TAT(SZ:002433)2023-04-28 16:00Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB in 2022, representing a growth of 15% compared to the previous year[20]. - The company's operating revenue for 2022 was ¥724,844,899.72, a decrease of 67.99% compared to ¥2,264,174,816.08 in 2021[25]. - The net profit attributable to shareholders for 2022 was -¥822,822,306.85, representing a slight increase in loss of 2.43% from -¥803,289,348.21 in 2021[25]. - The net cash flow from operating activities decreased by 73.36% to ¥222,189,274.79 in 2022, down from ¥833,892,028.75 in 2021[25]. - The company's total revenue for the reporting period decreased by ¥1,539,329,916.36, representing a decline of 67.99% year-on-year, primarily due to a significant reduction in the pharmaceutical e-commerce retail business[71]. - The revenue from pharmaceutical wholesale and retail dropped by ¥1,239,262,997.29, down 85.44% year-on-year, mainly due to decreased e-commerce sales by a subsidiary[72]. - The company reported a significant drop in quarterly revenue, with Q4 2022 revenue at ¥26,594,861.64, down from ¥191,252,969.09 in Q1 2022[29]. - The company incurred a net loss of -¥677,483,588.78 in Q4 2022, contributing to the overall annual loss[29]. Market Expansion and Strategy - User data indicates that the company has expanded its customer base by 20%, reaching 5 million active users by the end of 2022[20]. - The company has outlined a future outlook projecting a revenue growth of 10% for 2023, driven by new product launches and market expansion strategies[20]. - The company plans to enhance its market presence by entering two new provinces in 2023, aiming for a 5% market share in these regions within the first year[20]. - A strategic acquisition of a smaller pharmaceutical company is in progress, which is anticipated to increase production capacity by 30%[20]. - The company is focusing on expanding its business in the "Internet + healthcare" sector, aligning with national policies to enhance healthcare services[41]. - The company aims to integrate resources across the pharmaceutical industry, hospitals, and internet healthcare to create a unique competitive advantage in the market[52]. Research and Development - Research and development efforts have led to the introduction of three new herbal medicine products, which are expected to contribute an additional 200 million RMB in revenue[20]. - The company invested in R&D, completing projects such as the secondary development of the well-known traditional Chinese medicine Qilin Wan and the IV phase clinical research of a new drug[38]. - The company is conducting pre-IND registration consultations with the US FDA for its Q81/Q90 product, aiming to enhance international recognition[86]. - The company has completed the research on the chemical components of its Qilin Wan product, which will support its clinical applications[86]. - The company is developing a new drug based on the ancient formula "Peach Blossom Four Substance Decoction," preparing for further new drug applications[86]. - The company's R&D investment amounted to ¥26,717,444.44 in 2022, a decrease of 12.11% compared to ¥30,400,042.44 in 2021[87]. - R&D investment accounted for 3.69% of operating revenue in 2022, an increase of 2.35 percentage points from 1.34% in 2021[87]. Operational Efficiency - The company is focusing on improving its supply chain efficiency, targeting a reduction in operational costs by 15% over the next fiscal year[20]. - The company has established 72 fully automated production lines to enhance production capacity and efficiency in traditional Chinese medicine manufacturing[62]. - The company has 18 production lines for traditional Chinese medicine, with 25 exclusive products, including unique varieties such as Qilin Wan and Xin Bao Wan[48]. - The company is addressing the shortage of medicinal materials through a resource survey and species identification project for Bai Rong Cao[86]. Corporate Governance and Compliance - The company has established a performance evaluation and incentive mechanism for directors and senior management, linking their compensation directly to the company's operating performance[119]. - The company maintains complete independence from its controlling shareholder in terms of business, personnel, assets, institutions, and finance, ensuring autonomous operational capabilities[121]. - The company has established an independent financial management system and internal audit department, ensuring no assets are occupied by the controlling shareholder[124]. - The company has disclosed information accurately and timely, ensuring all shareholders have equal access to information[119]. - The company has implemented a comprehensive internal control system to ensure the authenticity and completeness of financial information[120]. - The company has committed to respecting and protecting the legitimate rights and interests of stakeholders, promoting sustainable and healthy development[120]. Social Responsibility and Environmental Impact - The company actively participated in social responsibility initiatives, enhancing employee rights and corporate culture[40]. - The company emphasizes environmental protection and energy conservation, ensuring compliance with national environmental regulations[110]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[156]. - The company is not classified as a key pollutant discharge unit and has adhered to environmental protection laws and regulations[156]. - The company has undertaken measures to reduce carbon emissions, including process modifications to decrease electricity consumption[156]. Challenges and Risks - The company has indicated uncertainty regarding its ability to continue as a going concern, as reflected in its recent audit report[25]. - The company faces risks from policy changes, raw material cost fluctuations, and intensified market competition, which could impact profitability[111]. - The company is facing significant performance decline and debt repayment risks in the next year, indicating major uncertainties regarding its ability to continue as a going concern[176]. - The audit report indicates a major uncertainty regarding the company's ability to continue as a going concern due to substantial losses and liabilities[171]. Employee and Management Structure - The total number of employees at the end of the reporting period was 955, with 317 in the parent company and 638 in major subsidiaries[142]. - The company has a stable management team, with no significant changes in shareholding among directors and supervisors during the reporting period[128]. - The company has implemented a training program through its management academy to enhance employee skills and operational efficiency[145]. - The company emphasizes a competitive salary and benefits policy to attract and retain talent, aligning with its strategic development[144].