LSPG(SZ:301111)2022-04-24 16:00Financial Performance - The company's operating revenue for 2021 was CNY 349,788,913.72, representing a 2.59% increase compared to CNY 340,956,598.40 in 2020[16]. - The net profit attributable to shareholders for 2021 was CNY 57,181,856.40, a decrease of 8.54% from CNY 62,521,668.05 in 2020[16]. - The net profit after deducting non-recurring gains and losses was CNY 54,994,558.06, down 2.99% from CNY 56,692,093.13 in 2020[16]. - The net cash flow from operating activities decreased by 21.21% to CNY 71,626,612.47 from CNY 90,904,196.83 in 2020[16]. - The total assets at the end of 2021 were CNY 826,198,080.76, an increase of 115.28% from CNY 383,776,202.06 at the end of 2020[16]. - The net assets attributable to shareholders increased by 132.17% to CNY 750,853,632.01 from CNY 323,406,104.12 at the end of 2020[16]. - The basic earnings per share for 2021 were CNY 0.48, a decrease of 7.69% from CNY 0.52 in 2020[16]. - The weighted average return on equity for 2021 was 16.23%, down from 21.14% in 2020[16]. Revenue Breakdown - The company's total revenue for the first quarter was approximately CNY 63.35 million, with a peak of CNY 103.77 million in the second quarter, followed by CNY 84.86 million in the third quarter and CNY 97.80 million in the fourth quarter[18]. - The net profit attributable to shareholders for the second quarter was CNY 19.90 million, representing a significant increase compared to CNY 10.28 million in the first quarter[18]. - Sales revenue from mask products was CNY 13.37 million, down 77.63% year-on-year, with a gross profit of CNY 405,200, a decline of 98.48%[37]. - Pharmaceutical sales revenue reached CNY 336.07 million, an increase of 20.16% year-on-year, with a gross margin of 72.04%[43]. - Core products, including Sanqi Jiangtang Pian and Xiaoyao San, generated sales of CNY 195 million, up 29.29% year-on-year[37]. Research and Development - R&D investment totaled CNY 10.87 million, accounting for 3.11% of operating revenue, with four invention patents applied for during the year[38]. - Research and development expenses were 10,866,555.59 yuan, a 3.00% increase from 10,549,589.94 yuan in the previous year[52]. - The company is conducting a re-evaluation study on the bitter wood injection, which includes chemical composition analysis and quality evaluation, aimed at improving product quality and safety[53]. - The company has completed the research on the classic prescription "Bao Yin Decoction," which is expected to facilitate market promotion due to its established efficacy[53]. Product Development and Market Position - The company reported a total of 101 drug approval numbers, including 32 original innovative products and 39 products listed in the national medical insurance directory[28]. - The company has expanded its product range to include masks due to the COVID-19 pandemic, with products such as disposable medical masks and KN95 masks[28]. - The company is positioned in the rapidly growing traditional Chinese medicine market, which is expected to maintain stable growth due to increasing demand and supportive government policies[26]. - The company has established strategic partnerships with top 100 chain pharmacies, enhancing brand influence and sales capabilities[38]. Quality Control and Compliance - Quality management is strictly enforced throughout the production process, ensuring compliance with GMP standards and exceeding legal quality benchmarks[35]. - The company has established a comprehensive quality control system, with all products undergoing strict batch testing and approval before release[32]. - The company has implemented strict quality control measures throughout the production, testing, and storage processes to ensure compliance with the Chinese Pharmacopoeia standards[85]. Governance and Management - The company has established a governance structure that complies with relevant laws and regulations, ensuring independent operation from its controlling shareholder[92]. - The board of directors consists of 7 members, including 3 independent directors, ensuring compliance with legal requirements and effective governance[92]. - The company actively engages in investor relations, providing transparent information disclosure and maintaining communication with shareholders[93]. - The internal audit committee is responsible for overseeing the execution of internal control systems and reviewing financial information to ensure operational integrity[94]. Environmental Responsibility - The company is not classified as a key pollutant discharge unit by environmental protection authorities and has not faced any significant environmental penalties during the reporting period[131]. - The company has implemented wastewater treatment measures that comply with the Guangdong Province water pollution discharge standards, ensuring that wastewater is treated before entering municipal sewage systems[131]. - Air emissions from the company's production processes are treated to meet the pharmaceutical industry air pollutant discharge standards, utilizing dust removal equipment and ventilation systems[132]. - Solid waste management includes recycling of general solid waste and safe disposal of hazardous waste by licensed units, ensuring compliance with environmental regulations[132]. Shareholder Relations and Commitments - The company plans to enhance its governance structure and internal management mechanisms to ensure effective decision-making and operational compliance[82]. - The company committed to strictly adhere to the profit distribution policy as outlined in its articles of association post-listing[138]. - The controlling shareholder, Guangdong Jino Health Technology Co., Ltd., has ensured that all related party transactions have been fully disclosed and conducted at fair market prices[140]. - The company will ensure that all related party transactions are conducted in accordance with the company's decision-making procedures to protect the interests of minority shareholders[140]. Future Outlook - The company expects revenue growth of 20% for the upcoming fiscal year, driven by new product launches and market expansion[143]. - New product lines are expected to launch in Q2 2024, projected to generate 10 million in additional revenue[143]. - Future guidance indicates a focus on sustainability initiatives, aiming for a 50% reduction in carbon emissions by 2025[143].