KANGHUI PHARMACEUTICAL(SH:603139)2023-04-28 16:00Financial Performance - The company reported a net profit attributable to shareholders of -63.06 million yuan for the year 2022, with the parent company achieving a net profit of -40.74 million yuan[5]. - The company will not distribute profits or increase capital reserves for the year 2022, pending approval at the annual shareholders' meeting[5]. - The company's total assets decreased by 2.07% to CNY 1.82 billion in 2022 from CNY 1.86 billion in 2021[21]. - Operating revenue increased by 11.01% to CNY 491.51 million in 2022 compared to CNY 442.76 million in 2021[21]. - The net profit attributable to shareholders was a loss of CNY 63.06 million in 2022, a decline of 272.84% from a profit of CNY 36.48 million in 2021[21]. - The company reported a significant increase in cash flow from operating activities, rising by 579.82% to CNY 50.43 million in 2022 from CNY 7.42 million in 2021[21]. - The weighted average return on equity decreased by 9.81 percentage points to -6.24% in 2022 from 3.57% in 2021[21]. - The first quarter of 2022 saw operating revenue of CNY 117.73 million, with a net profit of CNY 8.79 million attributable to shareholders[23]. - The net profit was -76.78 million yuan, a decrease of 332.70% year-on-year[28]. - Total assets at the end of the reporting period were 1.82 billion yuan, a year-on-year decrease of 2.07%[28]. - Net assets amounted to 1.03 billion yuan, down 7.99% compared to the previous year[28]. Industry Overview - The pharmaceutical manufacturing industry in China generated revenue of 2,911.14 billion yuan in 2022, a year-on-year decrease of 1.6%, and total profit of 428.87 billion yuan, down 31.8% from 2021[12]. - The pharmaceutical industry faces challenges such as rising production costs and intensified competition, but the demand for innovative drugs is expected to grow due to an aging population[12]. - The company operates in a weak cyclical industry, with consistent demand for pharmaceuticals regardless of economic conditions[14]. Company Strategy and Operations - The company focuses on the research, production, and sales of traditional Chinese medicine, with over 100 drug approval numbers and 30 invention patents[15]. - The main products include Compound Shuanghua Tablets and Kunfukang Capsules, which are listed in the national medical insurance directory[15]. - The company emphasizes the importance of traditional Chinese medicine, which is increasingly recognized for its effectiveness and lower side effects compared to Western medicine[13]. - The company has submitted applications for international invention patents and has several patents pending[15]. - The company is committed to enhancing its research and development capabilities to adapt to the evolving pharmaceutical landscape[12]. - The company maintained a diverse sales model, including professional academic promotion and channel distribution, to enhance product reach[19]. - The core products are included in multiple clinical medication guidelines, indicating strong market recognition and efficacy[20]. - The company operates a complete procurement, production, and sales system, ensuring compliance with GMP standards throughout the production process[18]. - The company has established a marketing network across 30 provinces in China, enhancing its market position in various therapeutic areas[20]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 10,516[24]. - The largest shareholder, Shaanxi Kanghui Holdings, holds 36.75% of the shares, with a reduction of 2,893,763 shares during the reporting period[24]. - TBP Traditional Medicine Investment Holdings (H.K.) Limited holds 15.80% of the shares, with a reduction of 891,100 shares[24]. - The actual controller, Wang Yanling, directly holds 6.66% of the shares and controls a total of 43.41% of the voting rights[25]. - The company has no preferred shareholders with restored voting rights[25]. - There are no significant changes in the company's operating conditions that would lead to delisting risks[29].