Financial Performance - The total revenue for the year ended December 31, 2021, was approximately RMB 705,456,000, representing a 13% increase compared to RMB 622,250,000 in the previous year[14]. - Profit attributable to owners of the Company increased to RMB 143,283,000 from RMB 126,558,000 last year[14]. - Basic earnings per share rose to RMB 25.57 cents from RMB 22.59 cents in the previous year[14]. - For the year ended 31 December 2021, the Group's revenue increased to RMB 705,456,000 from approximately RMB 622,250,000, representing an increase of about 13.38%[35]. - Profit for the year attributable to owners of the Company increased to RMB 143,283,000 from RMB 126,558,000, reflecting a growth of approximately 13.19%[35]. - Basic earnings per share rose to RMB 25.57 cents from RMB 22.59 cents, marking an increase of about 13.2%[35]. - Profit before income tax for 2021 was RMB 177,273,000, compared to RMB 150,041,000 in 2020, reflecting a growth of 18.2%[89]. - The audited profit attributable to owners of the Company was approximately RMB 143,283,000, representing a 13% increase from RMB 126,558,000 in the previous year[50]. Operational Challenges - The Company faced rising production costs due to stricter national quality and environmental protection standards for pharmaceuticals[15]. - The overall price level of pharmaceuticals continued to decline following the implementation of drug price control policies, increasing operational pressure on pharmaceutical enterprises[15]. - The pandemic situation in many regions of the country remained severe, affecting major sales provinces[15]. - The company faced significant operational pressures due to rising production costs and declining drug prices, yet successfully achieved its project goals for the year[16]. - The core revenue source, Hai Kun Shen Xi capsule, remained unaffected despite rising production costs and price control policies in the pharmaceutical sector[35]. Research and Development - Investment in research and development of new drugs was increased, collaborating with pharmaceutical universities and research institutes to develop technologically advanced drugs with independent intellectual property rights[20]. - The Group has focused on enhancing R&D capabilities by building a new R&D inspection center with advanced equipment[52]. - A new R&D and testing center was built and officially put into operation in September 2021, aimed at improving product development and quality control[47]. - The Group invested approximately RMB48,466,749 in research and development projects during the year[44]. Financial Management - As at 31 December 2021, the Company held Wealth Management Products totaling approximately RMB 176,533,000[37]. - The expected annualised return rate of the Wealth Management Products subscribed during the year was around 2.25%–4.13%, compared to 1.58%–3.8% in 2020[35]. - Unrealised gains on fair value change from the Wealth Management Products amounted to approximately RMB 1,533,000 as at 31 December 2021[39]. - The Group's investments in Wealth Management Products were primarily in lower-risk options issued by major banks in China[41]. - The management has shifted investment strategy towards time deposits due to decreasing expected returns on Wealth Management Products[42]. - The Group's investment in time deposits as of December 31, 2021, was approximately RMB806,918,000, slightly up from RMB805,020,000 in 2020[42]. Corporate Governance - The Company has complied with the Corporate Governance Code as set out in Appendix 15 of the GEM Listing Rules throughout the year ended 31 December 2021[140]. - The Audit Committee is composed exclusively of Independent Non-Executive Directors, ensuring independent oversight[150]. - The Company has implemented adequate systems of internal controls and risk management procedures as part of its corporate governance practices[143]. - The Board meets at least four times a year to discuss business development, operations, and financial performance[145]. - The Company has made specific inquiries of all Directors regarding compliance with the required standard of dealings, with no non-compliance reported[140]. Employee and Stakeholder Engagement - The company expressed gratitude to staff and stakeholders for their support and contributions in 2021, emphasizing the importance of teamwork in achieving success[33]. - The Group has encouraged participation in environmental and social activities among employees, customers, suppliers, and other stakeholders[54]. - The Group has enhanced cooperation with suppliers to ensure the provision of high-quality products and services[54]. Future Outlook - The Company aims to leverage its competitive advantages to achieve new accomplishments in the coming years[15]. - The company is committed to exploring and adjusting its business strategy, focusing on sustainable development and increasing investment in technology and product R&D[24]. - The company aims to adapt to new challenges and achieve rapid growth by focusing on pharmaceutical quality, market sales, and scientific innovation[32].
吉林长龙药业(08049) - 2021 - 年度财报