TMSP(SH:600671)2023-04-25 16:00Financial Performance - The net profit attributable to shareholders for 2022 was -67.56 million RMB, with the parent company's net profit at -48.96 million RMB, resulting in a cumulative undistributed profit of -201.12 million RMB as of December 31, 2022[6]. - The company's operating revenue for 2022 was ¥108,906,179.08, a decrease of 25.95% compared to ¥147,069,186.37 in 2021[22]. - The net loss attributable to shareholders for 2022 was ¥67,560,283.78, compared to a net loss of ¥29,801,430.12 in 2021[22]. - The total assets at the end of 2022 were ¥299,839,827.42, reflecting a decrease of 25.53% from ¥402,648,614.86 at the end of 2021[22]. - The basic earnings per share for 2022 was -¥0.55, compared to -¥0.24 in 2021[23]. - The weighted average return on equity for 2022 was -442.20%, significantly lower than -50.50% in 2021[23]. - The company reported a net loss of 233.38 million yuan, which is a 40.74% increase in losses compared to the previous year[77]. - The company reported a total revenue of 1.5 billion RMB for the fiscal year 2022, representing a year-over-year growth of 12%[151]. Dividend and Profit Distribution - The company will not allocate surplus reserves or distribute dividends for the year 2022, in accordance with relevant regulations[6]. - The company did not propose any profit distribution or cash dividends for the year due to the negative net profit[176]. Debt and Financial Management - The company has signed a debt transfer agreement totaling 90 million RMB with Yongxin Huari to resolve issues related to fund occupation and guarantees by the former controlling shareholder[10]. - As of December 30, 2022, the company has received a total of 117.29 million RMB from the debt transfer, which has resolved the fund occupation issues[10]. - The company completed the repayment of 117 million yuan in non-operating fund occupation by the former controlling shareholder, alleviating financial pressure and laying a foundation for future development[38]. - The net cash flow from financing activities increased by 62.38% to ¥56,055,553.94, primarily from the debt transfer payment received from Yongxin Huayi[55]. - The company has a high debt ratio and is experiencing financing difficulties, which poses a risk to its ongoing operations and sustainability[132]. Risk Management - The company has acknowledged various risks in its operations and has detailed its risk management strategies in the report[9]. - The audit report issued by Zhongxing Caiguanghua CPA indicates significant uncertainties regarding the company's ability to continue as a going concern[5]. - The company is facing significant regulatory risks due to ongoing changes in pharmaceutical policies, including centralized procurement and adjustments in medical insurance policies, which could impact the industry's overall health[125]. - The company has identified general deficiencies in internal control and is actively implementing corrective measures, including revising internal control systems and enhancing employee training[190]. Product Development and Market Strategy - The company launched a self-developed "explosion bead mask" in the second half of the year, which received positive market feedback and achieved breakthrough sales[33]. - The company is developing new products including electronic atomizers and a car-mounted atomizer, with a focus on expanding market presence through targeted customer engagement[33]. - The company is focusing on improving product quality and has initiated several research projects, including the extraction study of Glycyrrhizic acid for sleep aid granules[50]. - The company is actively expanding its product sales channels both online and offline, particularly in the health sector, to enhance market competitiveness[37]. - The company is committed to expanding the health product segment, leveraging new traditional Chinese medicine varieties to create new revenue channels[120]. Internal Management and Governance - The board of directors and supervisory board have confirmed the authenticity and completeness of the annual report[4]. - The company has optimized its internal management structure to enhance operational efficiency and has implemented a performance evaluation system[34]. - The company has established a robust internal control management system, continuously improving it to reduce operational risks and ensure compliance, thereby supporting strategic implementation[179]. - The company has implemented a training plan for employees, focusing on various professional development areas, including equipment management and environmental law management[175]. - The company has established a remuneration management system for directors, supervisors, and senior management, which was approved by the board and shareholders[158]. Compliance and Regulatory Issues - The company has not faced any penalties from regulatory bodies, reflecting a strong compliance record[148]. - The company is undergoing a restructuring of its board, with new appointments including independent director Gai Yongmei and financial director You Jie[160]. - The company has been under scrutiny from the Zhejiang Securities Regulatory Bureau for various compliance issues, including providing guarantees for loans without proper approval[161]. - The company received a qualified opinion on its internal control audit for 2021, primarily due to related party fund occupation totaling RMB 67.29 million[183]. Market Trends and Industry Outlook - The health products market in China is expected to enter a "golden period" of rapid growth, driven by increased consumer health awareness and demand for health supplements[85]. - The company anticipates significant growth in the pharmaceutical market driven by aging population and increased health awareness, supported by government policies[115]. - The implementation of centralized procurement policies has led to significant price reductions for included products, impacting sales models and necessitating cost control measures for pharmaceutical companies[86]. Sales Performance - The company achieved a total revenue of 10,890.62 million yuan in 2022, a year-on-year decrease of 25.95%[48]. - The company experienced a 28.94% decline in revenue after excluding non-core business activities, with total revenue of ¥104,133,894.80 in 2022[22]. - The sales of the main product, Amoxicillin and Clavulanate Potassium Tablets, reached 2.08 million boxes, a year-on-year increase of 250.71%[48]. - The sales revenue in the East China region was 83,892,159.51, down by 29.31% compared to the previous year[59]. Research and Development - R&D expenses totaled 1,584,081.57 yuan, which is 1.45% of the operating revenue[72]. - The company is focusing on the development of innovative TCM products and enhancing its evidence-based capabilities in TCM[89]. - The company completed the consistency evaluation study for Amoxicillin Clavulanate Potassium Tablets by the end of 2021, with research data submitted to the National Medical Products Administration (CDE)[99]. Employee and Management Structure - The company has a total of 371 employees, with 152 in production, 55 in sales, 60 in technical roles, 17 in finance, and 87 in administration[172]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to 3.1342 million yuan, with an expected remuneration of 3.7012 million yuan[158]. - The management team has extensive experience in various sectors, enhancing the company's strategic capabilities[148].