Chase Sun(300026)2023-03-30 16:00Fund Utilization and Capital Management - The company used 12,000.00 million yuan of idle raised funds to temporarily supplement working capital, which was returned to the raised funds special account on August 19, 2022[12] - The company plans to use 14,000.00 million yuan of idle raised funds from the "Automated Production Base Project for Traditional Chinese Medicine Products" to temporarily supplement working capital, with a usage period not exceeding 12 months[12] - The company raised 453.78 million yuan in over-subscription funds during its IPO in 2009, and as of December 31, 2022, all funds have been utilized with no remaining unallocated funds[32] - 23.68 million yuan of over-subscription funds were used to increase the company's stake in Beijing Kangrentang Pharmaceutical Co., Ltd. to 63.75%, making it the absolute controlling shareholder[32] - 4.56 million yuan of over-subscription funds were allocated for the development of a new anti-hepatitis C drug in collaboration with the Shanghai Institute of Materia Medica, with 7.6 million yuan already utilized by the end of 2022[32] - 11.92 million yuan of over-subscription funds were invested in the expansion and technological upgrade of the Xuebijing production line and R&D center, with 1.48 million yuan used for workshop upgrades and 2.76 million yuan for ERP system implementation[32] - 4.29 million yuan of over-subscription funds were allocated for the development of a Class I new drug for sepsis treatment in collaboration with the First Affiliated Hospital of the Third Military Medical University[32] - The company invested RMB 5,898.61 million in Beijing Kangrentang Pharmaceutical Co., Ltd., achieving 100% utilization of the funds[80] - The company invested RMB 4,560 million in the development of a new anti-hepatitis C drug project with the Shanghai Institute of Materia Medica, with 16.67% utilization[80] - The company invested RMB 1,583.6 million in a workshop technical transformation project, achieving 93.70% utilization[80] - The company invested RMB 297 million in an ERP information system, achieving 92.91% utilization[80] - The company invested RMB 4,285 million in a new Class I drug project for sepsis treatment with the First Affiliated Hospital of the Third Military Medical University, achieving 100% utilization[80] - The company used RMB 150,000,000 of idle raised funds to temporarily supplement working capital, with a usage period not exceeding 12 months[168] - The company used RMB 14,000,000 of idle raised funds for the "Automated Production Base Project for Traditional Chinese Medicine Products" to temporarily supplement working capital, with a usage period not exceeding 12 months[168] - The company's subsidiary, Tianjin Kangrentang, invested RMB 6,473,284.63 in the "Automated Production Base Project for Traditional Chinese Medicine Products" in 2022[168] - The company's initial public offering raised funds had a cumulative usage of RMB 673,755,904.09[168] - The company's non-public offering raised funds had a cumulative usage of RMB 774,945,889.04[168] - The company's initial public offering raised funds had an actual balance of RMB 101,471,317.73, with a difference of RMB 119,886.46 due to previous years' sporadic expenditures[168] - The company's non-public offering raised funds had an actual balance of RMB 33,091,962.15, with a difference of RMB 139,446,250.40 due to previous years' sporadic expenditures[168] Subsidiary Performance and Operations - Beijing Chaos Electronic Technology Co., Ltd., a subsidiary, achieved operating income of 927,033,536.19 yuan and net profit of 140,257,351.72 yuan[18] - Zhengkang Medical Technology Co., Ltd., another subsidiary, reported operating income of 1,223,575,279.38 yuan but incurred a net loss of 137,030,260.68 yuan[18] - The company established Tainuo Rui (Tianjin) Biotechnology Co., Ltd. to build a new drug R&D platform for compound technology and accelerate new drug development[18] - Beijing Kangrentang Pharmaceutical Co., Ltd., a wholly-owned subsidiary, specializes in the research and production of traditional Chinese medicine formula granules, with over 20 years of experience. It has developed a "full-component" process system and standard system, and innovatively uses infrared fingerprint technology for over 600 types of formula granules[26] - During the reporting period, Beijing Kangrentang participated in the formulation of 112 national standards, with 35 already released, and 48 national processing standards, with 10 under public notice. It also obtained a laboratory accreditation certificate from CNAS (Registration No.: CNASL16948)[26] - Chaosi Electronics has obtained medical device registrations in the EU, US, Japan, Canada, Russia, South Korea, and Brazil, and its products are sold in over 100 countries and regions globally[36] - Chaosi Electronics has strengthened its global sales network through both online e-commerce platforms and offline agent channels, with products available in major pharmacy chains, medical device stores, and large supermarkets worldwide[36] - Zhengkang Medical Technology, a wholly-owned subsidiary, has optimized its SPD technology R&D and service business while actively expanding in precision testing and neurointervention markets[36] - The company's subsidiary, Zhengkang Medical Technology, focuses on SPD technology R&D and services, as well as medical device sales[113] - The company's subsidiary, Yinuorui, passed on-site inspections by the National Medical Products Administration, ensuring compliance with GMP standards and supporting domestic heparin market expansion[121] - Hongri International Holdings Limited, a wholly-owned subsidiary, achieved a net profit of 1.9054 million yuan during the reporting period, with total assets of 109.5597 million yuan[159] Product Development and Innovation - The company is focusing on the development of products in five major areas: critical illness, cardiovascular and cerebrovascular systems, respiratory diseases, neurodegenerative diseases, and anti-tumor. It is also expanding marketing channels and leveraging digital technology to improve production management[27] - The company established Tainuo Rui (Tianjin) Biotechnology Co., Ltd. to build a new drug R&D platform for compound technology and accelerate new drug development[18] - The company's product Xuebijing Injection has been included in the "National Medical Insurance Drug List" and has been recommended in the "Diagnosis and Treatment Plan for COVID-19 (Trial Version 4 to 10)" for severe and critical cases[75] - The company's product Fasudil Hydrochloride Injection (Chuanwei) is the first domestic generic drug to pass consistency evaluation and is recommended in guidelines for subarachnoid hemorrhage and cerebral vasospasm[76] - The company's product Low Molecular Weight Heparin Calcium Injection (Bopuqing) has shown superior efficacy in promoting thrombus dissolution and preventing embolism compared to sodium salts[76] - The company's product Nadroparin Calcium Injection (Bopuai) has passed consistency evaluation and has been certified by both the EU and the US FDA[76] - The company's product Ketorolac Tromethamine Injection (Boshuer) is an effective alternative to morphine for moderate acute pain, with multiple administration methods[76] - The company's product Moxifloxacin Hydrochloride and Sodium Chloride Injection (Anruotai) has broad-spectrum antibacterial properties and low resistance development[76] - The company's product Ibandronate Sodium Injection (Gutaiwei) significantly prolongs the time to the first skeletal event in breast cancer patients and improves quality of life[76] - The company's medical device business focuses on new product development, including blood oxygen and hydrogen products, ECG and blood pressure products, and respiratory and other home health products[87] - The company completed the development of a domestic-first blood oxygen-based respiratory rate algorithm, which has passed clinical validation[87] - The company's subsidiary, Chaosi Electronics, leads the domestic market in pulse oximeter products, offering a wide range of models and parameters to meet various application scenarios[97] - Chaosi Electronics has enhanced its integrated machines with remote prescription review and Western medicine diagnostic functions, breaking through the homogenized competition in primary healthcare products[97] - The company obtained production approvals for new chemical drugs, including Thymalfasin for Injection, Enoxaparin Sodium Injection, and Nadroparin Calcium Injection[114] - KB drug for sepsis treatment has completed over 50% enrollment in Phase IIb clinical trials, progressing smoothly[116] - PTS anti-tumor drug has obtained production approval and is in the pre-market preparation stage[116] - Anti-HCV Class 1 chemical new drug is in pre-IND research stage[116] - ML-4000, a non-steroidal anti-inflammatory drug for arthritis, is in pre-IND research stage[116] - Amedifen tablets (PD-L1) for anti-tumor have completed tolerance tests and met preset endpoints in Phase I clinical trials[116] - Thymalfasin and its formulations have obtained production approval and are in pre-market preparation stage[116] - Ambrisentan and its formulations for pulmonary hypertension are under CDE review for market approval[116] - Terlipressin acetate and its formulations for liver cirrhosis complications are under supplementary research for market approval[116] - Infrared thermometers and finger-clip pulse oximeters have obtained certification and are in the market[118] - Smart medical oxygen generators and multi-parameter health detection management systems are in the testing phase with normal progress[118] Financial Performance and Metrics - Total operating revenue in 2022 was 6.65 billion CNY, a decrease of 13.30% compared to 7.67 billion CNY in 2021[106] - Revenue from traditional Chinese medicine formula granules and decoction pieces accounted for 50.52% of total revenue, a decrease of 20.66% year-over-year[106] - Revenue from finished drugs increased by 18.20% to 1.36 billion CNY, accounting for 20.47% of total revenue[106] - Revenue from medical devices decreased by 18.94% to 1.26 billion CNY, accounting for 18.96% of total revenue[106] - Revenue from overseas markets decreased by 29.09% to 726.78 million CNY, accounting for 10.93% of total revenue[106] - Direct sales revenue decreased by 21.08% to 3.74 billion CNY, accounting for 56.25% of total sales[107] - Sales volume of finished drugs increased by 22.97% to 79.24 million units[108] - Production volume of finished drugs increased by 30.23% to 80.22 million units[108] - The company's non-current asset disposal loss in 2022 was RMB -1,157,855.52, compared to RMB -4,013,960.15 in 2021 and RMB -4,647,130.96 in 2020[42] - Government subsidies recognized in 2022 amounted to RMB 102,202,349.44, a significant increase from RMB 51,520,722.23 in 2021[42] - The company's total non-recurring gains and losses in 2022 were RMB 53,484,182.37, a substantial increase from RMB 9,112,217.36 in 2021[42] - The company's raw material costs for finished drugs increased by 15.83% year-on-year to 256.8 million yuan, accounting for 71.09% of the cost of sales[124] - Revenue from traditional Chinese medicine formula granules and decoction pieces decreased by 20.66% year-on-year to 3.36 billion yuan, with a gross profit margin of 67.36%[131] - Revenue from finished drugs increased by 18.20% year-on-year to 1.36 billion yuan, with a gross profit margin of 72.98%[131] - Revenue from medical devices decreased by 18.94% year-on-year to 1.26 billion yuan, with a gross profit margin of 32.61%[131] - Revenue from the blood purification injection product increased by 31.21% year-on-year to 816.71 million yuan, with a gross profit margin of 86.29%[131] - Revenue from the North China region decreased by 6.70% year-on-year to 2.32 billion yuan, with a gross profit margin of 80.08%[131] - Revenue from overseas markets decreased by 29.09% year-on-year to 726.78 million yuan, with a gross profit margin of 37.68%[131] - Total sales from top 5 customers amounted to 768,136,354.46 yuan, accounting for 11.55% of total sales[136] - R&D expenses increased by 16.39% to 236,685,128.35 yuan in 2022 compared to 2021[136] - R&D personnel increased by 18.81% to 1,143 in 2022, with a significant 750% increase in master's degree holders[138] - Total R&D investment in 2022 was 334,488,261.22 yuan, representing 5.03% of total revenue, up from 3.81% in 2021[139] - Capitalized R&D expenditure accounted for 29.24% of total R&D investment in 2022[139] - Net cash flow from operating activities increased by 90.33% to 745,345,648.12 yuan in 2022[155] - Net cash flow from financing activities decreased by 132.40% to -150,597,942.61 yuan in 2022[155] - Total procurement from top 5 suppliers was 512,030,509.26 yuan, accounting for 17.68% of total procurement[151] - The company established 1 new first-level subsidiary and liquidated 2 second-level subsidiaries in 2022[150] - The number of R&D personnel aged 30-40 increased by 30.73% to 485 in 2022[153] - Accounts payable increased by 43.97% year-end compared to the beginning of the year, reaching 849,184,537.42 yuan, mainly due to increased payments for materials and equipment[159] - Employee compensation payable decreased by 78.80% year-end compared to the beginning of the year, dropping to 15,299,562.64 yuan, primarily due to the distribution of year-end bonuses[159] - Current liabilities due within one year surged by 198.76% year-end compared to the beginning of the year, totaling 435,841,189.42 yuan, mainly due to an increase in short-term borrowings[159] - Other current liabilities skyrocketed by 676.41% year-end compared to the beginning of the year, reaching 77,744,509.12 yuan, driven by increased liabilities from bank supply chain financial products[159] - Receivables financing decreased by 81,495,333.40 yuan, resulting in a net increase of 103,735,908.31 yuan in receivables financing[161] - The total amount of receivables financing and other items combined was 433,908,041.70 yuan, with a net decrease of 116,216,975.97 yuan[161] - The company's actual net proceeds from the IPO were adjusted to 721,685,152.13 yuan after correcting over-reported issuance expenses[164] - The company transferred 169,234,574.17 yuan from the original fundraising account to a new account at the Industrial and Commercial Bank of China Tianjin Hexi Branch[164] - The company issued 3,552,574 shares at a price of 32.05 yuan per share, raising a total of 113,859,997.00 yuan for investments[165] - The company issued 33,592,644 shares at a price of 28.28 yuan per share, raising a total of 949,999,972.32 yuan for the construction of an automated production base for traditional Chinese medicine products[165] - The company paid 6,000,000.00 yuan in underwriting and financial advisory fees to Southwest Securities[165] - The company paid 25,400,000.00 yuan in underwriting and sponsorship fees to Southwest Securities[165] - The net amount of funds raised after deducting underwriting and financial advisory fees was 105,154,773.77 yuan[165] - The net amount of funds raised after deducting underwriting and sponsorship fees was 919,946,222.72 yuan[165] - The company invested 300,000,000.00 yuan in Tianjin Hongri Kangrentang Pharmaceutical Co., Ltd. for the construction of the automated production base project[165] - In 2010, the company invested 127,537,513.30 yuan in various projects, including 36,667,323.80 yuan in the blood purification technical transformation and expansion project[165] - In 2011, the company invested 229,971,506.13 yuan in various projects, including 77,607,629.70 yuan in the blood purification technical transformation and expansion project[165] - In 2012, the company invested 195,125,707.20 yuan in various projects, including 54,323,911.00 yuan in the blood purification technical transformation and expansion project[165] - The company invested 5,000,000.00 yuan in the acquisition of shares in Xinjiang Lili Ji Investment Co., Ltd[166] - As of December 31, 2013, the company's special fundraising account had a cumulative interest income of 35,903,027.78 yuan after deducting handling fees[166] - In 2013, the company used 98,694,453.77 yuan of raised funds to increase the registered capital of Beijing Kangrentang Pharmaceutical Co., Ltd[166] - In 2014, the company invested 49,440,167.37 yuan in fundraising projects, including 38,372,093.56 yuan in the expansion of the Xuebijing production line[166] - As of December 31, 2014, the company's first public offering fundraising account had a cumulative interest income of 40,359,940.03 yuan after deducting handling fees[166] - In 2015, the company invested 300,000,000.00 yuan in the capital increase of Tianjin Kangrentang Company[166] - As of December 31, 2015, the company's non-public offering fundraising account had a cumulative interest income of 10,965,742.43 yuan after deducting handling fees[166] - In 2016, the company invested 150,000,000.00 yuan in the capital increase of Tianjin Kangrentang Company[166] - As of December 31, 2016, the company's first public offering fundraising account had a cumulative interest income of 43,633,183