SHYNDEC(SH:600420)2023-03-29 16:00Internal Control and Compliance - The company engaged Tianjian Accounting Firm to audit the effectiveness of its internal control, resulting in a standard unqualified opinion in the 2022 internal control audit report disclosed on March 30, 2023[3]. - The company has committed to ensuring that its actions do not harm the interests of shareholders and to comply with regulatory requirements[20]. - The company will strictly comply with the regulations of the China Securities Regulatory Commission and the Shanghai Stock Exchange after the completion of the transaction, ensuring the independence of the listed company in personnel, assets, finance, and business[18]. - The company guarantees not to occupy the funds and assets of the listed company and its subsidiaries in any way after the transaction is completed[18]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties during the reporting period[22]. - The company is committed to ensuring the accuracy and completeness of its financial reporting, as confirmed by a standard unqualified audit report[83]. Environmental Protection and Sustainability - The company’s environmental protection facilities, including wastewater treatment and air emission control systems, are operating normally, with ongoing enhancements to ensure compliance with environmental standards[6]. - The company has implemented annual emergency drill plans for environmental incidents, improving coordination and response capabilities to unexpected environmental events[7]. - The company has committed to reducing carbon emissions and has taken measures to achieve this goal, although specific results were not detailed in the report[10]. - The company has established a monitoring system for environmental facilities, including daily operation protocols and maintenance schedules, to ensure compliance and operational efficiency[6]. - The company has a dedicated team responsible for the operation and monitoring of environmental facilities, with some units outsourcing management to third-party professionals[6]. - The company has developed a comprehensive environmental emergency response plan, which has been filed for regulatory review[7]. Financial Performance - The company's operating revenue for the reporting period was ¥12,959,320,533.56, a decrease of 7.07% compared to ¥13,944,948,270.25 in the previous year[52]. - Operating costs increased to ¥8,024,562,526.12, reflecting a rise of 2.25% from ¥7,848,140,984.30 in the prior year[52]. - The net profit attributable to shareholders of the listed company for 2022 was ¥627,794,828.71, representing a year-on-year increase of 10.47% compared to ¥568,280,771.91 in 2021[96]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥552,660,279.79, an increase of 11.17% from ¥497,119,038.98 in the previous year[96]. - The net cash flow from operating activities surged by 70.01% to ¥2,855,633,105.16, compared to ¥1,679,662,393.87 in the previous year[52]. - The company reported a balance of distributable profits for shareholders of ¥2,601,334,684.75 at the end of the reporting period[102]. Research and Development - The company’s R&D expenses were ¥520,922,635.17, down 11.59% from ¥589,184,570.70 in the previous year[52]. - The company launched 51 new patents during the reporting period, including 17 invention patents, enhancing its innovation capabilities[135]. - The company is focusing on the development of controlled-release, membrane, and transdermal patch technologies as part of its innovation strategy[135]. - The company has established a multi-level R&D system focusing on five key therapeutic areas, enhancing innovation capabilities[62]. - The company is actively promoting centralized procurement management to reduce costs and improve efficiency[62]. Market and Sales Strategy - The company achieved operating revenue of 12.959 billion yuan, a year-on-year decrease of 7.07%, with over 1 billion yuan products increasing to 31, accounting for 72% of sales[122]. - The company is focusing on market expansion through the development of new chemical drugs and active pharmaceutical ingredients[74]. - The company has established a nationwide sales network through a combination of distribution, agency, and academic promotion strategies[130]. - The company plans to continue expanding its market presence and enhancing its product offerings in the health and wellness sector[130]. - The company is exploring CMO and CDMO business opportunities to enhance manufacturing efficiency through external resource extension and internal collaboration[62]. Corporate Governance and Shareholder Relations - The company has made commitments to minimize related party transactions and ensure fair pricing in any necessary transactions, with a focus on protecting the rights of all shareholders[17]. - The company commits to not using related party transactions to illegally transfer funds or profits from China National Pharmaceutical Modern[19]. - The company will bear all losses caused to China National Pharmaceutical Modern and other shareholders if it violates the commitments made[19]. - The company will not intervene in the management activities of the company or infringe on its interests regarding the issuance of convertible bonds[19]. - The company has committed to ensuring that its future equity incentive plans are linked to the execution of return compensation measures[20]. Asset Management and Financial Health - Cash and cash equivalents at the end of the period amounted to ¥6,148,196,232.13, representing 31.32% of total assets, an increase of 43.51% compared to the previous period[198]. - The company reported a significant increase in prepayments, which rose to ¥275,949,663.45, representing 1.41% of total assets, a 76.74% increase compared to the last period[198]. - The total amount of short-term borrowings decreased to ¥321,138,719.45, which is 1.64% of total assets, reflecting a substantial decline of 77.17% from the previous period[198]. - The company holds overseas assets valued at ¥1,173,602.39, which constitutes 0.01% of total assets[199]. - The company has restricted cash of ¥249,000,000.00 due to time deposits, and additional restricted amounts for guarantee deposits and frozen funds[200].