XPH(SZ:300147)2022-04-22 16:00Financial Performance - The net profit attributable to shareholders for 2021 was -688.4691 million RMB, primarily impacted by the pandemic, medical policies, market competition, impairment provisions, and financial expenses [5]. - The company's operating revenue for 2021 was CNY 2,970,575,841.91, a decrease of 3.30% compared to CNY 3,072,090,655.97 in 2020 [23]. - The net profit attributable to shareholders was a loss of CNY 688,469,145.4, representing a decline of 799.51% from a profit of CNY 98,420,950.34 in 2020 [23]. - The basic earnings per share for 2021 was -CNY 1.04, down 793.33% from CNY 0.15 in 2020 [23]. - The total assets at the end of 2021 amounted to CNY 11,380,592,438, a decrease of 6.69% from CNY 12,196,636,876 at the end of 2020 [23]. - The net assets attributable to shareholders decreased by 18.47% to CNY 2,945,552,554.18 from CNY 3,612,685,390 at the end of 2020 [23]. - The total profit for 2021 was CNY -635.78 million, a decrease of 482.68% year-on-year [61]. - The company reported a total revenue of CNY 297,057.58 million in 2021, a decrease of 3.30% year-on-year, with a net profit attributable to shareholders of CNY -68,846.91 million, down 799.51% [72]. Strategic Plans and Governance - The company plans not to distribute cash dividends, issue bonus shares, or increase share capital from reserves [8]. - Future plans and forward-looking statements are subject to risks, and investors are advised to understand the differences between plans, forecasts, and commitments [7]. - The company will continue to improve governance and assessment across various business segments [5]. - The company emphasizes its core competitiveness and sustainable operational capabilities, aiming to enhance profitability and achieve steady growth [5]. - The company is committed to optimizing asset structure and resource allocation to enhance core competitiveness and promote sustained growth in performance [51]. - The company aims to enhance market share through brand advantages and product promotion, while focusing on industry advantages to drive technological innovation [51]. - The company is focused on maintaining the interests of all shareholders, especially minority shareholders, through fair pricing in related transactions [186]. Industry Challenges and Opportunities - The pharmaceutical industry is facing challenges and opportunities due to the dual impact of the pandemic and medical policies, with significant government policies aimed at reducing drug prices [5]. - The transition of the pharmaceutical industry from rapid growth to high-quality development presents both challenges and opportunities [5]. - The company has faced significant pressure from policies such as "volume-based procurement" and "two-invoice system," which have led to increased competition and reduced drug prices [48]. - The company has been impacted by the government's policies aimed at reducing drug prices and improving the efficiency of the pharmaceutical supply chain [48]. Research and Development - The company has developed a complete TCR-T technology platform for tumor-specific antigen discovery and TCR screening, achieving international advanced levels [64]. - The company is actively exploring various R&D models, including independent research, technology transfer, and collaborative development [60]. - The company is currently conducting Phase I clinical trials for a new small molecule drug aimed at treating malignant gliomas [94]. - The company is accelerating clinical trials for the new drug TAEST16001 injection and expanding its research pipeline in cell immunotherapy [125]. Market Dynamics - The pharmaceutical industry in China saw a drug sales growth of 8.8% year-on-year in the first half of 2021, with total sales reaching 839.3 billion yuan [35]. - Public medical institutions accounted for the largest share of drug sales at 63.8%, followed by retail pharmacies at 26.4% and public grassroots medical institutions at 9.8% [35]. - The revenue of listed pharmaceutical companies in the first three quarters of 2021 reached 1,583 billion yuan, a year-on-year increase of 18.88%, with net profit attributable to shareholders growing by 25.3% [36]. - The traditional Chinese medicine (TCM) sector experienced revenue and net profit growth rates of 11.28% and 20.77% respectively in the first three quarters of 2021 [36]. Operational Efficiency - The company has established a comprehensive supply chain management system to maximize production capacity utilization and ensure product supply quality [70]. - The company has implemented a strategic procurement model to ensure stable and high-quality material supply, with a focus on long-term partnerships [56]. - The company has established a GMP-compliant quality management system to ensure product quality from R&D to commercialization [69]. - The company has a commitment to technological innovation, with a dedicated research and development center led by Kang Zhiying [176]. Employee and Management Structure - The total number of employees at the end of the reporting period was 3,378, with 1,082 in the parent company and 1,905 in major subsidiaries [187]. - The company has a professional composition of 1,192 production personnel, 680 sales personnel, 706 technical personnel, 98 financial personnel, 303 administrative personnel, and 399 others [187]. - The company has implemented a salary policy that includes basic salary, performance salary, bonuses, social security, housing fund, and living allowances, linking sales personnel's salaries to individual sales performance [188]. - The company has established a scientific assessment system to enhance employee motivation and align compensation with company performance [188]. Corporate Governance - The company emphasizes the importance of information disclosure, adhering to regulations and ensuring timely and accurate communication with investors [153]. - The company maintains independence from its controlling shareholders in business, personnel, assets, organization, and finance, ensuring a complete operational system [155]. - The company has a robust governance structure that complies with legal and regulatory requirements, with no significant discrepancies noted [154]. - The company has a diverse board of directors and management team, with ongoing changes in shareholding among key personnel [159]. Financial Management - The company has established a risk internal control management organization to supervise and evaluate internal control management [200]. - The internal control design is sound and reasonable, with no significant omissions identified in the evaluation [200]. - The company has a complete and independent financial accounting system, ensuring autonomous financial decision-making [157]. - The company reported a fair value change of CNY 9,366,578.75 for its financial assets, with a total initial investment cost of CNY 124,720,151.66 [114].