JZYY(SH:600750)2022-03-24 16:00Financial Performance - The company's operating revenue for 2021 was CNY 2,873,974,462.18, representing a 17.72% increase compared to CNY 2,441,451,789.23 in 2020[29]. - The net profit attributable to shareholders for 2021 was CNY 505,687,248.49, a 6.74% increase from CNY 473,739,388.42 in 2020[29]. - The net cash flow from operating activities for 2021 was CNY 917,037,660.75, up 21.87% from CNY 752,501,253.68 in 2020[29]. - The total assets at the end of 2021 were CNY 5,997,600,248.38, reflecting a 21.81% increase from CNY 4,923,573,835.05 at the end of 2020[29]. - The basic earnings per share for 2021 was CNY 0.80, a 6.67% increase from CNY 0.75 in 2020[29]. - The company reported a decrease of 4.58% in net profit attributable to shareholders after deducting non-recurring gains and losses, totaling CNY 424,156,470.17 in 2021 compared to CNY 444,526,688.21 in 2020[29]. - The total cash dividend for 2021, including the share buyback amounting to CNY 73.27 million, is CNY 621.01 million, representing 122.80% of the net profit attributable to the parent company[7]. Business Segments and Growth - The OTC (over-the-counter) business generated an annual revenue of 2.158 billion yuan, reflecting a year-on-year increase of 14.11%[42]. - The prescription drug business reported an annual revenue of 453 million yuan, with a growth of 27.04% due to the inclusion of Hais Pharmaceutical's business[43]. - The health products segment achieved an annual revenue of 245 million yuan, marking a year-on-year growth of 31.24%[44]. - The company acquired a 51% stake in Hais Pharmaceutical for approximately 220 million yuan, enhancing its product offerings in the gastrointestinal sector[45]. - The company launched a new joint development project for probiotics aimed at treating IBS and IBD, indicating a focus on innovative drug development[46]. Research and Development - Research and development expenses increased by 58.09% to 87.82 million RMB, indicating a significant investment in innovation[65]. - The company invested a total of 1,318.76 million RMB in the development and evaluation of probiotic products, representing 0.46% of operating revenue, with a year-on-year increase of 181.54%[128]. - The development of traditional Chinese medicine classic formulas incurred R&D expenses of 760.25 million RMB, which is 0.26% of operating revenue, showing a significant increase of 147.36% year-on-year[128]. - The company is developing a new probiotic drug for treating IBS and IBD, currently in the pre-research stage[128]. Market and Industry Trends - The overall growth rate of the pharmaceutical industry is slowing down, with increased market consolidation and elimination of less competitive companies[105]. - The non-prescription drug (OTC) market is expected to grow significantly, driven by an aging population and increased self-medication practices, with 29 prescription drugs converted to OTC in 2021[104]. - The "Internet + Healthcare" sector is poised for rapid development, with clearer regulations and increased policy support following the COVID-19 pandemic[104]. - The healthcare industry is transitioning from high-speed growth to high-quality development, presenting both challenges and opportunities[105]. Corporate Governance and Management - The company adheres to strict corporate governance practices, ensuring compliance with relevant laws and regulations[159]. - The company has made commitments to maintain operational independence from its controlling shareholders, addressing potential conflicts of interest[162]. - The company held a total of 4 shareholder meetings during the reporting period, all of which complied with legal and regulatory requirements[165]. - The company has appointed new independent directors and supervisors to enhance governance and oversight[168]. - The company’s board of directors is actively involved in overseeing the implementation of the incentive plan and related management practices[168]. Strategic Initiatives - The company plans to achieve the goal of "recreating Jiangzhong" by the end of the 14th Five-Year Plan through internal growth and external acquisitions[39]. - The company aims to enhance brand recognition and consumer acceptance to counteract the risks associated with procurement policies[110]. - The company is focusing on financial investments and strategic acquisitions to drive future growth[167]. - The company plans to continue expanding its market presence and developing new products as part of its growth strategy[171].