Financial Performance - The Group's revenue for the year ended December 31, 2021, was RMB 913.79 million, representing a decrease of 61.08% compared to 2020[3]. - Loss attributable to equity shareholders in 2021 (excluding convertible bonds) was RMB 414.92 million, a decrease of 170.30% from a profit of RMB 590.21 million in 2020[4]. - Total comprehensive loss attributable to equity shareholders in 2021 (including convertible bonds) was RMB 587.65 million, down 170% from a profit of RMB 839.46 million in 2020[5]. - Basic and diluted losses per share for 2021 were both RMB 0.67, with no final dividend recommended for the year[6]. - The gross profit margin for 2021 was 52.93%, a significant decline from previous years[9]. - Revenue from the core product, Kewei, reached RMB 554.59 million, a decrease of 73.19% compared to the same period in 2020[63]. - The revenue from anti-viral drugs decreased by 72.97% to RMB 559.97 million in 2021 from RMB 2,071.61 million in 2020[114]. - The revenue from cardiovascular and cerebrovascular drugs increased by 43.98% to RMB 96.15 million in 2021 from RMB 66.78 million in 2020[114]. - The total revenue from the Group's five core products accounted for 78.64% of total revenue during the reporting period[101]. Assets and Liabilities - The total assets of the company as of December 31, 2021, were RMB 10,541.58 million, an increase from RMB 9,561.27 million in 2020[9]. - As of December 31, 2021, the Group's total current assets amounted to RMB 2,057.38 million, a decrease of RMB 1,206.73 million compared to RMB 3,264.11 million for the year ended December 31, 2020[160]. - The Group's total liabilities were RMB 4,520.82 million, and shareholders' equity was RMB 6,020.76 million[150]. - The Group's cash and cash equivalents decreased to RMB 1,131.12 million as of December 31, 2021, from RMB 2,044.97 million as of December 31, 2020[158]. - The gearing ratio as of December 31, 2021, was 53.04%, down from 58.99% as of December 31, 2020[166]. - The quick ratio as of December 31, 2021, was 1.44 times, compared to 0.69 times as of December 31, 2020[166]. Research and Development - The company has established a mature R&D, production, and sales platform, with plans to deepen innovation in antiviral, endocrine, metabolic, and cardiovascular diseases[42]. - The Group's investment in R&D for the year ended December 31, 2021, was RMB 246.24 million, accounting for 26.95% of revenue, a decrease of 75.71% compared to the previous year[133]. - The Group made significant R&D progress in anti-virus and endocrine/metabolic diseases during 2021[72]. - The Group is dedicated to the R&D of insulin products, covering both second and third generations of insulin[74]. - The Group has established a comprehensive R&D system for insulin products, achieving quality standards equivalent to originator drugs, with successful approvals for Recombinant Human Insulin Injection and Insulin Glargine Injection[82]. - The latest progress of insulin products during the Reporting Period indicates ongoing development in this therapeutic area[79]. Product Development and Market Strategy - The company aims to enhance international production standards and quality while expanding marketing and sales coverage to drive business growth and profitability[23]. - The company plans to further develop and enrich its product lines and markets in the future[24]. - The introduction of new products is facilitated by the "Amendments to the Non-Competition Agreement" with Sunshine Lake Pharma, positively impacting future performance[110]. - The Group's product portfolio will be enriched with the approval of generic drug products, providing patients with high-quality and fairly priced medical choices[64]. - The Group signed a revised agreement with Guangdong Dongyangguang Pharmaceutical to introduce more new products based on market demand, positively impacting future performance[65]. - The Group is actively expanding its online pharmacy channel and collaborating with well-known online operators[105]. Sales and Distribution - The company has a distribution network supported by 1,746 professional sales staff across China[15]. - The establishment of four sales teams aims to strengthen market presence across various channels, with a total of 1,746 staff as of December 31, 2021[105]. - Eight products won the bid for national centralized procurement, positively impacting sales expansion and domestic market development[38]. - A total of 13 products from the Group won bids for centralized bulk purchase of drugs by December 31, 2021, which is expected to enhance profitability and expand product channels[60]. Governance and Corporate Strategy - The company is committed to improving its governance level and management systems to enhance competitiveness in both domestic and international markets[31]. - The company aims to become a benchmark pharmaceutical enterprise in China and globally through comprehensive development strategies and strict management systems[44]. - The Group's strategy aligns with the "Healthy China" initiative, aiming to enhance the effectiveness of medical insurance funds and improve access to high-quality drugs[54]. Employee and Operational Insights - The Group had a total of 3,616 employees as of December 31, 2021, with staff costs approximately RMB 356.59 million for the year[186]. - The Group's remuneration policy aims to motivate and retain talent, with regular reviews based on industry standards[192][195]. - Employee benefits include compliance with PRC labor laws and additional welfare programs such as a Corporate Annuity Plan and public facilities[193][196].
东阳光长江药业(01558) - 2021 - 年度财报