证券代码：300534 证券简称：陇神戎发 公告编号：2023-068 甘肃陇神戎发药业股份有限公司 关于召开2023年第三次临时股东大会的提示性公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚 假记载、误导性陈述或重大遗漏。 甘肃陇神戎发药业股份有限公司（以下简称"公司"）于2023年7月17日召 开第四届董事会第二十五次会议，审议通过了《关于提请择期召开股东大会的议 案》，公司董事会决定于2023年8月15日（星期二）召开公司2023年第三次临时 股东大会，并于2023年7月29日在巨潮资讯网（http://www.cninfo.com.cn）发 布了《关于召开2023年第三次临时股东大会的通知》（公告编号：2023-067），现 将会议具体事项提示公告如下： 一、召开会议的基本情况 1、股东大会届次：2023年第三次临时股东大会。 2、股东大会的召集人：公司董事会。 3、会议召开的合法、合规性：经公司第四届董事会第二十五次会议审议通 过，公司董事会决定召开本次股东大会。本次股东大会的召集程序符合有关法律、 行政法规、部门规章、规范性文件和《公司章程》的规定。 4、会议召开的日期、时 ...

证券代码：300534 证券简称：陇神戎发 甘肃陇神戎发药业股份有限公司 投资者关系活动记录表 编号：2023-002 □特定对象调研 □分析师会议 投资者关系活□媒体采访 □业绩说明会 动类别 □新闻发布会 □路演活动 □现场参观 √其他 电话会议 苏州一元幂方医药创业投资合伙企业（有限合伙）、南昌市政投 资集团有限公司、吉林省国有资本运营有限责任公司、杭州市 金融投资集团有限公司、甘肃药业投资集团有限公司、常州投 资集团有限公司、天弘基金管理有限公司、富国基金管理有限 公司、东海证券股份有限公司、大成基金管理有限公司、太平 资产管理有限公司、平安证券股份有限公司、华泰证券股份有 限公司、华龙证券股份有限公司、国新证券股份有限公司、国 海证券股份有限公司、光大证券股份有限公司、华西银峰投资 有限责任公司、盈科创新资产管理有限公司、福建盈方得投资 参与单位名称 管理有限公司、北京岩泉财富投资管理有限公司、玄元私募基 及人员姓名 金投资管理（广东）有限公司、沈阳兴途股权投资基金管理有 限公司、北京泰德圣私募基金管理有限公司、北京盛世智达投 资基金管理有限公司、深圳羿拓榕杨资产管理有限公司、深圳 市布恩施利投资管 ...

证券代码：300534 证券简称：陇神戎发 公告编号：2023-066 甘肃陇神戎发药业股份有限公司 关于接待投资者调研活动的公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有 虚假记载、误导性陈述或重大遗漏。 甘肃陇神戎发药业股份有限公司（以下简称"公司"）于2023年7月26 日接待了机构调研，现将主要情况公告如下： 一、调研情况 调研时间：2023年7月26日，15:30-16:40 调研形式：电话会议 调研机构：苏州一元幂方医药创业投资合伙企业（有限合伙）、南昌市政 投资集团有限公司、吉林省国有资本运营有限责任公司、杭州市金融投资集 团有限公司、甘肃药业投资集团有限公司、常州投资集团有限公司、天弘基 金管理有限公司、富国基金管理有限公司、东海证券股份有限公司、大成基 金管理有限公司、太平资产管理有限公司、平安证券股份有限公司、华泰证 券股份有限公司、华龙证券股份有限公司、国新证券股份有限公司、国海证 券股份有限公司、光大证券股份有限公司、华西银峰投资有限责任公司、盈 科创新资产管理有限公司、福建盈方得投资管理有限公司、北京岩泉财富投 资管理有限公司、玄元私募基金投资管理（广东）有限公 ...

证券代码：300534 证券简称：陇神戎发 公告编号：2023-049 甘肃陇神戎发药业股份有限公司 甘肃陇神戎发药业股份有限公司（以下简称"公司"） 已于 2023 年 4 月 15 日在巨潮资讯网披露了《2022 年年度报告》及摘要。为便于广大投资者深入 全面了解公司情况，公司将于 2023 年 5 月 9 日（星期二）下午 15:00-17:00 举 行网上 2022 年度报告业绩说明会，本次年度业绩说明会将采用网络远程方式举 行，投资者可登录中国证券网（http://roadshow.cnstock.com/）参与本次年度 业绩说明会。 出席本次年度业绩说明会的人员有：公司董事长宋敏平先生，公司董事、总 经理钱双喜先生，董事、副总经理兼董事会秘书元勤辉先生，副总经理兼财务总 监刘茂盛先生、独立董事罗臻先生。 为充分尊重投资者、进一步提升本次业绩说明会的交流效果及针对性，现就 公司 2022 年度网上业绩说明会提前向投资者征集问题，广泛听取投资者的意见 和建议。投资者可于 2023 年 5 月 7 日（星期日）16:00 前将有关问题通过电子 邮件形式发送至公司邮箱（lsrfzq@163.com），公司 ...

Financial Performance - The company's operating revenue for Q1 2023 was CNY 296,323,324.22, representing a 153.50% increase compared to CNY 116,891,100.59 in the same period last year[5] - Net profit attributable to shareholders reached CNY 20,005,326.86, a significant increase of 561.90% from CNY 3,022,415.06 year-on-year[5] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 19,148,944.98, marking an increase of 8,701.24% compared to CNY 217,571.08 in the previous year[5] - Basic and diluted earnings per share were both CNY 0.0659, reflecting a 559.00% increase from CNY 0.0100 in the same quarter last year[5] - Operating profit for Q1 2023 was ¥35,336,717.29, compared to ¥4,492,429.34 in Q1 2022, indicating a year-over-year increase of about 684.5%[36] - Net profit for Q1 2023 was ¥29,294,351.56, up from ¥4,188,967.84 in Q1 2022, reflecting an increase of approximately 598.5%[37] Assets and Liabilities - The company's total assets at the end of the reporting period were CNY 1,272,480,801.75, a decrease of 2.22% from CNY 1,301,365,496.46 at the end of the previous year[5] - Total liabilities were reported at CNY 421,084,832.97, with current liabilities constituting CNY 394,191,865.02[12] - Total liabilities as of Q1 2023 amounted to ¥619,544,386.70, an increase from ¥421,084,832.97 in the previous year, representing a rise of about 47.0%[36] - The company reported a total current assets of CNY 673,721,026.00 as of March 31, 2023, down from CNY 711,399,782.20 at the beginning of the year, a decrease of approximately 5.3%[33] Cash Flow - The company reported a net cash flow from operating activities of -CNY 30,165,723.04, a decline of 209.91% compared to CNY 27,445,744.07 in the previous year[5] - Cash inflow from operating activities was CNY 295,872,942.31, compared to CNY 168,258,035.38 in the previous year, representing an increase of approximately 76%[40] - The net cash outflow from operating activities was CNY -30,165,723.04, a decline from a net inflow of CNY 27,445,744.07 in the same period last year[40] - The ending balance of cash and cash equivalents was CNY 276,917,982.46, down from CNY 369,244,036.02 at the beginning of the period[41] Investments and Acquisitions - The company completed the acquisition of a 70% stake in Gansu Puan Pharmaceutical Co., Ltd., which was reflected in the financial adjustments for the quarter[8] - The company completed the acquisition of 70% equity in Puan Pharmaceutical, with the transfer of ownership finalized on February 8, 2023[28] - The company signed a contract for the production of "Xuanfei Zhike Decoction" with a minimum monthly production of 100,000 boxes, with production costs set at CNY 10.35 per box for the first two months, reducing to CNY 10.00 thereafter[28] Research and Development - Research and development expenses for the quarter totaled CNY 4,656,354.38, indicating ongoing investment in innovation[15] - Research and development expenses for Q1 2023 were ¥5,717,764.87, compared to ¥4,656,354.38 in Q1 2022, indicating an increase of approximately 22.8%[36] Shareholder Information - The number of ordinary shareholders at the end of the period was 34,255[24] - The largest shareholder, Gansu Pharmaceutical Investment Group, holds 29.93% of the shares[24] Management Changes - The company appointed Qian Shuangxi as the new General Manager on March 10, 2023, following the resignation of the previous General Manager[30] Other Financial Metrics - The company reported a gross profit margin of approximately 36.5% based on total operating revenue and total operating costs[14] - Total operating costs rose by 105.71% compared to the beginning of the period, primarily due to the increase in operating revenue[21] - The company plans to continue expanding its market presence and investing in new product development to sustain growth in the upcoming quarters[36]

Financial Performance - The company's operating revenue for 2022 was CNY 413,246,804.52, representing a 43.58% increase compared to CNY 287,813,045.80 in 2021[20]. - The net profit attributable to shareholders for 2022 was CNY 25,826,457.15, a significant turnaround from a loss of CNY 9,106,161.47 in 2021, marking a 383.62% increase[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 18,211,375.59, compared to a loss of CNY 17,022,974.09 in the previous year, reflecting a 206.98% improvement[20]. - The basic earnings per share for 2022 was CNY 0.0851, a 383.67% increase from a loss of CNY 0.0300 per share in 2021[20]. - The total assets at the end of 2022 amounted to CNY 912,792,871.68, which is a 10.77% increase from CNY 824,072,928.05 at the end of 2021[20]. - The net assets attributable to shareholders at the end of 2022 were CNY 746,076,544.73, up 3.59% from CNY 720,250,087.58 at the end of 2021[20]. - The cash flow from operating activities for 2022 was CNY 11,426,985.22, a decrease of 77.65% compared to CNY 51,134,884.84 in 2021[20]. - The company reported a weighted average return on equity of 3.52% for 2022, compared to -1.26% in 2021, indicating improved profitability[20]. Market and Industry Context - The pharmaceutical manufacturing industry in China reported a revenue of CNY 2,911.14 billion in 2022, a year-on-year decrease of 1.6%, and a total profit of CNY 428.87 billion, down 31.8% year-on-year[31]. - The company faces significant challenges due to policies such as "medical insurance cost control" and "centralized procurement," which have impacted the sales of its main products[37]. - The recognition of traditional Chinese medicine among patients and doctors is gradually increasing, supported by national policies promoting the development of the traditional Chinese medicine industry[37]. - The company is positioned to take advantage of the expanding market demand for traditional Chinese medicine as the aging population increases and health awareness grows[37]. Research and Development - The company is committed to enhancing its research and development capabilities in traditional Chinese medicine to meet the evolving market demands and regulatory requirements[32]. - The company has established a comprehensive research and development framework, collaborating with various academic institutions to innovate new drug formulations[49]. - The company is in the research phase for several new drug projects aimed at enhancing product functionality and expanding clinical applications[73]. - The company obtained a new drug production license and food production license from the Gansu Provincial Drug Administration and Market Supervision Administration in June 2022[57]. - The company received a drug registration certificate for its main product, Yuanhu Zhitong Duwan, from the Thai Ministry of Health on December 22, 2022[58]. Product and Market Strategy - The company primarily engages in the research, development, production, and sales of pharmaceutical products, with key products including proprietary varieties such as Yuanhu Zhitong Dripping Pills and Xuanfei Zhiso Mixture, which are included in the National Essential Medicines List[38]. - The company completed the acquisition of 70% equity in Gansu Puan Pharmaceutical Co., Ltd. on February 7, 2023, making it a wholly-owned subsidiary, enhancing its product portfolio with Xuanfei Zhiso Mixture, a national-level new drug[38]. - The company aims to expand its market presence by developing under-served markets and enhancing its sales management through its wholly-owned subsidiary, ShenKang Pharmaceutical[41]. - The company plans to leverage the growing public awareness of health and the acceptance of traditional Chinese medicine to increase sales scale and market share[42]. - The company is focusing on the OTC market expansion and online sales opportunities to enhance its sales model and brand influence[41]. Governance and Management - The company has established a governance structure in place, with no differences in voting rights among shareholders[122]. - The board of directors consists of 8 members, including 3 independent directors, and held 13 meetings during the reporting period[112]. - The supervisory board is composed of 5 members, with 3 being employee representatives, and held 10 meetings during the reporting period[113]. - The company maintains complete independence from its controlling shareholder in terms of business, personnel, assets, and finance, with no guarantees provided to the controlling shareholder[111]. - The company has a robust information disclosure management system, ensuring timely and accurate information dissemination to investors[115]. Financial Management and Internal Control - The company’s internal control system has been continuously improved to adapt to external changes and internal management requirements[172]. - The board has emphasized the importance of internal control awareness and responsibility among key positions to ensure compliance and asset safety[173]. - The company maintained effective internal control over financial reporting in all material aspects as of December 31, 2022[177]. - The internal control self-assessment report indicated zero major defects in financial reporting[178]. Corporate Social Responsibility - In 2022, the company donated pharmaceuticals worth CNY 130,800 to Hong Kong, including CNY 47,500 worth of cough syrup for elderly and vulnerable groups[188]. - The company contributed over CNY 40,000 in pandemic prevention supplies to the An Ding District of Dingxi City, and provided CNY 60,000 worth of medicines and fertilizers to assist local farmers[189]. Future Outlook - The company plans to enhance its digital marketing strategies, aiming for a 40% increase in online sales by the end of 2023[140]. - The company has set a revenue guidance of CNY 1.5 billion for the fiscal year 2023, indicating a projected growth of 25%[140]. - Future strategies include strengthening research and development, optimizing product structure, and enhancing brand influence to build a competitive edge in the market[95].

Financial Performance - The company's operating revenue for 2022 was CNY 413,246,804.52, representing a 43.58% increase compared to CNY 287,813,045.80 in 2021[20] - The net profit attributable to shareholders for 2022 was CNY 25,826,457.15, a significant turnaround from a loss of CNY 9,106,161.47 in 2021, marking a 383.62% increase[20] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 18,211,375.59, compared to a loss of CNY 17,022,974.09 in the previous year, reflecting a 206.98% improvement[20] - The basic earnings per share for 2022 was CNY 0.0851, a 383.67% increase from a loss of CNY 0.0300 per share in 2021[20] - The total assets at the end of 2022 were CNY 912,792,871.68, which is a 10.77% increase from CNY 824,072,928.05 at the end of 2021[20] - The net assets attributable to shareholders at the end of 2022 were CNY 746,076,544.73, up 3.59% from CNY 720,250,087.58 at the end of 2021[20] - The cash flow from operating activities for 2022 was CNY 11,426,985.22, a decrease of 77.65% compared to CNY 51,134,884.84 in 2021[20] - In Q4 2022, the company achieved an operating revenue of CNY 189,751,267.78, contributing significantly to the annual revenue[21] - The net profit attributable to shareholders in Q4 2022 was CNY 20,377,719.55, indicating strong performance in the last quarter[21] Market and Industry Context - The pharmaceutical manufacturing industry in China reported a revenue of CNY 2,911.14 billion in 2022, a year-on-year decrease of 1.6%, and a total profit of CNY 428.87 billion, down 31.8% year-on-year[31] - The company faces challenges due to policies such as "medical insurance cost control" and "centralized procurement," impacting the sales of its main products[37] - The recognition of traditional Chinese medicine is gradually increasing among patients and doctors, driven by national support for the industry and the promotion of the Healthy China strategy[37] - The company is positioned to benefit from the expansion of medical insurance coverage and the aging population, which will drive demand for traditional Chinese medicine products[37] Research and Development - The company is focusing on the research and production of traditional Chinese medicine, aligning with national standards for modernization and internationalization[32] - The company is in the research phase for several R&D projects aimed at enhancing product functionality and quality, including the development of new drugs and production processes[72] - The company has established extensive technical cooperation with several research institutions and universities, enhancing its R&D capabilities[48] - The company is committed to the research and development of its flagship product, Yuanhu Zhitong Pill, with ongoing clinical studies to enhance its efficacy and safety, aiming to elevate quality standards[98] Product and Market Strategy - The company primarily engages in the research, development, production, and sales of pharmaceutical products, with key products including proprietary varieties such as Yuanhu Zhitong Dripping Pills and Xuanfei Zhike Decoction, which are included in the National Essential Medicines List[38] - The company aims to expand its market presence by developing under-served markets and enhancing its sales management through its wholly-owned subsidiary, Shenkang Pharmaceutical[41] - The company is focused on expanding its OTC market presence and enhancing brand awareness through academic promotion and marketing reforms[41] - The company plans to enhance its marketing platform and expand into new retail markets while strengthening brand influence[92] - The company aims to integrate local medicinal resources through acquisitions, enhancing its product structure and market competitiveness[50] Acquisitions and Partnerships - The company completed the acquisition of 70% of Gansu Puan Pharmaceutical Co., Ltd. on February 7, 2023, enhancing its product portfolio with Xuanfei Zhike Decoction, a nationally recognized new drug[38] - The company plans to acquire all equity interests of Gansu Puan Pharmaceutical Co., Ltd., with the valuation of the assets involved being reviewed and approved[157] - The company has established partnerships with over 1,000 distributors, including major pharmaceutical companies, ensuring nationwide sales coverage across 31 provinces, municipalities, and autonomous regions[41] Corporate Governance and Management - The company held 4 shareholder meetings during the reporting period, ensuring equal rights for all shareholders, particularly minority shareholders[108] - The board of directors consists of 8 members, including 3 independent directors, and held 13 meetings during the reporting period[110] - The supervisory board is composed of 5 members, with 3 being employee representatives, and held 10 meetings during the reporting period[111] - The company maintains complete independence from its controlling shareholder in terms of business, personnel, assets, and finance, with no guarantees provided to the controlling shareholder[109] - The company has established a complete and independent financial management system, ensuring independent financial decision-making[114] Employee and Social Responsibility - The total number of employees at the end of the reporting period is 320, with 212 in the parent company and 108 in major subsidiaries[159] - Employee compensation consists of position salary, accumulated contribution salary, performance bonuses, and position allowances, assessed and paid monthly[160] - The company has established a comprehensive training system to enhance employee skills and core competitiveness, focusing on various training programs[161] - The company donated pharmaceuticals worth CNY 130,800 to Hong Kong, including CNY 47,500 worth of cough syrup for elderly and vulnerable groups[186] - The company contributed over CNY 40,000 in pandemic prevention supplies to the Li Jiabao Town in Dingxi City, and provided CNY 60,000 worth of medicines and fertilizers to assist local farmers[187] Financial Management and Audit - The company has engaged Sigma Accounting Firm for auditing services, with a fee of 400,000 yuan, and the firm has been providing services for 4 consecutive years[197] - The audit committee reviewed the company's financial reports and discussed the overall audit strategy for 2021[154] - The internal control audit report issued a standard unqualified opinion, consistent with the self-evaluation report by the board of directors[176] - The company has maintained effective internal control over financial reporting in all material aspects as of December 31, 2022[175] Future Outlook and Strategy - The company has set a performance guidance for 2023, aiming for a revenue growth of 20% compared to 2022[138] - Future strategies include optimizing product structure, reinforcing research support, and promoting traditional Chinese medicine internationally[93] - The company plans to strengthen its professional marketing platform and improve profitability by consolidating marketing resources and expanding into new markets, including OTC and online sales channels[97] - The company is exploring potential mergers and acquisitions to bolster its market position and expand its product portfolio[129]

Financial Performance - Revenue for Q3 2022 reached ¥73,114,084.33, an increase of 23.91% year-over-year, and cumulative revenue for the year-to-date was ¥223,495,536.74, up 34.08% compared to the same period last year[4] - Net profit attributable to shareholders for Q3 2022 was ¥3,487,713.26, a significant increase of 141.13% year-over-year, with year-to-date net profit reaching ¥5,448,737.60, up 166.56%[4] - Basic earnings per share for Q3 2022 was ¥0.0115, reflecting a 141.07% increase year-over-year, while diluted earnings per share also stood at ¥0.0115[4] - The net profit for the third quarter of 2022 was CNY 10,941,459.65, a recovery from a loss of CNY 11,301,095.59 in the same quarter of the previous year[38] - The net profit for the third quarter of 2022 was CNY 8,612,144.62, a significant recovery from a net loss of CNY 7,123,107.42 in the same period last year[39] Assets and Liabilities - Total assets at the end of Q3 2022 amounted to ¥847,840,389.23, representing a 2.88% increase from the end of the previous year[4] - As of September 30, 2022, the total assets of Gansu Longshen Rongfa Pharmaceutical Co., Ltd. amounted to CNY 847,840,389.23, an increase from CNY 824,072,928.05 at the beginning of the year, reflecting a growth of approximately 2.3%[35] - The total liabilities of the company as of September 30, 2022, were CNY 106,392,745.98, compared to CNY 91,237,429.42 at the beginning of the year, reflecting an increase of about 16.6%[36] - The company’s equity attributable to shareholders increased to CNY 725,698,825.18 from CNY 720,250,087.58, a growth of approximately 0.6%[36] Cash Flow and Operating Activities - Cash flow from operating activities decreased by 66.72% year-over-year, primarily due to increased cash payments for goods and services[20] - The cash flow from operating activities showed a net inflow of CNY 9,896,329.96, down from CNY 29,739,129.06 in the previous year, reflecting a decrease of about 66.7%[40] - The company reported cash and cash equivalents at the end of the period amounting to CNY 98,490,059.04, compared to CNY 61,708,197.65 at the same time last year, representing an increase of approximately 59.7%[41] Inventory and Expenses - Inventory increased by 50.47% compared to the beginning of the period, as the company ramped up production to ensure sufficient supply for the sales peak[9] - Operating costs for the third quarter of 2022 were CNY 215,200,994.16, up from CNY 181,784,660.37 in the previous year, indicating an increase of approximately 18.3%[38] - The company incurred a total operating expense of CNY 245,086,729.72, which is an increase from CNY 202,671,500.97 in the previous year, reflecting a rise of about 20.9%[40] - The company reported a 37.3% increase in selling expenses, attributed to ongoing investments in market development and brand promotion[14] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 37,937, with the largest shareholder holding 29.93% of the shares[22] - Gansu Longshen Rongfa Pharmaceutical Co., Ltd. reported a total of 1,351,000 shares held by Gansu Provincial State-owned Assets Investment Group Co., Ltd. as a major shareholder[23] - The company has a total of 1,538,322 restricted shares at the end of the reporting period, with 384,580 shares added during the period[25] Management and Corporate Changes - The company appointed Song Minping as the new chairman of the board on May 26, 2022, following the resignation of the previous chairman[29] - The company’s management team underwent significant changes, including the resignation of the CFO and other key personnel in April 2022[26] - The company signed a management entrustment agreement with Gansu Agricultural Reclamation Group, with a management fee of RMB 600,000, effective for 12 months[27] - The company has not reported any significant decline in operating performance exceeding 20% during the management entrustment period[27] Regulatory Compliance and Licenses - The company received a renewed Drug Production License from the Gansu Provincial Drug Administration on January 18, 2022[26] - The company is focused on maintaining compliance with regulatory requirements, as evidenced by the renewal of its Food Production License[26] - The company obtained a new business license from the Gansu Provincial Market Supervision Administration on May 30, 2022, due to a change in the legal representative[30] Investments and Acquisitions - The company has completed the acquisition of a 70% stake in Puan Pharmaceutical through cash transactions, enhancing its market position[31] - Gansu Longshen Rongfa Pharmaceutical has obtained a new food production license for health food products, indicating ongoing expansion in product offerings[33] Product Development and Market Strategy - The company has not disclosed any new product developments or market expansion strategies in the current report[25] - The company did not report any new product launches or technological advancements during this quarter[39] - There were no significant mergers or acquisitions reported in this quarter[39] Audit and Reporting - The report was not audited, indicating that the figures presented are subject to further verification[42]

Financial Performance - The company's operating revenue for the first half of 2022 was CNY 150,381,452.41, representing a 39.65% increase compared to CNY 107,683,437.23 in the same period last year[22]. - The net profit attributable to shareholders of the listed company reached CNY 1,961,024.34, a significant increase of 568.10% from CNY 293,520.82 in the previous year[22]. - The net cash flow from operating activities was CNY 23,504,905.98, up 45.11% from CNY 16,197,578.91 in the same period last year[22]. - Basic earnings per share increased to CNY 0.0065, reflecting a 550.00% rise from CNY 0.0010 in the previous year[22]. - The company reported a net profit after deducting non-recurring gains and losses of CNY 1,234,688.77, compared to a loss of CNY 5,555,989.36 in the same period last year, marking a 122.22% improvement[22]. - The company's operating revenue for the reporting period reached ¥150,381,452.41, representing a 39.65% increase compared to ¥107,683,437.23 in the same period last year, primarily due to increased sales from its subsidiary in medical devices[52]. - The company reported a net profit of CNY 61.61 million for the first half of 2022, which is an increase from CNY 55.16 million in the same period last year, representing a growth of about 11.1%[170]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 841,355,180.44, a 2.10% increase from CNY 824,072,928.05 at the end of the previous year[22]. - The net assets attributable to shareholders of the listed company were CNY 722,211,111.92, showing a slight increase of 0.27% from CNY 720,250,087.58 at the end of the previous year[22]. - Total liabilities rose to CNY 103,803,286.28, compared to CNY 91,237,429.42 at the beginning of the year, an increase of approximately 13.9%[149]. - The company's equity increased to CNY 737,551,894.16 from CNY 732,835,498.63, reflecting a growth of about 0.2%[149]. Market and Product Development - The company operates in the traditional Chinese medicine sector, which is increasingly recognized and supported by national policies, enhancing market demand[30]. - The company’s main products include unique formulations such as Yuanhu Zhitong Dripping Pills, which are included in the National Essential Drug List and have significant clinical applications[32]. - The company aims to expand its market coverage and sales volume by developing underrepresented markets and leveraging e-commerce opportunities[35]. - The company is positioned to benefit from the growing acceptance of traditional Chinese medicine in the healthcare system, driven by national health strategies[31]. - The domestic analgesic market has shown a steady growth rate of over 20% since 2010, driven by the demand for gynecological and cardiovascular pain relief medications[38]. - The company has developed a systematic academic promotion and patent for the second development of Yuanhu Zhitong Dripping Pill, enhancing its market competitiveness[42]. Research and Development - Research and development investment increased by 23.05% to ¥3,143,203.42 compared to ¥2,554,476.05 in the same period last year[52]. - The company has allocated CNY 28.91 million for research and development in the first half of 2022, which is a 15% increase compared to the previous year[170]. - The company emphasizes the importance of R&D investment and aims to enhance product competitiveness through collaboration and technology transfer[74]. Sales and Marketing Strategy - The company’s sales strategy primarily relies on distributors, focusing on academic promotion and brand building to enhance market presence[35]. - The company has established partnerships with over 1,000 distributors, including major pharmaceutical enterprises, ensuring nationwide sales coverage[36]. - The company is committed to improving its brand recognition and market share through professional marketing strategies and resource integration[73]. Operational Challenges and Risks - The ongoing COVID-19 pandemic has significantly impacted the macro economy, affecting raw material supply, logistics, production organization, and sales, leading to increased operational costs and challenges in performance improvement[76]. - The company faces risks from intensified competition due to policy changes in the pharmaceutical industry, including price controls and procurement reforms, which may impact sales and profitability[73]. Corporate Governance and Compliance - The company has established several specialized committees, including a strategic committee and an audit committee, to enhance governance[180]. - The company has not engaged in any violations regarding external guarantees during the reporting period[93]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties during the reporting period[92]. Acquisitions and Restructuring - The company is currently advancing a major asset restructuring project to acquire 70% of Gansu Puan Pharmaceutical Co., Ltd., enhancing its product portfolio and market competitiveness[45]. - The company is in the process of acquiring 70% of the equity of Gansu Puan Pharmaceutical Co., Ltd., with a cash purchase of 51% from Gansu Nongken Group and 19% from Gansu Pharmaceutical Group[106]. - The company has initiated a new round of auditing and evaluation work for the acquisition, with plans to hold board and shareholder meetings for further approvals[107]. Social Responsibility - The company donated CNY 47,500 worth of medicine and CNY 10,350 worth of urea to support rural revitalization and disaster relief efforts[87].

Financial Performance - The company's operating revenue for the first half of 2022 was CNY 150,381,452.41, representing a 39.65% increase compared to CNY 107,683,437.23 in the same period last year[21]. - The net profit attributable to shareholders of the listed company reached CNY 1,961,024.34, a significant increase of 568.10% from CNY 293,520.82 in the previous year[21]. - The net cash flow from operating activities was CNY 23,504,905.98, up 45.11% from CNY 16,197,578.91 in the same period last year[21]. - Basic earnings per share increased to CNY 0.0065, reflecting a 550.00% rise from CNY 0.0010 in the previous year[21]. - The company reported a net profit after deducting non-recurring gains and losses of CNY 1,234,688.77, compared to a loss of CNY 5,555,989.36 in the same period last year, marking a 122.22% improvement[21]. - The company's revenue for the reporting period reached ¥150,381,452.41, representing a year-on-year increase of 39.65% due to higher pharmaceutical sales and increased income from medical devices[50]. - The company reported a net profit for the first half of 2022 was ¥4,716,395.53, compared to ¥974,359.48 in the first half of 2021, representing a significant increase of 384.5%[155]. - The total profit for the first half of 2022 was ¥6,586,544.12, compared to ¥658,808.90 in the same period of 2021[154]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 841,355,180.44, a 2.10% increase from CNY 824,072,928.05 at the end of the previous year[21]. - The net assets attributable to shareholders of the listed company were CNY 722,211,111.92, showing a slight increase of 0.27% from CNY 720,250,087.58 at the end of the previous year[21]. - Total liabilities rose to CNY 103,803,286.28 as of June 30, 2022, compared to CNY 91,237,429.42 at the beginning of the year, an increase of approximately 13.9%[148]. - The company's equity increased to CNY 737,551,894.16 from CNY 732,835,498.63, a rise of approximately 0.2%[148]. - The total assets of the company at the end of the reporting period were 10,740 million yuan, indicating a solid asset base for future growth[171]. Market and Product Development - The company’s main business includes the research, development, production, and sales of traditional Chinese medicine products, with a focus on proprietary products[30]. - The company aims to expand its market coverage and sales volume by developing underrepresented markets and enhancing its online sales channels[34]. - The company is positioned to benefit from the increasing recognition and demand for traditional Chinese medicine due to national policies supporting the industry[30]. - The company has established partnerships with over 1,000 distributors, including major pharmaceutical enterprises, ensuring nationwide sales coverage[35]. - The company plans to enhance its sales platform through its wholly-owned subsidiary, Shenkang Pharmaceutical, to improve product sales and management processes[34]. - The company plans to expand its market presence and invest in new product development in the upcoming quarters[168]. - The company has allocated 1,000,000 CNY for research and development initiatives in the current fiscal year[168]. Operational Efficiency and Costs - The company's operating costs amounted to ¥88,189,157.10, which is a 13.81% increase compared to the previous year[50]. - Sales expenses surged by 101.60% to ¥42,864,675.44, primarily due to intensified market expansion efforts[50]. - The company's R&D investment increased by 23.05% to ¥3,143,203.42, reflecting a commitment to product development[50]. - The gross profit margin for the pill category improved to 49.31%, up by 12.98% from the previous year[53]. - The company is currently advancing a major asset restructuring project to acquire 70% of Gansu Puan Pharmaceutical Co., Ltd.[43]. Governance and Compliance - The company emphasizes the importance of risk awareness regarding forward-looking statements made in the report[3]. - The company has established various committees, including a strategic committee and an audit committee, to enhance governance and oversight[180]. - The company adheres to the accounting standards set by the Ministry of Finance and the China Securities Regulatory Commission, ensuring the financial reports accurately reflect its financial position as of June 30, 2022[186]. - The company has a robust internal control system to manage its financial reporting and compliance, which is critical for maintaining investor confidence and regulatory adherence[186]. Social Responsibility and Environmental Compliance - The company donated CNY 47,500 worth of medicine and CNY 10,350 worth of urea to support rural revitalization and disaster relief efforts[86]. - The company has a wastewater treatment capacity of 200 tons per day, with all treated wastewater meeting discharge standards[84]. - The company has not faced any environmental penalties or safety incidents during the reporting period, maintaining compliance with environmental regulations[84][85]. Shareholder and Equity Information - The total number of shares before the recent changes was 303,345,000, with no new shares issued during the period[128]. - The overall shareholding structure remains stable, with no significant changes in the ownership percentages of major shareholders[128]. - The total number of shareholders holding more than 5% of ordinary shares is 4[131]. - The largest shareholder, Gansu Pharmaceutical Investment Group, has not changed during the reporting period[136]. - The company has not conducted any repurchase transactions among the top 10 shareholders during the reporting period[134].