ZHEJIANG ZHENYUAN(SZ:000705)2022-04-08 16:00Financial Performance - The company's operating revenue for 2021 was ¥3,612,045,255.57, representing a 5.01% increase from ¥3,439,840,440.43 in 2020[20]. - The net profit attributable to shareholders for 2021 was ¥77,295,070.82, a decrease of 13.53% compared to ¥89,392,934.21 in 2020[20]. - The net profit after deducting non-recurring gains and losses was ¥60,152,987.05, down 7.91% from ¥65,322,517.64 in 2020[20]. - The net cash flow from operating activities was ¥75,165,175.26, a significant decline of 51.45% from ¥154,814,640.09 in 2020[20]. - Basic earnings per share for 2021 were ¥0.23, a decrease of 14.81% from ¥0.27 in 2020[20]. - Total assets at the end of 2021 were ¥2,986,396,531.76, reflecting a 10.55% increase from ¥2,701,279,049.18 at the end of 2020[20]. - The net assets attributable to shareholders at the end of 2021 were ¥1,853,653,536.89, up 6.44% from ¥1,741,455,077.20 at the end of 2020[20]. - The weighted average return on net assets for 2021 was 4.30%, down 0.91 percentage points from 5.21% in 2020[20]. - The total profit for the year was 103 million yuan, which reflects a decline of 10.35% year-over-year[41]. - Total revenue for 2021 reached ¥3,612,045,255.57, a year-on-year increase of 5.01% compared to ¥3,439,840,440.43 in 2020[51]. Dividend Distribution - The company plans to distribute a cash dividend of 0.60 RMB per 10 shares to all shareholders, based on a total of 334,123,286 shares[8]. - The company distributed cash dividends of 20,047,397.16 yuan, accounting for 100% of the total profit distribution[126]. - The company approved a cash dividend of 0.70 yuan per 10 shares, totaling 23,388,630.02 yuan for the previous year[124]. Governance and Management - The company emphasizes the importance of accurate financial reporting, with key personnel affirming the report's authenticity and completeness[7]. - The board of directors has ensured that all members attended the meeting to review the annual report, highlighting governance practices[8]. - The company has a commitment to transparency, with its annual report available on the Shenzhen Stock Exchange website and other media[16]. - The company aims to enhance its governance structure through comprehensive reforms and the introduction of over 80 new talents[45]. - The company has established a responsibility accountability system for violations in business operations and investments[129]. - The company conducted internal control self-assessments and audits to enhance governance capabilities[129]. - The company has a diverse board with members holding various professional qualifications and experiences[108]. - The company is focused on enhancing its governance structure through independent oversight[109]. - The company maintained a structured approach to board meetings and decision-making processes, reflecting strong corporate governance practices[116]. Research and Development - Research and development expenses amounted to ¥33,024,800, representing a 23.47% increase year-on-year[44]. - The company achieved a "zero breakthrough" in drug consistency evaluation with the successful assessment of Clarithromycin tablets[44]. - The company established two R&D innovation platforms, including the National Synthetic Biology Shaoxing Demonstration Base, to support innovation in the biomedicine and health sectors[44]. - The company introduced three new health products and developed a phased research plan for a new analgesic drug[44]. - The company will increase R&D investment and strengthen collaborations with research institutions to mitigate risks associated with drug innovation and consistency evaluation[89]. Market and Industry Trends - The Chinese health industry market size reached ¥9 trillion in 2020 and is projected to grow to ¥13.4 trillion by 2024, indicating a compound annual growth rate of approximately 10.4%[30]. - The online pharmaceutical market in China was valued at ¥195.6 billion in 2020, with a year-over-year growth of 28.3%, and is expected to reach ¥226 billion in 2021, reflecting a growth rate of 15.5%[32]. - The health industry is expected to see unprecedented growth opportunities due to supportive national policies and increasing consumer health awareness, with a shift in demand from treatment to prevention and health management[74]. - The development of traditional Chinese medicine is positioned as a national strategy, with significant government support and policies aimed at promoting its innovation and integration into the healthcare system[75]. - Digitalization is expected to drive industry transformation, enhancing efficiency and enabling better patient-centered services through online channels and smart manufacturing[77]. Operational Performance - The company has a diverse business scope, including traditional Chinese medicine, chemical raw materials, and medical devices[17]. - The company expanded its retail chain by opening 4 new direct-operated stores and acquiring 5 stores, optimizing 16 existing stores[42]. - The company’s subsidiary, Zhejiang Zhenyuan Pharmaceutical Supply Chain Management Co., won a bid for the logistics distribution service project for medical supplies in Shaoxing City, enhancing its logistics capabilities[40]. - The company is focusing on digital transformation by establishing a digital pharmacy and implementing smart healthcare solutions[43]. - The company is actively adapting to the ongoing healthcare reforms and market competition, emphasizing innovation and collaboration across the healthcare ecosystem[36]. Environmental and Social Responsibility - The company has implemented measures to enhance governance and maintain investor interests, with no significant issues found during the governance self-inspection[133]. - The company has established a wastewater treatment facility with a daily processing capacity of 2,000 tons, utilizing advanced treatment processes to ensure compliance with discharge standards[138]. - The company has actively participated in social responsibility initiatives, providing over 18 million pieces of epidemic prevention materials and 150,000 bags of traditional Chinese medicine during the pandemic[141]. - Zhenyuan has established 12 community pharmacy service stations, enhancing healthcare accessibility in Shaoxing City, with one station recognized as a five-star service station[141]. - The company has adopted a "company + cooperative + farmer" model for traditional Chinese medicine cultivation, promoting sustainable agricultural practices and supporting local economies[142]. Financial Controls and Compliance - Zhejiang Zhenyuan Co., Ltd. maintained effective internal control over financial reporting as of December 31, 2021, according to the internal control audit report[133]. - The company reported zero significant defects in both financial and non-financial reporting for the year 2021[131]. - The internal control self-assessment report was fully disclosed on April 9, 2022, indicating a comprehensive evaluation of internal controls[131]. - The company has a 100% inclusion rate of subsidiaries in the internal control evaluation, covering total assets and revenue[131]. - The audit opinion for the financial statements was a standard unqualified opinion, issued by Tianjian Accounting Firm on July 7, 2022[188].