ZHONGHENG GROUP(SH:600252)2023-03-28 16:00Financial Performance - In 2022, the company's operating revenue was approximately ¥9.86 million, a decrease of 54.3% compared to ¥21.55 million in 2021[24]. - The company's operating revenue for 2022 was CNY 2,713,769,838.72, a decrease of 14.17% compared to CNY 3,161,843,646.17 in 2021[35]. - Net profit attributable to shareholders for 2022 was CNY 79,025,459.61, down 74.25% from CNY 306,918,694.92 in the previous year[35]. - The net cash flow from operating activities was negative CNY 170,090,446.75, compared to negative CNY 76,736,671.04 in 2021[35]. - The company's total assets at the end of 2022 were CNY 11,751,848,863.82, a decrease of 1.16% from CNY 11,889,723,464.97 at the end of 2021[35]. - The net profit for the year was CNY 12,389,674.15, a significant decrease from CNY 173,166,289.20 in the previous year, representing a decline of approximately 92.85%[108]. - The total comprehensive income for the year was CNY -83,743,394.70, compared to CNY 4,641,377.31 in the previous year, indicating a substantial decline[110]. Research and Development - The company has applied for 26 patents, including 19 invention patents, since its establishment[19]. - The company has established multiple industry-academia-research platforms, including a "Three Seven Research Center" with Shanghai University of Traditional Chinese Medicine[19]. - The company has established several national and regional research centers to enhance its R&D capabilities and core competitiveness[48]. - Laimei Pharmaceutical's R&D investment in 2022 totaled 156 million, a decrease of 27.42% year-on-year, with a capitalization ratio of 13.76%, an increase of 5.51 percentage points from the previous year[142]. - The company is focusing on the development of key products such as Esomeprazole Magnesium and Tranexamic Acid, with a significant increase in the capitalization of R&D expenses by 21.04%[142]. Product Development and Portfolio - Wuzhou Pharmaceutical has 217 product varieties and 308 drug approval numbers, including 181 traditional Chinese medicine products and 118 chemical drug formulations[18]. - Laimei Pharmaceutical's key product, Kanalin, is the first lymph tracer approved by CFDA and has won multiple industry awards, including "Outstanding Product Brand" for four consecutive years[18]. - The company has received approval for two new drug registration certificates from the National Medical Products Administration, enhancing its product portfolio[42]. - The company is focusing on the development of upgraded products such as nano carbon iron and personalized innovative medical technologies through its subsidiaries[157]. Market Strategy and Sales - The company has adopted a dual-market operation strategy, focusing on both hospital and retail markets to drive business growth[20]. - The company has implemented a sales model that combines professional academic promotion with channel distribution, enhancing market penetration[20]. - The company has expanded its online sales channels, with significant growth in sales through the Laimei Juding e-commerce platform compared to the previous period[57]. - The company plans to enhance marketing management and optimize sales channels, focusing on core product promotion capabilities and transforming sales team management[192]. Corporate Governance and Compliance - The company has received a standard unqualified audit report from Yongtuo Accounting Firm[2]. - The company’s board of directors and senior management have guaranteed the authenticity, accuracy, and completeness of the annual report[2]. - The company emphasizes that forward-looking statements in the report do not constitute substantive commitments to investors, highlighting investment risks[2]. - The company aims to strengthen the safety control of pharmaceuticals in response to the revised Drug Administration Law, ensuring compliance with regulations[95]. Investment and Financial Management - The company has ongoing research and development projects, including the injection of thrombolytic agents and various traditional Chinese medicine formulations, with several products in different stages of clinical research and registration[158]. - The total external equity investment during the reporting period was CNY 250,000, a significant decrease of 99.90% compared to CNY 25,000,000 in the previous year, indicating a strategic focus on core business operations[170]. - The company plans to shift its fund management strategy from being limited to outbound investments to also focusing on inbound fundraising, aiming to accelerate the growth of its investment projects[182]. Awards and Recognition - Laimei Pharmaceutical was recognized as a "National Technology Innovation Demonstration Enterprise" in 2019 and has been listed as a key laboratory by Chongqing Economic and Information Commission in 2021[18]. - Shuangqian Industrial has been recognized as a "Demonstration Enterprise of Intelligent Factory" in 2022, highlighting its commitment to modernization and quality[18]. - The company has received multiple awards in the Chinese chemical pharmaceutical industry, highlighting its strong market reputation and product quality[48]. Challenges and Risks - The company faced challenges in the pharmaceutical sector due to government procurement policies, impacting sales volumes across various regions[57]. - The company reported a significant decline in net profit after deducting non-recurring gains and losses, which fell by 92.99% to CNY 5,391,356.31[35]. - The gross profit margin for cardiovascular drugs in 2022 was 86.68%, down from 91.97% in 2021, indicating a decline in profitability[134].