Financial Performance - The company's operating revenue for the first half of 2022 was ¥267,578,608.53, a decrease of 15.56% compared to ¥316,902,875.42 in the same period last year[21]. - The net profit attributable to shareholders was ¥17,721,523.59, down 16.16% from ¥21,136,165.02 year-on-year[21]. - Basic earnings per share decreased to ¥0.1477, down 16.13% from ¥0.1761 in the same period last year[21]. - The total comprehensive income for the period was CNY 23,847,193.40, a decrease of 23.8% from CNY 31,300,333.12 in the previous year[158]. - The company reported a net profit of 568.5 million yuan, representing a profit margin of approximately 58.4%[176]. - The total revenue for the first half of 2022 was 974.0 million yuan, showing a significant increase compared to the previous period[176]. Cash Flow and Investments - The net cash flow from operating activities was negative at -¥34,649,138.87, a significant decline of 199.35% compared to ¥34,877,548.04 in the previous year[21]. - The company reported a significant increase in investment income, with a net cash flow from investing activities of ¥115.66 million, compared to a negative cash flow of ¥39.46 million in the previous year[56]. - The company experienced a significant increase in cash inflow from investment activities, totaling CNY 417,035,538.46, compared to CNY 30,062,166.66 in the previous year[159]. - The total cash inflow from investment activities was 416,968,574.86 RMB, significantly higher than 30,062,166.66 RMB in the first half of 2021[163]. - The company received 220,000,000.00 RMB in borrowings during the first half of 2022, compared to 125,000,000.00 RMB in the same period of 2021[164]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,252,498,364.79, a decrease of 3.80% from ¥1,302,008,303.05 at the end of the previous year[21]. - The total assets of Nanjing Haisun Pharmaceutical Co., Ltd. as of June 30, 2022, amounted to CNY 1,252,498,364.79, a decrease from CNY 1,302,008,303.05 at the beginning of the year[145]. - Total liabilities decreased to CNY 308,222,297.64 as of June 30, 2022, compared to CNY 340,434,699.12 at the beginning of the year, a decline of 9.4%[151]. Research and Development - Research and development investment decreased by 35.54% to ¥18.23 million from ¥28.28 million, indicating a reduction in R&D activities during the reporting period[56]. - The company has made significant progress in the consistency evaluation of generic drugs, with the injection of tigecycline's application for consistency evaluation approved during the reporting period[42]. - The company is actively improving its R&D capabilities to mitigate risks associated with new drug development[77]. - The company plans to continue its research and development efforts in new products and technologies to enhance its market position[171]. Market and Product Development - The company holds 73 drug approval numbers, with major products included in the national medical insurance catalog, focusing on innovative and high-quality products[31]. - The injection drug Torasemide, a new generation diuretic, faced sales impact due to market competition and price pressures from low-cost alternatives[32]. - The company has developed a leading position in the domestic market for tolvaptan and tigecycline, with tolvaptan being a leading brand in its segment[38]. - The company is focusing on expanding its market presence through refined promotion strategies for both finished and raw pharmaceutical products[37]. - The company is exploring market expansion opportunities in Southeast Asia, aiming for a 10% market share by the end of 2023[175]. Environmental and Social Responsibility - The company emphasizes social responsibility, focusing on the development of affordable medicines and actively participating in community welfare initiatives[101]. - The company prioritizes environmental protection and sustainable development, ensuring that waste is treated properly and emissions meet regulatory standards[103]. - The company has established a wastewater treatment system with a design capacity of 40 tons per hour, ensuring compliance with the GB8978-1996 Class III standard for wastewater discharge[92]. - The company has implemented a comprehensive air purification system to manage dust generated during production, ensuring no external emissions[92]. Governance and Compliance - The company has established a robust governance structure to protect the interests of shareholders, particularly minority shareholders, and maintains good credit with banks[102]. - There were no significant legal disputes or non-compliance issues reported during the period[112]. - The company has not engaged in any non-operational fund occupation by major shareholders or related parties[108]. - The financial report for the first half of 2022 was not audited[143]. Future Outlook and Strategy - The company plans to issue A-shares, but market demand and competition pose risks to the expected benefits of new capacity[79]. - The company has set a performance guidance for the next half of the year, targeting a revenue increase of 15%[176]. - There are plans for potential mergers and acquisitions to enhance product offerings and market presence[175].

Financial Performance - The company's revenue for Q1 2022 was ¥150,605,102.60, a decrease of 7.15% compared to ¥162,203,581.18 in the same period last year[4] - Net profit attributable to shareholders was ¥12,620,961.53, down 6.58% from ¥13,509,866.40 year-on-year[4] - Basic earnings per share decreased to ¥0.1052, down 6.57% from ¥0.1126 in the same period last year[4] - Total operating revenue for Q1 2022 was CNY 150,605,102.60, a decrease of 7.83% from CNY 162,203,581.18 in Q1 2021[23] - Net profit for Q1 2022 was CNY 12,448,499.59, a decline of 6.39% compared to CNY 13,297,482.78 in Q1 2021[24] Cash Flow - The net cash flow from operating activities was -¥40,136,476.98, a significant decline of 321.09% compared to ¥18,153,992.05 in the previous year[4] - Cash received from sales of goods and services in Q1 2022 was CNY 121,681,320.26, down from CNY 178,421,659.53 in Q1 2021[27] - The net cash flow from investment activities was 23,247,822.60 CNY, recovering from a negative cash flow of -7,659,685.62 CNY in the previous year[28] - The total cash outflow from operating activities was 174,462,859.63 CNY, compared to 160,649,033.98 CNY in the previous year, indicating higher operational costs[28] - The company paid 21,065,428.43 CNY in taxes, down from 27,214,092.77 CNY in the previous year, suggesting a potential decrease in taxable income[28] Assets and Liabilities - Total assets increased by 1.36% to ¥1,319,690,403.80 from ¥1,302,008,303.05 at the end of the previous year[7] - The company's total current assets at the end of the reporting period were 501.33 million yuan, compared to 301.96 million yuan at the beginning of the year[19] - Total liabilities as of the end of Q1 2022 were CNY 358,842,603.35, slightly up from CNY 353,530,387.82 in Q1 2021[21] - The company's total equity as of the end of Q1 2022 was CNY 960,847,800.45, an increase from CNY 948,477,915.23 in Q1 2021[21] Research and Development - The company's R&D expenses decreased by 37.61% to ¥4,789,264.33 from ¥7,676,524.25 year-on-year[9] - Research and development expenses for Q1 2022 were CNY 4,789,264.33, a decrease of 37.73% from CNY 7,676,524.25 in Q1 2021[24] Sales Performance - Sales of injectable Lantanol increased significantly, reaching 25.22 million yuan, a year-on-year increase of 34,617%[14] - The sales volume of injectable Lantanol reached 181,100 units, up 125,669% year-on-year[14] - Sales of Rivaroxaban tablets amounted to 14.86 million yuan, maintaining stable sales despite the impact of the Spring Festival and the pandemic[14] Investment Activities - The company’s cash flow from investing activities was ¥23,247,822.60, a significant improvement from -¥7,659,685.62 in the previous year[9] - Total cash inflow from investment activities was 246,432,426.11 CNY, a substantial increase from 30,062,166.66 CNY year-over-year[28] - The cash inflow from recovering investments was 246,412,538.11 CNY, a notable increase from 30,062,166.66 CNY in the previous year, highlighting improved investment recovery efforts[28] Borrowings and Equity - The company’s short-term borrowings decreased by 34.00% to ¥66,069,130.56 from ¥100,109,270.85[9] - Deferred income tax liabilities decreased to CNY 22,293,792.09 from CNY 41,466,021.50 in the previous year[21]

Financial Performance - The company's operating revenue for 2021 was ¥578,315,038.29, a decrease of 18.12% compared to ¥706,295,710.22 in 2020[19]. - Net profit attributable to shareholders was ¥285,878,182.25, an increase of 417.61% from ¥55,230,052.39 in 2020[19]. - The net profit after deducting non-recurring gains and losses was ¥24,051,742.89, down 54.66% from ¥53,042,549.07 in 2020[19]. - The total assets at the end of 2021 were ¥1,302,008,303.05, representing a 43.63% increase from ¥906,518,927.96 at the end of 2020[19]. - The weighted average return on equity was 35.18%, up 26.84 percentage points from 8.34% in 2020[19]. - The company reported a net cash flow from operating activities of ¥59,940,771.89, a decrease of 18.32% from ¥73,388,593.52 in 2020[19]. - The company received government subsidies amounting to ¥2,429,575.12 in 2021, down from ¥3,515,398.96 in 2020[24]. - The total sales amount from the top five customers was ¥67,337,192.84, accounting for 11.65% of the annual total sales[74]. - The total procurement amount from the top five suppliers was ¥16,200,667.32, representing 31.44% of the annual total procurement[75]. - The company reported a total procurement volume of 243,800 units for Rivaroxaban at a price of 72.31 RMB per 15mg*7 tablets in national procurement[52]. Dividend and Profit Distribution - The company reported a profit distribution plan based on a base of 120,000,000 shares, proposing a cash dividend of 2.50 RMB per 10 shares (including tax) and no bonus shares[5]. - The company distributed a cash dividend of RMB 1.25 per 10 shares, totaling RMB 15 million for the 2020 fiscal year[163]. - The company proposed a cash dividend of 2.50 CNY per 10 shares, totaling 30 million CNY for the year 2021, which represents 100% of the distributable profit[166]. - The company has no plans for stock bonuses or capital reserve transfers for the year 2021, with all undistributed profits carried forward to the next year[167]. - The independent directors have confirmed that the profit distribution plan aligns with the company's performance growth and protects the interests of all shareholders[166]. Research and Development - The company is focused on the development of generic drugs and aims to ensure quality and efficacy consistency with original drugs[13]. - The company is engaged in ongoing research and development to innovate new products and technologies in the pharmaceutical field[13]. - The company has established a strong presence in the pharmaceutical market, with a focus on expanding its product offerings and market reach[13]. - The company is actively enhancing its R&D capabilities, focusing on both independent and collaborative research to ensure a continuous pipeline of new products[46]. - The company has submitted three invention patent applications, strengthening its intellectual property protection and enhancing core competitiveness[51]. - The company is advancing multiple R&D projects, including the completion of the synthesis process for Dabigatran and the establishment of corresponding quality standards[78]. - The company has ongoing applications for various products, including Apixaban and Montelukast, which are currently under review, indicating a robust pipeline[49]. - The company plans to enhance research and development efficiency and focus on innovation management in 2022[110]. - The company has established a dedicated team for innovative drug research to foster new drug development[110]. Market and Product Development - The company has 73 approved drug products, with major products included in the 2021 National Medical Insurance Directory[36]. - The company’s main products include Torasemide injection, Tigecycline injection, and Labetalol hydrochloride injection, which are positioned in various therapeutic areas[36]. - The company’s Torasemide injection is a new generation diuretic with a strong and lasting effect, but faced market challenges due to low-priced competitors[36]. - The company has completed the registration for the seventh batch of national drug procurement for Tigecycline injection, aiming to enhance market coverage[37]. - The company is focusing on improving product quality standards through consistency evaluation applications for several injectable products, which are expected to enhance competitiveness[49]. - The company is actively expanding its market presence for injectable Labetalol and Rivaroxaban tablets, which are expected to be major growth points in 2022[113]. - The company aims to optimize its product structure with the inclusion of new products in the medical insurance directory, which is expected to drive growth[109]. Operational Efficiency and Cost Management - The company is committed to reducing drug procurement prices through volume-based procurement strategies, which could alleviate medical expenses[13]. - The company has established a complete quality management system and maintains stable relationships with key suppliers, ensuring smooth procurement channels[42]. - The company's operating costs decreased due to a decline in annual revenue, with fixed costs increasing as a percentage of total costs[73]. - The company reported a 60.03% decrease in raw material costs, which accounted for 35.09% of total operating costs in 2021[73]. - The company has established a marketing network covering over 1,000 distributors and approximately 3,000 hospitals nationwide[65]. - The company is expanding its online and offline sales channels to enhance its marketing strategy[65]. Governance and Compliance - The company has established a comprehensive governance structure, including a board of directors and supervisory board, ensuring effective checks and balances[129]. - The company maintains complete independence from its controlling shareholder in terms of assets, personnel, finance, and operations, ensuring a fully independent business model[130]. - The company has a structured governance framework with clear responsibilities among the shareholders' meeting, board of directors, and supervisory board[171]. - The company has a clear governance structure that includes independent oversight by non-executive directors[146]. - The company has a performance evaluation system to assess the effectiveness of its directors and senior management annually[147]. - The company has maintained compliance with regulatory requirements regarding the remuneration of its board members and executives[148]. Environmental Responsibility - The company has implemented a waste gas treatment process with a 90% efficiency rate for organized waste gas, ensuring compliance with emission standards[181]. - The company has constructed a 100 tons per day wastewater treatment facility, which further discharges to the local wastewater treatment plant for additional purification[183]. - The company has established a solid hazardous waste storage facility and follows strict regulations for the storage and transfer of hazardous waste[182]. - The company has conducted environmental monitoring for air and water quality throughout 2021, with all results meeting regulatory standards[185]. - The company actively participates in environmental protection and sustainable development, ensuring compliance with environmental regulations and investing in clean production facilities[188]. Employee and Training Initiatives - The total number of employees at the end of the reporting period was 563, with 186 in production, 105 in sales, and 155 in technical roles[160]. - The company conducted 231 training sessions during the reporting period, totaling 1,517 hours, to enhance employee skills and efficiency[162]. - The company has a competitive compensation policy that includes basic salary, sales bonuses, and various employee benefits[161]. - The company aims to enhance employee capabilities through various training programs, contributing to its competitive edge in the pharmaceutical industry[171]. Risks and Challenges - The company emphasizes the importance of understanding risks such as industry policy changes, drug price reduction risks, and R&D risks, which could impact future performance[5]. - The company is facing risks from industry policy changes, including price reductions due to centralized procurement, which may impact profitability[117][118]. - The company reported a significant impact from natural disasters and public health emergencies on its operations, which could affect normal production and business activities[123].

Financial Performance - Revenue for Q3 2021 was CNY 136,619,605.45, a decrease of 20.62% compared to the same period last year[3] - Net profit attributable to shareholders was CNY 7,097,146.26, down 40.13% year-on-year[3] - Basic earnings per share decreased by 40.18% to CNY 0.0591[3] - Total operating revenue for Q3 2021 was CNY 453.52 million, a decrease of 17.2% compared to CNY 547.95 million in the same period last year[19] - Net profit for Q3 2021 was CNY 27.53 million, a decline of 42.4% from CNY 47.79 million in Q3 2020[20] - Basic and diluted earnings per share for Q3 2021 were CNY 0.2353, compared to CNY 0.4028 in the same quarter last year[21] Assets and Liabilities - Total assets at the end of the reporting period were CNY 966,706,197.11, an increase of 6.64% from the end of the previous year[3] - The company's total assets as of September 30, 2021, amount to 966,706,197.11 yuan, an increase from 906,518,927.96 yuan at the end of 2020[16] - The total current assets are reported at 296,034,699.87 yuan, slightly up from 293,742,731.79 yuan[16] - The company's total liabilities as of Q3 2021 were CNY 275.43 million, an increase from CNY 227.55 million year-over-year[18] - The total liabilities stood at ¥227,547,335.52, remaining consistent with the previous year[28] Cash Flow - Cash flow from operating activities for the year-to-date was CNY 31,877,489.49, down 26.11%[3] - Cash inflow from operating activities was CNY 485.23 million, compared to CNY 547.50 million in the previous year[23] - The net cash flow from operating activities for Q3 2021 was ¥31,877,489.49, a decrease of 26.1% compared to ¥43,144,565.78 in Q3 2020[24] - The total cash outflow from investing activities was ¥111,478,073.45, down 24.5% from ¥147,728,102.80 in the same period last year[24] - The net cash flow from financing activities increased to ¥27,601,882.78, compared to ¥10,666,510.01 in Q3 2020, representing a growth of 158.5%[24] Shareholder Information - The total number of common shareholders at the end of the reporting period is 7,705[11] - The largest shareholder, Cao Yuping, holds 42.08% of shares, totaling 50,491,306 shares, with 37,868,479 shares pledged[11] - The second-largest shareholder, Jiang Xiaoqin, holds 9.98% of shares, totaling 11,973,913 shares[11] Operating Costs and Expenses - The company experienced a 40.26% decrease in operating costs, totaling CNY 81,895,178.55, primarily due to a decline in revenue from a subsidiary[9] - Total operating costs for Q3 2021 were CNY 423.36 million, down 14.6% from CNY 495.57 million year-over-year[19] - Research and development expenses for Q3 2021 amounted to CNY 18.61 million, a decrease of 21.5% from CNY 23.72 million in the same period last year[19] Other Financial Metrics - Investment income decreased by 55.66% to CNY -100,487.40, attributed to acceptance discounting[9] - The company reported a foreign exchange gain of CNY 268.35 thousand in Q3 2021, compared to a gain of CNY 245.04 thousand in the same period last year[20] - The company has a total of 55,954,749 shares under lock-up agreements, primarily due to executive lock-up[13] - The company's cash and cash equivalents decreased to 91,089,838.96 yuan from 103,225,547.36 yuan[15] - Short-term borrowings increased to 100,087,090.38 yuan from 70,075,277.77 yuan[16] - The total non-current assets are reported at 670,671,497.24 yuan, up from 612,776,196.17 yuan[16] Accounting Changes - The company implemented a new leasing standard starting from 2021, which required adjustments to the financial statements[29]

Industry Impact and Risks - The company reported a significant impact from industry policy changes, including drug approval and procurement reforms, which pose risks to future operations [5]. - The company is facing significant risks due to changes in industry policies, which could impact drug approval, quality supervision, and procurement processes [88]. Research and Development - The company is focusing on improving R&D capabilities and has initiated consistency evaluations for its main products to mitigate risks associated with new drug development [6]. - The company aims to enhance its academic brand building for its products, particularly those that meet medical insurance negotiation requirements [33]. - The company is actively pursuing new product development and strategic partnerships to expand its R&D pipeline [6]. - The company is enhancing its R&D capabilities to mitigate risks associated with long development cycles and potential project failures, focusing on strategic new product development [89]. - The company has established a comprehensive R&D system, recognized as a provincial technology center, and has undertaken over 20 national and provincial-level technology projects [55]. - The company is transitioning from generic drugs to innovative drugs, with a focus on clinical development and registration of new candidates [44]. - The company has initiated consistency evaluations for its generic injectable drugs, which are crucial for maintaining market access [91]. Financial Performance - The company's operating revenue for the reporting period was ¥316,902,875.42, a decrease of 15.68% compared to ¥375,842,580.80 in the same period last year [24]. - The net profit attributable to shareholders was ¥21,136,165.02, down 42.07% from ¥36,485,998.26 year-on-year [24]. - The net profit after deducting non-recurring gains and losses was ¥20,507,510.71, a decrease of 41.80% compared to ¥35,234,588.74 in the previous year [24]. - The net cash flow from operating activities increased significantly by 245.75%, reaching ¥34,877,548.04 compared to ¥10,087,405.58 in the same period last year [24]. - The total assets at the end of the reporting period were ¥901,849,900.08, a slight decrease of 0.52% from ¥906,518,927.96 at the end of the previous year [24]. - The net assets attributable to shareholders increased by 0.88%, amounting to ¥685,752,270.03 compared to ¥679,774,827.09 at the end of the previous year [24]. Environmental Compliance - The company plans to enhance its environmental protection measures in response to increasing regulatory requirements, which may affect operational costs [7]. - The company emphasizes the importance of compliance with environmental standards to avoid penalties and ensure sustainable operations [7]. - Nanjing Haichen Pharmaceutical reported a total wastewater treatment capacity of 40 tons per hour, ensuring compliance with the GB8978-1996 Class III standard [101]. - The company has not exceeded the wastewater discharge limits, with all monitoring results meeting regulatory requirements [102]. - The company has implemented a comprehensive wastewater treatment system, ensuring no harmful emissions during production processes [102]. - The company has completed environmental protection facilities construction, with operations expected to start in October 2021 [104]. Strategic Partnerships and Acquisitions - The company has established a merger fund to acquire 90% of the Italian NMS Group, which specializes in innovative drug development, although operations were temporarily affected by the pandemic [6]. - NMS Group, acquired by the company, has made significant progress in product development, including the approval of Entrectinib and Encorafenib, contributing to improved financial metrics [52]. - The company has established a stable cooperation relationship with key suppliers, ensuring smooth procurement channels for raw materials [36]. Shareholder and Governance Matters - No cash dividends or stock bonuses will be distributed to shareholders for the reporting period [8]. - The company has a governance structure in place to manage its growing number of subsidiaries and joint ventures effectively [90]. - The controlling shareholders of Haicheng Pharmaceutical, Cao Yuping and Jiang Xiaoqun, committed to not transferring or entrusting the management of their shares for 36 months post-IPO [116]. - The company is committed to long-term shareholding and will adhere to regulations regarding share reduction [117]. - The company has made commitments to avoid related party transactions and ensure no fund occupation by controlling shareholders [120]. Operational Efficiency and Cost Management - The company aims to enhance its operational efficiency and reduce costs to enhance profitability in the upcoming quarters [192]. - The company is focusing on improving its operational efficiency and reducing costs to enhance profitability in the upcoming quarters [192]. - The company has effectively managed its investment projects to align with the planned progress for R&D and facility upgrades [81]. Market Expansion and Product Development - The company plans to focus on expanding the market for its injectable tigecycline, which is recognized as a "super antibiotic" and has significant growth potential [32]. - The company aims to accelerate product structure transformation and increase the promotion of key products to address the urgent need for development [37]. - The company plans to enhance its market expansion strategies and invest in new product development to drive future growth [191]. Social Responsibility and Community Engagement - The company emphasizes social responsibility, focusing on the protection of shareholder interests and maintaining a robust governance structure [110]. - The company actively participates in social welfare, donating RMB 1.25 million worth of medicines to the Red Cross and supporting local educational initiatives [112].

Financial Performance - The company's revenue for Q1 2021 was ¥162,203,581.18, a decrease of 2.39% compared to ¥166,174,066.04 in the same period last year[8] - Net profit attributable to shareholders was ¥13,509,866.40, down 21.30% from ¥17,167,277.16 year-on-year[8] - The net profit after deducting non-recurring gains and losses was ¥13,045,757.33, reflecting a decline of 22.11% compared to ¥16,748,136.72 in the previous year[8] - Basic and diluted earnings per share were both ¥0.1126, down 21.31% from ¥0.1431 in the previous year[8] - The company achieved a sales revenue of 158 million, representing a year-on-year increase of 8.23%, and a net profit of 19.96 million, up 17.51% year-on-year[19] - The company reported a decrease in current liabilities to CNY 161,059,571.70 from CNY 169,811,406.27[42] - The total profit for Q1 2021 was CNY 14,632,820.18, down from CNY 19,463,487.32 in the previous year[46] - The total comprehensive income for Q1 2021 was CNY 13,297,482.78, down from CNY 17,036,254.07 in the same period last year[47] Cash Flow - The net cash flow from operating activities was ¥18,153,992.05, a significant improvement from a negative cash flow of ¥9,632,384.35 in the same period last year[8] - The operating cash inflow for the current period is CNY 178,803,026.03, an increase of 13.0% compared to CNY 157,384,675.64 in the previous period[54] - The cash inflow from investment activities is CNY 30,062,166.66, up from CNY 20,067,854.83, marking a 49.9% increase[54] - The net cash flow from investment activities is negative at CNY -7,659,685.62, an improvement from CNY -58,868,747.24 in the previous period[54] - The cash inflow from financing activities decreased to CNY 70,000,000.00 from CNY 80,000,000.00, a decline of 12.5%[55] - The net cash flow from financing activities is negative at CNY -1,725,833.33, compared to a positive CNY 48,394,971.95 in the previous period[55] Assets and Liabilities - Total assets at the end of the reporting period were ¥909,113,506.69, a slight increase of 0.29% from ¥906,518,927.96 at the end of the previous year[8] - Total liabilities decreased to CNY 207,093,835.30 from CNY 216,385,608.40[42] - Owner's equity increased to CNY 706,137,569.27, up from CNY 686,420,006.66[42] - Accounts receivable decreased to ¥82,890,313.90 from ¥86,419,628.88, indicating a decline of about 4.1%[36] - Inventory levels decreased to ¥64,227,828.94 from ¥71,578,195.78, representing a reduction of approximately 10.3%[36] Shareholder Information - The total number of shareholders at the end of the reporting period was 7,479, with the largest shareholder holding 42.08% of the shares[12] - The top five customers contributed 10.96% of total sales, with a sales amount of 17.77 million, down from 15.38% in the previous year[22] - The first customer generated revenue of CNY 5,120,489.50, representing 3.16% of total sales in Q1 2021, down from 7.98% in the previous year[23] Investment and R&D - The company has cumulatively invested CNY 19,667.36 million from the raised funds, with a total raised amount of CNY 19,845.7 million[26] - The new drug research and development project has utilized 93.51% of the adjusted investment amount of CNY 4,345.74 million[26] - The marketing channel network construction project has achieved an investment progress of 102.28% against the committed amount of CNY 1,000 million[26] - The company has made adjustments to its new drug research project, including changes in implementation location and methods, which have been approved by the board of directors[27] Risk Factors and Compliance - The company has not encountered any overdue commitments from actual controllers, shareholders, or related parties during the reporting period[24] - There were no significant adverse risk factors affecting the company's future operations reported in the current period[24] - The company has not encountered any violations regarding external guarantees during the reporting period[29] - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[30] Changes in Financial Reporting - The company has implemented new leasing standards effective January 1, 2021, impacting the financial reporting[66]

Financial Performance - The company's operating revenue for 2020 was approximately ¥706.30 million, a decrease of 23.61% compared to ¥924.54 million in 2019[16]. - The net profit attributable to shareholders for 2020 was approximately ¥55.23 million, down 43.21% from ¥97.26 million in 2019[16]. - The net cash flow from operating activities was approximately ¥73.39 million, a decline of 24.56% from ¥97.28 million in 2019[16]. - The basic earnings per share for 2020 was ¥0.4603, a decrease of 43.21% compared to ¥0.8105 in 2019[16]. - The total assets at the end of 2020 were approximately ¥906.52 million, an increase of 4.30% from ¥869.18 million at the end of 2019[16]. - The net assets attributable to shareholders at the end of 2020 were approximately ¥679.77 million, up 3.93% from ¥654.08 million at the end of 2019[16]. - The company reported a weighted average return on equity of 8.34% for 2020, down from 15.85% in 2019[16]. - The net profit after deducting non-recurring gains and losses for 2020 was approximately ¥53.04 million, a decrease of 44.29% from ¥95.21 million in 2019[16]. - The company reported a total of CNY 4,345.7 million in raised funds, with CNY 172 million allocated for various projects[90]. Dividend Distribution - The company plans to distribute a cash dividend of ¥1.25 per 10 shares, based on a total of 120 million shares[5]. - The cash dividend for 2020 represents 27.16% of the net profit attributable to the company's ordinary shareholders, which was approximately 55.23 million CNY[122]. - The total distributable profit for 2020 was approximately 300.74 million CNY, with the entire cash dividend amounting to 15 million CNY[119]. - The company distributed cash dividends of RMB 2.50 per 10 shares, totaling RMB 30 million for the 2019 fiscal year[116]. - The cash dividend payout ratio for 2020 is the lowest since 2018, reflecting a strategic decision to retain more earnings for future investments[120]. Market and Product Development - The company reported a total of 68 drug approval numbers, with major products included in the 2019 National Medical Insurance Directory, indicating a strong product portfolio[25]. - The main products include Torasemide injection, Tigecycline injection, and Cefoperazone sodium injection, which are positioned in high-demand therapeutic areas[25][26][27]. - The company has developed a freeze-dried powder injection process for Torasemide, significantly improving its solubility and stability, leading to its inclusion in multiple clinical treatment guidelines[31]. - The company is focusing on the transformation from generic drugs to innovative drugs, with a clinical candidate compound delivered by NMS Group in December 2020[44]. - The company plans to complete the registration application for several new drugs, including Propofol and Febuxostat, in 2021[43]. Research and Development - The company has established a comprehensive R&D system, participating in over 20 national and provincial technology projects, enhancing its innovation capabilities[34]. - The company has submitted three invention patent applications, strengthening its intellectual property protection and enhancing core competitiveness[43]. - The company is focusing on improving R&D capabilities and has initiated consistency evaluations for its main products to mitigate risks associated with regulatory compliance[112]. - The company aims to optimize its R&D project selection and enhance the depth and breadth of its research pipeline[109]. Operational Challenges and Risks - The company highlighted risks including industry policy changes and R&D risks in its future outlook[5]. - The company's revenue and net profit declined due to the impact of the pandemic, with a need to accelerate product structure transformation and innovation drug promotion[29]. - The company has implemented a comprehensive risk management strategy to address potential policy changes in the pharmaceutical industry[108]. Strategic Initiatives - The company acquired 90% of NMS Group, Italy's largest oncology drug R&D institution, enhancing its innovative drug development capabilities[38]. - The company is focusing on expanding its sales channels and enhancing brand recognition through academic promotions and training[47]. - The company aims to enhance its production capacity and market expansion through new construction projects and strategic investments[50]. - The company plans to enhance R&D efficiency and innovation, focusing on both generic and innovative drug development[104]. Shareholder and Governance Matters - The company has a robust governance structure in place to ensure compliance with cash dividend policies and protect shareholder interests[118]. - The company aims to protect the rights of shareholders, especially minority shareholders, through these measures[127]. - The company has established clear guidelines for share reduction pricing, ensuring it does not fall below the IPO price[148]. - The company has committed to avoiding any non-transactional fund exchanges with its subsidiaries during the period of being recognized as the actual controller[161]. Financial Management - The company reported a significant increase in investment activity cash outflow by 113.33% to ¥182,102,842.77[76]. - The company has maintained a focus on improving corporate governance and investor relations during the reporting period[55]. - The company has engaged Tianheng Accounting Firm for auditing services with a fee of 600,000 RMB[180]. - The company has not encountered any significant changes in the investment projects or their expected benefits[92].

Financial Performance - Operating revenue for the reporting period was ¥172,111,553.32, a decrease of 24.76% year-on-year, while year-to-date revenue was ¥547,954,134.12, down 19.96%[8] - Net profit attributable to shareholders for the reporting period was ¥11,854,330.62, a decline of 51.95%, with year-to-date net profit at ¥48,340,328.88, down 37.59%[8] - Basic earnings per share for the reporting period were ¥0.0988, a decrease of 51.95% compared to the same period last year[8] - Total operating revenue for the period was ¥547,954,134.12, a decrease of 19.96% compared to ¥684,595,566.27 in the previous period[47] - Net profit for the period was ¥47,785,255.88, a decline of 38.34% from ¥77,454,891.27 in the previous period[49] - The total comprehensive income for the period was ¥47,785,255.88, down from ¥77,454,891.27 in the previous period[50] - The net profit for the third quarter was ¥50,083,080.36, down 30.6% from ¥72,117,034.59 in the previous year[54] Assets and Liabilities - Total assets at the end of the reporting period reached ¥909,138,936.18, an increase of 4.60% compared to the end of the previous year[8] - The company's cash and cash equivalents decreased by 33.47% to ¥99,862,014.33 compared to the beginning of the year, primarily due to payments for land and financial products[18] - The total liabilities of the company rose to CNY 237,368,351.85 from CNY 215,193,760.87, indicating an increase of about 10.3%[33][34] - The company's equity attributable to shareholders increased to CNY 672,425,479.41 from CNY 654,082,357.93, reflecting a growth of approximately 2.9%[34] - The company's current assets decreased to CNY 312,929,052.48 from CNY 343,167,421.99, reflecting a decline of approximately 8.8%[31][34] Cash Flow - The net cash flow from operating activities was ¥33,057,160.20, an increase of 82.28% compared to the same period last year[8] - Cash flow from operating activities was ¥43,144,565.78, slightly down from ¥43,671,118.67 in the previous year[57] - The company reported a net cash outflow from investing activities of ¥105,304,351.41, compared to a smaller outflow of ¥11,099,514.46 in the same period last year[58] - The total cash and cash equivalents at the end of the period were ¥98,108,735.37, a decrease from ¥99,605,435.02 at the end of the previous year[58] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 7,447[12] - The largest shareholder, Cao Yuping, holds 42.08% of the shares, with a total of 50,491,306 shares, of which 37,868,479 are pledged[12] Expenses and Costs - Total operating costs decreased to CNY 160,760,876.33 from CNY 199,884,381.29, with operating costs specifically at CNY 41,079,642.55 compared to CNY 45,065,304.47 last year[40] - The company experienced a significant credit impairment loss of ¥269,757.42, compared to a gain of ¥387,469.03 in the previous period[46] - The financial expenses increased to ¥4,947,823.49 from ¥3,913,746.03 in the previous period[49] - The company reported a significant decrease in sales expenses, which were ¥297,151,498.27, down from ¥405,352,718.10 in the previous period[47] Research and Development - Research and development expenses increased to CNY 6,073,035.42 from CNY 2,219,787.22, indicating a focus on innovation[40] - Research and development expenses were ¥23,724,214.76, slightly down from ¥24,285,854.25 in the previous period[47] - Research and development expenses amounted to ¥21,595,120.70, down from ¥24,285,854.25 in the previous year, indicating a reduction of 11.1%[52] Legal and Compliance - The company has reached a settlement regarding a legal dispute over a product, which is not expected to result in any economic loss[20] - The company reported no violations regarding external guarantees during the reporting period[24] - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[25] - The company has not undergone an audit for the third quarter report[72] Strategic Focus - There were no significant changes in the company's strategy or new product developments mentioned during the reporting period[10] - The company is likely to continue focusing on cost management and R&D to improve profitability in future quarters[41] - The company is positioned for potential market expansion, supported by its solid asset base and liquidity[69]

COVID-19 Impact - The company reported a significant impact from the COVID-19 pandemic on its operations, particularly affecting the NMS Group's research and production activities, which have now resumed normal operations[9]. - The company has seen a significant impact on production and logistics due to pandemic restrictions, affecting overall operational efficiency[38]. - The company's revenue and net profit decreased during the reporting period due to the impact of the pandemic on outpatient and surgical volumes in medical institutions[38]. Financial Performance - The company's operating revenue for the first half of 2020 was CNY 375,842,580.80, a decrease of 17.55% compared to CNY 455,836,772.52 in the same period last year[26]. - The net profit attributable to shareholders was CNY 36,485,998.26, down 30.89% from CNY 52,791,007.50 year-on-year[26]. - The net cash flow from operating activities was CNY 10,087,405.58, representing a decline of 60.50% compared to CNY 25,535,344.02 in the previous year[26]. - The total assets at the end of the reporting period were CNY 896,885,988.53, an increase of 3.19% from CNY 869,176,296.72 at the end of the previous year[26]. - The net assets attributable to shareholders at the end of the reporting period were CNY 660,922,867.86, up 1.05% from CNY 654,082,357.93 at the end of the previous year[26]. - The company achieved a sales revenue of 376 million yuan, a year-on-year decrease of 17.55%, and a net profit of 36.13 million yuan, down 31.56% year-on-year[50]. R&D and Product Development - The company is actively pursuing new drug development projects and optimizing its R&D structure to mitigate risks associated with high-tech pharmaceutical products[8]. - The company is focusing on strategic new product development and exploratory research to expand its R&D pipeline[8]. - The company has established a merger fund to acquire 90% of the NMS Group, which focuses on innovative drug screening and development[9]. - The company has multiple R&D projects at different stages, including the development of IDH inhibitors in collaboration with NMS Group[54]. - The company is focusing on the development of new products, with several projects in the review process, including Rivaroxaban and Apixaban[51]. - The company has been recognized as a provincial-level technology center for immune regulation drugs, indicating its strong R&D capabilities[49]. Market and Competitive Position - The company emphasizes the importance of maintaining a competitive edge in the pharmaceutical market by enhancing product quality and efficacy[6]. - The company has a diverse product portfolio with 67 drug approval numbers, focusing on therapeutic areas such as diuretics, cardiovascular, anti-infection, and digestive systems[33]. - The company continues to explore market expansion opportunities and enhance its product offerings to meet patient needs[33]. - The company is positioned as one of the few in China capable of stable production of Tigecycline, contributing to domestic import substitution[42]. Environmental Compliance - The company aims to improve its environmental compliance and reduce pollution control costs in response to stricter regulatory requirements[11]. - The company has a wastewater treatment system with a design capacity of 40 tons per hour, ensuring compliance with discharge standards[125]. - The company has implemented a comprehensive waste management system for hazardous waste, ensuring proper disposal[125]. - The company is actively pursuing the upgrade of environmental protection facilities to improve wastewater and waste gas treatment efficiency, with the feasibility report submitted to the administrative approval bureau[127]. Shareholder and Equity Information - The company will not distribute cash dividends or issue bonus shares for the reporting period[12]. - The total number of ordinary shareholders at the end of the reporting period was 8,409[139]. - The largest shareholder, Cao Yuping, holds 42.08% of the shares, totaling 50,491,306 shares, with 37,868,479 shares pledged[140]. - The company experienced a reduction in restricted shares from 72,679,560 shares (60.57%) to 55,954,740 shares (46.63%) due to the release of restrictions on certain shareholders[133]. Operational Adjustments - The company plans to enhance its internal management systems and risk control mechanisms to adapt to the expansion of its operational scale and the increasing complexity of its business[10]. - The company is actively exploring sales transformation under the volume-based procurement model to adapt to market changes[55]. - The company has adjusted the implementation location and method of the new drug research project, changing it to a dedicated research facility[80]. Financial Management - The total amount of raised funds is CNY 198.46 million, with CNY 194.96 million actually utilized by the end of the reporting period[76]. - The company has generated interest income of CNY 3.06 million from idle raised funds, with CNY 2.03 million from principal-protected financial products[76]. - The company has not engaged in any derivative investments or entrusted loans during the reporting period[87][89]. Industry Trends and Challenges - The introduction of centralized procurement policies has led to a gradual compression of profit margins for pharmaceutical companies, necessitating accelerated industry consolidation[41]. - The company is facing significant risks from industry policy changes, particularly due to ongoing reforms in the pharmaceutical sector, which may impact drug approval and procurement processes[92]. - The company is closely monitoring industry policy changes that could impact its operations, particularly in the context of ongoing healthcare reforms[6].

Financial Performance - Total revenue for Q1 2020 was ¥166,174,066.04, a decrease of 21.09% compared to ¥210,599,993.07 in the same period last year[7] - Net profit attributable to shareholders was ¥17,167,277.16, down 22.91% from ¥22,269,622.00 year-on-year[7] - Basic earnings per share decreased by 22.90% to ¥0.1431 from ¥0.1856 in the previous year[7] - The total sales revenue from the top five customers was ¥25,562,189.78, accounting for 15.38% of total revenue, compared to 14.22% in the same period last year[22] - The total comprehensive income for the first quarter was CNY 16,990,242.10, compared to CNY 21,257,332.57 in the previous period, indicating a decrease of approximately 20.7%[49] Cash Flow - The net cash flow from operating activities was negative at -¥9,632,384.35, a decline of 1,763.38% compared to ¥579,083.91 in the same period last year[7] - Cash inflow from operating activities was CNY 157,384,675.64, down from CNY 216,823,068.80, reflecting a decline of about 27.4%[51] - The net cash flow from operating activities was negative at CNY -9,632,384.35, compared to a positive CNY 579,083.91 in the previous period[52] - Cash inflow from financing activities was CNY 80,000,000.00, up from CNY 40,000,000.00, representing a 100% increase[53] - The net cash flow from financing activities was CNY 48,394,971.95, compared to a negative CNY -1,440,227.08 in the previous period, showing a significant turnaround[53] Assets and Liabilities - Total assets increased by 4.85% to ¥911,370,208.90 from ¥869,176,296.72 at the end of the previous year[7] - Total liabilities amounted to CNY 239,545,229.67, up from CNY 215,193,760.87, indicating an increase of approximately 11.3%[36] - The company's equity attributable to shareholders reached CNY 672,055,824.40, compared to CNY 654,082,357.93, showing an increase of about 2.7%[37] - Total liabilities increased to CNY 225,470,338.93 from CNY 199,906,407.26, indicating a rise in financial obligations[43] Shareholder Information - The largest shareholder, Cao Yuping, holds 42.08% of the shares, with a total of 50,491,306 shares, of which 37,868,479 are pledged[10] - The total number of ordinary shareholders at the end of the reporting period was 8,844[10] Operational Efficiency - The company's investment income decreased by 129.49% to -¥98,187.67 due to reduced investment returns[17] - The company's long-term borrowings increased to ¥50,054,166.67 during the reporting period[17] - The total operating costs decreased to CNY 147,309,456.75 from CNY 185,651,419.46, reflecting a cost reduction strategy[43] - Research and development expenses were CNY 8,649,695.90, down from CNY 11,878,045.72, reflecting a focus on cost management[43] Market and Product Performance - The sales revenue of the main product, injectable Torasemide, was ¥63.56 million, a year-on-year decrease of 28.19%[19] - The sales revenue of injectable Cefoperazone decreased by 56.35% to ¥13.86 million, with a sales volume decline of 59.73%[19] Future Outlook and Projects - The company has not made significant adjustments to its annual business plan during the reporting period, focusing on management enhancement and market expansion[23] - There were no significant changes in the feasibility of projects or any major risks affecting future operations reported[28] - The company has implemented new revenue and leasing standards starting in 2020, affecting the financial statements[57] - The company is implementing new revenue and leasing standards starting from 2020, which may affect future financial reporting and comparisons[63]