TMSP(SH:600671)2022-04-29 16:00Financial Performance - The net profit attributable to shareholders for 2021 was -29.8014 million CNY, with the parent company's net profit at -28.3876 million CNY, resulting in a cumulative undistributed profit of -152.1559 million CNY as of December 31, 2021[6]. - The company will not allocate surplus reserves or distribute dividends for the year 2021 due to the negative net profit[6]. - The company's operating revenue for 2021 was ¥147,069,186.37, a decrease of 28.82% compared to ¥206,627,323.03 in 2020[24]. - The net profit attributable to shareholders for 2021 was -¥29,801,430.12, improving from -¥40,518,323.01 in 2020[24]. - The net cash flow from operating activities for 2021 was -¥26,421,706.19, compared to -¥8,395,914.90 in 2020[24]. - The total assets at the end of 2021 were ¥402,648,614.86, a decrease of 9.01% from ¥442,510,197.01 in 2020[24]. - The basic earnings per share for 2021 was -¥0.24, compared to -¥0.33 in 2020[25]. - The weighted average return on equity for 2021 was -50.50%, slightly worsening from -49.64% in 2020[25]. - The company reported a quarterly operating revenue of ¥47,247,929.90 in Q4 2021, with a net profit of -¥14,671,722.78[27]. - The net assets attributable to shareholders at the end of 2021 were ¥45,184,018.46, down 37.97% from ¥72,843,448.58 in 2020[24]. - The company received government subsidies amounting to ¥1,769,183.59 in 2021, compared to ¥5,400,896.24 in 2020[29]. - The company reported a total revenue of CNY 2,838,065.82 for the anti-infection segment, with a gross margin of 19.10%, reflecting a decrease of 91.21% in revenue compared to the previous year[94]. - The revenue from tumor auxiliary products reached CNY 28,091,417.60, with a gross margin of 80.81%, showing a decline of 10.72% in revenue year-over-year[94]. - The raw material drug segment generated CNY 54,463,412.70 in revenue, with a gross margin of 11.84%, down 34.19% from the previous year[94]. Debt and Financial Management - A debt transfer agreement was signed in April 2021, allowing the company to transfer confirmed and conditionally confirmed debts totaling 90 million CNY to Yongxin Huari, with 50 million CNY already received by September 2021[11]. - The company transferred a debt of 331 million yuan to Yongxin Huari in April 2021, which was subsequently repaid[193]. - The company has provided guarantees for loans totaling 770 million yuan, which were approved by the former general manager but not by the board or shareholders[191]. - As of June 30, 2021, the company had an outstanding interest guarantee responsibility of 83.16 million yuan, while the principal loan guarantees had been released[191]. - The company is currently involved in a legal case regarding a loan of 300 million yuan, which is under first-instance judgment execution[193]. - The company has engaged in multiple loan transactions with its former controlling shareholder, which were not approved by the board or shareholders[193]. - The company is actively managing its financial obligations and ensuring compliance with regulatory requirements regarding loan guarantees[191]. Internal Control and Governance - The company received a qualified audit opinion from Zhongxing Caiguanghua Accounting Firm, which has been explained in detail in the report[5]. - The company has identified significant internal control deficiencies, particularly in the management of subsidiaries, which have not met expected internal control goals[186]. - The internal control audit report issued by Zhongxing Caiguanghua Certified Public Accountants provided a negative opinion, indicating serious internal control issues[190]. - The company has established a comprehensive internal control management system but acknowledges ongoing deficiencies, especially in subsidiary management[189]. - The company is committed to enhancing its internal control systems and improving subsidiary management to protect shareholder interests[189]. - The company has made efforts to strengthen its internal control framework in compliance with relevant laws and regulations, but challenges remain[189]. - The company has not proposed any cash profit distribution plan for the reporting period, as the parent company's distributable profit was negative[185]. - The company is actively rectifying issues pointed out by the Zhejiang Securities Regulatory Bureau regarding non-compliance with regulations[197]. Market and Product Development - The company has been involved in the development of new products and technologies, although specific details are not provided in the extracted content[7]. - The company plans to focus on expanding its market presence and developing new products and technologies in the upcoming year[24]. - The company launched new health products, including a 3D visual steam eye mask and pearl eye health patches, as part of its strategy to enter the health industry[38]. - The company completed the consistency evaluation research for Amoxicillin and Clavulanate Potassium Tablets by the end of 2021, with research materials submitted to the National Medical Products Administration[38]. - The company is focusing on restructuring and optimizing its product portfolio to adapt to market changes and improve profitability[66]. - The company is exploring new insurance products related to traditional Chinese medicine to enhance healthcare management services[122]. - The company is focusing on the development of mint essential oil and derivative products, aiming to increase the variety of sellable products[132]. Strategic Initiatives and Future Outlook - The company has a three-year shareholder return plan from 2021 to 2023, which is referenced in the report[6]. - The company is actively pursuing external mergers and acquisitions to adapt to industry policy changes and enhance its core competitiveness[126]. - The company is focusing on internal innovation to establish a complete ecosystem in the traditional Chinese medicine industry[125]. - The company is leveraging the "Healthy China" national strategy to expand into medical services, health consumption, and daily chemical products, creating new profit growth points[125]. - The company anticipates significant growth in the pharmaceutical market due to increasing healthcare awareness and an aging population, with the elderly expected to reach one-third of the total population by 2050[119]. - The company is considering strategic acquisitions to enhance its market position, targeting firms with a combined revenue of 500 million[155]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25%[155]. Human Resources and Management - The company recruited 21 new talents in 2021 to strengthen its human resources and ensure proper job matching[40]. - The company is implementing a human resources management system to attract, retain, and motivate talent, ensuring business goals are met[129]. - The company has established a compensation management system for directors, supervisors, and senior management, which was approved by the board and shareholders[164]. - The total remuneration for the chairman acting as the secretary is 53.33 million yuan, while the total remuneration for the vice chairman and president is 37.50 million yuan[150]. - The company has a total of 5 employees with master's degrees or higher, indicating a focus on skilled workforce development[180]. Compliance and Regulatory Issues - The company faced regulatory scrutiny, receiving warnings from the China Securities Regulatory Commission for failing to disclose related party guarantees and significant litigation matters[167]. - The company has not faced any penalties from the China Securities Regulatory Commission or other relevant authorities[152]. - The company is committed to maintaining compliance with regulatory requirements and corporate governance standards[154]. - The company has a strategic focus on enhancing its financial oversight and governance practices[154]. Shareholder Relations - The company conducted multiple shareholder meetings throughout 2021, ensuring compliance with legal procedures and facilitating shareholder participation[144]. - The company has a complete business and operational capability, independent from its controlling shareholder[144]. - The company maintained independence from its major shareholder, ensuring no interference in decision-making or operational activities[144].