of 41.90% from the end of the previous year[2]. - As of September 30, 2021, total current assets increased to CNY 577,566,370.74 from CNY 257,540,926.76 as of December 31, 2020, representing a growth of approximately 124.5%[19]. - The company's total liabilities decreased to CNY 364,487,735.69 from CNY 423,793,648.69, a reduction of about 13.9%[20]. - The company's long-term equity investments increased to CNY 91,815,873.36 from CNY 69,929,129.03, a growth of approximately 31.3%[19]. - Cash and cash equivalents significantly increased to CNY 446,023,048.57 from CNY 135,989,349.92, representing a growth of about 228.5%[19]. - The total assets of the company reached CNY 1,427,164,685.05, up from CNY 1,005,780,979.42, indicating an increase of approximately 41.9%[20]. - The company's capital reserve increased to CNY 657,768,634.69 from CNY 176,426,940.02, reflecting a substantial growth of about 272.5%[20]. Cash Flow - The company reported a net cash flow from operating activities of -¥8,737,728.68, a decrease of 182.52% year-on-year[6]. - The net cash flow from operating activities was -8,737,728.68 CNY, a decrease from 10,588,502.12 CNY in the previous year[26]. - The cash inflow from financing activities was 613,466,566.26 CNY, compared to 110,020,000.00 CNY in the same period last year[26]. - The net cash flow from financing activities was 429,172,634.54 CNY, significantly higher than 50,316,687.37 CNY in the previous year[27]. - The total cash inflow from operating activities was 322,215,445.59 CNY, compared to 315,395,999.69 CNY in the same period last year[26]. - The company reported a cash outflow from investing activities of 113,401,436.27 CNY, compared to 62,114,906.96 CNY in the previous year[26]. Research and Development - Research and development expenses for the first nine months of 2021 were ¥44,620,348.61, an increase of 47.93% compared to the same period in 2020[6]. - Research and development expenses rose to CNY 44,620,348.61 in Q3 2021, compared to CNY 30,162,730.70 in Q3 2020, marking an increase of about 48.0%[22]. - The company has ongoing clinical trials for other innovative drugs, including GST-HG141, GST-HG131, GST-HG151, and GST-HG121, with progress reported as smooth[14]. - The company is actively preparing for the II phase clinical trial of GST-HG141, following successful patient enrollment in the Ib phase trial[14]. - The company completed the I phase clinical trial for the new c-Met targeted drug GST-HG161, with good overall safety and tolerance observed[13]. Share Issuance and Financing - The company issued 18,777,000 shares to specific investors, increasing total share capital from 140,000,000 to 158,777,000 shares[14]. - The total amount raised from the issuance of shares was approximately RMB 514.49 million, with a net amount of RMB 499.58 million after deducting issuance costs[16]. - The company raised ¥429,172,634.54 from financing activities, a substantial increase of 752.94% year-on-year due to issuing shares to specific investors[6]. - The company plans to use RMB 50 million and RMB 30 million to increase capital in its subsidiaries, Fujian Guangshengtang Jintang Pharmaceutical Co., Ltd. and Jiangsu Zhongxing Pharmaceutical Co., Ltd.[16]. Product Development and Market Activity - New products such as Peginterferon and Sildenafil tablets were launched in July 2021, with expected revenue contributions accelerating in the future[13]. - The company won bids for the fifth batch of national drug centralized procurement for Rivaroxaban tablets, which began supply in late September 2021[13]. Audit and Compliance - The company did not undergo an audit for the third quarter report[28].

Financial Performance - The company's operating revenue for the first half of 2021 was approximately ¥173.32 million, representing a slight increase of 0.05% compared to the same period last year[21]. - The net profit attributable to shareholders of the listed company was a loss of approximately ¥17.10 million, a decrease of 250.35% compared to a profit of ¥11.37 million in the same period last year[21]. - The net cash flow from operating activities was a negative ¥12.86 million, a decline of 352.28% compared to a positive cash flow of ¥5.10 million in the previous year[21]. - The total assets at the end of the reporting period were approximately ¥1.48 billion, an increase of 47.47% compared to the end of the previous year[21]. - The net assets attributable to shareholders of the listed company were approximately ¥1.06 billion, reflecting an increase of 83.95% compared to the previous year[21]. - The basic earnings per share for the reporting period was -¥0.1221, compared to ¥0.0812 in the same period last year, marking a decrease of 250.37%[21]. - The weighted average return on net assets was -3.01%, a decrease of 5.00% compared to 1.99% in the previous year[21]. - The company reported a total comprehensive income of approximately -¥24.85 million for the first half of 2021, compared to ¥7.93 million in the same period of 2020, reflecting a decline in overall financial performance[191]. Research and Development - R&D expenses for the first half of 2021 amounted to 29.18 million yuan, an increase of 9.94 million yuan year-on-year, reflecting the company's commitment to innovation[30]. - Research and development expenses increased by 24.55% to ¥31,937,190.34 from ¥25,641,171.67 year-on-year, reflecting progress in R&D projects[77]. - The R&D expenditure for the period was 44.3 million yuan, focusing on innovative drug development[198]. - The company emphasizes continuous innovation and R&D investment as part of its long-term strategy to lead in the liver health pharmaceutical market[34]. - The company is actively pursuing five global first-class new drug research projects initiated since 2016, focusing on liver cancer and hepatitis, which may enhance its future market competitiveness[105]. Market Strategy and Product Development - The company aims to transition from generic to innovative drug development, focusing on liver health and expanding its product pipeline in cardiovascular and male health sectors[35]. - The company has signed a strategic cooperation agreement with Shanghai Pharmaceutical Holdings to enhance market penetration and product distribution[32]. - The company is actively pursuing mergers and acquisitions to enrich its product line and expand market space, while also facing legal, policy, and operational risks during the integration process[108]. - The company has established a comprehensive product line in liver health, including five nucleoside (acid) antiviral drugs for hepatitis B, with all products included in the 2020 National Basic Medical Insurance Drug List[70]. - The company is enhancing its market position through the introduction of new products and ongoing research in the hepatitis treatment sector[66]. Financial Position and Cash Flow - The net cash flow from financing activities surged by 1,022.00% to ¥483,119,528.82, primarily due to funds raised from issuing shares to specific investors[77]. - The company's cash and cash equivalents increased significantly by 3,152.96% to ¥412,226,225.62, attributed to the funds raised from the share issuance[77]. - The total cash and cash equivalents at the end of the first half of 2021 stood at approximately ¥547.97 million, up from ¥106.14 million at the end of the first half of 2020, reflecting a significant growth in cash reserves[192]. - The company reported a total cash inflow from financing activities of approximately ¥573.17 million in the first half of 2021, significantly higher than ¥95.02 million in the same period of 2020, indicating a substantial increase in financing activities[192]. - The company's cash flow from operating activities turned negative at -¥12,856,175.60, a decline of 352.28% compared to the previous year, primarily due to increased expenses[77]. Compliance and Governance - The company has maintained a pollution discharge compliance rate of 100% with no environmental violations reported as of June 2021[118]. - The company has established a dedicated safety and environmental protection department to oversee compliance with environmental regulations[118]. - The company actively engages with over 100 investor inquiries through various communication channels to ensure transparency and protect shareholder rights[121]. - The company completed the election of the fourth board of directors and supervisory board in January 2021, ensuring governance continuity[150]. - The company has not reported any significant changes in major contracts or daily operations during the reporting period[148]. Risks and Challenges - The company faces various risks and uncertainties that may affect its future development strategies and operational plans[5]. - The company faces risks from industry policy changes, including price control measures and procurement policies, which may impact operational performance[104]. - The company has committed to optimizing production processes and enhancing product quality to maintain competitive advantages amid increasing market competition[106]. Corporate Social Responsibility - The company has participated in social welfare activities, including donations and educational support, reflecting its commitment to corporate social responsibility[123]. - The company emphasizes employee welfare by providing benefits such as health check-ups and mandatory labor contracts, ensuring compliance with labor laws[121].