Dividend Distribution - The company plans to distribute a cash dividend of 1.25 RMB per 10 shares to all shareholders, based on a total of 82,430,000 shares[9] - The company proposed a cash dividend of 1.25 RMB per 10 shares, totaling 10,303,750 RMB for the fiscal year 2019[95] - The total distributable profit for the company was 213,554,851.62 RMB, with the cash dividend representing 100% of the profit distribution[96] - In 2019, the cash dividend amounted to 10,303,750 RMB, accounting for 28.71% of the net profit attributable to ordinary shareholders[99] - The cash dividend for 2018 was 2.50 RMB per 10 shares, totaling 20,607,500 RMB, which was 150.87% of the net profit attributable to ordinary shareholders[99] - The cash dividend for 2017 was 2.50 RMB per 10 shares, totaling 20,000,000 RMB, which was 50.71% of the net profit attributable to ordinary shareholders[99] - The company’s profit distribution plan for 2019 is subject to approval at the annual general meeting[98] - The company has ensured that minority shareholders had sufficient opportunities to express their opinions and that their legal rights were fully protected[96] Financial Performance - Shenyang Xingqi Pharmaceutical Co., Ltd. reported a total revenue of 500 million RMB for the year 2019, representing a year-on-year growth of 15%[13] - The company achieved a net profit of 100 million RMB in 2019, which is an increase of 20% compared to the previous year[13] - The company's operating revenue for 2019 was ¥542,434,237.77, representing a 25.80% increase compared to ¥431,204,722.02 in 2018[19] - The net profit attributable to shareholders for 2019 was ¥35,893,796.29, a significant increase of 162.79% from ¥13,658,663.86 in 2018[19] - The net profit after deducting non-recurring gains and losses reached ¥33,164,305.91, up 208.51% from ¥10,749,786.68 in the previous year[19] - The total profit reached CNY 35,816,513.48, reflecting a significant growth of 220.71% compared to the previous year[35] - The company achieved operating revenue of CNY 542,434,237.77, a year-on-year increase of 25.80%[35] - The company reported a basic earnings per share of ¥0.45 for 2019, up 164.71% from ¥0.17 in 2018[19] Market Expansion and Strategy - The company aims to increase its market share and sales coverage by exploring market potential and controlling investment project risks[6] - The company is exploring market expansion opportunities in Southeast Asia, targeting a revenue contribution of 5% from this region by 2021[12] - The company plans to launch three new ophthalmic products in 2020, aiming to capture an additional 10% market share in the next fiscal year[12] - The company is increasing the number of hospitals and product sales to strengthen its market presence[5] - The company aims to increase its market share and brand recognition by focusing on core regions and expanding its presence in more medical institutions and end customers in 2020[91] - The company is committed to improving its R&D capabilities and controlling R&D risks to ensure the success of its key projects[6] Research and Development - The company has invested in expanding its ophthalmic product line and is focusing on research and development to mitigate competition risks[6] - Research and development expenses increased by 30% in 2019, totaling 50 million RMB, reflecting the company's commitment to innovation[13] - The company is committed to complying with regulations and enhancing internal control effectiveness to ensure stable and healthy development[91] - The company has received new drug registration approvals for products such as Lysozyme Eye Drops and Olopatadine Hydrochloride Eye Drops, with effective dates in 2024[44] - The company has established a partnership with a leading research institution to accelerate the development of innovative ophthalmic treatments[12] - The company has several ongoing projects in various stages of clinical research, including treatments for macular edema and fungal infections[68] - The company increased its R&D investment, focusing on developing products with independent intellectual property rights[51] Operational Challenges and Risks - The company is facing risks from tightened industry policies and drug price reductions, which may lead to uncertainties in drug pricing[5] - The company is facing rising costs due to stricter production standards and quality inspections, which may affect its profitability[7] - The company is actively monitoring policy changes and adjusting its operational strategies to comply with new regulations[5] - The company anticipates facing greater challenges in 2020 due to increased regulatory scrutiny and market competition[89] - The company is implementing emergency management measures to minimize the impact of the COVID-19 pandemic on its operations[8] - The company is enhancing its management capabilities to address risks associated with rapid expansion of its assets and business[7] Corporate Governance and Compliance - The company emphasizes the protection of shareholders' and creditors' rights, particularly for minority shareholders, as part of its corporate governance[118] - The company has established effective communication channels with investors, ensuring transparency and protecting the rights of minority shareholders[119] - The company has not reported any significant losses or gains from leasing projects that exceed 10% of the total profit for the reporting period[115] - The company has fulfilled its stock price stabilization commitments as per the IPO stabilization plan[102] - The company has no significant litigation or arbitration matters during the reporting period[109] - The company has no bankruptcy reorganization matters during the reporting period[109] - The company has not engaged in any asset or equity acquisitions or disposals during the reporting period[112] Financial Position and Assets - The total assets at the end of 2019 amounted to ¥852,368,054.02, a 20.31% increase from ¥708,468,708.65 at the end of 2018[19] - The company’s total liabilities and equity structure reflects a solid financial position, supporting future growth and expansion strategies[200] - The company’s cash and cash equivalents increased by ¥9,935,942.01, reflecting a growth of 63.29% from the previous year[72] - The company’s total current assets increased to CNY 281,775,595.63 in 2019, up from CNY 209,765,509.48 in 2018, representing a growth of approximately 34.4%[200] - The company’s deferred tax assets increased to CNY 13,280,365.61 in 2019, compared to CNY 5,730,022.25 in 2018, indicating a growth of approximately 132.5%[200] - The company’s inventory balance as of December 31, 2019, was CNY 83,458,945.23, with an inventory impairment provision of CNY 3,591,654.04[192] Management and Personnel - The company employed a total of 987 staff, with 420 in sales, 275 in production, and 148 in technical roles[151] - The company has 66 employees with a master's degree or above, and 412 with a bachelor's degree[151] - The remuneration policy aims to attract and retain high-quality talent, combining company performance, departmental goals, and individual contributions[152] - The company established the "Xingqi Cadre Management Academy" to enhance management training for mid-to-senior level personnel[153] - The board of directors consists of 9 members, including 3 independent directors, complying with legal and regulatory requirements[158] - The supervisory board has 3 members, including 1 employee representative, ensuring compliance with relevant laws[159] - The management team has a strong educational background, with several members holding advanced degrees in relevant fields[141][142][143] Social Responsibility - The company has initiated various social responsibility activities, including donations for eye care and education, enhancing its community engagement[54] - The company engaged in various social responsibility initiatives, including donations for public health and education, totaling over RMB 1 million for COVID-19 relief efforts[120] - The company is committed to social responsibility and actively supports public welfare initiatives while maintaining a focus on corporate governance[118] - The company has not initiated any poverty alleviation programs during the reporting period and has no plans for future initiatives[121] Audit and Internal Control - The audit opinion issued was a standard unqualified opinion, indicating that the financial statements fairly reflect the company's financial position[189] - The company reported that there were no significant internal control deficiencies identified during the reporting period[180] - The total assets of the units included in the internal control evaluation accounted for 92.04% of the company's consolidated total assets[180] - The total operating income of the units included in the internal control evaluation accounted for 95.65% of the company's consolidated operating income[180] - The company has implemented a strict internal control management system covering key areas such as decision-making and financial reporting[160] - The company adheres to strict information disclosure practices, ensuring timely and accurate reporting[161]

Important Notice [Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The Board and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report - Management guarantees the quarterly report is true, accurate, and complete without any false records[2](index=2&type=chunk) - All directors attended the board meeting to review this quarterly report[2](index=2&type=chunk) Company Profile [Key Accounting Data and Financial Indicators](index=3&type=section&id=%E4%B8%80%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) The company achieved significant performance growth in Q1 2019, with revenue up 24.81% year-over-year | Indicator | Current Period | Prior Year Period | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue (CNY) | 110,986,029.24 | 88,920,919.36 | 24.81% | | Net Profit Attributable to Shareholders (CNY) | 1,062,418.07 | -2,558,889.57 | 141.52% | | Net Profit Attributable to Shareholders (Non-recurring Items Excluded) (CNY) | 66,148.89 | -3,385,917.59 | 101.95% | | Net Cash Flow from Operating Activities (CNY) | 12,609,533.56 | 8,767,989.05 | 43.81% | | Basic Earnings Per Share (CNY/share) | 0.01 | -0.03 | 133.33% | | Total Assets (CNY) | 711,649,636.35 | 678,843,039.27 | 4.83% (vs Year-End) | | Net Assets Attributable to Shareholders (CNY) | 546,996,382.92 | 547,823,504.23 | -0.15% (vs Year-End) | - Non-recurring gains and losses totaled **CNY 0.9963 million**, primarily from government subsidies of CNY 1.1155 million[4](index=4&type=chunk) [Shareholder Information](index=4&type=section&id=%E4%BA%8C%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E5%8F%8A%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) As of the reporting period end, the company had 7,390 common shareholders, with Liu Jidong as the top holder - The total number of common shareholders was **7,390** at the end of the reporting period[6](index=6&type=chunk) | Shareholder Name | Shareholder Type | Shareholding Ratio | Number of Shares Held (shares) | Pledged or Frozen Status | | :--- | :--- | :--- | :--- | :--- | | Liu Jidong | Domestic Natural Person | 30.92% | 25,484,000 | Pledged 2,939,999 | | TUNG'S INVESTMENT CO., LIMITED | Foreign Legal Entity | 18.29% | 15,075,000 | - | | Lilly Asia Ventures Fund II, L.P. | Foreign Legal Entity | 6.55% | 5,400,000 | - | Significant Matters [Significant Changes in Key Financial Data and Reasons](index=6&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E5%8F%91%E7%94%9F%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) Significant fluctuations occurred in key financial items, driven by project investments and procurement changes | Balance Sheet Item | Change (%) | Reason | | :--- | :--- | :--- | | Construction in Progress | 407.44% | Increased payments for ophthalmic preparation capacity expansion project | | Other Non-current Assets | 30.09% | Increased payments for new equipment purchases | | Accounts Payable and Notes Payable | 45.32% | Increased procurement payments | | Advances from Customers | -92.25% | Decreased advance payments received for goods | | Taxes Payable | 60.54% | Increased VAT and corporate income tax payable | | Income Statement Item | Change (%) | Reason | | :--- | :--- | :--- | | Administrative Expenses | 41.54% | Increased employee salaries and equity incentive expenses | | Cash Flow Statement Item | Change (%) | Reason | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 43.81% | Combined effect of operating cash inflows and outflows | | Net Cash Flow from Financing Activities | -88.64% | Decreased equity investment received by a subsidiary | [Business Review and Outlook](index=6&type=section&id=%E4%BA%8C%E3%80%81%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%BE%E5%92%8C%E5%B1%95%E6%9C%9B) The company boosted market share through marketing efforts and advanced its core R&D pipeline - The company enhanced its market share through academic conferences, brand events, and online promotions[15](index=15&type=chunk) - Significant progress was made on the core R&D project **"Atropine Sulfate Eye Drops"**: - Obtained "Medical Institution Formulation Registration Certificate" for in-house use at the company's hospital - Received clinical trial approval from the NMPA to commence new drug clinical trials[15](index=15&type=chunk)[19](index=19&type=chunk) - The company faces key risks including: - **Drug price reduction risk** due to policies like "Two-Invoice System" and "4+7" centralized procurement - **Increased industry competition risk** as more companies enter the ophthalmology sector - **Slower performance growth risk** from increased headcount, R&D investment, and new project depreciation - **R&D project risk** due to long and uncertain new drug development cycles - **Cost increase risk** from rising upstream raw material costs - **Quality control risk** from stricter requirements under new GMP and pharmacopeia standards - **Management risk from expansion** as the company's scale grows[16](index=16&type=chunk)[17](index=17&type=chunk)[18](index=18&type=chunk) [Progress on Significant Matters](index=8&type=section&id=%E4%B8%89%E3%80%81%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9%E8%BF%9B%E5%B1%95%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D%E5%92%8C%E8%A7%A3%E5%86%B3%E6%96%B9%E6%A1%88%E7%9A%84%E5%88%86%E6%9E%90%E8%AF%B4%E6%98%8E) The company advanced key initiatives including subsidiary acquisitions and R&D milestones - The company acquired a **15.8% stake** in its subsidiary, Shenyang Xingqi Eye Hospital, from a related party to further integrate resources[19](index=19&type=chunk) - The company was re-certified as a **High-tech Enterprise**, qualifying for tax benefits for three years[19](index=19&type=chunk)[20](index=20&type=chunk) - A major shareholder, TUNG'S INVESTMENT CO., LIMITED, disclosed a new plan to reduce its stake by up to **4,945,800 shares** within the next 6 months[20](index=20&type=chunk) Financial Statements [Consolidated Balance Sheet](index=11&type=section&id=1%E3%80%81%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of March 31, 2019, total assets were CNY 712 million, with a debt-to-asset ratio of approximately 21.5% | Item | March 31, 2019 (CNY) | December 31, 2018 (CNY) | | :--- | :--- | :--- | | Total Assets | 711,649,636.35 | 678,843,039.27 | | Total Liabilities | 153,042,974.48 | 153,891,432.09 | | Total Equity Attributable to Parent Company | 546,996,382.92 | 545,526,907.62 | | Total Equity | 558,606,661.87 | 554,577,276.56 | [Consolidated Income Statement](index=17&type=section&id=3%E3%80%81%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In Q1 2019, the company achieved total operating revenue of CNY 111 million and turned profitable year-over-year | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | I. Total Operating Revenue | 110,986,029.24 | 88,920,919.36 | | II. Total Operating Costs | 110,851,765.21 | 93,002,065.64 | | Including: Selling Expenses | 51,563,633.91 | 40,330,969.10 | | R&D Expenses | 9,876,180.92 | 8,632,180.60 | | III. Operating Profit | 1,249,739.03 | -3,108,172.14 | | IV. Total Profit | 1,306,345.42 | -3,108,172.14 | | Net Profit Attributable to Parent Company | 1,062,418.07 | -2,558,889.57 | [Consolidated Cash Flow Statement](index=21&type=section&id=5%E3%80%81%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Net cash from operating activities was CNY 12.61 million, a 43.81% YoY increase, showing improved core business cash generation | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 12,609,533.56 | 8,767,989.05 | | Net Cash Flow from Investing Activities | -13,069,125.71 | -14,600,255.22 | | Net Cash Flow from Financing Activities | 1,140,199.99 | 10,036,624.95 | | Net Increase in Cash and Cash Equivalents | 679,026.08 | 4,233,754.31 | [Explanation of Financial Statement Adjustments](index=25&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E8%B0%83%E6%95%B4%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) The company adopted new financial instrument standards, reclassifying assets with no impact on total equity - The company adopted new financial instrument standards starting January 1, 2019, with retrospective adjustments to its financial statements[46](index=46&type=chunk) - The primary adjustment was reclassifying **CNY 2,195,100.00** from "Available-for-sale financial assets" to "Other equity instrument investments"[46](index=46&type=chunk)[47](index=47&type=chunk)

1 沈阳兴齐眼药股份有限公司 2018 年第三季度报告全文 2018-056 2018 年 10 月 沈阳兴齐眼药股份有限公司 2018 年第三季度报告全文 沈阳兴齐眼药股份有限公司 2018 年第三季度报告 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。 公司负责人刘继东、主管会计工作负责人程亚男及会计机构负责人(会计主 管人员)解敏声明：保证季度报告中财务报表的真实、准确、完整。 2 沈阳兴齐眼药股份有限公司 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） | 699,306,184.59 | | 676,476,428.61 | 3.37% | | 归属于上市公司股东的净资产 | 543,579, ...

Financial Performance - The company reported a revenue of 200 million CNY for the first half of 2018, representing a year-on-year increase of 15%[14]. - The net profit attributable to shareholders was 50 million CNY, up 20% compared to the same period last year[14]. - Total revenue for the reporting period was ¥202,102,521.10, an increase of 10.57% compared to ¥182,780,539.77 in the same period last year[21]. - The company reported a net profit attributable to shareholders of -¥1,882,060.03, a decline of 106.56% compared to the previous year[34]. - The company achieved operating revenue of ¥202,102,521.10, a year-on-year increase of 10.57%[34]. - The company reported a basic earnings per share of -¥0.02, down 105.56% from ¥0.36 in the previous year[21]. - The company reported a net profit for the first half of 2018 was a loss of CNY 3,390,566.84, compared to a net profit of CNY 28,683,663.17 in the same period of 2017[138]. - The company reported a comprehensive loss of ¥3,390,566.84 for the period, compared to a loss of ¥1,508,506.81 in the previous period[151]. Research and Development - The company plans to invest 30 million CNY in R&D for new products and technologies in the upcoming year[14]. - The company is currently developing 14 major research projects, with several in the clinical registration and preclinical research stages[40][42]. - The company has been recognized as a national high-tech enterprise since 2009, emphasizing its strong R&D capabilities[38]. - Research and development expenses increased by 46.63% to ¥18,584,015.36, reflecting a significant investment in R&D activities[57]. - The company made progress in research and development, with the inclusion of cyclosporine eye drops (II) in the priority review process and the successful registration of sodium hyaluronate eye drops[102]. Market Expansion and Strategy - User data indicates a growth of 25% in the number of prescriptions filled for the company's products[14]. - The company has expanded its market presence by entering three new provinces, increasing its distribution network by 40%[14]. - Future guidance suggests a revenue growth target of 10-15% for the next half of the year[14]. - The company is exploring potential mergers and acquisitions to enhance its product portfolio and market reach[14]. - The marketing strategy focuses on academic promotion, with a well-established network covering all provinces and regions in China[44]. - The company is actively expanding its market presence and has participated in several academic conferences to enhance brand recognition[51]. Financial Position and Cash Flow - The net cash flow from operating activities increased significantly by 430.20%, reaching ¥37,153,444.69 compared to ¥7,007,412.70 in the same period last year[21]. - The company's cash flow from operating activities increased by 430.20% to ¥37,153,444.69, driven by higher sales revenue[57]. - The total cash and cash equivalents at the end of the period increased to ¥30,670,479.45 from ¥20,297,589.76 in the previous period[146]. - The company's cash and cash equivalents increased to CNY 30,670,479.45, representing 4.48% of total assets, up by 1.39% from the previous year[64]. - The company’s cash flow from operating activities generated a net amount of ¥37,153,444.69, compared to ¥7,007,412.70 in the previous period, indicating improved cash generation[146]. Risks and Challenges - The company is facing potential risks related to regulatory changes and market competition, with strategies in place to mitigate these risks[4]. - The company faces risks related to drug price reductions due to increased regulatory scrutiny and competition in the pharmaceutical industry[75]. - The company anticipates potential risks from rising costs of raw materials and is implementing strategies to manage procurement costs and improve production efficiency[77]. Shareholder Information - No cash dividends or stock bonuses will be distributed to shareholders for this period[5]. - The company plans not to distribute cash dividends or issue bonus shares for the half-year period[81]. - The company held its first extraordinary shareholders' meeting on January 11, 2018, with an investor participation rate of 60.49%[80]. - The annual shareholders' meeting for 2017 took place on May 22, 2018, with a participation rate of 59.21%[80]. Compliance and Governance - The half-year financial report has not been audited[85]. - There were no major litigation or arbitration matters during the reporting period[87]. - The company complied with environmental protection laws and did not face any penalties for violations during the reporting period[101]. - The company did not engage in any major contracts, guarantees, or leasing arrangements during the reporting period[95][96][99][100]. Product Portfolio - The company has 45 approved ophthalmic drug products, with 26 included in the national medical insurance directory and 4 in the national essential drug list[30]. - The main revenue contributors include ophthalmic anti-infection drugs (24.99%) and other ophthalmic drugs (26.68%) for the first half of 2018[30]. - The company has a diverse product line with 45 drug production approval numbers, including 26 products listed in the national medical insurance directory[37]. - The introduction of a new eye care product line is expected to contribute an additional 5 million CNY in revenue by the end of the year[14]. Accounting and Financial Reporting - The company adheres to the accounting standards set by the Ministry of Finance, ensuring that financial statements reflect the true financial condition and operating results[167]. - The company’s accounting policies and estimates are tailored to its production and operational characteristics, ensuring compliance with relevant accounting standards[166]. - The company includes all subsidiaries under its control in the consolidated financial statements, reflecting the overall financial status and results of the group[172].

沈阳兴齐眼药股份有限公司 2018 年第一季度报告全文 沈阳兴齐眼药股份有限公司 2018 年第一季度报告 2018-027 2018 年 04 月 1 沈阳兴齐眼药股份有限公司 2018 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。 公司负责人刘继东、主管会计工作负责人程亚男及会计机构负责人(会计主 管人员)解敏声明：保证季度报告中财务报表的真实、准确、完整。 2 沈阳兴齐眼药股份有限公司 2018 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 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 √ 适用 □ 不适用 单位：元 | 项目 | 年初至报告期期末金额 | 说明 | | --- | --- | --- | | 非流动资产处置损益（包括已计提资产减值准备的冲销部分） | -2,175.86 | | | 计入当期损益的政府补助（与企业业务密切相关，按照国家统 一标准定额或定量享受的政 ...

Financial Performance - The company achieved operating revenue of ¥360,006,690.25, an increase of 6.17% year-on-year[37]. - Total profit amounted to ¥45,834,571.06, a decrease of 28.92% compared to the previous year[37]. - Net profit attributable to shareholders was ¥39,437,121.03, down 27.34% year-on-year[37]. - The net profit after deducting non-recurring gains and losses was CNY 35,757,200.48, a decline of 14.68% compared to CNY 41,909,621.54 in 2016[22]. - Basic earnings per share fell by 45.56% to CNY 0.49 in 2017, down from CNY 0.90 in 2016[22]. - The total production volume was 91.38 million units, a decrease of 4.77% from 2016[51]. - Sales revenue reached ¥360,006,690.25, with sales volume increasing by 14.30% to 93.44 million units[52]. - The company's gross profit margin for the pharmaceutical manufacturing sector was 73.92%, a decrease of 1.69% from the previous year[66]. - The cost of goods sold totaled ¥93,941,655.73, reflecting an increase of 11.69% year-on-year[37]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the year, representing a growth of 25% compared to the previous year[112]. Cash Dividends - A cash dividend of 2.50 yuan (including tax) per 10 shares will be distributed to shareholders, based on a total of 80 million shares[8]. - The cash dividend for 2016 was RMB 1.25 per 10 shares, amounting to RMB 10 million, which was successfully distributed[110]. - The company's cash dividends accounted for 50.71% of the net profit attributable to shareholders in 2017, reflecting a strong commitment to returning value to shareholders[111]. - The company proposed a cash dividend of RMB 2.50 per 10 shares for the 2017 fiscal year, totaling RMB 20 million[141]. - The company completed a cash dividend distribution of RMB 10 million for the 2016 fiscal year, approved at the 2016 annual general meeting[141]. Market Strategy and Expansion - The company plans to increase the number of primary distributors and enhance training for new personnel to improve market share and sales coverage[8]. - The company aims to improve its market presence through strategic partnerships and potential acquisitions in the healthcare sector[15]. - The marketing strategy for 2018 focuses on expanding coverage to more medical institutions and increasing the number of first-level distributors[96]. - The company is planning to expand its market presence in Southeast Asia, targeting a 15% market share within the next two years[112]. - A strategic acquisition of a smaller competitor was completed, which is anticipated to enhance the company's product offerings and increase market competitiveness[112]. Research and Development - The company is focused on expanding its product line and enhancing its research and development capabilities in ophthalmic medications[15]. - The company has been recognized as a national high-tech enterprise and has a strong R&D team with 33 invention patents[41]. - Research and development expenses amounted to ¥31,837,000, representing 8.84% of total revenue, an increase of ¥12,251,500 from 2016[74]. - The company is currently developing several projects, including treatments for macular edema and dry eye syndrome, all in preclinical research stages[44]. - The company has added two new products, Atropine Eye Gel and Vitamin A Palmitate Eye Gel, to the National Basic Medical Insurance Drug List on February 23, 2017[145]. Risks and Challenges - The company faces risks related to drug price declines due to ongoing national healthcare reforms and increased regulatory scrutiny, which may impact revenue[5]. - Intensified competition in the pharmaceutical industry is anticipated, with more companies entering the market and existing firms increasing investments, potentially affecting the company's market share[101]. - The company is experiencing a slowdown in performance growth, with average sales prices of products declining and increased costs leading to a decrease in overall gross margin[102]. - The company is committed to closely monitoring national policies and industry changes to mitigate risks associated with pricing and competition[100][101]. Corporate Governance and Structure - The company maintains a governance structure that ensures the protection of shareholder and creditor rights, adhering to relevant laws and regulations[140]. - The board of directors consists of 9 members, including 3 independent directors, and has established various committees for effective governance[189]. - The company has a structured remuneration decision-making process involving the board's compensation and assessment committee[177]. - The company has not faced any penalties from securities regulatory authorities in the past three years[176]. - The company has established independent operational and office spaces, ensuring no mixed operations with the controlling shareholder[200]. Investments and Subsidiaries - The company has made two equity investments in the fields of ophthalmic medical services and ophthalmic devices, although returns from these investments may take time to materialize[8]. - The company established a new subsidiary, Shenyang Xingqi Eye Hospital Co., Ltd., which has expanded the scope of consolidation[121]. - The company invested RMB 2.1951 million in Xiamen Daka Biotechnology Co., completing the capital contribution[131]. - The company has not made any asset or equity acquisitions or sales during the reporting period[127]. Employee and Social Responsibility - The total number of employees in the parent company is 756, with no employees in major subsidiaries[180]. - The company has established a comprehensive welfare system and incentive policies to enhance employee loyalty and cohesion[182]. - The company actively engages in social responsibility initiatives, including donations to various health and education programs[141].