Financial Performance - The company reported a net profit that has been negative for the last three accounting years, indicating potential concerns regarding its ongoing viability [11]. - The company's operating revenue for 2022 was ¥2,626,488,832.63, representing a 42.00% increase compared to ¥1,849,677,007.18 in 2021 [13]. - The net profit attributable to shareholders for 2022 was ¥726,277,891.97, an increase of 84.70% from ¥393,228,489.93 in 2021 [13]. - The net profit after deducting non-recurring gains and losses reached ¥657,608,747.31, marking a 120.31% increase compared to ¥298,498,249.98 in 2021 [13]. - The net cash flow from operating activities was ¥640,717,518.79, up 119.36% from ¥292,085,994.15 in the previous year [13]. - The total assets at the end of 2022 amounted to ¥4,584,035,512.38, reflecting a 22.53% increase from ¥3,741,208,950.36 at the end of 2021 [13]. - The net assets attributable to shareholders increased by 19.65% to ¥3,935,600,634.14 from ¥3,289,370,322.06 in 2021 [13]. - The company reported a basic earnings per share of ¥1.1734 for 2022, an increase of 84.70% from ¥0.6353 in 2021 [13]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB for the year, representing a growth of 15% compared to the previous year [32]. - The company reported a gross margin of 45%, maintaining a stable margin despite rising raw material costs [32]. - The company’s main business revenue for 2022 was approximately CNY 2.57 billion, with a gross profit margin of 43.58%, reflecting a year-on-year revenue increase of 43.43% [47]. Market Expansion and Product Development - The company is focused on expanding its market presence and enhancing its product offerings through new technology and product development initiatives [1]. - The company has established subsidiaries in the United States and Germany, indicating its international expansion strategy [5]. - The health food industry in China is experiencing rapid growth, with increasing consumer demand for functional foods and health management products [21]. - The company is the largest producer of synthetic caffeine globally, with a significant market share in the functional food and beverage sector [25]. - The company has an annual production capacity of approximately 280 tons for acarbose, making it the largest acarbose raw material producer in China [25]. - The company is actively pursuing market expansion through new product registrations and certifications, enhancing its competitive position in the pharmaceutical industry [28]. - The company aims to expand its market presence through the development of new health food products and technologies [31]. - The company is exploring potential acquisitions to enhance its product portfolio, focusing on companies with complementary health products [32]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share within the next two years [109]. Research and Development - The company is focused on research and development to innovate and improve its product offerings, ensuring alignment with market demands and regulatory standards [28]. - The R&D team focuses on improving production processes for caffeine products and developing new resources and technologies in health food [58]. - The company is investing in R&D for new technologies, with a budget allocation of 200 million RMB aimed at enhancing product efficacy and safety [32]. - The company has reported a significant focus on research and development, particularly in new drug development and biopharmaceuticals, to enhance market competitiveness [131]. Compliance and Regulatory Matters - The company adheres to multiple regulatory frameworks, including the Food Safety Law and Drug Administration Law, ensuring compliance in its operations [23][24]. - The company’s financial reports are audited by Xinyong Zhonghe Accounting Firm, ensuring compliance and accuracy in financial disclosures [10]. - The company has received GMP certification for various products, including caffeine and aminophylline, with certifications HE20180061 and HE20180069, valid until August 16, 2023 [28]. - The company has established a comprehensive food safety quality control system, achieving multiple certifications including GMP and ISO standards [105]. Corporate Governance - The company maintains complete independence from its controlling shareholder in terms of business, assets, personnel, and finance, ensuring no interference in decision-making or operational activities [120]. - The board of directors operates in accordance with legal regulations and company bylaws, with specialized committees in place for strategic, remuneration, audit, and nomination functions [114]. - The supervisory board functions independently, ensuring effective oversight and compliance with legal and regulatory requirements [115]. - The company has established a performance evaluation and incentive mechanism for directors and senior management, with the remuneration and assessment committee overseeing the implementation of effective incentive and restraint measures [117]. Environmental Responsibility - The company has increased its investment in environmental protection and achieved clean production certification, demonstrating its commitment to social responsibility [44]. - The company has implemented a comprehensive energy management system to promote energy conservation and improve energy efficiency [157]. - The company reported no instances of exceeding pollution discharge standards for wastewater and waste gas [155]. - The company has committed to continuous improvement in environmental protection efforts, including regular monitoring by qualified third-party agencies [157]. Shareholder Relations and Dividends - The profit distribution plan approved by the board is to distribute a cash dividend of 1.5 RMB (including tax) for every 10 shares, with a capital reserve conversion of 8 shares for every 10 shares [2]. - The company distributed a cash dividend of RMB 1.50 per 10 shares, totaling RMB 97,561,846.20, which represents 100% of the total profit distribution [146]. - The company actively engages with investors through various communication channels to enhance transparency and trust [160]. Strategic Initiatives - The company is exploring new technologies in product formulation to improve efficacy and consumer satisfaction [33]. - The company has established measures to ensure stock price stability, which may include stock repurchases and other actions approved by the board and shareholders [169]. - The company has committed to measures to fill the diluted immediate return, focusing on improving operational efficiency and reducing costs [172].