JYPC(002198)2022-03-11 16:00Financial Performance - The company's operating revenue for 2021 was CNY 574,713,387.08, representing a 5.50% increase compared to CNY 544,728,979.12 in 2020[19]. - The net profit attributable to shareholders of the listed company decreased by 92.55% to CNY 1,477,269.72 from CNY 19,838,348.25 in the previous year[19]. - The net profit attributable to shareholders after deducting non-recurring gains and losses fell by 98.59% to CNY 282,064.41 from CNY 19,991,758.09 in 2020[19]. - The net cash flow from operating activities decreased by 46.53% to CNY 51,800,132.35 from CNY 96,873,550.55 in the previous year[19]. - Basic earnings per share dropped by 92.58% to CNY 0.0029 from CNY 0.0391 in 2020[19]. - The weighted average return on equity for the company was 0.22% at the end of 2021, a decrease of 2.73% compared to the previous year[20]. - Total assets at the end of 2021 were approximately ¥807.34 million, a slight decrease of 0.14% from the end of 2020[20]. - The net profit attributable to shareholders for the first quarter of 2021 was ¥7.76 million, while the second quarter reported a loss of ¥3.58 million[23]. - The net cash flow from operating activities in the fourth quarter of 2021 was ¥28.32 million, showing a positive trend in cash generation[23]. - The company reported a total of ¥1.20 million in non-recurring gains and losses for 2021, compared to a loss of ¥0.15 million in 2020[25]. Industry Context - The pharmaceutical industry in China saw a GDP growth of 8.1% in 2021, with a significant increase in healthcare spending, which is expected to drive demand for pharmaceuticals[29]. - The company operates in the traditional Chinese medicine sector, which has gained widespread recognition due to its unique advantages and cultural significance[32]. - The government has implemented policies to promote high-quality development in the pharmaceutical industry, indicating a supportive regulatory environment for growth[31]. - The company has faced challenges due to cost control policies, but the overall pharmaceutical industry continues to show steady growth trends[31]. - In 2021, the total production of traditional Chinese medicine (TCM) reached 2.318 million tons, representing a year-on-year growth of 6.5%[33]. - The number of new TCM drug applications accepted by the National Medical Products Administration increased to 60 in 2021, a rise of 114.29% compared to the previous year[33]. - A total of 12 new TCM drugs were approved for market in 2021, accounting for 54% of the total new TCM drugs approved in the past five years[33]. Product and Market Strategy - The company aims to optimize product structure and enhance quality control while emphasizing the clinical and scientific value of its products[36]. - The company operates under a sales-driven production model, aligning production plans with market demand and sales forecasts[42]. - The sales strategy includes establishing partnerships with medical institutions and utilizing academic marketing methods to promote products[43]. - The company has developed over 58 varieties of drugs, with key products like Shuangliao Houfeng San and Zhonggan Ling Pian recognized as "Guangdong Province Famous Brand Products"[45]. - The company has established a new production capacity for cosmetics and disinfectants, with an annual production capacity of 960 tons for cosmetics and 480 tons for disinfectants[54]. - The company expanded its market presence by developing 113 offline experience stores and enhancing its marketing team in provinces such as Xinjiang, Guangxi, Hunan, and Henan[54]. Governance and Compliance - The company has no controlling shareholder or actual controller as of the latest report[18]. - The company is committed to ensuring the accuracy and completeness of its financial reports, as stated by its management[3]. - The company has established a robust governance framework to ensure compliance with regulations and protect shareholder interests[99]. - The company is committed to maintaining open communication with shareholders through various channels, ensuring transparency and engagement[103]. - The company has a structured process for determining the remuneration of its directors and senior management based on established policies and past shareholder resolutions[130]. - The company has faced regulatory scrutiny due to the delayed disclosure of significant agreements, resulting in administrative measures against involved personnel[128]. Risks and Challenges - The company faces risks related to industry policy changes, product concentration, price declines, cost control, and new drug development[4]. - The company's main products, Shuangliao Houfeng San and Jiekou Qili series, are highly concentrated, posing a risk to revenue and profitability if market conditions change[91]. - The implementation of new medical insurance policies has led to a general decline in drug prices, affecting the company's cost structure and profitability[92]. - New drug development poses risks due to lengthy approval processes and high funding requirements, which could lead to financial losses if projects do not meet expectations[95]. Environmental Responsibility - Guangdong Jiaying Pharmaceutical Co., Ltd. is classified as a key pollutant discharge unit by the Meizhou Environmental Protection Bureau[168]. - The company has implemented a centralized wastewater treatment system in collaboration with Meizhou Huayu Wastewater Treatment Co., Ltd.[168]. - The company’s nitrogen oxide emission limit is set at 150 mg/m³, with no exceedance reported[167]. - The sulfur dioxide emission limit is 30 mg/m³, with a reported range of 0-29 mg/m³[166]. - The company has conducted environmental impact assessments for its construction projects[168]. Employee and Stakeholder Engagement - The company has established a comprehensive employee welfare system, including labor contracts and social insurance, to protect employee rights[177]. - The total number of employees at the end of the reporting period is 753, with 392 from the parent company and 361 from major subsidiaries[145]. - The company actively participates in social welfare activities, contributing to community development and public health initiatives[179]. - The company respects and protects the legitimate rights and interests of stakeholders, promoting sustainable and stable development[109].