[Important Notice, Table of Contents and Definitions](index=2&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) [Risk Factors](index=2&type=section&id=1.1%20%E9%A3%8E%E9%99%A9%E6%8F%90%E7%A4%BA) The company faces key risks from pharmaceutical policy shifts, market competition, product quality, R&D failures, and core talent loss, potentially impacting its performance - The company faces five core risks - **Pharmaceutical Industry Policy Risk**: Policies such as centralized drug procurement, medical insurance policies, 'two-invoice system', and volume-based procurement increase compliance and operational risks for the company[6](index=6&type=chunk) - **Market Expansion and Price Decline Risk**: Drug tendering, medical insurance payment reforms, and intensified market competition may lead to a decrease in the company's product prices, affecting profitability[7](index=7&type=chunk) - **Product Quality Risk**: The company's main products are injections with complex production processes, where issues at any stage could lead to quality risks[8](index=8&type=chunk) - **New Drug R&D Risk**: New drug development involves long cycles and multiple stages, with risks of development failure or market rejection, potentially impacting the company's growth[10](index=10&type=chunk) - **Core Personnel Turnover Risk**: As a high-tech enterprise, the loss of core technical and management personnel could adversely affect the company's R&D and stable development[11](index=11&type=chunk) [Profit Distribution Plan](index=3&type=section&id=1.2%20%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E9%A2%84%E6%A1%88) The company's board of directors approved the 2018 profit distribution plan, proposing a cash dividend of 1.20 Yuan (tax inclusive) per 10 shares to all shareholders, with no bonus shares or capital reserve conversions 2018 Annual Profit Distribution Plan | Distribution Method | Per 10 Shares Distribution Plan | | :--- | :--- | | Cash Dividend | 1.20 Yuan (tax inclusive) per 10 shares | | Bonus Shares | 0 shares | | Capital Reserve Conversion | 0 shares | [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) [Key Accounting Data and Financial Indicators](index=8&type=section&id=2.1%20%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 2018, the company's operating revenue significantly grew by **90.37%** to **1.428 billion Yuan**, while net profit attributable to shareholders slightly increased by **0.53%** to **283 million Yuan**, with basic earnings per share remaining flat, and net cash flow from operating activities increasing by **35.40%** Key Financial Indicators for 2018 | Indicator | 2018 | 2017 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 1,427,750,943.80 | 749,986,848.13 | 90.37% | | Net Profit Attributable to Shareholders (Yuan) | 283,107,048.21 | 281,604,133.53 | 0.53% | | Net Cash Flow from Operating Activities (Yuan) | 146,516,272.45 | 108,212,673.95 | 35.40% | | Basic Earnings Per Share (Yuan/share) | 0.590 | 0.590 | 0.00% | | Weighted Average Return on Net Assets | 11.66% | 12.79% | -1.13% | | Total Assets (Yuan) | 2,760,559,359.20 | 2,453,403,315.15 | 12.52% | 2018 Quarterly Key Financial Indicators (Unit: Yuan) | Indicator | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 270,473,451.39 | 302,671,052.82 | 366,543,603.57 | 488,062,836.02 | | Net Profit Attributable to Shareholders | 59,865,789.84 | 71,938,904.25 | 78,361,425.99 | 72,940,928.13 | - The company's 2018 non-recurring gains and losses totaled **20.79 million Yuan**, primarily from gains and losses on entrusted investments or asset management, amounting to **23.23 million Yuan**[30](index=30&type=chunk) [Company Business Overview](index=10&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E5%85%AC%E5%8F%B8%E4%B8%9A%E5%8A%A1%E6%A6%82%E8%A6%81) [Main Business and Core Competencies](index=10&type=section&id=3.1%20%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1%E4%B8%8E%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B) The company's main business involves R&D, production, and sales of injectable preparations, focusing on cardiovascular, immune, and nervous system diseases, with revenue growth driven by the 'two-invoice system' and optimized customer structure, maintaining market leadership through balanced product portfolio, strong R&D, unique processes, and integrated supply chain - The company's main business is injectable preparations, with leading biochemical products covering cardiovascular, immune (anti-tumor), and nervous system therapeutic areas[32](index=32&type=chunk) - Performance growth was primarily driven by the implementation of the 'two-invoice system' policy, shifting the customer structure from small and medium distributors to large distribution partners, leading to significantly accelerated operating revenue growth[35](index=35&type=chunk) - The company holds a market leadership position with over **50%** market share in several product categories, including cardiovascular and immunomodulators[37](index=37&type=chunk) - Core competencies include - **Product Portfolio Stability**: Five leading products are developing in a balanced manner with high market shares, mitigating single-product dependency risk[39](index=39&type=chunk) - **R&D and Patents**: Possessing **42** national patent technologies, including **31** invention patents, with high proficiency in biomacromolecule purification technology[40](index=40&type=chunk)[41](index=41&type=chunk) - **Integrated Supply Chain**: Possessing a complete industrial chain from raw materials to multi-dosage form preparations, effectively diversifying risks[45](index=45&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) [Overview](index=15&type=section&id=4.1%20%E6%A6%82%E8%BF%B0) In 2018, the company advanced its operational management, strategic layout, and R&D innovation, completing the acquisition of Junyuan Pharmaceutical, participating in a pharmaceutical industry investment fund, achieving phased results in key R&D projects like 'Angiogenesis Inhibitor Peptide for Injection' and 'Nafamostat Mesylate for Injection', implementing equity incentives for core personnel, and steadily progressing with fundraising projects - The company's five main products maintained market competitive advantages, with **Deoxyribonucleotide Sodium Injection** having the highest revenue share at **35.76%** and the highest gross margin at **91.34%**[50](index=50&type=chunk) - In R&D, 'Nafamostat Mesylate for Injection' entered Phase III clinical trials, and 'Angiogenesis Inhibitor Peptide for Injection' entered Phase I clinical trials[54](index=54&type=chunk) - Strategic initiatives included acquiring **100%** equity of Junyuan Pharmaceutical to extend the industrial chain, and investing **100 million Yuan** to establish Suzhou Danqing Phase II Innovative Pharmaceutical Industry Investment Partnership, leveraging a 'industry + capital' platform advantage[58](index=58&type=chunk)[59](index=59&type=chunk) - Construction of fundraising projects progressed steadily, but projects like the 'New Pharmaceutical Production Base' had their estimated completion time adjusted to **end of 2019** due to external factors[57](index=57&type=chunk) [Main Business Analysis](index=23&type=section&id=4.2%20%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 operating revenue grew by **90.37%**, primarily from pharmaceutical manufacturing, with immune system drugs seeing the fastest growth at **121.40%**, and Central and Southern China regions experiencing explosive revenue growth of **202.92%** and **407.15%** respectively, while overall gross margin increased from **76.95%** to **86.46%**, sales expenses surged by **274.82%** due to increased market promotion, and R&D investment rose by **96.38%** Operating Revenue Composition (by Product) | Product Category | 2018 Revenue (Yuan) | Revenue Share | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Immune System Drugs | 769,371,111.40 | 53.89% | 121.40% | | Nervous System Drugs | 207,689,792.42 | 14.55% | 65.39% | | Cardiovascular and Cerebrovascular Drugs | 439,946,037.30 | 30.81% | 63.75% | Gross Margin by Product | Product Category | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Margin | Gross Margin Change from Previous Year | | :--- | :--- | :--- | :--- | :--- | | Immune System Drugs | 769,371,111.40 | 88,917,804.96 | 88.44% | 11.79% | | Nervous System Drugs | 207,689,792.42 | 39,685,832.48 | 80.89% | 10.26% | | Cardiovascular and Cerebrovascular Drugs | 439,946,037.30 | 63,250,090.60 | 85.62% | 5.34% | Period Expense Changes | Expense Item | 2018 (Yuan) | 2017 (Yuan) | Year-on-Year Change | Main Change Explanation | | :--- | :--- | :--- | :--- | :--- | | Sales Expenses | 828,431,196.33 | 221,019,934.30 | 274.82% | Increase in marketing conference fees, academic promotion fees, etc | | Administrative Expenses | 58,946,022.99 | 41,715,830.38 | 41.30% | Increase in equity incentive expenses and intangible asset amortization | | R&D Expenses | 31,927,796.80 | 16,258,343.92 | 96.38% | Increased R&D investment in pipeline products | - Net cash flow from operating activities was **147 million Yuan**, a **35.40%** year-on-year increase, primarily due to higher sales revenue, while net cash flow from investing activities was **-1.025 billion Yuan**, a significant **364.50%** year-on-year decrease, mainly due to reduced short-term bank wealth management investments[87](index=87&type=chunk)[88](index=88&type=chunk) [Assets and Liabilities Status](index=29&type=section&id=4.3%20%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5) As of year-end 2018, the company's total assets reached **2.761 billion Yuan**, a **12.52%** increase from the beginning of the year, with a significant shift in asset structure as monetary funds decreased from **60.11%** to **20.76%** of total assets due to investments in short-term wealth management products, while accounts receivable increased from **3.26%** to **8.84%**, and construction in progress rose from **10.23%** to **14.49%** Significant Changes in Asset Composition | Asset Item | Year-end 2018 Amount (Yuan) | Percentage of Total Assets | Year-end 2017 Amount (Yuan) | Percentage of Total Assets | Explanation of Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 573,089,214.77 | 20.76% | 1,474,817,657.53 | 60.11% | Due to short-term bank wealth management investments not matured at period-end | | Accounts Receivable | 243,999,879.73 | 8.84% | 80,062,742.49 | 3.26% | Due to sales growth | | Construction in Progress | 399,957,617.82 | 14.49% | 250,964,292.65 | 10.23% | Continued investment in fundraising projects | [Investment Status Analysis](index=29&type=section&id=4.4%20%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 total external equity investment was **83.286 million Yuan**, a **278.57%** year-on-year increase, including the acquisition of **100%** equity in Shenyang Junyuan Pharmaceutical for **53.286 million Yuan** and a **30 million Yuan** investment in Suzhou Danqing Phase II Innovative Pharmaceutical Industry Investment Partnership, with **545 million Yuan** of raised funds cumulatively invested and **631 million Yuan** remaining unused for ongoing production base and industrialization projects 2018 Significant Equity Investments | Investee Company | Investment Method | Investment Amount (Yuan) | Shareholding Ratio | | :--- | :--- | :--- | :--- | | Shenyang Junyuan Pharmaceutical Co., Ltd | Acquisition | 53,286,000.00 | 100.00% | | Suzhou Danqing Phase II Innovative Pharmaceutical Industry Investment Partnership | New Establishment | 30,000,000.00 | 4.46% | - As of the end of the reporting period, the company had cumulatively invested **544.59 million Yuan** of raised funds, with an unused balance of **630.65 million Yuan**, primarily held in special accounts and used for time deposits and wealth management products[99](index=99&type=chunk) - The progress of some fundraising projects fell short of expectations, with the 'New Pharmaceutical Production Base Project' and 'New Cardiovascular and Immunomodulatory Product Industrialization Project' having their estimated completion dates extended to **December 31, 2019**, due to external factors[102](index=102&type=chunk) [Analysis of Major Holding and Participating Companies](index=33&type=section&id=4.5%20%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) During the reporting period, Shenyang Junyuan was added to the company's consolidated scope, while key subsidiary Sai'er Bio achieved **10.744 million Yuan** in operating revenue and **1.178 million Yuan** in net profit, and the newly acquired Shenyang Junyuan, still in integration, reported no operating revenue and a net loss of **0.557 million Yuan** Operating Performance of Major Subsidiaries | Company Name | Type | Operating Revenue (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | | Sai'er Bio | Subsidiary | 10,744,002.68 | 1,177,645.69 | | Shenyang Junyuan | Subsidiary | 0.00 | -557,009.45 | [Outlook on Company's Future Development](index=34&type=section&id=4.6%20%E5%85%AC%E5%8F%B8%E6%9C%AA%E6%9D%A5%E5%8F%91%E5%B1%95%E7%9A%84%E5%B1%95%E6%9C%9B) Facing a slowing and stricter pharmaceutical industry, the company aims to become a 'big health enterprise group' by strategically developing high-end, oral, and traditional Chinese medicine preparations, enriching its product line, expanding scale, and enhancing core competitiveness through R&D, collaborations, and M&A, with 2019 plans focusing on fundraising project completion, refined marketing, R&D team building, and active acquisition pursuits - Industry Trend: The pharmaceutical industry is entering a new cycle of low growth, strict regulation, and high entry barriers, highlighting the value of products and R&D[109](index=109&type=chunk) - Company Development Strategy: Establish four major platforms—R&D innovation, pharmaceutical industrial chain, collaboration, and industrial finance—to advance towards a 'big health enterprise group' while pursuing external expansion[117](index=117&type=chunk) - 2019 Operating Plan - **Production**: Promote the completion of fundraising projects and advance GMP certification for subsidiaries[118](index=118&type=chunk) - **Marketing**: Strengthen regional management, optimize resource allocation, and intensify academic promotion efforts[119](index=119&type=chunk)[121](index=121&type=chunk) - **R&D**: Strengthen re-evaluation of core products, promote new product development, and enhance external collaborations[122](index=122&type=chunk) - **Talent**: Recruit personnel for the new production base and improve the talent management system[123](index=123&type=chunk) - **M&A**: Actively utilize M&A funds to seek acquisition opportunities with peer or upstream/downstream enterprises[123](index=123&type=chunk) [Significant Matters](index=40&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) [Profit Distribution and Equity Incentives](index=40&type=section&id=5.1%20%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E5%8F%8A%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1) In 2018, the company implemented its 2017 profit distribution plan and proposed the 2018 plan, with cash dividends exceeding **20%** of net profit for the past three years, and launched a 2018 restricted stock incentive plan, granting **4.166 million** restricted shares to **88** core employees to incentivize and retain key talent Cash Dividend Situation Over the Past Three Years | Dividend Year | Cash Dividend Amount (Yuan) | Ratio of Net Profit Attributable to Ordinary Shareholders of the Listed Company in Consolidated Financial Statements | | :--- | :--- | :--- | | 2018 | 58,099,920.00 | 20.52% | | 2017 | 57,600,000.00 | 20.45% | | 2016 | 60,000,000.00 | 23.22% | - The company implemented the 2018 Restricted Stock Incentive Plan, granting **4.166 million** restricted shares (out of **4.1982 million** initially planned) to **88** (out of **91** initially planned) incentive recipients on **August 21, 2018**[152](index=152&type=chunk)[153](index=153&type=chunk) [Significant Contracts and Transactions](index=53&type=section&id=5.2%20%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E4%BA%A4%E6%98%93) During the reporting period, the company had no significant entrustment, contracting, leasing, guarantee, or related party transactions, actively engaging in entrusted wealth management with idle raised and own funds totaling **1.115 billion Yuan**, primarily in bank wealth management products, while completing the acquisition of Shenyang Dongang Pharmaceutical Co., Ltd., renamed Shenyang Junyuan Pharmaceutical Co., Ltd., and its subsidiary Sai'er Bio established a Tianjin branch and obtained an expanded drug production license Overview of Entrusted Wealth Management During the Reporting Period | Specific Type | Fund Source | Amount Incurred (10,000 Yuan) | Unmatured Balance (10,000 Yuan) | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Raised Funds | 51,500 | 51,500 | | Bank Wealth Management Products | Own Funds | 60,000 | 27,000 | | **Total** | | **111,500** | **78,500** | - Significant Subsidiary Matters - **Shenyang Junyuan**: Completed the bidding, acquisition, and business registration change for **100%** equity of Shenyang Dongang Pharmaceutical, renaming it 'Shenyang Junyuan Pharmaceutical Co., Ltd'[177](index=177&type=chunk)[178](index=178&type=chunk) - **Sai'er Bio**: Established a branch in Tianjin and obtained an expanded 'Drug Production License' from the Beijing Municipal Drug Administration[179](index=179&type=chunk) [Share Changes and Shareholder Information](index=60&type=section&id=%E7%AC%AC%E5%85%AD%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) [Share Change Status](index=60&type=section&id=6.1%20%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 increased from **240 million** to **484 million** shares, primarily due to the lifting of lock-up on pre-IPO shares, a 10-for-10 capital reserve to share transfer, and the issuance of **4.166 million** restricted shares under an equity incentive plan, reducing restricted shares from **64.80%** to **49.04%** of total shares Summary of Share Changes | Share Class | Quantity Before Change | Quantity After Change | Reason for Change | | :--- | :--- | :--- | :--- | | Restricted Shares | 155,520,000 | 237,446,000 | Equity incentive issuance, capital reserve conversion, executive lock-up | | Unrestricted Shares | 84,480,000 | 246,720,000 | Restricted share release, capital reserve conversion | | **Total Share Capital** | **240,000,000** | **484,166,000** | Capital reserve conversion and equity incentive issuance | - Main reasons for share changes include - In **June 2018**, **155.52 million** pre-IPO shares became tradable[182](index=182&type=chunk) - In **June 2018**, the capital reserve to share transfer plan of '10 shares for every 10 shares' was implemented, increasing total share capital to **480 million** shares[183](index=183&type=chunk) - In **September 2018**, the initial grant of the restricted stock incentive plan was completed, adding **4.166 million** shares[183](index=183&type=chunk) [Shareholder Information](index=63&type=section&id=6.2%20%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) As of year-end 2018, the company had **20,599** shareholders, with controlling shareholder and de facto controller Mr. Ma Biao holding **49.25%** of shares, and Mr. Ma Biao, Ms. Ma Li (**11.78%**), and Ms. Liu Shuqin (**3.21%**) acting in concert (mother-son, sibling relationship), collectively holding over **64%** of shares - As of the end of the reporting period, the company had **20,599** common shareholders[193](index=193&type=chunk) Top Three Shareholders' Shareholding | Shareholder Name | Shareholder Nature | Shareholding Ratio | Shares Held at Period-End | | :--- | :--- | :--- | :--- | | Ma Biao | Domestic Natural Person | 49.25% | 238,464,000 | | Ma Li | Domestic Natural Person | 11.78% | 57,024,000 | | Liu Shuqin | Domestic Natural Person | 3.21% | 15,552,000 | - The company's controlling shareholder and de facto controller is Mr. Ma Biao, who is a sibling to Ms. Ma Li, and Ms. Liu Shuqin is their mother[194](index=194&type=chunk)[196](index=196&type=chunk) [Preferred Shares Related Information](index=67&type=section&id=%E7%AC%AC%E4%B8%83%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) [Overview of Preferred Shares](index=67&type=section&id=7.1%20%E4%BC%98%E5%85%88%E8%82%A1%E6%A6%82%E5%86%B5) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[201](index=201&type=chunk) [Directors, Supervisors, Senior Management, and Employees](index=68&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%92%8C%E5%91%98%E5%B7%A5%E6%83%85%E5%86%B5) [Changes in Directors, Supervisors, Senior Management and Their Shareholdings](index=68&type=section&id=8.1%20%E8%91%A3%E7%9B%91%E9%AB%98%E5%8F%98%E5%8A%A8%E4%B8%8E%E6%8C%81%E8%82%A1) During the reporting period, some directors, supervisors, and senior management personnel changed due to term expiration, while their shareholdings increased due to capital reserve to share transfer and equity incentive plans, with Chairman Ma Biao's holdings reaching **238 million** shares at period-end, and executive compensation determined by the Remuneration and Assessment Committee based on performance - On **February 1, 2018**, several company directors, independent directors, supervisors, and the chief engineer resigned due to term expiration[206](index=206&type=chunk) - Some directors and senior executives increased their shareholdings through the 2018 Restricted Stock Incentive Plan, with Vice General Manager Wang Xuefeng and Marketing Director Zhang Fan each receiving **150,000** shares[222](index=222&type=chunk) [Employee Information](index=74&type=section&id=8.2%20%E5%91%98%E5%B7%A5%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had **512** employees, with production and technical personnel constituting the majority at **32.6%** and **30.1%** respectively, and approximately **67%** of employees holding college degrees or higher, while the company has established a market-aligned and performance-based compensation policy and implemented employee training programs including internal and external training Employee Professional Composition | Professional Category | Number of People | Percentage | | :--- | :--- | :--- | | Production Personnel | 167 | 32.6% | | Sales Personnel | 73 | 14.3% | | Technical Personnel | 154 | 30.1% | | Financial Personnel | 25 | 4.9% | | Administrative Personnel | 93 | 18.1% | | **Total** | **512** | **100.0%** | - The company's compensation policy ensures alignment with market levels, combining job analysis and performance appraisal to balance efficiency and fairness[225](index=225&type=chunk) [Corporate Governance](index=77&type=section&id=%E7%AC%AC%E4%B9%9D%E8%8A%82%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86) [Overview of Corporate Governance](index=77&type=section&id=9.1%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E6%A6%82%E5%86%B5) The company operates strictly in accordance with laws and regulations like the 'Company Law' and 'Securities Law', with its corporate governance meeting regulatory requirements, maintaining independence from the controlling shareholder in business, personnel, assets, organization, and finance, holding **4** shareholder meetings, **8** board meetings, and **8** supervisory board meetings during the reporting period, and its specialized committees (Audit, Remuneration, Strategy, Nomination) actively fulfilled their duties by reviewing financial matters, executive compensation, major investments, and personnel nominations - The company's corporate governance structure is sound, with its actual status complying with normative documents on listed company governance issued by the China Securities Regulatory Commission[230](index=230&type=chunk)[238](index=238&type=chunk) - The company is independent of its controlling shareholder in business, personnel, assets, organization, and finance, possessing autonomous operational capabilities[239](index=239&type=chunk)[240](index=240&type=chunk) - The Board of Directors' four special committees (Audit, Remuneration and Assessment, Strategy, Nomination) held multiple meetings during the reporting period, fulfilling their respective duties by reviewing significant matters including annual financial reports, executive compensation, equity incentives, external investments, and director re-elections[245](index=245&type=chunk)[246](index=246&type=chunk)[248](index=248&type=chunk) - Based on the '2018 Internal Control Self-Assessment Report', the company believes its internal controls are effective, with no material weaknesses or significant deficiencies in financial or non-financial reporting[252](index=252&type=chunk)[253](index=253&type=chunk) [Corporate Bonds Related Information](index=84&type=section&id=%E7%AC%AC%E5%8D%81%E8%8A%82%20%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) [Overview of Corporate Bonds](index=84&type=section&id=10.1%20%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%E6%A6%82%E5%86%B5) The company has no publicly issued and listed corporate bonds on stock exchanges that are either unmatured or have not been fully redeemed as of the approval date of the annual report - The company has no outstanding or unredeemed corporate bonds[256](index=256&type=chunk) [Financial Report](index=85&type=section&id=%E7%AC%AC%E5%8D%81%E4%B8%80%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) [Audit Report](index=85&type=section&id=11.1%20%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) Grant Thornton (Special General Partnership) issued a standard unqualified audit opinion on the company's 2018 financial statements, affirming that they fairly present the company's financial position and operating results in all material respects, with key audit matters being 'provision for impairment of accounts receivable' and 'goodwill impairment' due to significant management judgments involved - The audit opinion type is a standard unqualified opinion[258](index=258&type=chunk) - Key Audit Matter One: Provision for impairment of accounts receivable; as of year-end 2018, accounts receivable balance was **257 million Yuan**, with a bad debt provision of **13.086 million Yuan**, listed as a key audit matter due to its materiality and complex judgment involved in assessment[263](index=263&type=chunk) - Key Audit Matter Two: Goodwill impairment; as of year-end 2018, the book balance of goodwill was **21.8651 million Yuan**, listed as a key audit matter due to its materiality and the significant management judgment required for impairment testing[267](index=267&type=chunk) [Financial Statements](index=90&type=section&id=11.2%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) Financial statements show the company's total assets increased from **2.453 billion Yuan** to **2.761 billion Yuan**, operating revenue significantly grew to **1.428 billion Yuan**, but total profit slightly decreased from **331 million Yuan** to **330 million Yuan** due to sharp increases in sales and other costs, while operating cash flow remained positive at **147 million Yuan**, and share capital expanded from **240 million** to **484 million** shares through capital reserve conversion and restricted stock issuance Consolidated Balance Sheet Summary (Unit: Yuan) | Item | Period-End Balance | Period-Beginning Balance | | :--- | :--- | :--- | | Total Assets | 2,760,559,359.20 | 2,453,403,315.15 | | Total Liabilities | 205,073,804.97 | 133,912,073.01 | | Total Equity Attributable to Parent Company Owners | 2,554,113,066.35 | 2,318,173,172.59 | Consolidated Income Statement Summary (Unit: Yuan) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Total Operating Revenue | 1,427,750,943.80 | 749,986,848.13 | | Total Operating Cost | 1,141,768,392.65 | 465,921,176.21 | | Total Profit | 330,618,035.25 | 331,386,637.47 | | Net Profit | 283,161,466.54 | 281,531,374.73 | Consolidated Cash Flow Statement Summary (Unit: Yuan) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 146,516,272.45 | 108,212,673.95 | | Net Cash Flow from Investing Activities | -1,024,806,875.21 | 387,457,785.82 | | Net Cash Flow from Financing Activities | -23,437,840.00 | -60,000,000.00 | | Net Increase in Cash and Cash Equivalents | -901,728,442.76 | 435,670,459.77 | [Reference Documents Catalog](index=172&type=section&id=%E7%AC%AC%E5%8D%81%E4%BA%8C%E8%8A%82%20%E5%A4%87%E6%9F%A5%E6%96%87%E4%BB%B6%E7%9B%AE%E5%BD%95) [Reference Documents](index=172&type=section&id=12.1%20%E5%A4%87%E6%9F%A5%E6%96%87%E4%BB%B6) Reference documents for this report include the original annual report signed by the legal representative, original signed and sealed financial statements and audit report, and originals of all publicly disclosed documents and announcements during the reporting period - Reference documents include - Original Annual Report - Original Financial Statements - Original Audit Report - All publicly disclosed documents during the reporting period[665](index=665&type=chunk)[666](index=666&type=chunk)

北京赛升药业股份有限公司 2018 年第三季度报告全文 北京赛升药业股份有限公司 2018 年第三季度报告 2018-069 2018 年 10 月 1 北京赛升药业股份有限公司 2018 年第三季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人马骉、主管会计工作负责人马丽及会计机构负责人(会计主管人 员)栗建华声明：保证季度报告中财务报表的真实、准确、完整。 2 北京赛升药业股份有限公司 2018 年第三季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期末 | 上年度末 | | 本报告期末比上年度末增减 | | --- | --- | --- | --- | --- | | 总资产（元） | 2,595,953,143.26 | 2,453,403,315.15 | | 5.81% | | 归属于上市公司股东的净资产 | 2,471 ...

北京赛升药业股份有限公司 2018 年半年度报告全文 2018-054 2018 年 08 月 1 北京赛升药业股份有限公司 2018 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的 真实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别 和连带的法律责任。 公司负责人马骉、主管会计工作负责人马丽及会计机构负责人(会计主管人 员)栗建华声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 本公司请投资者认真阅读本报告，公司在本报告第四节"经营情况讨论与 分析"中"十、公司面临的风险和应对措施"部分，描述了公司未来经营可能面临 的主要风险，敬请广大投资者注意风险。 北京赛升药业股份有限公司 2018 年半年度报告 | 股票简称 | 赛升药业 | 股票代码 | 300485 | | --- | --- | --- | --- | | 股票上市证券交易所 | 深圳证券交易所 | | | | 公司的中文名称 | 北京赛升药业股份有限公司 | | | | 公司的中文简称（如有） | 赛升药业 | ...

[Important Notice](index=2&type=section&id=Section%20I.%20Important%20Notice) The Board of Directors, Supervisory Board, and all senior management guarantee the report's truthfulness, accuracy, and completeness, assuming legal responsibility, while key financial officers ensure the financial statements' integrity[5](index=5&type=chunk)[6](index=6&type=chunk) [Company Profile](index=3&type=section&id=Section%20II.%20Company%20Profile) [Key Accounting Data and Financial Indicators](index=3&type=section&id=II.I.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In Q1 2018, the company reported significant growth in total operating revenue and net profit, with operating cash flow turning positive and slight increases in total assets and net assets 2018 Q1 Key Financial Indicators | Indicator | Current Period (RMB) | Prior Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 270,473,451.39 | 108,205,025.96 | 149.96% | | Net Profit Attributable to Shareholders | 59,865,789.84 | 45,291,597.80 | 32.18% | | Net Cash Flow from Operating Activities | 53,370,306.12 | -792,832.91 | -6,831.60% | | Basic Earnings Per Share (RMB/share) | 0.250 | 0.190 | 31.58% | | Total Assets | 2,537,116,357.33 | - | 3.41% (vs. prior year-end) | | Net Assets Attributable to Shareholders | 2,378,038,962.43 | - | 2.58% (vs. prior year-end) | - During the reporting period, non-recurring gains and losses totaled **1.08 million yuan**, primarily from government subsidies and wealth management income[10](index=10&type=chunk) [Significant Risk Warnings](index=4&type=section&id=II.II.%20Significant%20Risk%20Warnings) The company faces significant risks including evolving industry policies, product price erosion, complex manufacturing quality control, high uncertainty in new drug development, and potential loss of key personnel - Industry policy risk: National pharmaceutical industry regulation is strengthening, with policies like tiered diagnosis and treatment, new medical insurance catalogs, and the two-invoice system raising industry entry barriers and operational requirements[11](index=11&type=chunk) - Product price decline risk: Under the new round of drug bidding and medical insurance payment reforms, even products from exclusive or few manufacturers face downward price pressure[11](index=11&type=chunk) - New drug R&D uncertainty: New drug development involves multiple stages and long cycles, posing risks of development failure or market rejection, which could adversely affect the company's profitability[14](index=14&type=chunk) [Shareholder Information](index=5&type=section&id=II.III.%20Total%20Shareholders%20and%20Top%20Ten%20Shareholders%27%20Holdings%20at%20Period%20End) As of the reporting period end, the company had 22,214 common shareholders, with a highly concentrated equity structure where the top three related parties hold nearly 65% of shares Top Three Shareholders' Holdings | Shareholder Name | Shareholder Type | Holding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | Ma Biao | Domestic Natural Person | 49.68% | 119,232,000 | | Ma Li | Domestic Natural Person | 11.88% | 28,512,000 | | Liu Shuqin | Domestic Natural Person | 3.24% | 7,776,000 | - The top three shareholders have related party relationships: Ma Biao and Ma Li are siblings, and Liu Shuqin is their mother[19](index=19&type=chunk) [Significant Matters](index=8&type=section&id=Section%20III.%20Significant%20Matters) [Major Financial Data Changes and Reasons](index=8&type=section&id=III.I.%20Major%20Financial%20Data%20and%20Indicator%20Changes%20and%20Reasons%20During%20the%20Reporting%20Period) The company experienced significant financial indicator changes driven by the "two-invoice system" policy, leading to substantial revenue growth and a sharp increase in sales expenses, alongside a shift of cash into wealth management products - Operating revenue increased by **149.96%** year-on-year, primarily due to the expansion of "two-invoice system" implementation provinces and sales volume growth[25](index=25&type=chunk) - Sales expenses increased by **885.23%** year-on-year, mainly due to a significant rise in the company's marketing expenses influenced by the "two-invoice system"[25](index=25&type=chunk) - Cash and cash equivalents decreased by **85.43%** from the beginning of the year, while other current assets surged, primarily because the company invested idle funds in short-term bank wealth management products not yet matured at period-end[23](index=23&type=chunk) - Administrative expenses increased by **122.69%** year-on-year, mainly due to increased R&D expenses during the period[25](index=25&type=chunk) [Business Review and Outlook](index=10&type=section&id=III.II.%20Business%20Review%20and%20Outlook) Business growth during the period was primarily driven by the "two-invoice system" and increased sales, leading to higher revenue and profit, with no significant new orders or R&D updates disclosed 2018 Q1 Performance Review | Indicator | Amount (RMB 10k) | YoY Growth | | :--- | :--- | :--- | | Operating Revenue | 27,047.35 | 149.96% | | Net Profit Attributable to Parent | 5,986.58 | 32.18% | | Net Profit Attributable to Parent (Excluding Non-recurring Items) | 5,878.59 | 31.14% | [Use of Raised Funds](index=11&type=section&id=III.V.%20Comparison%20Table%20of%20Raised%20Funds%20Utilization) The company's total raised funds are 1.081 billion yuan, with 33.24 million yuan invested this quarter, primarily in production and marketing, and 710 million yuan of idle funds used for bank wealth management products Overview of Raised Funds Utilization (Unit: RMB 10k) | Item | Amount | | :--- | :--- | | Total Raised Funds | 108,094.47 | | Total Investment This Quarter | 3,323.75 | | Cumulative Total Investment | 38,539.4 | | Cumulative Investment Progress | Approximately 35.65% | - As of March 31, 2018, the company held **710 million yuan** in bank wealth management products purchased with idle raised funds[36](index=36&type=chunk) [Other Significant Matters](index=11&type=section&id=Other%20Significant%20Matters) The company reported no significant unfulfilled commitments, policy issues, illegal guarantees, or fund occupation during the period, and did not provide future performance forecasts - During the reporting period, the company had no significant commitments, illegal guarantees, or fund occupation requiring disclosure[33](index=33&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk) [Financial Statements](index=14&type=section&id=Section%20IV.%20Financial%20Statements) [Original Financial Statements](index=14&type=section&id=IV.I.%20Financial%20Statements) This section presents the company's unaudited Q1 2018 consolidated and parent company financial statements, including balance sheets, income statements, and cash flow statements, as the primary data source - This section includes the following financial statements: - Consolidated Balance Sheet[42](index=42&type=chunk) - Parent Company Balance Sheet[48](index=48&type=chunk) - Consolidated Income Statement[54](index=54&type=chunk) - Parent Company Income Statement[61](index=61&type=chunk) - Consolidated Cash Flow Statement[64](index=64&type=chunk) - Parent Company Cash Flow Statement[69](index=69&type=chunk) [Audit Report](index=27&type=section&id=II.%20Audit%20Report) The company's 2018 first-quarter financial report remains unaudited - The company's first-quarter report is unaudited[75](index=75&type=chunk)

Section I: Important Notice, Table of Contents, and Definitions [Important Notice and Risk Statement](index=2&type=section&id=Important%20Notice%20and%20Risk%20Statement) The board guarantees the annual report's truthfulness and completeness, highlighting key risks like policy changes, product price declines, quality control, R&D uncertainties, and core personnel loss - Increased regulatory scrutiny on the pharmaceutical industry, with policies like hierarchical diagnosis and treatment, new medical insurance catalog, and 'two-invoice system' raising requirements for market access, production, and sales, increasing policy risks for enterprises[5](index=5&type=chunk) - Under new drug bidding rounds, changes in medical insurance payment conditions, and intensified market competition, the company's main products face price reduction risks, which may adversely affect profitability[6](index=6&type=chunk) - The company's main products are injections with complex production processes; various stages from raw material procurement to product sales may affect product quality, posing potential product quality risks[8](index=8&type=chunk) - New drug R&D has long cycles and multiple stages, susceptible to unpredictable factors, with risks of development failure or inability to complete registration, potentially adversely affecting the company's profitability[9](index=9&type=chunk) - As a high-tech enterprise, the loss of core technical and management personnel may lead to leakage of core technologies, adversely affecting the company's R&D and stable development[10](index=10&type=chunk) [Profit Distribution Plan](index=3&type=section&id=Profit%20Distribution%20Plan) The board approved the 2017 profit distribution plan, proposing a cash dividend of 2.40 yuan (incl. tax) per 10 shares and a capital reserve transfer of 10 shares per 10 shares, based on 240 million shares 2017 Annual Profit Distribution Plan | Distribution Item | Specific Plan | | :--- | :--- | | Cash Dividend | 2.40 yuan (incl. tax) per 10 shares | | Bonus Shares | 0 shares per 10 shares | | Capital Reserve Transfer | 10 shares per 10 shares | | Distribution Base | 240,000,000 shares | Section II: Company Profile and Key Financial Indicators [Company Basic Information](index=6&type=section&id=Company%20Basic%20Information) This section provides the company's basic business registration information, including stock abbreviation 'Saisheng Pharmaceutical', stock code '300485', legal representative Ma Biao, and registered/office addresses and contact details - The company's stock abbreviation is **'Saisheng Pharmaceutical'**, code is **300485**, and legal representative is Ma Biao[16](index=16&type=chunk) [Overview of Key Financial Data](index=7&type=section&id=Overview%20of%20Key%20Financial%20Data) In 2017, the company achieved operating revenue of **750 million yuan**, up **21.70%** year-on-year, and net profit attributable to shareholders of **282 million yuan**, up **8.98%**, while net cash flow from operating activities significantly decreased by **49.17%** 2017 Key Financial Indicators | Indicator | 2017 (yuan) | 2016 (yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 749,986,848.13 | 616,238,487.47 | 21.70% | | Net Profit Attributable to Shareholders | 281,604,133.53 | 258,405,896.27 | 8.98% | | Net Profit Attributable to Shareholders (Excl. Non-recurring Items) | 263,531,176.54 | 239,368,778.69 | 10.09% | | Net Cash Flow from Operating Activities | 108,212,673.95 | 212,893,474.60 | -49.17% | | Basic Earnings Per Share (yuan/share) | 1.170 | 1.080 | 8.33% | | Total Assets (Year-end) | 2,453,403,315.15 | 2,216,587,575.58 | 10.68% | | Net Assets Attributable to Shareholders (Year-end) | 2,318,173,172.59 | 2,096,569,039.06 | 10.57% | [Non-recurring Gains and Losses](index=8&type=section&id=Non-recurring%20Gains%20and%20Losses) In 2017, the company's non-recurring gains and losses totaled **18.07 million yuan**, primarily from gains/losses on entrusted investments, amounting to **21.02 million yuan**, a slight decrease from 2016 Non-recurring Gains and Losses Items and Amounts | Item | 2017 Amount (yuan) | 2016 Amount (yuan) | | :--- | :--- | :--- | | Gains/losses from entrusted investments or asset management | 21,020,977.11 | 21,202,760.92 | | Government grants recognized in current profit/loss | 1,072,843.61 | 1,437,518.42 | | Other non-operating net income/expenses | -852,759.56 | -199,208.20 | | **Total (after tax)** | **18,072,956.99** | **19,037,117.58** | Section III: Company Business Overview [Main Business and Operating Model](index=9&type=section&id=Main%20Business%20and%20Operating%20Model) The company's main business is R&D, production, and sales of injectable preparations, focusing on cardiovascular, immune (anti-tumor), and nervous system fields, employing a marketing-oriented production model and a 'resident investment promotion + academic promotion' marketing strategy - The company's main business is biological and biochemical injectable preparations, covering cardiovascular, immune regulation, and nervous system therapeutic areas[30](index=30&type=chunk)[31](index=31&type=chunk) - The company adopts a **'resident investment promotion (R) + academic promotion (S)'** marketing model, distributing products to hospital terminals through a dealer network[34](index=34&type=chunk) [Core Competencies](index=11&type=section&id=Core%20Competencies) The company's core competencies include a balanced product structure, strong R&D and patent advantages, unique process technology platforms, and a complete industrial chain, holding **40 national patents**, **30** of which are invention patents - Product advantages: Five major products are independently developed, hold high market shares, and feature a balanced product structure, mitigating single-product dependency risk[38](index=38&type=chunk) - R&D and patent advantages: As of the reporting period, the company has obtained **40 national patent technologies**, including **30 invention patents**, with core technologies extensively applied in major products[38](index=38&type=chunk) - Process technology advantages: The company possesses unique advantages in biological macromolecule separation and purification technology, establishing specialized technology platforms for proteins, polysaccharides, and nucleotides[41](index=41&type=chunk) - Industrial chain advantages: The company and its controlled subsidiaries hold multi-dosage form production licenses, featuring a complete product industrial chain that effectively mitigates raw material and preparation price fluctuation risks[42](index=42&type=chunk) Section IV: Management Discussion and Analysis [I. Overview](index=13&type=section&id=I.%20Overview) During the reporting period, the company maintained stable operations amidst intensive pharmaceutical policy changes, with **100%** product ex-factory qualification rate, deepened its marketing model, advanced new drug R&D, and acquired **45%** equity in Huada Protein - Production status: The annual product ex-factory qualification rate was **100%**, with no safety, pollution, or product quality incidents[46](index=46&type=chunk) - Marketing status: Deepened the **'resident investment promotion + academic promotion'** model, organized or participated in over **400 academic conferences** throughout the year, and actively expanded into tertiary markets[49](index=49&type=chunk)[50](index=50&type=chunk) - R&D progress: Pre-clinical research for two Class I anti-tumor new drugs, HM-3 and Angiogenesis Inhibitor Peptide, progressed orderly, with the HM-3 project in clinical research Phase Ia[50](index=50&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk) - External investment: Successfully bid for **45% equity** in Beijing Huada Protein Research Center Co., Ltd. for **22 million yuan**[59](index=59&type=chunk)[60](index=60&type=chunk) [II. Main Business Analysis](index=19&type=section&id=II.%20Main%20Business%20Analysis) In 2017, pharmaceutical manufacturing revenue grew by **21.70%**, with cardiovascular drug revenue up **92.53%**, and strong regional growth in Northwest, South, and Southwest China, while sales expenses surged **148.82%** due to the 'two-invoice system' and cash flow from operations declined **49.17%** Operating Revenue Composition (by Product) | Product Category | 2017 Revenue (yuan) | % of Total Revenue | YoY Change | | :--- | :--- | :--- | :--- | | Immune System Drugs | 347,508,562.80 | 46.34% | 1.63% | | Nervous System Drugs | 125,574,359.12 | 16.74% | 1.60% | | Cardiovascular and Cerebrovascular Drugs | 268,676,054.17 | 35.82% | 92.53% | Operating Revenue Composition (by Region) | Region | 2017 Revenue (yuan) | % of Total Revenue | YoY Change | | :--- | :--- | :--- | :--- | | Northeast Region | 181,502,894.83 | 24.20% | 51.14% | | North China Region | 149,026,698.16 | 19.87% | 35.93% | | Southwest Region | 76,353,789.01 | 10.18% | 90.49% | | South China Region | 29,124,742.59 | 3.88% | 93.65% | | Northwest Region | 23,265,730.61 | 3.10% | 216.92% | - Sales expenses increased by **148.82%** year-on-year, primarily due to increased promotion expenses influenced by the 'two-invoice system' policy[77](index=77&type=chunk) - Net cash flow from operating activities decreased by **49.17%** year-on-year, mainly due to increased raw material reserves and promotion expenses[83](index=83&type=chunk) [V. Analysis of Investment Status](index=25&type=section&id=V.%20Analysis%20of%20Investment%20Status) During the reporting period, the company made an equity investment of **22 million yuan** to acquire **45%** of Beijing Huada Protein Research Center Co., Ltd., and cumulatively invested **352 million yuan** in raised funds for production base and industrialization projects, which are progressing steadily - During the reporting period, the company successfully bid for **45% equity** in Beijing Huada Protein Research Center Co., Ltd. using **22 million yuan** of its own funds[93](index=93&type=chunk)[95](index=95&type=chunk) Progress of Committed Investment Projects with Raised Funds | Project Name | Committed Investment (10,000 yuan) | Cumulative Investment as of Period End (10,000 yuan) | Investment Progress | | :--- | :--- | :--- | :--- | | New Pharmaceutical Production Base Project | 68,085.41 | 24,253.08 | 35.62% | | New Cardiovascular and Immune Regulation Product Industrialization Project | 28,352.17 | 5,859.11 | 20.67% | | Marketing Network Construction Project | 5,656.89 | 1,579.07 | 27.91% | | HM Class Polypeptide Product Project | 6,000.00 | 3,524.39 | 58.74% | [IX. Outlook on Company's Future Development](index=29&type=section&id=IX.%20Outlook%20on%20Company%27s%20Future%20Development) The company anticipates continued challenges and opportunities in the pharmaceutical industry due to environmental restrictions and policy changes, planning to expand its industrial scale and enhance core competitiveness through R&D, collaborations, and M&A, focusing on cardiovascular, immuno-oncology, and nervous system drugs - The company's development strategy will focus on its existing five major products, increase market development for other approved products, introduce new varieties through independent R&D, cooperation, and acquisitions, and pursue a diversified strategy for external expansion[116](index=116&type=chunk) - 2018 Operating Plan Highlights: - **Production**: Advance construction of fundraising projects to ensure capacity for sustainable growth - **Marketing**: Continue the **'resident investment promotion + academic promotion'** model, strengthen market penetration, and expand into tertiary markets - **R&D**: Increase investment, optimize core product processes, and promote new product R&D - **Talent**: Improve talent management systems, build talent pipeline, and timely implement equity incentives - **M&A**: Actively seek acquisitions and mergers of peer or upstream/downstream enterprises to expand company scale[119](index=119&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk) Section V: Significant Matters [I. Profit Distribution of Ordinary Shares and Capital Reserve to Share Capital Conversion](index=35&type=section&id=I.%20Profit%20Distribution%20of%20Ordinary%20Shares%20and%20Capital%20Reserve%20to%20Share%20Capital%20Conversion) During the reporting period, the company executed the 2016 profit distribution plan of **2.5 yuan** cash per **10 shares** and proposed a 2017 plan of **2.4 yuan** cash per **10 shares** plus **10 bonus shares** from capital reserve, while strictly fulfilling all IPO commitments Dividend Distribution Plans for the Past Three Years | Year | Cash Dividend Plan | Capital Reserve to Share Capital Conversion Plan | | :--- | :--- | :--- | | 2017 Proposal | 2.4 yuan (incl. tax) per 10 shares | 10 shares per 10 shares | | 2016 | 2.5 yuan (incl. tax) per 10 shares | - | | 2015 | 3.6 yuan (incl. tax) per 10 shares | 10 shares per 10 shares | - The company's actual controller, shareholders, and the company itself fulfilled all commitments made during the initial public offering, including share lock-up, dividend distribution, and share price stabilization, within the reporting period[137](index=137&type=chunk)[139](index=139&type=chunk)[141](index=141&type=chunk)[143](index=143&type=chunk)[145](index=145&type=chunk) [XV. Significant Related Party Transactions](index=46&type=section&id=XV.%20Significant%20Related%20Party%20Transactions) During the reporting period, the company had no significant related party transactions related to daily operations or asset/equity acquisitions, but engaged in large-scale entrusted wealth management totaling **8.047 billion yuan**, all in bank wealth management products with no outstanding balance at period-end - The company had no significant related party transactions related to daily operations, or asset/equity acquisitions or disposals during the reporting period[161](index=161&type=chunk)[162](index=162&type=chunk) Overview of Entrusted Wealth Management During the Reporting Period | Specific Type | Fund Source | Entrusted Wealth Management Amount (10,000 yuan) | Unmatured Balance (10,000 yuan) | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Raised and Own Funds | 804,700 | 0 | [XVII. Social Responsibility](index=48&type=section&id=XVII.%20Social%20Responsibility) The company actively fulfilled its social responsibilities during the reporting period through various public welfare activities, including student aid, drug donations to children's hospitals, and a **1 million yuan** donation to Jilin University, and is not classified as a key polluting unit - The company actively participates in public welfare initiatives, including student aid, drug donations, and university contributions[177](index=177&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk) - Neither the company nor its subsidiaries are classified as key polluting units by environmental protection authorities[181](index=181&type=chunk) Section VI: Share Changes and Shareholder Information [I. Share Changes](index=50&type=section&id=I.%20Share%20Changes) During the reporting period, the company's total share capital remained unchanged at **240 million shares**, with restricted shares accounting for **64.80%** and unrestricted shares for **35.20%** Share Structure | Share Type | Quantity (shares) | Proportion | | :--- | :--- | :--- | | Restricted Shares | 155,520,000 | 64.80% | | Unrestricted Shares | 84,480,000 | 35.20% | | **Total Share Capital** | **240,000,000** | **100.00%** | [III. Shareholders and Actual Controller Information](index=51&type=section&id=III.%20Shareholders%20and%20Actual%20Controller%20Information) As of the reporting period, the company had **20,129** shareholders, with Mr. Ma Biao as the controlling shareholder and actual controller, holding **49.68%** of shares, and his mother Liu Shuqin and sister Ma Li also being major shareholders and acting in concert - As of the reporting period, the total number of ordinary shareholders was **20,129**[187](index=187&type=chunk) - The company's controlling shareholder and actual controller is Ma Biao, holding **49.68%** of shares; he is related to shareholder Ma Li (holding **11.88%**) as siblings and to shareholder Liu Shuqin (holding **3.24%**) as mother and son[187](index=187&type=chunk)[190](index=190&type=chunk)[192](index=192&type=chunk)[193](index=193&type=chunk) Section VIII: Directors, Supervisors, Senior Management, and Employees [Overview of Directors, Supervisors, Senior Management, and Employees](index=56&type=section&id=Overview%20of%20Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20and%20Employees) This section details the shareholdings, resumes, and remuneration of the company's directors, supervisors, and senior management, along with employee composition, noting **494** employees with technical personnel being the largest group, and outlining performance-linked compensation and training - Chairman and General Manager Ma Biao held **119,232,000 shares** at period-end, Director and Deputy General Manager Ma Li held **28,512,000 shares**, while other directors, supervisors, and senior management did not directly hold company shares[199](index=199&type=chunk)[201](index=201&type=chunk) 2017 Remuneration of Selected Senior Executives | Name | Position | Total Pre-tax Remuneration from Company (10,000 yuan) | | :--- | :--- | :--- | | Ma Biao | Chairman and General Manager | 81.45 | | Ma Li | Deputy General Manager and CFO | 61.45 | | Wang Xuefeng | Deputy General Manager and Board Secretary | 61.45 | | Jiang Guirong | Chief Engineer (Resigned) | 62.40 | Employee Professional Composition | Professional Category | Number of People | | :--- | :--- | | Production Personnel | 181 | | Sales Personnel | 68 | | Technical Personnel | 166 | | Financial Personnel | 22 | | Administrative Personnel | 57 | | **Total** | **494** | Section IX: Corporate Governance [Corporate Governance and Internal Control](index=64&type=section&id=Corporate%20Governance%20and%20Internal%20Control) During the reporting period, the company operated in strict compliance with regulations, maintaining independence from the controlling shareholder in all aspects, with diligent special committees, and received an unqualified opinion from auditors on the effectiveness of its financial reporting internal controls as of December 31, 2017 - The company's actual corporate governance status complies with the normative documents on corporate governance issued by the China Securities Regulatory Commission, with no significant discrepancies[226](index=226&type=chunk)[229](index=229&type=chunk) - The company maintains independence from the controlling shareholder in business, personnel, assets, organization, and finance, possessing complete independent operating capabilities[230](index=230&type=chunk)[231](index=231&type=chunk) - The accounting firm issued a standard unqualified attestation report on the company's 2017 internal control, stating that the company effectively maintained internal controls related to financial statements in all material respects as of December 31, 2017[246](index=246&type=chunk)[247](index=247&type=chunk) Section XI: Financial Report [I. Audit Report](index=71&type=section&id=I.%20Audit%20Report) Grant Thornton (Special General Partnership) issued a standard unqualified audit opinion on the company's 2017 financial statements, affirming fair presentation of financial position and operating results, with key audit matters being 'provision for impairment of accounts receivable' and 'capitalization of R&D expenses' - The auditing firm issued a standard unqualified audit opinion[251](index=251&type=chunk)[252](index=252&type=chunk) - Key Audit Matters: - **Provision for impairment of accounts receivable**: Due to the significant balance of accounts receivable and the complex management judgment involved in assessing impairment provisions - **Capitalization of R&D expenses**: Due to the significant amount of R&D expenses and the substantial management judgment involved in assessing whether they meet capitalization criteria[255](index=255&type=chunk)[258](index=258&type=chunk) [VII. Notes to Consolidated Financial Statements](index=116&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statements) Financial statement notes detail account composition and changes: cash increased to **1.475 billion yuan**, accounts receivable surged to **80.06 million yuan**, construction in progress rose to **251 million yuan** for production base and industrialization projects, and sales expenses jumped to **221 million yuan**, mainly for promotion and conference fees - Cash and bank balances at period-end were **1.475 billion yuan**, a significant increase from **1.039 billion yuan** at the beginning of the period[445](index=445&type=chunk) - Accounts receivable at period-end had a book value of **80.06 million yuan**, a significant increase from **13.33 million yuan** at the beginning of the period[452](index=452&type=chunk) - Construction in progress at period-end was **251 million yuan**, an increase of **120 million yuan** from **131 million yuan** at the beginning of the period, primarily invested in the production base and cardiovascular and immune regulation product industrialization projects[486](index=486&type=chunk)[488](index=488&type=chunk) - Sales expenses increased from **88.83 million yuan** in the prior period to **221 million yuan** in the current period, with promotional and conference fees rising from **72.31 million yuan** to **199 million yuan**[536](index=536&type=chunk) Section XII: Documents Available for Inspection [Documents Available for Inspection](index=151&type=section&id=Documents%20Available%20for%20Inspection) This section lists documents available for inspection, including the original annual report signed by the legal representative, original signed and sealed financial statements and audit report, and original copies of all publicly disclosed documents and announcements during the reporting period - Documents available for inspection include the original signed annual report, financial statements, audit report, and all previously disclosed announcements[626](index=626&type=chunk)[627](index=627&type=chunk)

北京赛升药业股份有限公司 2017 年年度报告全文 北京赛升药业股份有限公司 2017 年年度报告 2018-021 2018 年 03 月 1 北京赛升药业股份有限公司 2017 年年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证年度报告内容的真实、准确、完整，不存在虚 假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 公司负责人马骉、主管会计工作负责人马丽及会计机构负责人(会计主管人员)栗建华声明：保证年度 报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 （一） 行业政策风险 近年来，国家对医药行业的监管力度不断加强。分级诊疗、国家新医保目录、医保支付控费、药品招 投标、药占比、医药分家、两保合一、一致性评价、两票制等政策的相继出台，对整个行业在行业准入、 生产与质量管理、销售等方面的要求均大幅提升，企业需要快速达到并适应新的要求，客观上使得企业政 策风险增加。 （二） 主要产品价格下降的风险 公司主要产品"赛百"注射用纤溶酶、"赛百"纤溶酶注射液产品进入国家医保目录和部分地方新农 合目录。"赛升"薄芝糖肽注射液和"赛威 ...

[Important Notice](index=2&type=section&id=Item%201%20Important%20Notice) This chapter serves as the company's standard disclaimer, with management assuring the truthfulness, accuracy, and completeness of this quarterly report and assuming legal responsibility; all directors attended the board meeting to review this report - The company's board of directors, supervisory board, and all directors, supervisors, and senior management guarantee the report's content is true, accurate, and complete, free from false records, misleading statements, or major omissions[5](index=5&type=chunk) - Company head Ma Biao, chief accountant Ma Li, and head of accounting department Li Jianhua declare that the financial statements in the quarterly report are true, accurate, and complete[6](index=6&type=chunk) [Company Profile](index=3&type=section&id=Item%202%20Company%20Profile) This chapter outlines the company's core financial indicators and shareholder structure, showing significant Q3 revenue and net profit growth, but slight year-to-date net profit decline and substantial operating cash flow reduction, with concentrated equity controlled by Ma Biao and Ma Li [Key Accounting Data and Financial Indicators](index=3&type=section&id=I.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In Q3, revenue grew by 33.25% and net profit by 35.72%, but year-to-date cumulative revenue only increased by 3.22%, net profit decreased by 0.81%, and operating cash flow significantly dropped by 56.86%, with non-recurring gains primarily from wealth management income Key Accounting Data and Financial Indicators (Year-to-Date) | Item | Year-to-Date | Year-to-Date vs. Prior Year Change | | :--- | :--- | :--- | | Operating Revenue (Yuan) | 484,166,000.26 | 3.22% | | Net Profit Attributable to Shareholders (Yuan) | 199,822,588.57 | -0.81% | | Net Profit Attributable to Shareholders Excluding Non-Recurring Items (Yuan) | 185,898,283.70 | -7.49% | | Net Cash Flow from Operating Activities (Yuan) | 79,356,742.12 | -56.86% | | Basic Earnings Per Share (Yuan/Share) | 0.83 | -1.19% | | Weighted Average Return on Net Assets | 9.10% | -1.14% | Key Accounting Data and Financial Indicators (Current Period) | Item | Current Period | Current Period vs. Prior Year Change | | :--- | :--- | :--- | | Operating Revenue (Yuan) | 220,064,423.13 | 33.25% | | Net Profit Attributable to Shareholders (Yuan) | 94,515,154.26 | 35.72% | - Year-to-date, the company's total non-recurring gains and losses amounted to **13,924,304.87 Yuan**, primarily consisting of **16,100,739.58 Yuan** from entrusted investment or asset management income[10](index=10&type=chunk) [Shareholder Information](index=4&type=section&id=II.%20Total%20Shareholders%20and%20Top%20Ten%20Shareholders%20at%20Period-End) As of the end of the reporting period, the company had 21,006 common shareholders, with the top two shareholders, Ma Biao and Ma Li, collectively holding over 61%, indicating a highly concentrated equity structure with no related parties or concerted actions among the top ten - At the end of the reporting period, the company had **21,006** common shareholders[13](index=13&type=chunk) Top Ten Shareholders | Shareholder Name | Shareholding Percentage | Number of Shares Held (Shares) | | :--- | :--- | :--- | | Ma Biao | 49.68% | 119,232,000 | | Ma Li | 11.88% | 28,512,000 | | Liu Shuqin | 3.24% | 7,776,000 | [Significant Events](index=6&type=section&id=Item%203%20Significant%20Events) This chapter details significant financial data changes primarily influenced by the "Two-Invoice System" policy, raw material reserve strategy, and cash management activities, while confirming no overdue unfulfilled commitments or illegal guarantees during the period [Analysis of Significant Changes in Financial Data and Their Causes](index=6&type=section&id=I.%20Significant%20Changes%20in%20Key%20Financial%20Data%20and%20Indicators%20During%20the%20Reporting%20Period%20and%20Their%20Causes) Several financial indicators significantly changed from the year's beginning due to the "Two-Invoice System" policy increasing accounts receivable by 313.63% and sales expenses by 54.32%, increased raw material reserves boosting inventory by 51.35%, and idle cash invested in wealth management products causing cash to drop by 89.40% while other current assets rose by 172.25%, collectively leading to a 56.86% decrease in net operating cash flow - Accounts receivable significantly increased by **313.63%** from the beginning of the year, primarily due to an increase in credit customers under the "Two-Invoice System" policy[17](index=17&type=chunk) - Cash and cash equivalents decreased by **89.40%** from the beginning of the year, while other current assets increased by **172.25%**, mainly because the company invested idle funds in short-term bank wealth management products[17](index=17&type=chunk) - Sales expenses increased by **54.32%** year-on-year, primarily due to increased promotional expenses under the "Two-Invoice System" policy[20](index=20&type=chunk) - Net cash flow from operating activities decreased by **56.86%** year-on-year, mainly due to reduced cash inflows from increased accounts receivable and increased cash outflows from higher raw material reserves[20](index=20&type=chunk) - Inventory increased by **51.35%** from the beginning of the year, mainly due to increased reserves of raw materials such as GM1[17](index=17&type=chunk) [Other Significant Matters](index=7&type=section&id=II.%20Other%20Significant%20Matters) During the reporting period, the company had no significant event progress, overdue unfulfilled commitments, illegal external guarantees, or non-operating fund occupation by controlling shareholders, and did not forecast cumulative net profit from the year's beginning to the next reporting period's end - During the reporting period, the company had no overdue unfulfilled commitments from the actual controller, shareholders, or other related parties[21](index=21&type=chunk) - During the reporting period, the company had no illegal external guarantees, nor any non-operating fund occupation by the controlling shareholder or its related parties on the listed company[22](index=22&type=chunk)[23](index=23&type=chunk) [Financial Statements](index=8&type=section&id=Item%204%20Financial%20Statements) This chapter presents the unaudited Q3 2017 consolidated and parent company financial statements, including balance sheets, income statements, and cash flow statements, showing stable asset growth but significant shifts from cash to financial investments, strong Q3 profitability but flat year-to-date net profit, and substantial deterioration in operating cash flow with large investment outflows [Consolidated Balance Sheet](index=8&type=section&id=1.%20Consolidated%20Balance%20Sheet) As of September 30, 2017, total assets were **2.333 billion Yuan**, up 5.23% from year-end, with significant asset structure changes including cash decreasing from **1.039 billion Yuan** to **110 million Yuan**, other current assets (mainly wealth management products) increasing from **505 million Yuan** to **1.375 billion Yuan**, accounts receivable rising from **13 million Yuan** to **55 million Yuan**, and total liabilities at **95 million Yuan** indicating a low debt-to-asset ratio Consolidated Balance Sheet Data | Item | Period-End Balance (Yuan) | Year-Start Balance (Yuan) | Change | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 110,158,143.85 | 1,039,147,197.76 | -89.40% | | Accounts Receivable | 55,119,281.37 | 13,325,601.85 | +313.63% | | Other Current Assets | 1,375,000,000.00 | 505,055,233.18 | +172.25% | | Total Assets | 2,332,577,540.61 | 2,216,587,575.58 | +5.23% | | Total Liabilities | 94,852,957.35 | 118,627,708.17 | -20.04% | | Total Equity Attributable to Parent Company Owners | 2,236,399,973.81 | 2,096,569,039.06 | +6.67% | [Consolidated Income Statement](index=13&type=section&id=3.%20Consolidated%20Income%20Statement%20for%20the%20Current%20Period) In Q3 2017, the company achieved **220 million Yuan** in operating revenue, a 33.25% increase, and **95 million Yuan** in net profit attributable to parent company owners, up 35.72%; year-to-date, cumulative operating revenue reached **484 million Yuan**, up 3.22%, while cumulative net profit attributable to parent company owners slightly decreased by 0.81% to **200 million Yuan**, with significant sales expense growth being a key factor impacting cumulative net profit Consolidated Income Statement Data (Year-to-Date) | Item (Year-to-Date) | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 484,166,000.26 | 469,065,025.46 | +3.22% | | Sales Expenses | 100,236,223.00 | 64,951,445.27 | +54.32% | | Net Profit Attributable to Parent Company Owners | 199,822,588.57 | 201,452,213.84 | -0.81% | | Basic Earnings Per Share | 0.83 | 0.84 | -1.19% | [Consolidated Cash Flow Statement](index=20&type=section&id=7.%20Consolidated%20Cash%20Flow%20Statement%20from%20Year-Start%20to%20Period-End) Year-to-date, net cash flow from operating activities was **79 million Yuan**, a significant 56.86% decrease due to slower sales collection and increased raw material purchases; net cash outflow from investing activities reached **952 million Yuan**, primarily for wealth management products (**870 million Yuan**) and long-term asset acquisition; net cash outflow from financing activities was **56 million Yuan**, mainly for dividend distribution Consolidated Cash Flow Statement Data (Year-to-Date) | Item (Year-to-Date) | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 79,356,742.12 | 183,953,925.41 | -56.86% | | Net Cash Flow from Investing Activities | -952,242,142.21 | -855,905,754.93 | -11.26% | | Net Cash Flow from Financing Activities | -56,103,653.82 | -43,200,000.00 | -29.87% | | Net Increase in Cash and Cash Equivalents | -928,989,053.91 | -715,151,829.52 | -29.90% | [Audit Report](index=24&type=section&id=II.%20Audit%20Report) The company's 2017 third-quarter report is unaudited - The company's third-quarter report is unaudited[56](index=56&type=chunk)

北京赛升药业股份有限公司 2017 年半年度报告全文 北京赛升药业股份有限公司 2017 年半年度报告 2017-031 2017 年 08 月 1 北京赛升药业股份有限公司 2017 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的真实、准确、完整，不存在 虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 公司负责人马骉、主管会计工作负责人马丽及会计机构负责人(会计主管人员)栗建华声明：保证本半 年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 （一） 行业政策风险 近年来，国家对医药行业的监管力度不断加强。分级诊疗、国家新医保目录、医保支付控费、 药品招投标、药占比、医药分家、两保合一、一致性评价等医药改革政策的相继出台，对整个行业 在行业准入、生产与质量管理、销售等方面的要求均大幅提升，企业需要快速达到并适应新的要求， 客观上使得企业政策风险增加。 （二） 主要产品价格下降的风险 公司主要产品"赛百"注射用纤溶酶、"赛百"纤溶酶注射液产品进入国家医保目录和部分 地方新农合目录。"赛升"薄芝糖肽 ...

Part I [Important Notes, Table of Contents, and Definitions](index=2&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 crucial disclaimers, the report's structural overview, and definitions of key terms for clarity [Important Notes](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The Board of Directors, Supervisory Board, and senior management guarantee the annual report's truthfulness, accuracy, and completeness, assuming legal responsibility - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the annual report, free from false statements, misleading representations, or major omissions, and assume legal responsibility[5](index=5&type=chunk) - Company representative Ma Biao, head of accounting Ma Li, and head of accounting department Li Jianhua declare that the financial report in the annual report is true, accurate, and complete[5](index=5&type=chunk) [Risk Factors](index=2&type=section&id=%E9%A3%8E%E9%99%A9%E6%8F%90%E7%A4%BA) The company faces multiple risks including tightening industry policies, product price declines, quality issues, new drug R&D uncertainties, and core personnel loss - Increasing national regulation on the pharmaceutical industry, including policies on hierarchical diagnosis and treatment, new medical insurance catalogs, payment control, and drug tendering, raises policy risks for the company[7](index=7&type=chunk) - Key products like "Saibai" Fibrinolysin for Injection and "Saisheng" Polysaccharide Peptide for Injection are in the medical insurance catalog, but new tendering and payment changes may reduce prices and impact profitability[8](index=8&type=chunk) - New drug R&D is lengthy and complex, susceptible to unpredictable factors, posing risks of technical failure or registration inability, potentially increasing operating costs and affecting profitability and growth[12](index=12&type=chunk) - As a high-tech enterprise, the loss of core management and technical personnel could lead to core technology leakage, negatively impacting R&D[13](index=13&type=chunk) [Table of Contents](index=4&type=section&id=%E7%9B%AE%E5%BD%95) This section lists the detailed chapter structure of the annual report, covering business, financial, governance, shareholder, and significant matters [Definitions](index=5&type=section&id=%E9%87%8A%E4%B9%89) This section defines common terms used in the report, including company names, controlling shareholders, subsidiaries, product names, regulatory bodies, and reporting periods Part II [Company Profile and Key Financial Indicators](index=6&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 provides the company's basic information and a summary of its key financial performance and indicators for the reporting period [I. Company Information](index=6&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) This section provides the company's basic registration details, including stock ticker, code, legal representative, and addresses - Company stock abbreviation: Saisheng Pharmaceutical, stock code: **300485**[19](index=19&type=chunk) - The company's legal representative is Ma Biao, with both registered and office addresses at No. 8 Xingsheng Street, Beijing Economic-Technological Development Area, Beijing[19](index=19&type=chunk) [II. Contact Persons and Information](index=6&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) This section lists the contact details for the Board Secretary and Securities Affairs Representative, facilitating investor communication - The Board Secretary is Wang Xuefeng, and the Securities Affairs Representative is Ma Shengnan, both reachable at **010-67862500**[20](index=20&type=chunk) [III. Information Disclosure and Document Availability](index=6&type=section&id=%E4%B8%89%E3%80%81%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E5%8F%8A%E5%A4%87%E7%BD%AE%E5%9C%B0%E7%82%B9) This section specifies the company's designated information disclosure media and the location for annual report availability, ensuring transparency - The company's designated information disclosure media include China Securities Journal, Shanghai Securities News, Securities Times, and Securities Daily[21](index=21&type=chunk) - The company's designated website is Juchao Information Network (http://www.cninfo.com.cn)[21](index=21&type=chunk) [IV. Other Relevant Information](index=6&type=section&id=%E5%9B%9B%E3%80%81%E5%85%B6%E4%BB%96%E6%9C%89%E5%85%B3%E8%B5%84%E6%96%99) This section discloses information about the company's appointed accounting firm and sponsor institution, including their names, addresses, and signing professionals - The company's appointed accounting firm is Grant Thornton (Special General Partnership), with signing accountants Tong Dengshu and Zhang Zaiqiang[23](index=23&type=chunk) - The company's appointed sponsor institution is China Great Wall Securities Co., Ltd., with sponsor representatives Chen Guangming and Gan Yankun, for a continuous supervision period from June 26, 2015, to December 31, 2018[23](index=23&type=chunk) [V. Key Accounting Data and Financial Indicators](index=7&type=section&id=%E4%BA%94%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 2016, the company's operating revenue increased by 1.50% to CNY 616.24 million, net profit attributable to shareholders grew by 23.48% to CNY 258.41 million, and operating cash flow increased by 25.71% 2016 Key Accounting Data and Financial Indicators | Indicator | 2016 (CNY) | 2015 (CNY) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 616,238,487.47 | 607,138,310.74 | 1.50% | | Net Profit Attributable to Shareholders of Listed Company | 258,405,896.27 | 209,273,984.37 | 23.48% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | 239,368,778.69 | 208,686,902.58 | 14.70% | | Net Cash Flow from Operating Activities | 212,893,474.60 | 169,357,075.56 | 25.71% | | Basic Earnings Per Share (CNY/share) | 1.080 | 0.995 | 8.54% | | Diluted Earnings Per Share (CNY/share) | 1.080 | 0.995 | 8.54% | | Weighted Average Return on Net Assets | 13.04% | 16.75% | -3.71% | | Total Assets | 2,216,587,575.58 | 1,944,810,335.19 | 13.97% | | Net Assets Attributable to Shareholders of Listed Company | 2,096,569,039.06 | 1,881,363,142.79 | 11.44% | [VI. Quarterly Key Financial Indicators](index=7&type=section&id=%E5%85%AD%E3%80%81%E5%88%86%E5%AD%A3%E5%BA%A6%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section presents the company's 2016 quarterly operating revenue, net profit, non-recurring net profit, and net cash flow from operating activities, showing quarterly operational fluctuations 2016 Quarterly Key Financial Indicators | Indicator | Q1 (CNY) | Q2 (CNY) | Q3 (CNY) | Q4 (CNY) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 136,878,278.12 | 167,040,176.95 | 165,146,570.39 | 147,173,462.01 | | Net Profit Attributable to Shareholders of Listed Company | 58,854,650.80 | 72,955,689.06 | 69,641,873.98 | 56,953,682.43 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | 58,737,403.77 | 72,567,476.29 | 69,829,575.96 | 38,234,322.67 | | Net Cash Flow from Operating Activities | 46,124,217.00 | 90,142,081.84 | 47,687,626.57 | 28,939,549.19 | [VII. Differences in Accounting Data under Domestic and International Accounting Standards](index=8&type=section&id=%E4%B8%83%E3%80%81%E5%A2%83%E5%86%85%E5%A4%96%E4%BC%9A%E8%AE%A1%E5%87%86%E5%88%99%E4%B8%8B%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%B7%AE%E5%BC%82) The company reported no differences in net profit and net assets between international/overseas accounting standards and Chinese accounting standards during the reporting period - During the reporting period, there were no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards[26](index=26&type=chunk) - During the reporting period, there were no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards[27](index=27&type=chunk) [VIII. Non-Recurring Gains and Losses and Amounts](index=8&type=section&id=%E5%85%AB%E3%80%81%E9%9D%9E%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%8F%8A%E9%87%91%E9%A2%9D) In 2016, total non-recurring gains and losses amounted to CNY 19.04 million, primarily from entrusted investment gains and government subsidies, positively impacting net profit 2016 Non-Recurring Gains and Losses and Amounts | Item | 2016 Amount (CNY) | 2015 Amount (CNY) | 2014 Amount (CNY) | | :--- | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | 134,538.99 | 8,735.06 | -7,392.15 | | Government Subsidies Recognized in Current Profit/Loss | 1,437,518.42 | 667,908.28 | 1,973,915.49 | | Gains/Losses from Entrusted Investment or Asset Management | 21,202,760.92 | | | | Other Non-Operating Income and Expenses Apart from the Above | -333,747.19 | 21,714.70 | 205,865.66 | | Less: Income Tax Impact | 3,422,928.64 | 104,958.50 | 324,569.85 | | Impact on Minority Interests (After Tax) | -18,975.08 | 6,317.75 | 757.15 | | Total | 19,037,117.58 | 587,081.79 | 1,847,062.00 | Part III [Business Overview](index=9&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E5%85%AC%E5%8F%B8%E4%B8%9A%E5%8A%A1%E6%A6%82%E8%A6%81) This section outlines the company's core business activities, significant asset changes, and key competitive advantages during the reporting period [I. Main Business Activities During the Reporting Period](index=9&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 primarily engages in R&D, production, and sales of injectable biological and biochemical drugs, focusing on cardiovascular, immune (anti-tumor), and nervous system diseases - The company's main business is the R&D, production, and sales of injectable preparations, with leading products being biological and biochemical drugs, covering three major therapeutic areas: cardiovascular, immune (anti-tumor), and nervous system diseases[31](index=31&type=chunk) - Key products include Polysaccharide Peptide for Injection, Deoxyribonucleotide Sodium Injection, Thymosin for Injection, Fibrinolysin for Injection, and GM-1, with no change in main business during the reporting period[31](index=31&type=chunk) - The company's cardiovascular product Fibrinolysin for Injection, and immunomodulator products Deoxyribonucleotide Sodium Injection and Polysaccharide Peptide for Injection maintain high market shares, while the market share of nervous system product GM-1 is gradually increasing[36](index=36&type=chunk) [II. Significant Changes in Major Assets](index=10&type=section&id=%E4%BA%8C%E3%80%81%E4%B8%BB%E8%A6%81%E8%B5%84%E4%BA%A7%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8C%96%E6%83%85%E5%86%B5) During the reporting period, the company's equity investments increased due to an investment in Beijing E-Town Bio-pharmaceutical M&A Investment Center, and construction projects progressed significantly - In terms of equity assets, the company invested in Beijing E-Town Bio-pharmaceutical M&A Investment Center (Limited Partnership)[38](index=38&type=chunk) - For construction in progress, the main structures of the pharmaceutical production base and cardiovascular & immune product industrialization projects have been completed[38](index=38&type=chunk) - No significant changes occurred in fixed assets and intangible assets[38](index=38&type=chunk) [III. Analysis of Core Competencies](index=11&type=section&id=%E4%B8%89%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 include product assurance, R&D and patent technology advantages, advanced process technology, and a comprehensive industry chain - The technology for the company's five main products is self-developed, holding national invention patents, with a rational product structure mitigating single-product dependency risks[40](index=40&type=chunk) - The company possesses strong R&D capabilities in biological and biochemical drugs, holding **36 national patent technologies** (including **28 invention patents**), forming a biomacromolecule purification technology platform[41](index=41&type=chunk) - The company has established specialized biomacromolecule separation and purification technology platforms for proteins (peptides), polysaccharides, nucleotides, and functional lipids, with proprietary process technologies maturely applied in injectable product preparation[43](index=43&type=chunk) - The company and its controlled subsidiaries hold multi-dosage form production licenses, possessing a complete product industry chain capable of R&D, production, and sales of APIs, oral preparations, and injectable preparations[44](index=44&type=chunk) Part IV [Management Discussion and Analysis](index=14&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section discusses the company's operational performance, financial condition, and future outlook, including revenue, costs, R&D, cash flow, and investment activities [I. Overview](index=14&type=section&id=%E4%B8%80%E3%80%81%E6%A6%82%E8%BF%B0) In 2016, the company achieved stable main business growth amidst pharmaceutical policy reforms, making progress in marketing, R&D, project construction, strategic investment, and intellectual property - In 2016, the company achieved total operating revenue of **CNY 616 million**, a **1.5% year-on-year increase**; total profit of **CNY 300 million**, a **23.41% year-on-year increase**; and net profit attributable to shareholders of **CNY 258 million**, a **23.48% year-on-year increase**[48](index=48&type=chunk) 2016 Main Product Revenue Share and Gross Margin | Product | Revenue Share | Gross Margin | | :--- | :--- | :--- | | Deoxyribonucleotide Sodium Injection | 28.40% | 74.70% | | Polysaccharide Peptide for Injection | 24.63% | 63.87% | | GM1 | 20.06% | 67.13% | | Fibrinolysin for Injection | 16.98% | 70.12% | | Thymosin for Injection | 2.40% | 34.67% | | Company's Overall Gross Margin | - | 67.49% | - During the reporting period, the company's R&D expenses amounted to **CNY 88.90 million**, a **109.15% increase** year-on-year, with R&D investment accounting for **14.43% of operating revenue**[52](index=52&type=chunk) - The main structure of the pharmaceutical production base project, a fundraising project, was topped out in October 2016, and the HM-3 (Anti-Angiogenesis Peptide) project is in clinical Phase I research[56](index=56&type=chunk) - The company participated in establishing an M&A fund through related parties, investing in the next-generation biopharmaceutical industry, focusing on biomacromolecule technology, biological drugs, and cell engineering to accelerate external expansion[58](index=58&type=chunk)[59](index=59&type=chunk) - During the reporting period, the company obtained **2 authorized invention patents**, accumulating **36 patents** (including **28 invention patents**), and received honors such as "Beijing Patent Demonstration Unit" and "Beijing Biopharmaceutical Industry Leapfrog Development G20 Project Industry Leader"[60](index=60&type=chunk)[61](index=61&type=chunk) [II. Analysis of Main Business](index=19&type=section&id=%E4%BA%8C%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) The company's main business revenue increased by 1.50%, with growth in immune system and cardiovascular drugs, while nervous system drug revenue declined, and R&D investment significantly increased [Revenue and Cost](index=19&type=section&id=%E6%94%B6%E5%85%A5%E4%B8%8E%E6%88%90%E6%9C%AC) In 2016, operating revenue grew by 1.50% to CNY 616.24 million, driven by immune system and cardiovascular drugs, with significant growth in the East China region 2016 Operating Revenue Composition (by Product) | Product Category | 2016 Amount (CNY) | Share of Operating Revenue | 2015 Amount (CNY) | Share of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Immune System Drugs | 341,944,606.01 | 55.49% | 324,839,402.60 | 53.50% | 5.27% | | Nervous System Drugs | 123,600,480.78 | 20.06% | 153,891,444.12 | 25.35% | -19.68% | | Cardiovascular and Cerebrovascular Drugs | 139,548,718.82 | 22.65% | 119,431,630.50 | 19.67% | 16.84% | | Other | 11,144,681.86 | 1.81% | 8,975,833.52 | 1.48% | 24.16% | | Total Operating Revenue | 616,238,487.47 | 100% | 607,138,310.74 | 100% | 1.50% | 2016 Operating Revenue Composition (by Region) | Region | 2016 Amount (CNY) | Share of Operating Revenue | 2015 Amount (CNY) | Share of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | East China | 227,108,959.22 | 36.85% | 177,114,295.34 | 29.17% | 28.23% | | Northeast China | 120,086,862.25 | 19.49% | 138,334,323.68 | 22.78% | -13.19% | | Central China | 96,947,388.99 | 15.73% | 109,031,235.29 | 17.96% | -11.08% | | North China | 109,632,070.97 | 17.79% | 108,408,444.44 | 17.86% | 1.13% | | Southwest China | 40,082,305.75 | 6.50% | 44,038,475.21 | 7.25% | -8.98% | | South China | 15,039,741.18 | 2.44% | 16,532,020.05 | 2.72% | -9.03% | | Northwest China | 7,341,159.11 | 1.19% | 13,656,875.22 | 2.25% | -46.25% | | Other | | | 22,641.51 | 0.00% | -100.00% | 2016 Main Product Gross Margin Changes | Product Category | 2016 Gross Margin | 2015 Gross Margin | Gross Margin Year-on-Year Change | | :--- | :--- | :--- | :--- | | Immune System Drugs | 68.11% | 60.07% | 8.04% | | Nervous System Drugs | 67.12% | 68.02% | -0.90% | | Cardiovascular and Cerebrovascular Drugs | 66.29% | 55.29% | 11.00% | - Sales to the top five customers accounted for **45.31% of total annual sales**, and purchases from the top five suppliers accounted for **22.53% of total annual purchases**[74](index=74&type=chunk) [Expenses](index=23&type=section&id=%E8%B4%B9%E7%94%A8) In 2016, sales and administrative expenses showed stable growth, while financial expenses significantly decreased due to increased short-term bank wealth management 2016 Key Expenses | Item | 2016 (CNY) | 2015 (CNY) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Selling Expenses | 88,828,723.74 | 78,253,670.98 | 13.51% | | Administrative Expenses | 69,879,075.86 | 68,019,543.97 | 2.73% | | Financial Expenses | -1,279,604.98 | -4,867,914.99 | -73.71% | - Financial expenses decreased by **73.71%** year-on-year, primarily due to increased short-term bank wealth management[76](index=76&type=chunk) [R&D Investment](index=23&type=section&id=%E7%A0%94%E5%8F%91%E6%8A%95%E5%85%A5) The company's R&D investment surged by 109.15% to CNY 88.90 million in 2016, with a significant increase in capitalized R&D expenditures, reflecting a strong focus on innovation 2016 R&D Investment | Indicator | 2016 | 2015 | 2014 | | :--- | :--- | :--- | :--- | | Number of R&D Personnel (persons) | 88 | 97 | 98 | | R&D Personnel Share | 18.00% | 22.00% | 25.00% | | R&D Investment Amount (CNY) | 88,902,351.85 | 42,506,452.69 | 32,511,677.33 | | R&D Investment as % of Operating Revenue | 14.43% | 7.00% | 5.51% | | Capitalized R&D Expenditures (CNY) | 74,250,002.65 | 12,818,941.13 | 0.00 | | Capitalized R&D Expenditures as % of R&D Investment | 83.52% | 30.16% | 0.00% | | Capitalized R&D Expenditures as % of Current Net Profit | 28.74% | 6.13% | 0.00% | - The proportion of total R&D investment to operating revenue significantly changed from the previous year, mainly due to the acquisition of new drug approvals for HM-3 (Anti-Angiogenesis Peptide), Nafamostat Mesylate, and Angiostatin, allowing for capitalization of technology transfer fees and subsequent development expenditures[78](index=78&type=chunk)[80](index=80&type=chunk) - The company terminated R&D for Ornithine Aspartate, Inosine Pranobex, and Calf Blood Protein Extract Enteric-Coated Tablets, with related capitalized R&D expenditures transferred to current profit and loss[81](index=81&type=chunk) [Cash Flow](index=24&type=section&id=%E7%8E%B0%E9%87%91%E6%B5%81) In 2016, net cash flow from operating activities increased by 25.71%, while investment cash flow saw significant changes due to wealth management and construction, and financing cash flow decreased due to the prior year's IPO 2016 Cash Flow | Item | 2016 (CNY) | 2015 (CNY) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Subtotal Cash Inflows from Operating Activities | 729,266,580.24 | 679,718,936.43 | 7.29% | | Subtotal Cash Outflows from Operating Activities | 516,373,105.64 | 510,361,860.87 | 1.18% | | Net Cash Flow from Operating Activities | 212,893,474.60 | 169,357,075.56 | 25.71% | | Subtotal Cash Inflows from Investing Activities | 122,050,671.88 | 28,728,777.01 | 324.84% | | Subtotal Cash Outflows from Investing Activities | 252,001,236.64 | 711,652,813.27 | -64.59% | | Net Cash Flow from Investing Activities | -129,950,564.76 | -682,924,036.26 | -80.97% | | Subtotal Cash Inflows from Financing Activities | | 1,095,840,700.00 | -100.00% | | Subtotal Cash Outflows from Financing Activities | 43,200,000.00 | 64,996,000.00 | -33.53% | | Net Cash Flow from Financing Activities | -43,200,000.00 | 1,030,844,700.00 | -104.19% | | Net Increase in Cash and Cash Equivalents | 39,742,909.84 | 517,277,739.30 | -92.32% | - Cash inflows from investing activities increased by **324.84%**, primarily due to gains from wealth management products and collection of project deposits for the production base construction[84](index=84&type=chunk) - Net cash flow from financing activities decreased by **104.19%**, mainly due to the increase in IPO proceeds in 2015[85](index=85&type=chunk) [III. Non-Core Business Activities](index=25&type=section&id=%E4%B8%89%E3%80%81%E9%9D%9E%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5) The company's non-core business income primarily stemmed from wealth management product interest, accounting for 17.27% of total profit, while other items were minor and non-recurring 2016 Non-Core Business Activities | Item | Amount (CNY) | Share of Total Profit | Sustainability | | :--- | :--- | :--- | :--- | | Investment Income | 51,831,245.83 | 17.27% | | | Asset Impairment | -22,066.31 | -0.01% | No | | Non-Operating Income | 1,687,032.78 | 0.56% | No | | Non-Operating Expenses | 448,722.56 | 0.15% | No | - Investment income primarily consists of interest gains from wealth management products[86](index=86&type=chunk) [IV. Asset and Liability Status](index=25&type=section&id=%E5%9B%9B%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5) At the end of 2016, total assets increased by 13.97% to CNY 2.22 billion, with significant growth in long-term equity investments and construction in progress, and no asset restrictions 2016 Year-End Significant Changes in Asset Composition | Item | 2016 Year-End Amount (CNY) | Share of Total Assets | 2015 Year-End Amount (CNY) | Share of Total Assets | Change in Share | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 1,039,147,197.76 | 46.88% | 999,404,287.92 | 51.39% | -4.51% | | Long-Term Equity Investments | 210,094,911.61 | 9.48% | 105,000,551.25 | 5.40% | 4.08% | | Construction in Progress | 131,442,789.60 | 5.93% | 12,780,903.48 | 0.66% | 5.27% | - The increase in long-term equity investments is primarily due to the company's investment in an industry M&A fund[89](index=89&type=chunk) - The increase in construction in progress is primarily due to the construction of the production base[89](index=89&type=chunk) - As of the end of the reporting period, the company had no restricted assets[90](index=90&type=chunk) [V. Analysis of Investment Status](index=26&type=section&id=%E4%BA%94%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) The company's total investment remained stable, with a major equity investment in Beijing E-Town Bio-pharmaceutical M&A Investment Center, and a significant portion of raised funds used for construction projects and wealth management 2016 Total Investment | Indicator | Investment Amount During Reporting Period (CNY) | Investment Amount in Prior Period (CNY) | Change Rate | | :--- | :--- | :--- | :--- | | Total Investment | 105,000,000.00 | 105,000,000.00 | 0.00% | - The company made an equity investment in Beijing E-Town Bio-pharmaceutical M&A Investment Center (Limited Partnership), holding a **26.25% stake**, with an investment gain/loss of **CNY 94,360.36** for the current period[93](index=93&type=chunk)[95](index=95&type=chunk) 2016 Overall Use of Raised Funds | Fundraising Year | Fundraising Method | Total Raised Funds (CNY 10k) | Total Raised Funds Used in Current Period (CNY 10k) | Total Raised Funds Cumulatively Used (CNY 10k) | Total Unused Raised Funds (CNY 10k) | | :--- | :--- | :--- | :--- | :--- | :--- | | 2015 | Public Offering of Shares | 108,094.47 | 10,681.85 | 20,942.23 | 91,315.81 | - As of the end of 2016, of the unused raised funds, **CNY 413.16 million** was held in dedicated bank accounts, and **CNY 500 million** was used to purchase wealth management products[98](index=98&type=chunk) 2016 Status of Projects Pledged with Raised Funds | Pledged Investment Project | Total Pledged Investment from Raised Funds (CNY 10k) | Amount Invested in Current Reporting Period (CNY 10k) | Cumulative Investment as of Period End (CNY 10k) | Investment Progress as of Period End | | :--- | :--- | :--- | :--- | :--- | | New Pharmaceutical Production Base Project | 68,085.41 | 6,497.83 | 16,068.21 | 23.60% | | New Cardiovascular and Immunomodulatory Product Industrialization Project | 28,352.17 | 630.33 | 630.33 | 2.22% | | Marketing Network Construction Project | 5,656.89 | 543.69 | 733.69 | 12.97% | | HM-Type Peptide Product Project | 6,000 | 3,010 | 3,510 | 58.50% | [VI. Significant Asset and Equity Sales](index=29&type=section&id=%E5%85%AD%E3%80%81%E9%87%8D%E5%A4%A7%E8%B5%84%E4%BA%A7%E5%92%8C%E8%82%A1%E6%9D%83%E5%87%BA%E5%94%AE) The company did not engage in any significant asset or equity sales during the reporting period - The company did not sell any significant assets during the reporting period[103](index=103&type=chunk) - The company did not sell any significant equity during the reporting period[104](index=104&type=chunk) [VII. Analysis of Major Controlled and Invested Companies](index=30&type=section&id=%E4%B8%83%E3%80%81%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) Beijing Sai'er Bio-pharmaceutical Co., Ltd., a controlled subsidiary, primarily develops, produces, and sells tablets, capsules, powders, granules, and APIs, reporting a net loss in 2016 Financial Status of Major Controlled Subsidiary Beijing Sai'er Bio-pharmaceutical Co., Ltd. | Company Name | Company Type | Main Business | Registered Capital | Total Assets (CNY) | Net Assets (CNY) | Operating Revenue (CNY) | Operating Profit (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Sai'er Bio-pharmaceutical Co., Ltd. | Subsidiary | Tablets, Capsules, Powders, Granules, APIs | 28,000,000 | 27,499,524.51 | 18,859,030.33 | 11,087,299.39 | -380,924.73 | -687,535.69 | [VIII. Status of Structured Entities Controlled by the Company](index=30&type=section&id=%E5%85%AB%E3%80%81%E5%85%AC%E5%8F%B8%E6%8E%A7%E5%88%B6%E7%9A%84%E7%BB%93%E6%9E%84%E5%8C%96%E4%B8%BB%E4%BD%93%E6%83%85%E5%86%B5) The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[105](index=105&type=chunk) [IX. Outlook on the Company's Future Development](index=30&type=section&id=%E4%B9%9D%E3%80%81%E5%85%AC%E5%8F%B8%E6%9C%AA%E6%9D%A5%E5%8F%91%E5%B1%95%E7%9A%84%E5%B1%95%E6%9C%9B) The company anticipates growth from an aging population and chronic disease management, focusing on R&D, product innovation, management optimization, and M&A for external expansion [Industry Landscape and Trends](index=30&type=section&id=%E8%A1%8C%E4%B8%9A%E6%A0%BC%E5%B1%80%E5%92%8C%E8%B6%8B%E5%8A%BF) The pharmaceutical industry is driven by an aging population and chronic diseases, with significant potential in cardiovascular, oncology, and neurological markets, especially for peptide drugs - In 2015, the cardiovascular drug market in public hospitals was **CNY 16.77 billion**, a **5.45% year-on-year increase**, with continuous growth in medication expenditure[108](index=108&type=chunk) - Cancer incidence in China is rising annually, with lung cancer being the most common malignant tumor, and the top **10 malignant tumors accounting for 76.39% of all cases**[109](index=109&type=chunk) - The peptide drug market is in a rapid growth phase, with broad development prospects for prevention, diagnosis, and treatment of diseases like cancer, diabetes, and hepatitis[112](index=112&type=chunk) - In 2016, the expenditure on Ganglioside Sodium in key public hospitals in China was **CNY 1.57 billion**, demonstrating outstanding performance in the nervous system drug sector[113](index=113&type=chunk) [Company Development Strategy](index=33&type=section&id=%E5%85%AC%E5%8F%B8%E5%8F%91%E5%B1%95%E6%88%98%E7%95%A5) The company aims to become a leading listed company with core competitiveness by enhancing R&D, product innovation, and management, while expanding through M&A funds - The company's development strategy aims to establish an excellent listed company with core competitiveness, characterized by continuously improving R&D, ensuring product innovation and continuity, advanced technology, superior management, leading market share and sales, and maximizing shareholder and employee interests[116](index=116&type=chunk) - The company will focus on optimizing governance and management, innovating technology and products, and conducting in-depth research into peptide biopharmaceuticals, biomaterials, and chronic disease prevention and management[116](index=116&type=chunk) - By participating in M&A funds, the company actively seeks investment opportunities in excellent biopharmaceutical enterprises to achieve strategic expansion and capital appreciation[116](index=116&type=chunk) [2017 Operating Plan](index=33&type=section&id=2017%E5%B9%B4%E7%BB%8F%E8%90%A5%E8%AE%A1%E5%88%92) For 2017, the company plans to enhance product promotion, optimize production, increase R&D investment, develop talent, upgrade IT systems, and pursue M&A, targeting 0-15% revenue growth - The company will continue to strengthen market promotion for key products, expand market development and promotion of existing approved products, and introduce new drug varieties through independent R&D, collaborative R&D, and acquisitions[118](index=118&type=chunk) - The fundraising projects, including the new pharmaceutical production base and the cardiovascular and immunomodulatory product industrialization project, will be fully advanced to significantly increase the company's production capacity[118](index=118&type=chunk) - In marketing, the company will continue to adhere to the "resident investment promotion + academic promotion" marketing model, strengthen strategic cooperation with distributors, improve marketing team building, and accumulate clinical evidence[119](index=119&type=chunk)[120](index=120&type=chunk)[122](index=122&type=chunk) - R&D plans include innovating investment and financing methods, increasing talent investment, strengthening cooperation with research institutions, adjusting and improving product structure, and concentrating efforts on key R&D projects[123](index=123&type=chunk)[124](index=124&type=chunk)[125](index=125&type=chunk) - Talent plans include improving scientific talent management systems, adhering to the principle of both integrity and ability in recruitment, strengthening talent training, and timely advancing equity incentive plans[126](index=126&type=chunk) - Informationization plans involve upgrading and fully implementing the ERP system to enhance the informatization level of production processes and operational management efficiency[128](index=128&type=chunk) - M&A plans involve actively participating in M&A fund operations to seek appropriate acquisitions and mergers of companies in the same or upstream/downstream industries, expanding the company's scale and strength[129](index=129&type=chunk) - For 2017, the company has set a preliminary operating target of **0-15% year-on-year growth**[129](index=129&type=chunk) [Potential Risks](index=36&type=section&id=%E5%8F%AF%E8%83%BD%E9%9D%A2%E5%AF%B9%E7%9A%84%E9%A3%8E%E9%99%A9) The company faces risks from tightening pharmaceutical policies, potential product price reductions, complex manufacturing quality issues, R&D uncertainties, and the loss of core personnel - Increasing national regulation on the pharmaceutical industry, with policies like hierarchical diagnosis, new medical insurance catalogs, payment control, and drug tendering, heightens policy risks for enterprises[130](index=130&type=chunk) - Changes in new drug tendering systems, medical insurance payment conditions and drug scope, coupled with intensified market competition, pose a risk of varying degrees of price reduction for the company's main products[131](index=131&type=chunk) - The company's main products are lyophilized powder injections and small volume injections, involving complex production processes where each step can affect product quality, posing product quality risks[133](index=133&type=chunk) - New drug R&D is lengthy and complex, susceptible to unpredictable factors, posing risks of technical failure or registration inability, potentially adversely affecting the company's profitability and growth capabilities[134](index=134&type=chunk) - The loss of core management and technical personnel could lead to the leakage of the company's core technologies, negatively impacting its R&D efforts[135](index=135&type=chunk) [X. Registration Form for Investor Relations Activities](index=38&type=section&id=%E5%8D%81%E3%80%81%E6%8E%A5%E5%BE%85%E8%B0%83%E7%A0%94%E3%80%81%E6%B2%9F%E9%80%9A%E3%80%81%E9%87%87%E8%AE%BF%E7%AD%89%E6%B4%BB%E5%8A%A8%E7%99%BB%E8%AE%B0%E8%A1%A8) This section records the company's investor relations activities during the reporting period, including institutional investor site visits - On November 22, 2016, the company hosted a site visit for institutional investors, with relevant information disclosed on the Shenzhen Stock Exchange's Interactive Easy platform[137](index=137&type=chunk) Part V [Significant Matters](index=39&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section details the company's profit distribution, capital reserve conversion, fulfillment of commitments, related party transactions, and other significant events during the reporting period [I. Profit Distribution of Common Shares and Capital Reserve to Share Capital Conversion](index=39&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E6%99%AE%E9%80%9A%E8%82%A1%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E5%8F%8A%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E6%83%85%E5%86%B5) In 2016, the company implemented its 2015 profit distribution plan, distributing a cash dividend of CNY 3.6 per 10 shares and converting capital reserves to increase share capital by 10 shares per 10, raising total share capital to 240 million shares - On April 26, 2016, the company implemented its 2015 profit distribution plan, distributing a cash dividend of **CNY 3.6 per 10 shares** (tax inclusive) based on a total share capital of **120 million shares**, and converting capital reserves to increase share capital by **10 shares per 10**, raising the total share capital to **240 million shares**[140](index=140&type=chunk) 2016 Annual Profit Distribution Plan | Indicator | Value | | :--- | :--- | | Bonus Shares per 10 Shares (shares) | 0 | | Cash Dividend per 10 Shares (CNY) (tax inclusive) | 2.50 | | Capital Reserve to Share Capital Conversion per 10 Shares (shares) | 0 | | Share Capital Base for Distribution Plan (shares) | 240,000,000 | | Total Cash Dividend (CNY) (tax inclusive) | 60,000,000.00 | | Distributable Profit (CNY) | 258,405,896.27 | | Cash Dividend as % of Total Profit Distribution | 100.00% | Company's Cash Dividends for Common Shares in the Last Three Years | Dividend Year | Cash Dividend Amount (tax inclusive) (CNY) | Net Profit Attributable to Common Shareholders of Listed Company in Consolidated Report for Dividend Year (CNY) | Share of Net Profit Attributable to Common Shareholders of Listed Company in Consolidated Report | | :--- | :--- | :--- | :--- | | 2016 | 60,000,000.00 | 258,405,896.27 | 23.22% | | 2015 | 43,200,000.00 | 209,273,984.37 | 20.64% | | 2014 | 54,000,000.00 | 202,571,532.22 | 26.66% | [II. Fulfillment of Commitments](index=40&type=section&id=%E4%BA%8C%E3%80%81%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company's controlling shareholder, actual controller, directors, senior management, and other shareholders fulfilled all commitments made during the initial public offering or refinancing, including share reduction, lock-up, dividend, and IPO price stabilization - Controlling shareholder Ma Biao, director Ma Li, and shareholder Liu Shuqin committed that the transfer price of their shares would not be less than the offering price within **24 months** after the lock-up period expires[146](index=146&type=chunk) - Ma Biao, Ma Li, and Liu Shuqin committed not to transfer shares issued before the initial public offering within **36 months** from the date of the company's stock listing[146](index=146&type=chunk) - The company committed that, under compliance with regulations, if profitable in the listing year and the subsequent two years, it would distribute cash dividends to shareholders annually at no less than **20% of the distributable profit** for that year[147](index=147&type=chunk) - The company, its controlling shareholder, directors, and senior management committed that if the company's stock price falls below net asset value per share for **20 consecutive trading days** within **three years** of listing, they will activate a price stabilization plan, fulfilling buyback or增持 obligations[148](index=148&type=chunk) - Controlling shareholder Ma Biao, director Ma Li, and shareholder Liu Shuqin committed that if the company's stock closing price falls below the offering price within **6 months** of listing, the lock-up period will automatically extend by **6 months**[149](index=149&type=chunk) [III. Non-Operating Fund Occupation by Controlling Shareholder and Related Parties](index=46&type=section&id=%E4%B8%89%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E5%85%B3%E8%81%94%E6%96%B9%E5%AF%B9%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E7%9A%84%E9%9D%9E%E7%BB%8F%E8%90%A5%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) The company reported no non-operating fund occupation by its controlling shareholder or related parties during the reporting period - The company reported no non-operating fund occupation by its controlling shareholder or related parties during the reporting period[153](index=153&type=chunk) [IV. Board of Directors' Explanation on the Latest "Non-Standard Audit Report"](index=46&type=section&id=%E5%9B%9B%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%AF%B9%E6%9C%80%E8%BF%91%E4%B8%80%E6%9C%9F%22%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%22%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) The company's Board of Directors did not issue any explanation regarding a "non-standard audit report" for the latest period - The company's Board of Directors did not issue any explanation regarding a "non-standard audit report" for the latest period[154](index=154&type=chunk) [V. Board of Directors, Supervisory Board, Independent Directors' Explanation on the Accounting Firm's "Non-Standard Audit Report" for the Current Period](index=46&type=section&id=%E4%BA%94%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E3%80%81%E7%8B%AC%E7%AB%8B%E8%91%A3%E4%BA%8B%EF%BC%88%E5%A6%82%E6%9C%89%EF%BC%89%E5%AF%B9%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%22%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%22%E7%9A%84%E8%AF%B4%E6%98%8E) The company's Board of Directors, Supervisory Board, and independent directors did not issue any explanation regarding a "non-standard audit report" from the accounting firm for the current period - The company's Board of Directors, Supervisory Board, and independent directors did not issue any explanation regarding a "non-standard audit report" from the accounting firm for the current period[154](index=154&type=chunk) [VI. Board of Directors' Explanation on Changes in Accounting Policies, Estimates, or Major Accounting Error Corrections During the Reporting Period](index=46&type=section&id=%E5%85%AD%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%85%B3%E4%BA%8E%E6%8A%A5%E5%91%8A%E6%9C%9F%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E3%80%81%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1%E5%8F%98%E6%9B%B4%E6%88%96%E9%87%8D%E5%A4%A7%E4%BC%9A%E8%AE%A1%E5%B7%AE%E9%94%99%E6%9B%B4%E6%AD%A3%E7%9A%84%E8%AF%B4%E6%98%8E) The company adjusted its accounting policy in accordance with VAT accounting regulations, reclassifying "Business Tax and Surcharges" to "Taxes and Surcharges" in the income statement - The company adjusted its accounting policy according to the "VAT Accounting Treatment Regulations," reclassifying "Business Tax and Surcharges" to "Taxes and Surcharges" in the income statement[154](index=154&type=chunk) - Property tax, land use tax, vehicle and vessel use tax, stamp duty, and other related taxes originally included in administrative expenses were reclassified to "Taxes and Surcharges" starting from May 1, 2016[154](index=154&type=chunk) [VII. Explanation of Changes in Consolidated Financial Statement Scope Compared to Prior Year](index=47&type=section&id=%E4%B8%83%E3%80%81%E4%B8%8E%E4%B8%8A%E5%B9%B4%E5%BA%A6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A%E7%9B%B8%E6%AF%94%EF%BC%8C%E5%90%88%E5%B9%B6%E6%8A%A5%E8%A1%A8%E8%8C%83%E5%9B%B4%E5%8F%91%E7%94%9F%E5%8F%98%E5%8C%96%E7%9A%84%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) The company's consolidated financial statement scope remained unchanged during the reporting period - The company's consolidated financial statement scope remained unchanged during the reporting period[155](index=155&type=chunk) [VIII. Appointment and Dismissal of Accounting Firms](index=47&type=section&id=%E5%85%AB%E3%80%81%E8%81%98%E4%BB%BB%E3%80%81%E8%A7%A3%E8%81%98%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%83%85%E5%86%B5) The company currently employs Grant Thornton (Special General Partnership) as its domestic accounting firm, paying CNY 600,000, with signing accountants Tong Dengshu and Zhang Zaiqiang, and no change occurred during the reporting period - The company currently employs Grant Thornton (Special General Partnership) as its domestic accounting firm, with a remuneration of **CNY 600,000**, having served for **5 consecutive years**[156](index=156&type=chunk) - The signing accountants are Tong Dengshu and Zhang Zaiqiang[156](index=156&type=chunk) - No change in accounting firms occurred during the reporting period[156](index=156&type=chunk) [IX. Facing Suspension and Termination of Listing After Annual Report Disclosure](index=47&type=section&id=%E4%B9%9D%E3%80%81%E5%B9%B4%E5%BA%A6%E6%8A%A5%E5%91%8A%E6%8A%AB%E9%9C%B2%E5%90%8E%E9%9D%A2%E4%B8%B4%E6%9A%82%E5%81%9C%E4%B8%8A%E5%B8%82%E5%92%8C%E7%BB%88%E6%AD%A2%E4%B8%8A%E5%B8%82%E6%83%85%E5%86%B5) The company did not face suspension or termination of listing after the annual report disclosure during the reporting period - The company did not face suspension or termination of listing after the annual report disclosure during the reporting period[156](index=156&type=chunk) [X. Bankruptcy and Reorganization Related Matters](index=47&type=section&id=%E5%8D%81%E3%80%81%E7%A0%B4%E4%BA%A7%E9%87%8D%E6%95%B4%E7%9B%B8%E5%85%B3%E4%BA%8B%E9%A1%B9) The company did not have any bankruptcy and reorganization related matters during the reporting period - The company did not have any bankruptcy and reorganization related matters during the reporting period[156](index=156&type=chunk) [XI. Significant Litigation and Arbitration Matters](index=47&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E8%AF%89%E8%AE%BC%E3%80%81%E4%BB%B2%E8%A3%81%E4%BA%8B%E9%A1%B9) The company had no significant litigation or arbitration matters during the current year - The company had no significant litigation or arbitration matters during the current year[157](index=157&type=chunk) [XII. Penalties and Rectification Status](index=47&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E5%A4%84%E7%BD%9A%E5%8F%8A%E6%95%B4%E6%94%B9%E6%83%85%E5%86%B5) The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[158](index=158&type=chunk) [XIII. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=48&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E7%9A%84%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5) The company, its controlling shareholder, and actual controller maintained good integrity status during the reporting period - The company, its controlling shareholder, and actual controller maintained good integrity status during the reporting period[159](index=159&type=chunk) [XIV. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=48&type=section&id=%E5%8D%81%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) The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures implemented during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures implemented during the reporting period[159](index=159&type=chunk) [XV. Significant Related Party Transactions](index=48&type=section&id=%E5%8D%81%E4%BA%94%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company had no significant related party transactions concerning daily operations, asset/equity sales, joint investments, or creditor/debtor relationships, but invested in an M&A fund through related parties - The company had no related party transactions concerning daily operations, asset or equity acquisitions/sales, joint external investments, or related party creditor/debtor relationships during the reporting period[160](index=160&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk) - The company's related parties, Saiding Fangde and Saideruibo, jointly established Yitang Saiying with Botai Fangde; Yitang Saiying invested **CNY 10 million** in the M&A fund as its general partner[164](index=164&type=chunk) - The company's related party, Saideruibo, invested **CNY 130 million** in the M&A fund as a limited partner, aiming to reserve resources for the company's future development by investing in promising companies[164](index=164&type=chunk) [XVI. Significant Contracts and Their Fulfillment](index=49&type=section&id=%E5%8D%81%E5%85%AD%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company had no significant entrustment, contracting, leasing, or guarantee matters, but utilized idle raised funds to purchase multiple principal-protected bank wealth management products, enhancing capital efficiency - The company had no entrustment, contracting, leasing, or significant guarantee matters during the reporting period[167](index=167&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk)[170](index=170&type=chunk) 2016 Entrusted Wealth Management | Trustee Name | Product Type | Entrusted Wealth Management Amount (CNY 10k) | Actual Gain/Loss During Reporting Period (CNY 10k) | Actual Recovery of Gain/Loss During Reporting Period | | :--- | :--- | :--- | :--- | :--- | | China Merchants Bank Beijing Yizhuang Sub-branch | Principal-Protected Wealth Management Product | 58,000 | 398.52 | Fully Recovered | | China Merchants Bank Beijing Yizhuang Sub-branch | Principal-Protected Wealth Management Product | 56,000 | 93.28 | Fully Recovered | | China Merchants Bank Beijing Yizhuang Sub-branch | Principal-Protected Wealth Management Product | 55,500 | 1,116.91 | Fully Recovered | | China Merchants Bank Beijing Yizhuang Sub-branch | Principal-Protected Wealth Management Product | 3,000 | 17.74 | Fully Recovered | | China Merchants Bank Beijing Yizhuang Sub-branch | Principal-Protected Wealth Management Product | 20,000 | 177.04 | Fully Recovered | | China Merchants Bank Beijing Yizhuang Sub-branch | Principal-Protected Wealth Management Product | 20,000 | 57.86 | Fully Recovered | | China Merchants Bank Beijing Yizhuang Sub-branch | Principal-Protected Wealth Management Product | 20,000 | 58.84 | Fully Recovered | | China Merchants Bank Beijing Yizhuang Sub-branch | Principal-Protected Wealth Management Product | 20,000 | 8.55 | Fully Recovered | | China Merchants Bank Beijing Yizhuang Sub-branch | Principal-Protected Wealth Management Product | 50,000 | 14.38 | Not Recovered | | CITIC Bank Beijing Economic-Technological Development Area Sub-branch | Principal-Protected Wealth Management Product | 20,000 | 232.22 | Fully Recovered | | CITIC Bank Beijing Economic-Technological Development Area Sub-branch | Principal-Protected Wealth Management Product | 7,000 | 96.3 | Fully Recovered | | CITIC Bank Beijing Economic-Technological Development Area Sub-branch | Principal-Protected Wealth Management Product | 20,000 | 152.08 | Fully Recovered | | CITIC Bank Beijing Economic-Technological Development Area Sub-branch | Principal-Protected Wealth Management Product | 7,000 | 32.68 | Fully Recovered | | Bank of Beijing Economic-Technological Development Area Sub-branch | Notice Deposit | 2,000 | 31.23 | Fully Recovered | | Bank of Beijing Yizhuang Sub-branch | Principal-Protected Wealth Management Product | 27,000 | 513.67 | Fully Recovered | | Huaxia Bank Beijing Zhichun Sub-branch | Principal-Protected Wealth Management Product | 5,000 | 49.15 | Fully Recovered | | Huaxia Bank Beijing Zhichun Sub-branch | Principal-Protected Wealth Management Product | 4,800 | 17.04 | Fully Recovered | | Total | - | 395,300 | 3,053.11 | - | - The company used idle raised funds to purchase principal-protected bank wealth management products, aiming to generate investment income and improve capital utilization efficiency[173](index=173&type=chunk) [XVII. Social Responsibility Status](index=52&type=section&id=%E5%8D%81%E4%B8%83%E3%80%81%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%83%85%E5%86%B5) The company actively fulfills its corporate social responsibility through sound internal controls, transparent information disclosure, investor returns, employee rights, quality products, and tax compliance - The company actively fulfills its corporate social responsibility by establishing sound internal control systems, standardizing corporate governance, timely and accurate information disclosure, prioritizing investor returns, safeguarding employee rights, providing quality products, and complying with tax laws[177](index=177&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk) - The company is not listed as a key polluting entity by environmental protection authorities and has not published a social responsibility report[179](index=179&type=chunk) [XVIII. Explanation of Other Significant Matters](index=53&type=section&id=%E5%8D%81%E5%85%AB%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) The company had no other significant matters requiring explanation during the reporting period - The company had no other significant matters requiring explanation during the reporting period[179](index=179&type=chunk) [XIX. Significant Matters of Company Subsidiaries](index=53&type=section&id=%E5%8D%81%E4%B9%9D%E3%80%81%E5%85%AC%E5%8F%B8%E5%AD%90%E5%85%AC%E5%8F%B8%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) Sai'er Bio-pharmaceutical, a controlled subsidiary, experienced GMP certificate revocation and subsequent restoration, and received an environmental administrative penalty during the reporting period - On June 29, 2016, the GMP certificate of Sai'er Bio-pharmaceutical, a controlled subsidiary, was revoked[180](index=180&type=chunk) - On August 18, 2016, Sai'er Bio-pharmaceutical received an administrative penalty from environmental authorities[180](index=180&type=chunk) - Sai'er Bio-pharmaceutical has received its "Drug GMP Certificate" back from the Beijing Food and Drug Administration, resuming normal production and sales[62](index=62&type=chunk) Part VI [Share Changes and Shareholder Information](index=54&type=section&id=%E7%AC%AC%E5%85%AD%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, securities issuance, and information about shareholders and the actual controller [I. Share Change Status](index=54&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) In 2016, the company's total share capital increased from 120 million to 240 million shares due to capital reserve conversion, and some IPO restricted shares were unlocked - On April 26, 2016, the company's total share capital increased from **120 million shares to 240 million shares**, primarily due to the 2015 profit distribution plan converting capital reserves to increase share capital by **10 shares per 10**[183](index=183&type=chunk)[184](index=184&type=chunk) - Some of the company's initial public offering (IPO) restricted shares were unlocked on June 27, 2016[184](index=184&type=chunk) 2016 Year-End Restricted Share Changes | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Shares Unlocked in Current Period (shares) | Restricted Shares Increased in Current Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Ma Biao | 59,616,000 | 0 | 59,616,000 | 119,232,000 | IPO Restriction | | Ma Li | 14,256,000 | 0 | 14,256,000 | 28,512,000 | IPO Restriction | | Liu Shuqin | 3,888,000 | 0 | 3,888,000 | 7,776,000 | IPO Restriction | | Wang Guang | 3,240,000 | 6,480,000 | 3,240,000 | 0 | IPO Restriction | | Beijing Aerospace Industry Investment Fund (Limited Partnership) | 8,100,000 | 16,200,000 | 8,100,000 | 0 | IPO Restriction | | Harbin Yuheng Group Co., Ltd. | 900,000 | 1,800,000 | 900,000 | 0 | IPO Restriction | | Zhang Fan | 200 | 400 | 200 | 0 | Senior Management Lock-up | [II. Securities Issuance and Listing Status](index=56&type=section&id=%E4%BA%8C%E3%80%81%E8%AF%81%E5%88%B8%E5%8F%91%E8%A1%8C%E4%B8%8E%E4%B8%8A%E5%B8%82%E6%83%85%E5%86%B5) No new securities were issued during the reporting period, but total share capital increased due to capital reserve conversion, and some IPO restricted shares were unlocked - The company's total share capital increased from **120 million shares to 240 million shares**, primarily due to the 2015 profit distribution plan converting capital reserves to increase share capital by **10 shares per 10**[187](index=187&type=chunk) - Some of the company's initial public offering (IPO) restricted shares were unlocked on June 27, 2016[188](index=188&type=chunk) - The company has no existing internal employee shares[189](index=189&type=chunk) [III. Shareholders and Actual Controller Status](index=56&type=section&id=%E4%B8%89%E3%80%81%E8%82%A1%E4%B8%9C%E5%92%8C%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E6%83%85%E5%86%B5) As of the reporting period end, the company had 22,841 common shareholders, with Ma Biao as the controlling shareholder and actual controller, holding 49.68% of shares - The total number of common shareholders at the end of the reporting period was **22,841**[190](index=190&type=chunk) Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders at Period End | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at Period End (shares) | Number of Restricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | | Ma Biao | Domestic Natural Person | 49.68% | 119,232,000 | 119,232,000 | | Ma Li | Domestic Natural Person | 11.88% | 28,512,000 | 28,512,000 | | Liu Shuqin | Domestic Natural Person | 3.24% | 7,776,000 | 7,776,000 | | Wang Guang | Domestic Natural Person | 1.45% | 3,480,000 | 0 | | Zhongrong Life Insurance Co., Ltd. - Participating Insurance Product | Domestic Non-State-Owned Legal Person | 0.99% | 2,378,814 | 0 | | Zhongrong Life Insurance Co., Ltd. - Universal Insurance Product | Domestic Non-State-Owned Legal Person | 0.75% | 1,789,124 | 0 | | Zhongrong Life Insurance Co., Ltd. - Traditional Insurance Product | Domestic Non-State-Owned Legal Person | 0.48% | 1,159,936 | 0 | | Industrial and Commercial Bank of China Ltd. - Fullgoal Healthcare Industry Mixed Securities Investment Fund | Domestic Non-State-Owned Legal Person | 0.43% | 1,020,951 | 0 | | Zhang Hongmei | Domestic Natural Person | 0.42% | 1,000,000 | 0 | | Zhang Hongjie | Domestic Natural Person | 0.42% | 1,000,000 | 0 | - The controlling shareholder and actual controller is Ma Biao, whose main profession and positions are Chairman and General Manager of Beijing Saisheng Pharmaceutical Co., Ltd[193](index=193&type=chunk)[194](index=194&type=chunk) - Ma Biao and Ma Li are siblings, and Liu Shuqin is their mother[192](index=192&type=chunk) - The company's controlling shareholder and actual controller remained unchanged during the reporting period[193](index=193&type=chunk)[195](index=195&type=chunk) Part VII [Preferred Shares Related Matters](index=60&type=section&id=%E7%AC%AC%E4%B8%83%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 had no preferred shares during the reporting period [Preferred Shares Related Matters](index=60&type=section&id=%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[197](index=197&type=chunk) Part VIII [Directors, Supervisors, Senior Management, and Employees](index=61&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%92%8C%E5%91%98%E5%B7%A5%E6%83%85%E5%86%B5) This section details the shareholding changes, appointments, remuneration, and overall status of the company's directors, supervisors, senior management, and employees [I. Shareholding Changes of Directors, Supervisors, and Senior Management](index=61&type=section&id=%E4%B8%80%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) During the reporting period, the total shareholdings of the company's directors, supervisors, and senior management doubled due to capital reserve conversion Shareholding Changes of Directors, Supervisors, and Senior Management | Name | Position | Shares Held at Beginning of Period (shares) | Other Changes (shares) | Shares Held at End of Period (shares) | | :--- | :--- | :--- | :--- | :--- | | Ma Biao | Chairman and General Manager | 59,616,000 | 59,616,000 | 119,232,000 | | Ma Li | Director, Deputy General Manager, and CFO | 14,256,000 | 14,256,000 | 28,512,000 | | Wang Xuefeng | Director, Deputy General Manager, and Board Secretary | 0 | 0 | 0 | | Li Jianhua | Director | 0 | 0 | 0 | | Ma Shaojing | Director | 0 | 0 | 0 | | Fu Hongzheng | Independent Director | 0 | 0 | 0 | | He Naixin | Independent Director | 0 | 0 | 0 | | Sun Yanhong | Independent Director | 0 | 0 | 0 | | Li Zhibing | Chairman of Supervisory Board | 0 | 0 | 0 | | Song Mengwei | Supervisor | 0 | 0 | 0 | | Peng Xinghua | Supervisor | 0 | 0 | 0 | | Jiang Guirong | Chief Engineer | 0 | 0 | 0 | | Zhang Fan | Marketing Director | 200 | 200 | 400 | | Total | - | 73,872,200 | 73,872,200 | 147,744,000 | [II. Changes in Company Directors, Supervisors, and Senior Management](index=62&type=section&id=%E4%BA%8C%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) The company's directors, supervisors, and senior management remained unchanged during the reporting period - The company's directors, supervisors, and senior management remained unchanged during the reporting period[200](index=200&type=chunk) [III. Appointment Status](index=62&type=section&id=%E4%B8%89%E3%80%81%E4%BB%BB%E8%81%8C%E6%83%85%E5%86%B5) This section details the professional backgrounds, work experience, and internal/external positions of the company's current directors, supervisors, and senior management, noting no recent regulatory penalties - Ma Biao, the company's Chairman and General Manager, holds a Ph.D. in Biochemistry, possesses multiple invention patents, and also serves as Chairman and General Manager of Sai'er Bio-pharmaceutical[200](index=200&type=chunk) - The company's directors, supervisors, and senior management hold key internal positions, such as Ma Li as Deputy General Manager and CFO, Wang Xuefeng as Deputy General Manager and Board Secretary, and Song Mengwei as Head of R&D Center[201](index=201&type=chunk)[206](index=206&type=chunk) - Several senior executives hold concurrent positions in other entities, such as Ma Shaojing as General Manager and Director at Guoxin Venture Capital Management (Shenzhen) Co., Ltd., Fu Hongzheng as a professor at Peking University, and Sun Yanhong as an independent director at multiple companies[202](index=202&type=chunk)[203](index=203&type=chunk)[204](index=204&type=chunk)[205](index=205&type=chunk)[209](index=209&type=chunk) - The company's current and departed directors, supervisors, and senior management have not been penalized by securities regulatory agencies in the past three years[209](index=209&type=chunk) [IV. Remuneration of Directors, Supervisors, and Senior Management](index=65&type=section&id=%E5%9B%9B%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%8A%A5%E9%85%AC%E6%83%85%E5%86%B5) The remuneration plan for directors, supervisors, and senior management is determined by the Board's Compensation and Assessment Committee, approved by relevant bodies, and based on performance, with Chairman Ma Biao receiving the highest pre-tax remuneration of CNY 811,700 - The remuneration plan for directors, supervisors, and senior management is drafted by the Board's Compensation and Assessment Committee and implemented after approval by the Board of Directors, Supervisory Board, and Shareholders' Meeting[210](index=210&type=chunk) - Remuneration is determined based on the company's "Board of Directors Compensation and Assessment Committee Work Rules," considering operating performance and work ability assessments[210](index=210&type=chunk) 2016 Total Pre-Tax Remuneration of Directors, Supervisors, and Senior Management | Name | Position | Total Pre-Tax Remuneration from Company (CNY 10k) | | :--- | :--- | :--- | | Ma Biao | Chairman and General Manager | 81.17 | | Ma Li | Deputy General Manager and CFO | 61.17 | | Wang Xuefeng | Deputy General Manager and Board Secretary | 61.17 | | Li Jianhua | Director | 19.64 | | Fu Hongzheng | Independent Director | 4 | | He Naixin | Independent Director | 4 | | Sun Yanhong | Independent Director | 4 | | Li Zhibing | Chairman of Supervisory Board | 4 | | Song Mengwei | Supe

北京赛升药业股份有限公司 2017 年第一季度报告全文 北京赛升药业股份有限公司 2017 年第一季度报告 2017-016 2017 年 04 月 1 北京赛升药业股份有限公司 2017 年第一季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人马骉、主管会计工作负责人马丽及会计机构负责人(会计主管人 员)栗建华声明：保证季度报告中财务报表的真实、准确、完整。 2 北京赛升药业股份有限公司 2017 年第一季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否因会计政策变更及会计差错更正等追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期 | 上年同期 | 本报告期比上年同期增减 | | --- | --- | --- | --- | | 营业总收入（元） | 108,205,025.96 | 136,878,278.12 | -20.95% | | 归属于上市公司股东的净利润（元） | ...