Financial Performance - The company's revenue for Q1 2022 was ¥53,106,464.55, a decrease of 14.66% compared to ¥62,227,442.74 in the same period last year[3] - Net profit attributable to shareholders was ¥7,906,004.78, down 25.22% from ¥10,572,246.52 year-on-year[3] - Basic and diluted earnings per share were both ¥0.1174, reflecting a decrease of 32.72% from ¥0.1745 in the same period last year[3] - Total operating revenue for Q1 2022 was CNY 53,106,464.55, a decrease of 14.5% compared to CNY 62,227,442.74 in the same period last year[22] - Net profit for Q1 2022 was CNY 7,906,004.78, representing a decline of 25.3% from CNY 10,572,246.52 in Q1 2021[24] - Earnings per share for Q1 2022 was CNY 0.1174, down from CNY 0.1745 in the previous year[25] Cash Flow and Liquidity - The net cash flow from operating activities increased significantly to ¥15,610,919.58, a 683.96% improvement from -¥2,673,267.98 in the previous year[3] - The company's cash and cash equivalents amounted to RMB 637,637,486.24, up from RMB 148,630,019.72 at the beginning of the year, reflecting a substantial growth in liquidity[19] - The net cash flow from operating activities was 15,610,919.58 CNY, a significant improvement compared to -2,673,267.98 CNY in the previous year[28] - The net cash flow from investing activities was 64,048,790.21 CNY, recovering from a negative cash flow of -1,884,270.00 CNY in the same period last year[28] - The net cash flow from financing activities amounted to 409,347,756.73 CNY, indicating strong capital inflow[29] - The total cash and cash equivalents at the end of the period reached 637,080,557.42 CNY, up from 102,623,538.74 CNY year-over-year[29] - The cash flow from operating activities showed a positive trend, indicating improved operational efficiency[28] Assets and Equity - Total assets at the end of the reporting period reached ¥1,002,392,131.32, representing a 68.58% increase from ¥594,606,181.26 at the end of the previous year[3] - Shareholders' equity attributable to the company was ¥922,977,118.32, up 76.09% from ¥524,138,056.37 at the end of the last year[3] - The total current assets increased to RMB 725,917,369.13 from RMB 314,929,356.70, showcasing a strong improvement in the company's short-term financial position[20] - The total non-current assets decreased slightly to RMB 276,474,762.19 from RMB 279,676,824.56, suggesting stability in long-term investments[20] - Total equity attributable to shareholders increased to CNY 922,977,118.32 from CNY 524,138,056.37, a significant rise of 76.1%[22] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 19,577[10] - The company has issued a total of 20,200,986 shares in its initial public offering, which was approved by the China Securities Regulatory Commission[17] Operational Highlights - The company plans to continue its market expansion and product development strategies, aiming for sustainable growth in the upcoming quarters[17] - The company is focusing on research and development of new products and technologies to enhance its competitive edge in the pharmaceutical industry[17] Donations and Subsidies - The company received government subsidies amounting to ¥770,553.18, which are closely related to its normal business operations[6] - The company made a donation of ¥1,000,000 to the Red Cross Society of Panshi City for epidemic prevention support[6] Other Financial Metrics - Total operating costs for Q1 2022 were CNY 44,475,693.43, down 14.4% from CNY 51,939,691.57 year-on-year[22] - Accounts payable increased to CNY 8,386,126.64 from CNY 6,235,531.98, reflecting a rise of 34.5%[21] - Other payables rose to CNY 27,186,912.80 from CNY 18,852,139.04, marking an increase of 43.8%[21] - Total liabilities amounted to CNY 79,415,013.00, up from CNY 70,468,124.89, indicating a growth of 12.8%[21] - Deferred income decreased slightly to CNY 35,008,213.57 from CNY 35,778,766.75, a decline of 2.1%[21] - The report for the first quarter was not audited, which may affect the reliability of the financial data presented[30]

Financial Performance - The company's operating revenue for 2021 was ¥285,655,932.11, a decrease of 0.23% compared to ¥286,318,719.28 in 2020[20]. - The net profit attributable to shareholders for 2021 was ¥52,019,092.21, representing an increase of 4.58% from ¥49,742,435.47 in 2020[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥44,997,813.13, up 6.06% from ¥42,427,354.94 in 2020[20]. - The net cash flow from operating activities for 2021 was ¥59,013,817.04, a decline of 8.56% compared to ¥64,541,781.89 in 2020[20]. - The total assets at the end of 2021 were ¥594,606,181.26, an increase of 7.96% from ¥550,760,343.90 at the end of 2020[20]. - The net assets attributable to shareholders at the end of 2021 were ¥524,138,056.37, reflecting an increase of 11.02% from ¥472,118,964.16 at the end of 2020[20]. - The basic earnings per share for 2021 were ¥0.8584, up 4.58% from ¥0.8208 in 2020[20]. - The diluted earnings per share for 2021 were also ¥0.8584, consistent with the basic earnings per share[20]. - The weighted average return on equity for 2021 was 10.44%, a decrease of 0.48% from 10.92% in 2020[20]. - The gross profit margin for the main pharmaceutical business was 83.67%, a decrease of 1.02% year-on-year[92]. - The company's main business revenue reached CNY 285.14 million, with a slight increase of 0.12% compared to the same period last year[92]. Dividend and Profit Distribution - The company reported a cash dividend of 1.30 RMB per 10 shares, totaling approximately 10.5 million RMB for all shareholders[6]. - The company implemented a stable profit distribution policy, prioritizing cash dividends, with a total cash dividend amounting to ¥10,504,512.59, which is 100% of the distributable profit[184][187]. - For the fiscal year 2021, the company achieved a net profit of ¥52,019,092.21[186]. - The cash dividend per 10 shares is set at ¥1.30 (including tax), based on a total share capital of 80,803,943 shares[187]. - The total distributable profit as of December 31, 2021, was ¥317,064,302.68[187]. - There were no stock dividends or capital increases from capital reserves during the reporting period[184][187]. Market and Industry Trends - The Chinese pharmaceutical market is projected to reach ¥17.29 billion in 2021, reflecting a recovery and growth trend post-pandemic[35]. - The company has identified significant growth opportunities in the pharmaceutical sector due to increasing healthcare spending and an aging population in China[38]. - The global pharmaceutical market is expected to continue growing, driven by population growth and aging demographics, with China being a key emerging market[31]. - The COVID-19 pandemic has significantly increased public awareness of diseases and health, potentially boosting pharmaceutical sales and improving treatment adherence for conditions like depression[40]. - The rise of internet healthcare channels since 2020 has enhanced drug accessibility, leading to a digital transformation in the pharmaceutical industry, which is expected to drive growth in chronic disease treatment[40]. - The pharmaceutical industry has high entry barriers due to strict regulatory oversight, ensuring orderly development and market access[41]. - The industry is characterized by high investment, high output, and high technology density, with significant government support for innovation and transformation[42]. Product Development and Innovation - The company is actively developing new products, including Ferrous Fumarate and Calcium Citrate, with ongoing quality standard enhancements and industrialization efforts[78]. - The company has a robust innovation-driven development strategy, continuously enhancing its technological capabilities and maintaining profitability over the years[54]. - The company has established a strong integrated advantage in "raw materials + formulations" after years of differentiated development[60]. - The company is committed to developing high-value-added products and promoting the scale and intensive development of the raw material drug industry over the next five years[59]. - The company has completed significant research on the quality standards of starting materials and is working on the industrialization of new products[104]. Risks and Challenges - The company highlighted risks including product concentration, policy changes due to pharmaceutical reforms, market competition, and operational risks from the COVID-19 pandemic[6]. - The company faces policy risks due to ongoing medical system reforms that may increase operational costs and alter business models[131]. - Environmental protection pressures may lead to increased costs and risks if the company fails to comply with national standards[134]. - The company relies on approved suppliers for raw materials, and any disruptions in supply could adversely affect production[134]. - The pharmaceutical industry is experiencing intensified internal competition, with more domestic and international companies entering the market, leading to a decline in average profit margins[136]. Corporate Governance - The company has established a comprehensive corporate governance structure in compliance with relevant laws and regulations, ensuring proper operational management[139]. - The company held one shareholders' meeting during the reporting period, adhering to all legal and procedural requirements[140]. - The board of directors consists of nine members, including three independent directors, meeting the legal requirements for composition[142]. - The supervisory board is composed of five members, ensuring compliance with legal and regulatory standards[143]. - The company emphasizes the importance of information disclosure and investor relations management, with a detailed management system in place[147]. Environmental Compliance - The company has implemented effective measures for wastewater treatment, with a treatment capacity of 200 cubic meters per day, ensuring compliance with environmental standards[196]. - The company utilizes high-efficiency dust removal systems with a removal rate of 90% for particulate matter and 95% for volatile organic compounds[196]. - All hazardous waste is managed properly, with 100% of hazardous waste being disposed of by a licensed environmental service provider[197]. - The company adheres to national environmental protection laws and regulations, ensuring that all pollutants are discharged in compliance with relevant standards[198]. - The company has established a robust internal control system, with the audit report aligning with the board's self-evaluation[192].