Fundraising and Financial Management - The total amount of funds raised by the company is 154,800,000 CNY, with a net amount of 140,073,230 CNY after deducting issuance costs[3]. - As of December 31, 2022, the company has cumulatively invested 9,458,820 CNY in four fundraising projects, with a remaining balance of 135,372,100 CNY in the fundraising account[3]. - The cumulative interest income from the fundraising account, after deducting handling fees, is 4,757,680 CNY[3]. - The company has not yet utilized 135,372,100 CNY of the raised funds, which are currently held in a dedicated fundraising account[15]. - The company plans to distribute a cash dividend of 4 CNY per 10 shares (including tax) based on a total of 240,000,000 shares[20]. - The company has made adjustments to the use of raised funds amounting to 30,542,550 CNY, which accounts for 21.80% of the total raised funds[15]. - The company has allocated 6,000 million RMB of raised funds for permanent working capital, completed on November 30, 2022[56]. - The company plans to use an additional 15,042.55 million RMB of raised funds for the high-end pharmaceutical formulation internationalization project[56]. - The total investment in committed projects amounts to 140,073.23 million RMB, with a total expected return of 9,458.82 million RMB[53]. Financial Performance - The company's operating revenue for 2022 was ¥514,911,768.91, a decrease of 4.76% compared to ¥540,622,560.29 in 2021[29]. - Net profit attributable to shareholders for 2022 was ¥125,723,912.42, an increase of 3.35% from ¥121,649,369.36 in 2021[29]. - The net profit after deducting non-recurring gains and losses was ¥119,704,115.02, reflecting a significant increase of 16.48% from ¥102,769,705.21 in 2021[29]. - The net cash flow from operating activities surged by 102.28% to ¥250,794,526.06, compared to ¥123,984,034.41 in the previous year[29]. - Basic and diluted earnings per share decreased by 23.53% to ¥0.52, down from ¥0.68 in 2021[29]. - Total assets at the end of 2022 reached ¥2,497,721,443.51, marking a 7.18% increase from ¥2,330,303,998.61 at the end of 2021[29]. - Net assets attributable to shareholders increased by 2.42% to ¥2,276,499,452.63, compared to ¥2,222,775,540.21 at the end of 2021[29]. - The company reported a weighted average return on equity of 5.57%, down from 15.98% in 2021, indicating a decline of 10.41%[29]. - The total revenue for 2022 was ¥514,911,768.91, a decrease of 4.76% compared to ¥540,622,560.29 in 2021[85]. - The revenue from active pharmaceutical ingredients (APIs) was ¥426,888,294.01, accounting for 82.91% of total revenue, down 8.12% from ¥464,614,761.04 in 2021[85]. - The revenue from formulations increased by 15.08% to ¥86,466,441.20, up from ¥75,134,832.89 in 2021, representing 16.79% of total revenue[85]. - The company achieved a gross margin of 22.86% for APIs, down 5.62% from the previous year, while the gross margin for formulations was 61.18%, an increase of 11.30%[85]. - The sales volume of APIs decreased by 26.31% to 2,871.28 tons in 2022, while production volume decreased by 11.62% to 3,203.68 tons[88]. - The inventory of ibuprofen APIs increased by 66.51% to 310.05 tons, indicating a strategic stockpiling[88]. - The company signed significant sales contracts totaling ¥103,969,879.52, which accounted for 20.19% of total annual sales[91]. - The company has established itself as a qualified global supplier for major pharmaceutical companies, enhancing its market reputation[82]. - The domestic revenue increased by 4.09% to ¥277,030,607.46, while overseas revenue decreased by 13.34% to ¥237,881,161.45[85]. Research and Development - Research and development expenses amounted to ¥19,844,831.98, representing 3.85% of operating revenue, an increase from 3.38% in 2021[95]. - The number of R&D personnel increased by 5.71% to 111 in 2022, compared to 105 in 2021[118]. - The company plans to enhance its R&D capabilities and CDMO services by accelerating the construction of the Wuhan Hendi R&D project[127]. - The company has completed several new product developments, including various formulations of ibuprofen and other APIs, to enrich its product portfolio[1]. - The company has filed patents for innovative production methods, including a method for industrial preparation of calcium docetaxel and ibuprofen L-lysine salt, showcasing its commitment to R&D[76]. - The company has achieved a significant milestone by completing the BE filing for various formulations, including tolvaptan tablets, indicating readiness for market entry[76]. - The company emphasizes cost reduction and efficiency improvement through process optimization and digital transformation, enhancing its product competitiveness[76]. - The company is actively expanding its product line in non-steroidal anti-inflammatory drugs and oncology drugs, which is expected to increase its operational profitability[79]. Market and Industry Trends - The pharmaceutical industry in China is undergoing significant reforms, with over 320 policies issued in 2022 to encourage innovation and strengthen regulation[51]. - The company is focusing on enhancing drug supply security and quality, aligning with national policies for high-quality development in the pharmaceutical sector[51]. - The company is committed to developing drugs for rare diseases and children's medications, with incentives for first approvals and market exclusivity[51]. - The company aims to establish a global manufacturing base for antipyretic and analgesic drugs, focusing on the production of 5,000 tons/year of ibuprofen and 200 tons/year of ibuprofen lysine salt, enhancing its global competitiveness[68]. - The company is developing a "special raw material drug manufacturing base" with projects including 10 tons/year of abiraterone acetate and 500 tons/year of sodium docetaxel, aiming to become a leading manufacturer in this sector[68]. - The company is advancing the construction of a regional production base for solid formulations in Hubei Province, focusing on the consistency evaluation of various formulations including ibuprofen sustained-release capsules and injections[71]. - The fluctuation of the RMB exchange rate impacts the company's performance, with appreciation leading to decreased competitiveness in overseas sales and potential foreign exchange losses during the receivable period[149]. Corporate Governance and Compliance - The company has committed to transparency and accuracy in its financial reporting, ensuring no misleading statements or omissions[19]. - The company operates independently from its controlling shareholders, ensuring a complete and independent business system[160]. - The company has complied with various regulatory requirements and governance standards to protect the rights of investors and stakeholders[154]. - The company is adapting to the evolving regulatory landscape in the pharmaceutical industry, which includes new policies that may affect market dynamics and operational strategies[171]. - The company held 2 shareholder meetings during the reporting period, ensuring compliance with legal regulations and providing equal rights to all shareholders[175]. - The board of directors consists of 8 members, including 3 independent directors, fulfilling the requirements of laws and regulations[176]. - The supervisory board is composed of 3 members, effectively overseeing the company's operations and protecting shareholder interests[179]. - The company has established a transparent governance structure, including specialized committees to support decision-making processes[176]. - The company has not reported any incidents of fund occupation by the controlling shareholder during the reporting period[183]. - The company continues to focus on maintaining operational independence and protecting the rights of minority shareholders[183].