New Journey(SZ:002219)2022-04-28 16:00Business Model and Strategy - The company reported a significant shift from a single pharmaceutical manufacturing business to a dual-driven "big health" industry model, focusing on both medical services and pharmaceutical manufacturing [28]. - The company is focusing on expanding its services in response to the increasing healthcare demands driven by aging population and chronic diseases [44]. - The management highlighted the ongoing healthcare reforms as both an opportunity and a challenge for the company's future growth [44]. - The company focuses on a dual-driven strategy of medical services and pharmaceutical manufacturing, enhancing its competitive edge in the healthcare industry [52]. - The company aims to strengthen its regional medical center status by enhancing specialty construction and has received various hospital accreditation achievements in 2021 [63]. - The company is focusing on specialized capacity building in hospitals to enhance competitiveness in regional healthcare development [119]. - The company is committed to enhancing the capabilities of county-level medical services and improving the primary healthcare system [49]. - The company plans to add nearly 2,000 new hospital beds within two years, increasing total bed capacity to 10,000, significantly enhancing operational scale and profitability [119]. Financial Performance - The company's operating revenue for 2021 was ¥3,016,070,733.20, representing a 7.49% increase compared to ¥2,805,895,494.80 in 2020 [30]. - The net profit attributable to shareholders for 2021 was -¥371,431,516.93, a significant decline of 610.96% from -¥52,243,830.15 in 2020 [30]. - The net cash flow from operating activities was ¥277,294,763.28, a slight decrease of 2.29% from ¥283,796,318.85 in 2020 [30]. - The basic and diluted earnings per share for 2021 were -¥0.1991, reflecting a 611.07% decrease from -¥0.0280 in 2020 [30]. - Total assets at the end of 2021 were ¥6,690,205,812.98, an increase of 38.78% from ¥4,820,797,979.68 in 2020 [30]. - The company reported a quarterly operating revenue of ¥791,769,762.57 in Q4 2021, with a total annual revenue of ¥3,016,070,733.20 [36]. - The net profit attributable to shareholders in Q4 2021 was -¥312,357,886.43, contributing to the overall annual loss [36]. - The company experienced a significant increase in non-operating income, with government subsidies amounting to ¥10,098,941.29 in 2021 [40]. Governance and Compliance - The company has established a governance structure that complies with regulatory requirements, ensuring effective decision-making and accountability [129]. - The company has conducted three shareholder meetings during the reporting period, adhering to legal and regulatory standards [130]. - The company maintains complete independence from its controlling shareholders in terms of business operations, assets, personnel, and finance, ensuring no competitive relationship or dependency exists [135]. - The company has established a robust internal audit system with dedicated personnel to oversee internal controls, expenses, and asset management [135]. - The company has a comprehensive information disclosure management system to ensure timely and accurate communication with shareholders [135]. - The company has implemented a transparent investor relations management system to facilitate communication with stakeholders [135]. - The company has recognized the need for better management of fixed asset investments, particularly regarding construction projects that have been stalled since 2019 [195]. Restructuring and Future Plans - The company has entered a restructuring plan execution phase after the court approved the plan, but faces bankruptcy risks if the plan is not executed smoothly [7][9]. - The company is currently in the execution phase of its restructuring plan, having reduced the board of directors from 9 to 5 members, with plans to complete the restructuring before holding further board elections [197]. - The company plans not to distribute cash dividends, issue bonus shares, or increase capital from reserves for the fiscal year [10]. - The company will firmly promote the long-term strategy of health business in 2022, actively responding to the challenges of population aging and imbalanced medical supply [115]. - The company will increase investment in the technical and research capabilities of medical institutions, enhancing the R&D strength of traditional Chinese medicine and the scale advantages of medical institutions [115]. - The company plans to expand the production scale of "Duyiwei" and enhance annual sales revenue, considering integration through external mergers and acquisitions [118]. Human Resources and Management - The total number of employees at the end of the reporting period was 7,622, with 5,158 being technical staff [174]. - The company has a total of 212 retired employees who require financial support [174]. - The company has undergone significant management changes, with multiple resignations and appointments aimed at meeting development needs [146]. - The management team includes experienced professionals with backgrounds in finance, healthcare, and management [150][151]. - The company is addressing human resource risks by focusing on attracting and retaining high-quality medical and management talent [124]. Market and Product Development - The company has over 36 pharmaceutical products, including 8 exclusive products nationwide and 20 products listed in the medical insurance catalog [52]. - The company's main product, "Duyiwei Capsules," has been included in the National Essential Medicines List, which is expected to positively impact market prospects [124]. - The company is exploring new high-end domestic medical services and innovative biopharmaceutical research and market operations [55]. - The company is committed to developing new technologies and products to meet market demands [154]. - Future guidance indicates a focus on strategic acquisitions and partnerships to bolster growth [148]. Risks and Challenges - The company emphasizes the importance of risk awareness among investors regarding future operational plans and profitability forecasts [6]. - The company faces potential risks from policy changes in healthcare reform, which could impact operations [122]. - The company has acknowledged issues with accounts receivable, particularly with a significant amount overdue for more than one year, reflecting insufficient collection efforts [194].