ZBD(SH:603567)2022-04-29 16:00Financial Performance - The company's operating revenue for 2021 was RMB 4,126,813,896.18, representing a 21.24% increase compared to RMB 3,403,747,280.97 in 2020[21]. - The net profit attributable to shareholders of the listed company was RMB 332,099,672.96, a decrease of 23.88% from RMB 436,285,785.59 in the previous year[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 79,236,536.87, down 77.92% from RMB 358,933,556.59 in 2020[21]. - The net cash flow from operating activities was negative at RMB -433,936,940.94, a decline of 379.64% compared to RMB 155,178,025.16 in 2020[21]. - The total assets at the end of 2021 were RMB 11,506,076,750.01, an increase of 12.43% from RMB 10,234,312,842.17 at the end of 2020[21]. - The net assets attributable to shareholders of the listed company increased by 28.18% to RMB 7,042,918,942.75 from RMB 5,494,448,424.79 at the end of 2020[21]. - Basic earnings per share decreased by 25.24% to 0.3841 RMB compared to 2020[24]. - The weighted average return on equity dropped to 5.664% from 8.15% in 2020, a decrease of 2.49 percentage points[24]. - The gross profit margin for the overall business decreased by 22.99 percentage points to 33.75% due to rising costs[106]. - The company achieved a revenue of 4.127 billion RMB, representing a year-on-year growth of 21.24%[98]. Cash Flow and Investments - The company reported a significant increase in cash flow from financing activities, which rose by 173.00% to approximately ¥797.46 million from ¥292.11 million, mainly due to increased funds raised from a private placement[104]. - The company’s cash and cash equivalents at the end of the reporting period totaled approximately ¥107.05 million, primarily restricted due to bank guarantees[133]. - The company reported a significant increase in long-term equity investments, reaching approximately ¥644.88 million, a 43.42% increase compared to the previous period[130]. - The company's debt investments rose to approximately ¥198.08 million, reflecting a 41.41% increase due to increased promotional expenses[130]. - The company experienced a substantial increase in development expenditures, amounting to approximately ¥139.34 million, which is an increase of 182.86% compared to the previous period, attributed to increased capitalized R&D expenses[130]. Research and Development - The company established a comprehensive R&D system with over 200 personnel and seven major R&D platforms, focusing on both traditional Chinese medicine and chemical drugs[53]. - The company has 41 ongoing projects in raw materials and generic drug formulations, aiming to enhance product competitiveness in major therapeutic areas[53]. - The company is focusing on innovative drug research and development, expanding its specialized R&D team, and enhancing overall R&D capabilities[150]. - The company has several ongoing R&D projects, including innovative drugs targeting severe influenza and liver cancer, currently in Phase I clinical trials[151]. - The company’s R&D investment in the "Anti-Influenza Virus New Drug" project was 1,666.57 million RMB, with a significant decrease of 51.65% compared to the previous year[159]. - The company’s R&D investment in the "Pan FGFR Kinase Inhibitor" project was 273.56 million RMB, reflecting a decrease of 53.27% compared to the previous year[159]. - The company is focusing on developing traditional Chinese medicine (TCM) and high-end formulations in chemical and biological drugs, with a strategic shift from product advantages to therapeutic domain advantages[180]. - The company aims to enhance its product pipeline by focusing on cardiovascular, respiratory, orthopedic, oncology, digestive, diabetes, and mental health fields, while also promoting the development of innovative TCM products[181]. Market Strategy and Operations - The company has established a comprehensive marketing network covering the entire country, implementing a "self-operated + all-channel + all-terminal" market development strategy[40]. - The company is focusing on expanding its biopharmaceutical sector, with a new investment cooperation agreement signed for a biopharmaceutical R&D base in Hangzhou[42]. - The company is actively expanding its market presence by optimizing marketing strategies and deepening its service network[76]. - The company is committed to continuous investment in traditional Chinese medicine R&D, collaborating with renowned universities and research institutions to enhance product development[80]. - The company is exploring innovative commercial models, including internet hospitals and logistics solutions, to enhance its service offerings[69]. - The company is focusing on the development of smart factories and intelligent manufacturing to improve production efficiency and product quality[86]. - The company is actively seeking acquisition opportunities to enrich its product pipeline and support steady growth, particularly in overseas markets[181]. - The company emphasizes a three-pronged marketing strategy focusing on academic promotion, market access, and channel development to expand its reach in both high-tier hospitals and grassroots medical markets[184]. Challenges and Risks - The company faced significant procurement cost increases due to rising prices of metals, traditional Chinese medicine materials, and logistics costs influenced by external factors such as the pandemic and environmental policies[192]. - The company is responding to policy changes in the pharmaceutical industry, including the normalization of centralized procurement and the adjustment of medical insurance directories, which significantly impact the market landscape[187]. - The company experienced a 66.43% decline in sales volume for its main product, the injection of blood stasis-removing agent, due to pandemic-related impacts[113]. - The revenue from traditional Chinese medicine preparations decreased by 32.05%, while the gross profit margin fell by 3.23 percentage points, influenced by industry policies and the pandemic[112]. Subsidiaries and Acquisitions - The company established a wholly-owned subsidiary, Zhejiang Suoao Biotechnology Co., Ltd., with a registered capital of RMB 200 million, focusing on technology services and medical research[165]. - The company invested RMB 400 million in Zhejiang Teruisi Pharmaceutical Co., Ltd., acquiring a 16.6665% stake, which increased to 17.0211% due to a shareholder exit[166]. - The company’s subsidiary, Harbin Zhenbao Pharmaceutical Co., Ltd., reported total assets of RMB 1,795.38 million, a decrease of 7.96% from the beginning of the period, with a net profit of RMB 80.09 million, down 69.00% year-on-year[175]. - The company’s subsidiary, Bozhou Chinese Medicine Trading Center Co., Ltd., reported total assets of RMB 2,334.32 million, a decrease of 0.35%, with a net profit of RMB 235.14 million, an increase of 377.45% year-on-year[176].