Financial Performance - Revenue for 2021 was RMB 26.9 billion, with a net profit of RMB 16.6 billion[15]. - The company's revenue for the year 2021 reached RMB 26,861,356 thousand, an increase from RMB 23,647,224 thousand in 2020, representing a growth of approximately 9.4%[31]. - Gross profit for 2021 was RMB 21,529,261 thousand, compared to RMB 18,464,904 thousand in 2020, indicating a growth of about 16.4%[31]. - The operating profit for 2021 was RMB 5,112,091 thousand, showing an increase from RMB 4,527,582 thousand in 2020, which is a growth of approximately 12.9%[32]. - The net profit attributable to equity holders of the parent company for 2021 was RMB 14,608,412 thousand, significantly higher than RMB 2,771,086 thousand in 2020, marking an increase of approximately 426.5%[31]. - The net profit attributable to equity holders for the year was RMB 16,614,793,000, significantly up from RMB 4,340,667,000 in 2020, reflecting a year-over-year increase of approximately 284%[113]. - The company reported a significant increase in other income and profits, totaling RMB 1,068,929 thousand in 2021, compared to RMB 1,241,223 thousand in 2020[31]. - The company achieved a total revenue of approximately RMB 26.86 billion in the fiscal year, representing a year-on-year growth of about 13.6%[50]. - The basic earnings per share for the year ended December 31, 2021, was RMB 15.62, an increase from RMB 12.31 in the previous year[59]. Research and Development - The company has a strong focus on R&D, with industry-leading investment and innovation capabilities[6]. - Research and development expenses accounted for over 14% of total sales revenue, highlighting the company's commitment to innovation[33]. - The company is investing heavily in R&D, with a projected budget increase of 15% for the upcoming fiscal year[37]. - The total R&D expenditure for the year was approximately RMB 3,820.17 million, representing about 14.2% of the group's revenue, with a year-on-year increase of approximately 64.7% in investment for innovative drugs and biopharmaceuticals[65]. - The company obtained 36 new product approvals and submitted 52 clinical applications, including 26 for innovative drugs in 2021[49]. - The company plans to enhance its R&D innovation strategy and focus on unmet clinical needs in oncology, liver disease, and cardiovascular areas[51]. Market Expansion and Strategy - The company is actively expanding its market presence and leveraging big data and artificial intelligence to enhance operational efficiency[6]. - The company aims to expand its market presence significantly, focusing on both domestic and international markets[39]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[28]. - The company has identified strategic acquisition opportunities to enhance its product portfolio and market reach[39]. - The company plans to launch 20 new products in the respiratory system and musculoskeletal fields over the next three years, including HBQ and LM[37]. - The revenue from the respiratory system segment reached RMB 22.42 billion in 2021, showing a substantial growth compared to previous years[34]. Corporate Governance - The company has established various committees, including the Audit Committee, Remuneration Committee, and Nomination Committee, to oversee governance and compliance[86]. - The board consists of nine executive directors, including the chairperson and CEO, and five independent directors[79]. - Independent directors account for more than one-third of the board, providing valuable independent perspectives and advice[80]. - The board meets at least four times a year, with additional special meetings as necessary[78]. - The chairperson and CEO roles are separated, with the chairperson overseeing board operations and the CEO managing the group's business[82]. - The board is responsible for reviewing and monitoring compliance with legal and regulatory requirements[81]. Social Responsibility and Community Engagement - The company donated RMB 5 million and emergency relief materials worth RMB 5 million to support disaster relief efforts in Henan Province[48]. - The group actively engages in community investment and corporate social responsibility initiatives, including pandemic response and educational donations[73]. - The company is committed to providing a healthy and safe working environment for employees through various activities, including health checks and safety management[121]. - The company has implemented environmental protection measures, including energy conservation and waste reduction, to enhance its environmental performance[120]. Financial Position and Assets - The total assets of the company as of 2021 were RMB 60,543,337 thousand, up from RMB 47,210,438 thousand in 2020, reflecting a growth of about 28.5%[31]. - The total liabilities decreased to RMB 22,814,314 thousand in 2021 from RMB 24,790,880 thousand in 2020, indicating a reduction of about 7.9%[31]. - The company reported a net asset value of RMB 40 billion in 2021, with cash and bank balances amounting to RMB 37.73 billion[34]. - The company’s total reserves increased to RMB 30,565,023,000 by the end of 2021, up from RMB 16,801,209,000 at the end of 2020, reflecting a growth of approximately 82%[173]. Shareholder Information - The company proposed a final dividend of HKD 0.04 per share for the year ended December 31, 2021, subject to shareholder approval[110]. - The company maintains a consistent policy of providing stable and sustainable dividends, dependent on financial performance and cash flow[108]. - The top five customers accounted for less than 30% of total sales, indicating a diversified customer base[119]. Compliance and Risk Management - The company adheres to relevant Chinese laws and regulations regarding drug research and development, production, and distribution, ensuring compliance without significant violations[122]. - The group has established a risk compliance committee to enforce risk management protocols and ensure comprehensive risk assessment and control[73]. - The company is closely monitoring foreign exchange net risks to mitigate the impact of currency fluctuations on its assets and liabilities[72]. Leadership and Management - The company has a strong leadership team with extensive experience in management and investment in the pharmaceutical sector[143]. - The Chief Financial Officer, Ms. Ma Jiayin, holds an MBA from Columbia Business School and has over 20 years of financial management experience[151]. - The company appointed Professor Mao Li as Chief Medical Officer, bringing 35 years of oncology clinical practice and research experience[151]. - The company has a diverse board with members who have significant academic and professional backgrounds in finance, management, and pharmaceuticals, enhancing its strategic decision-making capabilities[148].

Corporate Information [Directors and Committees](index=2&type=section&id=Directors%20and%20Committees) The report lists the company's executive directors, independent non-executive directors, and members of key committees - The Board of Directors comprises nine executive and five independent non-executive directors, with four core committees established: Audit, Remuneration, Nomination, and ESG[7](index=7&type=chunk) [Key Business Partners](index=3&type=section&id=Key%20Business%20Partners) The report discloses key partners including principal bankers, share registrars, legal advisors, and the auditor - The company's principal bankers include The Hongkong and Shanghai Banking Corporation Limited, Bank of China (Hong Kong) Limited, and Agricultural Bank of China, Lianyungang Branch[9](index=9&type=chunk) - The company's auditor is Ernst & Young[13](index=13&type=chunk) Financial and Business Summary [Financial Highlights](index=4&type=section&id=Financial%20Highlights) The company achieved strong growth in H1 2021, driven by a 13.5% revenue increase and a 583.6% surge in net profit Financial Highlights for H1 2021 (as of June 30) | Indicator | H1 2021 (RMB in thousands) | H1 2020 (RMB in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 14,353,781 | 12,647,775 | +13.5% | | Gross Profit | 11,600,660 | 9,855,731 | +17.7% | | Profit for the Period | 9,641,604 | 2,064,127 | +367.1% | | Profit attributable to owners of the parent | 8,480,340 | 1,240,612 | +583.6% | | Adjusted profit attributable to owners* | 1,574,765 | 1,281,800 | +22.9% | | New Product Sales | 6,300,563 | 4,405,867 | +43.0% | | Oncology Drug Sales | 5,025,351 | 4,017,557 | +25.1% | - The Board declared a quarterly dividend of **2 HK cents per share** for the three months ended June 30, 2021, bringing the total H1 dividend to 4 HK cents per share[16](index=16&type=chunk) [Company Profile and Main Products](index=5&type=section&id=Company%20Profile%20and%20Main%20Products) The company is a leading innovative R&D-driven pharmaceutical group with a fully integrated business chain - The company is positioned as an R&D-driven pharmaceutical group with a fully integrated value chain covering R&D, intelligent manufacturing, and a strong sales system[19](index=19&type=chunk) Main Products by Therapeutic Area | Therapeutic Area | Key Product Examples | | :--- | :--- | | Oncology | Qingkeshu (Abiraterone Acetate), Qianping (Bortezomib for Injection), Anxian (Lenalidomide) | | Liver Disease | Tianqing Ganmei (Magnesium Isoglycyrrhizinate Injection), Tianqing Ganping (Dianmonium Glycyrrhizinate Enteric-coated Capsules) | | Cardiovascular | Yilunping (Irbesartan/Hydrochlorothiazide), Kaina (Beraprost Sodium) | | Orthopedics | Gaisanchun (Calcitriol), Yigu (Zoledronic Acid) | | Respiratory | Tianqingsuchang (Budesonide Suspension for Inhalation) | [Company Milestones](index=6&type=section&id=Company%20Milestones) The company has achieved leading positions in drug consistency evaluations and has been included in major stock indices - The company's subsidiary, CTTQ, was the first in China to pass the generic drug consistency evaluation and launched its Class 1 innovative anti-tumor drug Focus V (Anlotinib) in 2018[22](index=22&type=chunk)[24](index=24&type=chunk) - The company was included as a constituent stock of the **Hang Seng Index in September 2018** and the **Hang Seng China Enterprises Index in December 2019**[24](index=24&type=chunk) Management Discussion and Analysis [Industry Review](index=8&type=section&id=Industry%20Review) The normalization of volume-based procurement and healthcare reforms created new opportunities for leading pharmaceutical firms - The normalization of national volume-based procurement allows high-quality new products to achieve rapid market penetration and sales volume with lower promotion costs, benefiting R&D-focused companies[26](index=26&type=chunk) - Inter-provincial settlement of medical insurance and "dual-channel" policies have improved drug accessibility through both medical institutions and pharmacies[26](index=26&type=chunk) - "Internet + Healthcare" policies have made online drug sales and promotion a key supplement to traditional channels[26](index=26&type=chunk) [Business Review](index=9&type=section&id=Business%20Review) The company delivered strong business performance with significant contributions from new products and a continuously optimized R&D pipeline [Core Products and Marketing Performance](index=9&type=section&id=Core%20Products%20and%20Marketing%20Performance) Core products like Anlotinib maintained rapid growth while new marketing channels were successfully expanded - Over 60 new products launched since 2018 contributed **over 80% of sales growth** and now account for **over 40% of sales revenue**[29](index=29&type=chunk) - The core oncology drug Focus V (Anlotinib Hydrochloride Capsules) maintained rapid growth, while the first-to-market generic respiratory drug Tianqingsuchang (Budesonide Suspension for Inhalation) became a new growth driver[29](index=29&type=chunk) - The company actively expanded into new channels like chain pharmacies and primary care hospitals, achieving strong results for multiple product lines[30](index=30&type=chunk) - The company had **11 products selected** in the fifth round of national volume-based procurement, expecting rapid volume growth[28](index=28&type=chunk) [R&D Progress](index=9&type=section&id=R&D%20Progress) The company's R&D pipeline yielded significant results, with numerous approvals and a patent portfolio exceeding 1,000 R&D Achievements in H1 2021 | Item | Q2 | H1 Cumulative | | :--- | :--- | :--- | | Marketing Authorizations | 10 | 17 | | Clinical Trial Approvals | 17 | 24 | | Consistency Evaluation Approvals | 22 | 34 | | New Drug Applications Submitted | 8 | 12 | | Invention Patents Granted | 55 | 94 | - As of the period end, New Drug Applications had been submitted for four major biologics, including Penpulimab and Adalimumab[28](index=28&type=chunk) - The cumulative number of granted invention patents reached **1,018** by the end of the period[28](index=28&type=chunk) [Financial Performance Analysis](index=12&type=section&id=Financial%20Performance%20Analysis) The company's financial performance was outstanding, with net profit soaring 583.6% due to significant contributions from associate Sinovac [Overall Financial Performance](index=12&type=section&id=Overall%20Financial%20Performance) The company recorded revenue of RMB 14.35 billion and net profit attributable to the parent of RMB 8.48 billion Core Financial Data for H1 2021 | Indicator | Amount (RMB) | Y-o-Y Growth | | :--- | :--- | :--- | | Revenue | 14.35 billion | +13.5% | | Net Profit Attributable to Parent | 8.48 billion | +583.6% | | Earnings Per Share | 45.15 cents | +584.1% | | Adjusted Net Profit Attributable to Parent | 1.57 billion | +22.9% | - Sales revenue from new products increased its share of total revenue to **43.9%** from 34.8% in the prior year period[34](index=34&type=chunk) [Revenue by Therapeutic Area](index=12&type=section&id=Revenue%20by%20Therapeutic%20Area) Oncology drugs were the largest revenue source, accounting for 35.0% of total revenue in a diversified portfolio Sales and Revenue Share by Therapeutic Area for H1 2021 | Therapeutic Area | Sales (RMB in millions) | Share of Total Revenue (%) | | :--- | :--- | :--- | | Oncology | 5,025.4 | 35.0% | | Liver Disease | 1,991.9 | 13.9% | | Cardiovascular | 1,495.4 | 10.4% | | Orthopedics | 1,245.4 | 8.7% | | Respiratory | 1,062.9 | 7.4% | | Parenteral Nutrition | 594.6 | 4.1% | | Others | 2,938.1 | 20.5% | [Investments in Associates and Joint Ventures](index=13&type=section&id=Investments%20in%20Associates%20and%20Joint%20Ventures) Associates and joint ventures, particularly Sinovac, contributed significantly to the Group's profit during the period - Associates and joint ventures contributed a total profit of approximately RMB 7.58 billion, resulting in a net after-tax contribution of approximately **RMB 6.91 billion**[40](index=40&type=chunk) - The investment in **Sinovac** was a primary profit driver, with its COVID-19 vaccine CoronaVac approved in over 50 countries and an annual production capacity exceeding 2 billion doses[40](index=40&type=chunk) [Financial Asset Investments](index=14&type=section&id=Financial%20Asset%20Investments) The Group held a diversified portfolio of equity investments and financial assets to generate favorable returns - As of the period end, the Group held non-current equity investments at FVTOCI of approximately RMB 2.14 billion and current equity investments at FVTPL of approximately RMB 0.42 billion[41](index=41&type=chunk) - The Group invested approximately **RMB 9.41 billion** in wealth management products, accounting for about 16.7% of total assets[41](index=41&type=chunk) [R&D, Liquidity and Capital Structure](index=15&type=section&id=R&D,%20Liquidity%20and%20Capital%20Structure) The company maintained strong R&D investment, robust liquidity, and a healthy capital structure [R&D Investment and Intellectual Property](index=15&type=section&id=R&D%20Investment%20and%20Intellectual%20Property) The company invested heavily in R&D, with total expenditure reaching RMB 1.88 billion, or 13.1% of revenue - For the six months ended June 30, 2021, total R&D expenditure was approximately **RMB 1.88 billion**, representing about 13.1% of the Group's revenue[43](index=43&type=chunk) - The R&D pipeline included **393 products**, with a focus on oncology (185), liver disease (39), and respiratory (25)[43](index=43&type=chunk) - During H1, the company filed 161 new patent applications and accumulated a total of **1,018 granted invention patents**[43](index=43&type=chunk) [Liquidity and Capital Structure](index=15&type=section&id=Liquidity%20and%20Capital%20Structure) The Group maintained a healthy capital structure with RMB 8.03 billion in cash and bank balances as of June 30, 2021 Capital Structure Overview (June 30, 2021) | Item | Amount (RMB in millions) | | :--- | :--- | | Cash and bank balances | 8,028.3 | | Short-term loans | 1,824.7 | | Long-term loans | 6,273.3 | | Convertible bonds (debt component) | 5,242.6 | [Operations and Risk Management](index=16&type=section&id=Operations%20and%20Risk%20Management) The Group employed over 24,000 people, maintained a healthy gearing ratio, and actively managed foreign exchange risk - As of June 30, 2021, the Group's total assets were approximately RMB 56.21 billion and total liabilities were RMB 25.10 billion, with a **gearing ratio of 44.7%**, down from 52.5% at the end of 2020[47](index=47&type=chunk) [Employees and Remuneration Policy](index=16&type=section&id=Employees%20and%20Remuneration%20Policy) The Group had 24,443 employees and maintained share option and award schemes to incentivize key talent - As of June 30, 2021, the Group had **24,443 employees**, with total staff costs for the period amounting to approximately RMB 2.31 billion[48](index=48&type=chunk) - The company has a 2013 Share Option Scheme and a 2018 Share Award Scheme, though no options or shares were granted during the period[48](index=48&type=chunk) [Foreign Exchange Risk](index=17&type=section&id=Foreign%20Exchange%20Risk) The Group closely monitors its net exposure to foreign exchange risk to mitigate the impact of currency fluctuations - Most of the Group's assets and liabilities are denominated in RMB, USD, EUR, and HKD, and the Group closely monitors its foreign exchange risk[50](index=50&type=chunk) [Outlook](index=17&type=section&id=Outlook) The Group will focus on developing new marketing channels and prioritizing high-potential innovative products in its R&D pipeline - In the future, more resources will be allocated to new marketing channels and methods to gradually increase their revenue contribution[50](index=50&type=chunk) - The R&D pipeline has been optimized to focus on products with high innovation and market potential, increasing the future proportion of innovative drugs and high-barrier biologics[50](index=50&type=chunk) Condensed Consolidated Financial Statements [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=18&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2021, the Group reported revenue of RMB 14.35 billion and a net profit of RMB 8.48 billion Consolidated Income Statement Summary (For the six months ended June 30, 2021) | Item (RMB in thousands) | 2021 | 2020 | | :--- | :--- | :--- | | Revenue | 14,353,781 | 12,647,775 | | Gross Profit | 11,600,660 | 9,855,731 | | Share of profits and losses of associates and joint ventures | 7,584,980 | (41,188) | | Profit before tax | 10,978,515 | 2,610,452 | | Profit for the period | 9,641,604 | 2,064,127 | | Profit attributable to owners of the parent | 8,480,340 | 1,240,612 | [Consolidated Statement of Financial Position](index=20&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2021, the Group's total assets were RMB 56.21 billion and net assets were RMB 31.11 billion Consolidated Statement of Financial Position Summary | Item (RMB in thousands) | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Total Assets | 56,206,729 | 47,210,438 | | Total Liabilities | 25,097,657 | 24,790,880 | | Net Assets | 31,109,072 | 22,419,558 | | Equity attributable to owners of the parent | 24,575,623 | 16,747,160 | | Cash and bank balances | 8,028,326 | 11,259,084 | [Consolidated Statement of Changes in Equity](index=22&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) Equity attributable to owners of the parent increased from RMB 16.75 billion to RMB 24.58 billion, driven by net profit - Equity attributable to owners of the parent increased from **RMB 16.75 billion** at year-end 2020 to **RMB 24.58 billion** as of June 30, 2021, primarily driven by profit for the period[59](index=59&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=23&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) The Group generated net cash from operating activities of RMB 2.34 billion, while cash and cash equivalents decreased by RMB 2.48 billion Condensed Consolidated Statement of Cash Flows Summary (For the six months ended June 30) | Item (RMB in thousands) | 2021 | 2020 | | :--- | :--- | :--- | | Cash flows from operating activities | 2,335,554 | 1,555,549 | | Cash flows from investing activities | (4,055,967) | (1,533,585) | | Cash flows from financing activities | (761,689) | 5,110,430 | | Net decrease in cash and cash equivalents | (2,482,102) | 5,132,394 | | Cash and cash equivalents at end of period | 8,028,326 | 15,666,602 | Notes to the Financial Statements [Basis of Preparation and Operating Segments](index=24&type=section&id=Basis%20of%20Preparation%20and%20Operating%20Segments) The Group's business is divided into three reportable segments, with Western and biological pharmaceuticals being the primary source of revenue Segment Results for H1 2021 | Segment (RMB in thousands) | External Revenue | Segment Results | | :--- | :--- | :--- | | Western and biological pharmaceuticals | 14,062,845 | 3,615,278 | | Investment | 1,362 | (7,764) | | Others | 289,574 | (9,933) | | **Total** | **14,353,781** | **3,597,581** | - Over **90% of the Group's revenue** is derived from customers in Mainland China[71](index=71&type=chunk) [Revenue and Profit Analysis](index=30&type=section&id=Revenue%20and%20Profit%20Analysis) The Group's profit before tax was calculated after deducting R&D expenses of RMB 1.78 billion - During the reporting period, R&D expenses were **RMB 1.78 billion** and total staff costs were **RMB 2.31 billion**[77](index=77&type=chunk) - Key subsidiaries of the Group, such as CTTQ and Beijing Tide, are recognized as "High and New Technology Enterprises" and benefit from a preferential corporate income tax rate of **15%**[79](index=79&type=chunk) [Dividends and Earnings Per Share](index=33&type=section&id=Dividends%20and%20Earnings%20Per%20Share) The Board declared a Q2 2021 dividend of 2 HK cents per share, with basic EPS for the period at RMB 45.15 cents - The Board of Directors declared a quarterly dividend of **2 HK cents per share** for the three months ended June 30, 2021[82](index=82&type=chunk) Earnings Per Share Calculation | Item | H1 2021 | H1 2020 | | :--- | :--- | :--- | | Basic Earnings Per Share | RMB 45.15 cents | RMB 6.60 cents | | Diluted Earnings Per Share | RMB 43.38 cents | RMB 6.60 cents | [Key Asset and Liability Items](index=35&type=section&id=Key%20Asset%20and%20Liability%20Items) Trade and bills receivables totaled RMB 5.06 billion with a healthy aging profile, while trade and bills payables were RMB 1.62 billion - As of June 30, 2021, trade and bills receivables amounted to approximately **RMB 5.06 billion**, with about RMB 4.70 billion (approx. 93%) aged within 90 days[88](index=88&type=chunk)[89](index=89&type=chunk) - As of June 30, 2021, trade and bills payables amounted to approximately **RMB 1.62 billion**[91](index=91&type=chunk) Other Information [Directors' and Chief Executive's Interests in Shares](index=38&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20in%20Shares) The Tse family holds a significant combined stake in the company, reflecting strong family control - Mr Tse, Shing Yuk is the largest shareholder, holding a total interest of approximately **21.47%** in the company's shares[97](index=97&type=chunk) - Ms Tse, Theresa Y Y (Chairwoman) holds approximately **12.08%** of the shares, and Mr Tse Ping (Senior Vice Chairman) holds approximately **8.40%**[97](index=97&type=chunk) [Share Incentive Schemes](index=41&type=section&id=Share%20Incentive%20Schemes) The company has two share incentive schemes in place, but no options or shares were granted during the period - The company has a 2013 Share Option Scheme with a ten-year validity, but no options have been granted since its adoption[106](index=106&type=chunk)[108](index=108&type=chunk) - The company adopted a Share Award Scheme in 2018, allowing the trustee to purchase up to 3% of issued share capital for awards, but no shares have been granted since adoption[109](index=109&type=chunk) [Investor Relations and Corporate Governance](index=43&type=section&id=Investor%20Relations%20and%20Corporate%20Governance) The Group is committed to high standards of corporate governance and actively engages with the investment community - The Group actively conducts investor relations activities and was honored as a "Most Honored Company" in the Institutional Investor "2021 All-Asia Executive Team" rankings[111](index=111&type=chunk) - The company complied with most provisions of the Corporate Governance Code but noted the absence of the Chairwoman and three independent directors from the Annual General Meeting[114](index=114&type=chunk) - The company established a new **Environment, Social and Governance (ESG) Committee** on August 31, 2021, to enhance its focus in this area[122](index=122&type=chunk)

Financial Performance - Revenue for 2020 was RMB 23.6 billion, with a net profit of RMB 4.3 billion[36] - The company's revenue for 2020 was RMB 23,647,224 thousand, with a gross profit of RMB 18,464,904 thousand, reflecting a gross margin of approximately 78%[40] - The net profit for 2020 was RMB 4,340,667 thousand, a decrease from RMB 4,787,845 thousand in 2019[40] - The total revenue for 2020 was approximately RMB 23,647.22 million, a slight decrease of about 2.4% compared to the previous year[70] - Profit attributable to equity holders of the parent company was approximately RMB 2,771.09 million, a slight increase of about 0.3% year-on-year[70] - Gross profit for 2020 was RMB 18,464,904, compared to RMB 19,307,762 in 2019, reflecting a decline of 4.4%[143] - Total assets increased to RMB 47,134,653 in 2020, up from RMB 37,514,192 in 2019, representing a growth of 25.0%[143] - Total liabilities rose to RMB 24,788,069 in 2020, compared to RMB 16,953,010 in 2019, marking an increase of 46.5%[143] Research and Development - The company emphasizes R&D and innovation, with industry-leading R&D investment and product innovation capabilities[30] - Research and development expenses accounted for over 12% of total sales revenue, indicating a strong commitment to innovation[43] - The company’s R&D spending has been consistently increasing, reflecting its strategy to enhance product offerings and market competitiveness[43] - Total R&D expenditure for the year ended December 31, 2020, was approximately RMB 2,852.68 million, accounting for about 12.1% of the company's revenue[86] - The company has a strong product pipeline with 191 patent grants, including 158 invention patents, maintaining a leading position among domestic pharmaceutical companies[69] Product Development and Launches - The company plans to launch 20 new products in 2021, including several oncology and orthopedic drugs that have already received approval[48] - The company plans to launch 28 new products in 2023, focusing on areas such as oncology, diabetes, and respiratory health[54] - The new product pipeline includes TQB3525, a liposomal formulation for anti-infection, and multiple oncology drugs like patritumab and aflibercept[54] - The sales revenue from new products accounted for approximately 38.1% of total revenue, up from about 20.7% in the previous year[70] - The new respiratory product Tianqing Suchang generated over RMB 500 million in revenue within six months of its launch[1] Market Presence and Strategy - The company has a significant presence in the pharmaceutical market, with a focus on both research and distribution across various therapeutic areas[43] - The company has a nationwide sales network with over 13,000 sales personnel, covering more than 90% of hospitals in China[43] - The company is actively pursuing mergers and acquisitions to enhance its product portfolio and market reach[54] - The anticipated revenue growth from new product launches is projected to contribute significantly to the overall financial performance in the upcoming fiscal year[54] - The company is entering a rapid development phase in internet healthcare, supported by national policies, which is transforming pharmaceutical marketing towards online models[61] Corporate Governance - The board of directors consists of nine executive directors, including the chairperson and CEO, and five independent non-executive directors[103] - The company has established various committees, including the Executive Committee, Audit Committee, Remuneration Committee, and Nomination Committee, to enhance board efficiency and encourage active participation[99] - The company has complied with all provisions of the Corporate Governance Code, except for specific attendance issues at the annual general meeting[98] - The board is responsible for overall corporate strategy and policy, focusing on the group's development and financial performance[99] - The company maintains high levels of corporate governance to ensure sustainable development, actively engaging with local and overseas investors[86] Shareholder Engagement and Dividends - A total of approximately HKD 1,006,318,000 (equivalent to approximately RMB 894,944,000) in dividends was distributed for the year 2020, with a proposed final dividend of HKD 0.02 per share[139] - The company maintains a policy of providing stable and sustainable dividends, dependent on financial performance, cash flow, and future capital needs[135] - The company has established a comprehensive policy for communication with shareholders, ensuring high standards of disclosure and financial transparency[133] - The board of directors attended the 2020 annual general meeting to respond to shareholder inquiries, with all resolutions passed by a poll vote[133] Operational Efficiency and Sustainability - The company is committed to enhancing its operational efficiency through strategic partnerships and collaborations in the pharmaceutical industry[54] - The company is focused on sustainability initiatives, aiming for a 30% reduction in carbon footprint by 2025[197] - The management team emphasized the importance of improving operational efficiency, aiming for a 5% reduction in costs over the next year[194] - The company is committed to environmental protection and has implemented measures to reduce energy consumption and waste during production[152] Awards and Recognition - The company has been recognized in the "Top 50 Best Companies in Asia-Pacific" by Forbes for three consecutive years from 2016 to 2018[33] - The company’s product, Kena (Bepotastine Besilate Tablets), won the "Outstanding Product Brand in Blood and Hematopoietic System" award in 2020, showcasing its innovation in the pharmaceutical sector[65] - The company has been included in the "Top 50 Global Pharmaceutical Companies" list by Pharm Exec for two consecutive years in 2019 and 2020[183] - The company has been recognized for its contributions to the development of the Chinese pharmaceutical industry, receiving multiple personal honors for its leadership[185] Employee and Management - The company has a total of 24,108 employees, including directors, as of December 31, 2020[173] - The company has a strong leadership team with extensive experience in the pharmaceutical industry, including executives with backgrounds in finance and management from prestigious institutions[187][189][191] - The company has a strong emphasis on employee welfare and has been recognized as an outstanding employer in its region[187]

Financial Performance - The company reported revenue of approximately RMB 12,647.78 million for the six months ended June 30, 2020, representing a year-on-year growth of about 1.0%[11]. - Profit attributable to equity holders of the parent was approximately RMB 1,213.08 million, a decrease of about 16.0% compared to the same period last year[11]. - Basic earnings per share attributable to equity holders of the parent was approximately RMB 0.0964, down approximately 16.0% year-on-year[11]. - The company recorded revenue of approximately RMB 1,264,778 million, representing a year-on-year growth of about 1.0%[22]. - The group recorded a net profit attributable to the parent company of RMB 2,016,327 thousand, a decrease of 7.65% from RMB 2,183,801 thousand in the previous year[45]. - The company’s total comprehensive income for the period was RMB 2,067,157 thousand, compared to RMB 2,180,253 thousand in 2019, reflecting a decline of 5.19%[45]. - The group reported a revenue of RMB 12,647,775 thousand for the six months ended June 30, 2020, representing a slight increase of 0.96% compared to RMB 12,527,309 thousand in the same period of 2019[43]. - The group’s basic earnings per share for the period was RMB 0.096, compared to RMB 0.115 for the same period in 2019, indicating a decrease of about 16%[69]. Product and Market Development - Sales from new products accounted for approximately 34.8% of the total revenue[11]. - The sales of oncology drugs reached approximately RMB 401,756 million, accounting for about 31.8% of the company's total revenue[23]. - The sales of the new product Anxian (lenalidomide capsules) grew by approximately 69.3% to RMB 16,443 million[24]. - The sales of respiratory system drugs amounted to approximately RMB 59,732 million, representing about 4.7% of total revenue[27]. - The sales of liver disease drugs were approximately RMB 224,864 million, accounting for 17.8% of total revenue[23]. - The company has a diverse product portfolio covering various therapeutic areas, including liver disease, oncology, orthopedics, and respiratory diseases[13]. Research and Development - The company emphasizes R&D and innovation, with industry-leading investment in R&D and product innovation capabilities[13]. - Research and development expenses totaled approximately RMB 154,057,000, accounting for 12.2% of the group's revenue[33]. - The group had a total of 438 products in clinical trials or under production application, including 189 oncology drugs and 38 liver disease drugs[32]. - The company submitted 263 new patent applications during the review period, with 82 invention patents granted[22]. - The group reported research and development expenses of RMB 1,540,569,000 for the first half of 2020, down from RMB 1,625,550,000 in 2019, indicating a reduction of approximately 5%[64]. Financial Position and Cash Flow - As of June 30, 2020, cash and bank balances were approximately RMB 17,090.76 million[11]. - The group reported cash and bank balances of RMB 17,090,761,000 as of June 30, 2020, compared to RMB 11,911,210,000 at the end of 2019, showing an increase of about 43%[72]. - The total assets of the group were approximately RMB 6,834,834,000, up from RMB 5,829,925,000 at the end of 2019, representing a growth of 17.2%[37]. - The total liabilities increased to approximately RMB 2,684,549,000, resulting in a debt-to-asset ratio of 39.3%, compared to 30.9% at the end of 2019[37]. - The company reported a net cash flow from operating activities of RMB 1,555,549 thousand for the six months ended June 30, 2020, compared to RMB 3,507,412 thousand in the same period of 2019, indicating a decrease of approximately 55.6%[49]. - The total cash and cash equivalents at the end of the period reached RMB 15,666,602 thousand, up from RMB 6,328,584 thousand at the end of June 2019, representing an increase of approximately 148.5%[49]. Shareholder Information and Corporate Governance - The company has a stock option plan approved on May 28, 2013, allowing for the issuance of up to 494,146,147 shares, which is 10% of the issued share capital at the time[86]. - The board of directors consists of nine executive directors and four independent non-executive directors as of the report date[99]. - The company maintained high transparency during the COVID-19 pandemic by conducting a conference call that attracted over 490 analysts and fund managers to discuss the 2019 annual results and business developments[89]. - The company has complied with the Corporate Governance Code during the six months ending June 30, 2020, with a board comprising four independent non-executive directors, two of whom have financial management experience[93]. - The company repurchased 6,553,000 shares at a total cost of HKD 66,585,880 during the period ending June 30, 2020[97]. Market Recognition and Rankings - The company ranked 133rd in the list of China's top 500 listed companies, improving by 87 positions from the previous year[19]. - The company was recognized as one of the top 10 best listed biopharmaceutical companies in China for 2019[20]. - The company was included in the newly launched Hang Seng Shenzhen-Hong Kong Stock Connect Biotechnology 50 Index, ranking second among the top 10 constituent stocks[20]. - The company achieved a revenue of $3.373 billion, ranking 42nd in the global pharmaceutical companies list[20].

Financial Performance - Revenue for 2018 was RMB 20.9 billion, with a net profit of RMB 10.7 billion[18] - The company's revenue for the fiscal year 2018 reached RMB 20,888,584 thousand, with a gross profit of RMB 16,691,652 thousand, reflecting a significant increase compared to previous years[22] - The company achieved a net profit of RMB 10,732,845 thousand in 2018, a substantial increase from RMB 3,653,547 thousand in 2017[22] - The company reported a net profit attributable to equity holders of the parent company for 2018 was RMB 9,046,347 thousand, up 316.5% from RMB 2,170,951 thousand in 2017[193] - The total comprehensive income for 2018 was RMB 10,836,905 thousand, compared to RMB 3,455,980 thousand in 2017, showing strong overall performance[195] - The company reported a pre-tax profit of RMB 11,429,081 thousand for 2018, significantly higher than RMB 4,195,839 thousand in 2017[193] - Other income and gains for 2018 were RMB 7,443,161 thousand, a substantial increase from RMB 642,861 thousand in 2017[193] - The company reported a significant increase in goodwill, which rose to RMB 13,896,976 thousand in 2018 from RMB 88,926 thousand in 2017, a growth of 15,628.5%[196] Research and Development - The company has a strong focus on R&D, with industry-leading investment in product innovation[11] - Research and development expenses accounted for over 10% of sales revenue, positioning the company as a leader in the industry[26] - The company obtained 18 new production licenses and 23 clinical licenses during the review period, showcasing its leading capabilities in original drug development[39] - Research and development expenses for the year amounted to approximately RMB 2.09 billion, representing about 10.0% of the group's revenue, with a total of 497 products under research and development[62] - The company has filed 358 new patent applications and received 92 patent grants, indicating strong research and development activity[39] - The R&D department is led by a vice president with over 20 years of experience in drug development and has received multiple awards for technological advancements[159] Market Position and Expansion - The company is expanding its product portfolio in various therapeutic areas, including liver disease and oncology[12] - The company has a market share of approximately 25% in the liver disease sector, covering over 90% of hospitals nationwide[26] - The company is actively expanding its market presence and adapting to industry changes driven by healthcare reforms and regulatory measures[34] - The company is focused on expanding its market presence and enhancing its product offerings through strategic management and R&D initiatives[169] - The company is actively involved in mergers and acquisitions to enhance its market position and expand its business operations[154] Corporate Governance - The board of directors consists of seven executive directors, including the chairman and CEO, and four independent directors[77] - The independent directors have confirmed their independence in accordance with listing rules, ensuring the board has sufficient independent elements for independent judgment[78] - The company emphasizes board diversity, considering factors such as gender, age, cultural background, and professional experience in its nomination process[91] - The company maintains high corporate governance standards and actively engages with investors to enhance communication and governance practices[63] - The company has established guidelines for approving and controlling expenditures, ensuring that operating expenses are subject to overall budgetary controls[101] Financial Position - The company has a total asset value of RMB 49,780,208 thousand, with total liabilities of RMB 12,230,684 thousand, resulting in net assets of RMB 37,549,524 thousand[22] - The total assets of the group were approximately RMB 49,780.21 million as of December 31, 2018, compared to RMB 20,935.34 million as of December 31, 2017, indicating significant growth[69] - The asset-to-liability ratio was approximately 24.6% as of December 31, 2018, a decrease from 39.8% as of December 31, 2017, reflecting improved financial stability[69] - The group recorded realized gains from the sale of equity investments and financial assets of approximately RMB 68.29 million, with unrealized losses of RMB 43.43 million[61] - The company has a total of 21,498 employees as of December 31, 2018, with compensation based on performance and market rates[140] Product Development and Sales - The company has introduced several new products, including Aisuping Injection and Tianding Tablets, contributing significantly to revenue[32] - The launch of the multi-target anti-tumor drug Anlotinib has received widespread acclaim and recognition from industry associations[35] - The sales revenue of liver disease medications reached approximately RMB 641.706 million, accounting for 30.7% of the group's total revenue for the year ended December 31, 2018[51] - The sales revenue of antitumor drugs was approximately RMB 3.18799 billion, accounting for about 15.3% of the group's total revenue for the year ended December 31, 2018[53] - The company is focusing on expanding its product lines in oncology, pain management, and other therapeutic areas, while enhancing its specialty brand development[50] Environmental and Social Responsibility - The company has implemented environmental protection measures and established a management system to assess the environmental impact of new production facilities[120] - The company plans to publish an environmental, social, and governance report within three months of the annual report release[120] - The company provides a healthy and safe working environment for employees through various initiatives, including health check-ups and sports activities[121] Shareholder Engagement - The company has distributed a total of approximately RMB 564,197,000 in dividends for the year, with a proposed final dividend of HKD 0.02 per share for the year ending December 31, 2018[108] - The company has maintained compliance with the corporate governance code throughout the fiscal year, with minor exceptions noted[137] - The company has established a comprehensive policy for communication with shareholders, ensuring high standards of disclosure and financial transparency[103]