TSZY(SZ:002872)2022-04-25 16:00Financial Performance - The company's operating revenue for 2021 was approximately ¥736.69 million, a decrease of 38.75% compared to ¥1.20 billion in 2020[22]. - The net profit attributable to shareholders was a loss of approximately ¥67.81 million, an improvement of 86.18% from a loss of ¥490.73 million in the previous year[22]. - The net cash flow from operating activities was approximately ¥18.97 million, down 90.00% from ¥189.75 million in 2020[22]. - The basic and diluted earnings per share were both -¥0.2132, showing an improvement of 86.18% from -¥1.5432 in 2020[22]. - The weighted average return on net assets was -2.94%, an increase of 84.17% compared to -18.57% in the previous year[22]. - Total assets decreased by 14.42% to CNY 3,120,025,480 in 2021 from CNY 3,645,939,804 in 2020[23]. - Operating revenue fell to CNY 736,685,771.58 in 2021, down 38.67% from CNY 1,202,746,111.67 in 2020[23]. - The company reported a total operating cost of ¥432,703,168.61, down 49.26% from ¥852,832,386.69 in 2020[65]. - The company reported a total revenue of ¥180,130,258.34 from its major customers, representing 24.45% of total revenue[70]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB for the fiscal year 2021, representing a year-over-year growth of 20%[152]. Cash Flow and Investments - The company plans not to distribute cash dividends or issue bonus shares[7]. - The company reported a net cash flow from investment activities turned positive at CNY 169,580,103.50, a change of 322.69% from a negative CNY 76,149,757.19 last year[76]. - Cash and cash equivalents increased by 336.48% to CNY 49,582,224.84 compared to a decrease of CNY 20,966,904.02 in the previous year[76]. - The total investment amount for the reporting period was ¥127,082,593.70, a decrease of 25.81% compared to ¥171,299,508.86 in the previous year[85]. - The company utilized RMB 7,605.26 million of the raised funds for investment projects during the reporting period, with a remaining balance of RMB 8,190.40 million in the special account as of December 31, 2021[93]. - The company has invested RMB 5,169.89 million in the Tian Sheng (Chongqing) modern pharmaceutical logistics headquarters base project, achieving 87.10% of the investment progress[94]. Research and Development - The company focuses on the development of new raw materials and formulations for anesthetics, bacterial infections, and metabolic diseases, achieving significant results in 2021[38]. - The company has established a research institute that employs a project team model for R&D, attracting top scientific talent for innovative and improved drug development[37]. - R&D investment amounted to ¥29,246,325.10, representing 3.97% of operating revenue, up from 1.87% in the previous year[75]. - The company plans to increase R&D investment in traditional Chinese medicine and chemical drugs, focusing on high-end and basic products[106]. - Investment in R&D increased by 30% in 2021, focusing on innovative drug development and new technologies[152]. Market and Product Development - The company has over 300 approved drug varieties, covering both traditional Chinese medicine and chemical drugs[33]. - The company has several best-selling products, including pediatric cough granules and blood-activating injection solutions, which are included in the national essential drug list[33]. - The company is positioned to benefit from the growing demand for healthcare products driven by an aging population and increasing health awareness[31]. - The company is actively expanding its product line with multiple projects in various stages of development, including consistency evaluations and production approvals[74]. - The company introduced three new products in 2021, contributing to 10% of total revenue[152]. Governance and Compliance - The company emphasizes the importance of risk awareness regarding future plans and strategies[6]. - The company has established a transparent performance evaluation and incentive mechanism for its board and management, ensuring compliance with legal regulations[133]. - The board of directors consists of 7 members, including 3 independent directors, ensuring a balanced governance structure[130]. - The company has implemented measures to protect the rights of minority shareholders during general meetings, including separate voting for significant matters[127]. - The company has actively monitored external environmental changes affecting its operations[159]. Environmental Responsibility - The company is classified as a key pollutant discharge unit and has reported no exceedance of pollution discharge standards[190]. - The company operates a wastewater treatment facility that processes cleaning wastewater, ensuring compliance with discharge standards[193]. - The company has established an emergency response plan for environmental incidents, enhancing its risk management capabilities[195]. - The company adheres to environmental protection requirements during construction projects, ensuring compliance with impact assessments[194]. - The company invested a total of 185,700 CNY in the construction of a traditional Chinese medicine planting base project to support poverty alleviation efforts[199]. Legal and Regulatory Issues - The company is currently under scrutiny due to ongoing legal proceedings against Liu Qun, with the final judgment still uncertain[128]. - The company was fined a total of RMB 3.8 million for bribery-related charges, with RMB 3 million for unit bribery and RMB 800,000 for bribery to a unit[118]. - The controlling shareholder, Liu Qun, has repaid a total of CNY 121.47 million in misappropriated funds, including interest of CNY 15.51 million, by April 8, 2021[184]. - The company has maintained compliance with regulations regarding the management and disclosure of raised funds[98]. Employee Management - The total number of employees at the end of the reporting period is 1,307, with 548 from the parent company and 605 from major subsidiaries[164]. - Employee training is prioritized, with a structured training system in place to enhance professional skills and support company growth[167]. - The company emphasizes a fair and transparent compensation policy, adhering to labor laws and focusing on performance-based incentives[166]. - The educational background of employees shows that 876 have vocational education or below, 251 have associate degrees, 171 hold bachelor's degrees, and 9 have master's degrees[164]. Future Outlook - The company provided a positive outlook for 2022, projecting a revenue growth of 25% based on new product launches and market expansion strategies[152]. - Future outlook remains positive with expectations of continued revenue growth and market expansion initiatives[144]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2023[152].