GuangYuYuan(SH:600771)2022-04-29 16:00Financial Performance - The company reported a net profit attributable to shareholders of the parent company of -316.24 million yuan for the year 2021, with a cumulative undistributed profit of -593.90 million yuan at year-end, resulting in no profit distribution for the year[6]. - In 2021, the company's operating revenue decreased by 23% to ¥854,223,148.51 compared to ¥1,109,430,046.82 in 2020[30]. - The net profit attributable to shareholders turned from a profit of ¥32,003,001.58 in 2020 to a loss of ¥316,244,434.80 in 2021, representing a decline of 1,088.17%[30]. - The company reported a basic earnings per share of -¥0.64 in 2021, down from ¥0.07 in 2020, reflecting a decrease of 1,014.29%[27]. - The weighted average return on equity fell to -14.03% in 2021, a decrease of 15.38 percentage points from 1.35% in 2020[27]. - The total assets decreased by 18.31% to ¥3,102,482,555.59 at the end of 2021, down from ¥3,797,965,909.49 at the end of 2020[30]. - The company reported a total loss of CNY 352.63 million in profit before tax, compared to a profit of CNY 17.51 million in the previous year[111]. - The company achieved operating revenue of CNY 854 million in 2021, a year-on-year decrease of 23%[41]. - The net profit attributable to shareholders was a loss of CNY 316.24 million, while sales collections increased by 26% to CNY 1.107 billion[41]. Cash Flow and Expenses - The company's cash flow from operating activities improved, with a net cash flow of ¥81,368,872.18 in 2021, compared to a negative cash flow of ¥75,524,827.22 in 2020[30]. - The net operating cash flow improved to CNY 81.37 million, a significant increase of CNY 157 million compared to the previous year's negative cash flow[41]. - The sales expense increased by 35.29% to CNY 782.22 million, reflecting the company's response to market challenges due to the pandemic[111]. - Research and development expenses decreased by 42.01% to CNY 25.19 million, indicating a shift in investment strategy[111]. - The overall cost of raw materials decreased by 2.62%, reflecting improved procurement strategies and cost management[134]. - The company reported a decrease in credit impairment losses by 94.01 million RMB, attributed to a reduction in accounts receivable[114]. Market and Strategic Developments - The company plans to enhance its marketing strategies and improve internal management to stabilize market share amid ongoing economic challenges[31]. - The company has outlined various risks it may face in its operations, including industry policy risks and fluctuations in raw material supply and prices[9]. - The company is focusing on market restructuring and receivables management to improve its financial structure for future growth[111]. - The company has established a governance structure to ensure compliance with state-owned enterprise regulations following its return to the state-owned system[54]. - The company has established a collaborative distribution model, enhancing market penetration through partnerships with wholesalers and retailers[86]. Research and Development - The company has received 2 invention patents and was awarded the second prize for technological progress in Shanxi Province, indicating a strong focus on R&D[49]. - The company has published over 200 academic papers, including 16 in SCI journals, demonstrating its strong research capabilities[96]. - The company has multiple R&D projects, with the highest investment being 363.22 million RMB for the Liuwedi Huang series[193]. - The company’s R&D direction focuses on new dosage forms and therapeutic areas for existing products[191]. - The company has established a "production-academia-research" model to enhance product advantages and modern medical theory research[162]. Product and Market Position - The company has 36 products included in the National Essential Medicines List and 61 products in the National Medical Insurance Directory[76]. - The core products, including Gui Ling Ji and Ding Kun Dan, are recognized as national intangible cultural heritage[79]. - The company aims to enhance the quality of traditional Chinese medicine by adhering to strict GMP standards and traditional production methods[73]. - The company has expanded its product offerings by introducing the "Body Cultivation Niuhuang" series to meet diverse consumer needs[130]. - The company’s products are not included in the national essential drug list but are part of provincial medical insurance directories[170]. Industry Trends and Government Policies - The pharmaceutical manufacturing industry saw a 24.8% increase in value added compared to the previous year, with monthly industrial value added growth exceeding 8% throughout 2021[57]. - The government emphasized the importance of traditional Chinese medicine in combating COVID-19, integrating it into treatment protocols[62]. - The ongoing urbanization and rising disposable income in China are expected to further boost the demand for traditional Chinese medicine[62]. - In 2021, over 500 new policies related to the pharmaceutical industry were issued by the national government, significantly impacting the sector[64]. Compliance and Governance - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[7]. - The company has received a standard unqualified audit report from Lianda Certified Public Accountants[5]. - The company’s board of directors and supervisory board members have all attended the board meeting, ensuring the authenticity and completeness of the annual report[4]. - The company is closely monitoring changes in medical policies to adapt its strategies accordingly[76].