2022-03-30-上交所-健康元药业集团股份有限公司2021年年度报告（英文版）_291页_6mb

2021 Annual Report Summary

Core Content

The 2021 Annual Report of Joincare Pharmaceutical Group Industry Co., Ltd. provides an overview of the company's performance, financial results, corporate governance, and social responsibility activities during the reporting period from 1 January 2021 to 31 December 2021. The report emphasizes the company's commitment to innovation, sustainable growth, and shareholder value.

Main Financial Performance

• Total Revenues: RMB 15,904 million, representing a year-on-year increase of approximately 17.62%.
• Net Profit Attributable to Shareholders of Listed Companies: RMB 1,328 million, an increase of approximately 18.57% year-on-year.
• Net Profit After Extraordinary Gains and Losses: RMB 1,225 million, a year-on-year increase of approximately 26.72%.
• Profit Distribution: The company plans to distribute a cash dividend of RMB 1.50 (tax inclusive) per 10 shares, based on the total number of shares for distribution, which excludes those in the share repurchase account. The distribution is subject to approval at the Annual General Meeting.

Key Business Developments

• Inhalation Medicines: The company has made significant progress in the development and commercialization of inhalation medicine products, which are highly effective for respiratory diseases.
  • Levosalbutamol Hydrochloride Nebuliser Solution: Became the only Chinese-made inhalation preparation included in the National Drug Reimbursement List for negotiation, increasing patient access.
  • Three Inhalation Products: Listed in the fifth round of the national centralized drug procurement program, including "Budesonide Suspension for Inhalation" (雾舒), "Compound Ipratropium Bromide Solution for Inhalation" (舒坦琳), and "Ipratropium Bromide Solution for Inhalation" (丽雾安).
• Innovation and R&D:
  • The company has significantly increased R&D investment over the years, from RMB 609 million in 2016 to RMB 1,850 million in 2021.
  • Established an R&D platform for high-barrier complex preparations, including inhalation administration, antibody, and sustained-release microspheres.
  • Signed a strategic cooperation agreement with Tencent Quantum Lab to integrate quantum computing and AI into R&D processes.
• Product Innovation:
  • Ilaprazole Series: Sales continue to grow rapidly, serving as a strong engine for the company's development.
  • Leuporelin Acetate Microspheres for Injection: A high-barrier complex preparation that contributes to the company's profit growth.

Strategic Goals and Vision

• The company adheres to the mission of "For the health, For the future" and the vision of "Attentively developing high-quality medicines and innovative medicines."
• It continues to implement the dual-drive strategy of developing innovative medicines and high-barrier complex preparations.
• The company aims to pursue sustainable growth and ensure stability, while exploring new opportunities in the market.

Corporate Social Responsibility

• Chronic Disease Management Program: Implemented in multiple regions including Sichuan, Shanxi, Gansu, Jilin, Tibet, Henan, Anhui, Hunan, and Jiangxi, providing essential pharmaceuticals to patients.
• Flood Relief in Henan: In response to the 2021 Henan flood, the company and Livzon Group donated RMB 10 million in cash and RMB 10 million in medicines.
• CSR Strategy: Formulated in line with the 14th Five-Year Plan and local government development plans, focusing on social welfare and sustainable development.

Governance and Compliance

• The Board of Directors, Board of Supervisors, and senior management have confirmed the truthfulness, accuracy, and completeness of the report.
• All directors attended the Board meeting.
• Grant Thornton (Special General Partnership) issued a standard unqualified audit report.
• No non-operating use of funds by the controlling shareholder or related parties was found.
• No violation of prescribed decision-making procedures for external guarantees was reported.
• The report includes forward-looking statements with a risk declaration for the normalization of the COVID-19 pandemic and other industry risks.

Additional Information

• The report is prepared in both Chinese and English, with the Chinese version taking precedence in case of ambiguity.
• The company has a detailed list of filings, including financial statements, auditors' reports, and public announcements.
• The report outlines the company's major financial indicators, including EPS and diluted EPS, as well as the composition of its principal businesses.

Conclusion

Joincare Pharmaceutical Group Industry Co., Ltd. demonstrated robust financial performance in 2021, with significant growth in revenues and profits. The company's focus on innovation, R&D, and inhalation medicine development has strengthened its market position. It also made notable contributions to public health and social responsibility, aligning its strategic goals with national development plans. The company remains committed to its mission and vision, aiming to continue its growth and innovation in the coming year.