Company code: Jiangsu Kanion Pharmaceutical Co.Ltd(600557) company abbreviation: Jiangsu Kanion Pharmaceutical Co.Ltd(600557) Jiangsu Kanion Pharmaceutical Co.Ltd(600557)
Summary of annual report 2021
Section I important tips
1 the summary of this annual report comes from the full text of the annual report. In order to fully understand the company’s operating results, financial status and future development plan, investors should go to www.sse.com com. cn. The website carefully reads the full text of the annual report. 2. The board of directors, the board of supervisors and the directors, supervisors and senior managers of the company guarantee the authenticity, accuracy and completeness of the contents of the annual report, and there are no false records, misleading statements or major omissions, and bear individual and joint legal liabilities. 3. All directors of the company attend the board meeting. 4. Lixin Certified Public Accountants (special general partnership) issued a standard unqualified audit report for the company. 5. The profit distribution plan or the plan of converting accumulation fund into share capital in the reporting period adopted by the resolution of the board of directors
Audited by Lixin Certified Public Accountants (special general partnership), as of December 31, 2021, the company’s profit available for distribution at the end of the period was 340888232546 yuan.
From February 19, 2021 to July 30, 2021, the company completed the share repurchase, and the total amount of funds used was 17999915188 yuan (including transaction costs). According to the provisions of the rules on share repurchase of listed companies, it is regarded as cash dividend.
In combination with the above situation, from the perspective of the actual operation of the company, the board of directors decided that no cash dividends, bonus shares and capital reserve will be transferred to share capital in this year, and the undistributed profits of the company will be used to supplement the working capital of the company.
Section II basic information of the company
1 company profile
Stock type stock exchange stock abbreviation stock code
A-share Shanghai Stock Exchange Jiangsu Kanion Pharmaceutical Co.Ltd(600557) Jiangsu Kanion Pharmaceutical Co.Ltd(600557)
Contact person and contact information secretary of the board of directors securities affairs representative
Name: Qiu Hongtao, Chen Yanxi
Office address: Jiangning industrial city, Jiangning industrial city, economic and Technological Development Zone, Jiangsu Lianyungang Port Co.Ltd(601008) City, Jiangsu Province
Tel: 051885521990
E-mail [email protected]. [email protected].
2. Introduction to the company’s main business in the reporting period
(I) industry description
The pharmaceutical industry is an important part of China’s national economy. It is closely related to the physical and mental health of Chinese people. It has strong rigid demand. It is a typical weak cycle industry. The state strongly encourages the development of the pharmaceutical industry, continuously introduces pharmaceutical industry policies and supporting measures, and gradually promotes the development of the pharmaceutical industry in the direction of high quality and innovation. Among them, the national procurement policy with volume is a heavy pharmaceutical policy in recent years. Through the principle of “price for volume”, this policy forces the pharmaceutical industry to upgrade in the direction of innovation and accelerate the high-quality development of the pharmaceutical industry. In 2021, China Meheco Group Co.Ltd(600056) manufacturing industry maintained a high-speed development trend, the strength of R & D and innovation was steadily enhanced, the industrial structure was further upgraded, the “three medical linkage” policy was gradually improved, the strategic layout and policy environment construction of the four biomedical industry clusters were continuously optimized, and the activity of the capital market was significantly improved.
The company’s main products mainly cover the pharmaceutical manufacturing industry – the subdivided industry of traditional Chinese medicine. In recent years, the state has vigorously supported and promoted the development of traditional Chinese medicine, put the development of traditional Chinese medicine in a prominent position, made many decisions and arrangements, and issued support policies for the science and technology industry of traditional Chinese medicine, From the 13th five year plan for the development of traditional Chinese medicine, the guiding opinions on promoting the integrated development of traditional Chinese medicine health services and the Internet, and the traditional Chinese medicine law guiding the development of traditional Chinese medicine industry, to the new requirements for the R & D of new traditional Chinese medicine in the measures for the administration of drug registration and the requirements for the registration, classification and application materials of traditional Chinese medicine in 2020, all point out the direction for the inheritance, innovation and development of traditional Chinese medicine, Promote “the revitalization and development of traditional Chinese medicine and usher in a great opportunity of favorable weather, favorable land and harmonious people”.
Moreover, with the aggravation of aging, people’s health awareness of prevention is better than treatment, prevention before disease and prevention of changes in existing diseases is improved. Traditional Chinese medicine with the unique advantage of “treating and preventing diseases” ushers in a good opportunity for development. In particular, the indispensable role of traditional Chinese Medicine in the prevention and treatment of major diseases highlighted in the fight against covid-19 epidemic in 2020 brings new development opportunities for the research and development of new traditional Chinese medicine, It also ushers in an opportunity to revitalize the development of traditional Chinese medicine and move towards the world.
In 2021, the pharmaceutical manufacturing industry maintained a relatively high growth rate. According to the data of the National Bureau of statistics, the annual added value of the pharmaceutical manufacturing industry increased by 24.8% over last year, the monthly industrial added value increased by more than 8% year-on-year, and the highest monthly year-on-year growth rate reached 34%, of which the year-on-year growth rate in five months exceeded 25%. Meanwhile, the annual monthly year-on-year growth rate in 2021 was higher than the overall growth rate of national industry.
In 2021, the innovation strength of the traditional Chinese medicine industry will gradually increase. In terms of new drug acceptance, the number of new traditional Chinese medicine drugs has increased significantly. According to the CDE data, the total number of traditional Chinese medicine accepted by CDE in 2021 was about 1360, including 60 new drug applications, an increase of 32 applications over 2020, an increase of 114.29%. The number of new drugs on the market is the highest in recent five years. In 2021, a total of 12 new drugs were approved for listing, accounting for 54% of the total number of new drugs approved for traditional Chinese medicine in recent five years.
(II) relevant industrial policies and regulations
In 2021, the pharmaceutical industry issued a number of policies to continuously deepen the linkage reform of medicine, medical treatment and medical insurance, so as to promote the healthy development of the industry.
In medicine, policies such as the measures for the implementation of the early resolution mechanism of drug patent disputes (for Trial Implementation) and the measures for administrative adjudication of the early resolution mechanism of drug patent disputes have been issued to promote the construction of the drug patent system, marking the arrival of the era of drug patent linkage in China. The guiding principles for clinical research and development of antitumor drugs guided by clinical value and the guiding principles for technical research of clinical pharmacology of innovative drugs were issued to encourage research and innovation, strengthen the research and development guidance of innovative drugs, refine the content of drug research and development supervision, improve the degree of standardization, and further promote the transformation of China Meheco Group Co.Ltd(600056) industry from following innovation to source innovation.
In terms of medical treatment, the pilot plan for deepening the reform of medical service price proposes to popularize the pilot experience of deepening the reform of medical service price to the whole country by 2025. The promotion action for high-quality development of public hospitals (20212025) defines the specific actions for high-quality development of public hospitals during the 14th Five Year Plan period. The notice on promoting the experience of Sanming City in the construction of graded diagnosis and treatment and medical consortium puts forward the key tasks of promoting the construction of graded diagnosis and treatment and medical consortium, and further defines that the promotion of Sanming model is the focus of national medical reform in the future.
In terms of medical insurance: the work plan for the adjustment of the national medical insurance drug catalogue in 2021 was launched to further optimize the medical insurance catalogue and speed up the entry of new drugs, drugs for rare diseases and anticancer drugs into medical insurance. The guiding opinions on establishing and improving the “dual channel” management mechanism of national medical insurance negotiated drugs was issued, and all localities actively explored the “dual channel” management mechanism, which greatly improved the accessibility of negotiated drugs. Third, the reform of medical insurance payment mode has developed in depth. The national medical security administration has issued the three-year action plan for the reform of DRG / Dip payment method, which points out that in the next three years, the goal will be to accelerate the establishment of an effective and efficient medical insurance payment mechanism in stages and batches. By the end of 2025, DRG / Dip payment method will cover all qualified medical institutions that carry out inpatient services, and basically realize the full coverage of diseases and medical insurance funds.
In 2021, the Chinese medicine industry also has a number of important documents to strengthen high-level planning and guidance from the aspects of Chinese medicine R & D and innovation, industry standardization and medical services, so as to promote the healthy and long-term development of the Chinese medicine industry.
1. On February 9, 2021, the general office of the State Council issued the notice on several policies and measures to accelerate the development of traditional Chinese medicine with Chinese characteristics, requiring that the spirit of the 19th CPC National Congress and the second, third, fourth and fifth plenary sessions of the 19th CPC Central Committee be fully implemented under the guidance of Xi Jinping new era socialism with Chinese characteristics, Further implement the opinions of the CPC Central Committee and the State Council on promoting the inheritance, innovation and development of traditional Chinese medicine and the deployment of the National Conference on traditional Chinese medicine, follow the development law of traditional Chinese medicine, carefully summarize the experience and practices of traditional Chinese medicine in the prevention and treatment of covid-19 pneumonia, solve the existing problems, give better play to the characteristics and comparative advantages of traditional Chinese medicine, and promote the complementary and coordinated development of traditional Chinese medicine and Western medicine. The notice puts forward 28 measures from the aspects of talent, industry, capital and development environment to escort the development of high-quality characteristics of traditional Chinese medicine and consolidate the foundation for Lbx Pharmacy Chain Joint Stock Company(603883) convenient viewing of traditional Chinese medicine and assured use of traditional Chinese medicine.
2. On February 10, 2021, the State Food and drug administration, the State Administration of traditional Chinese medicine, the National Health Commission and the National Medical Insurance Administration jointly issued the announcement on ending the pilot work of traditional Chinese medicine formula granules, which strengthened the territorial supervision responsibility. The varieties of traditional Chinese medicine formula granules shall be subject to filing management instead of approval number management. Before listing, the manufacturer shall report to the local provincial drug supervision and administration department for filing. The announcement puts forward clear requirements for the drug standards of traditional Chinese medicine formula granules. Traditional Chinese medicine formula granules shall be produced in accordance with the production process recorded, and shall meet the national drug standards. If there are no provisions in the national drug standards, it shall comply with the standards formulated by the provincial drug regulatory department. After the promulgation and implementation of the national drug standards for traditional Chinese medicine formula granules, the corresponding standards formulated by the provincial drug regulatory department shall be abolished. This time, the technical requirements for quality control and standard formulation of traditional Chinese medicine formula granules were released simultaneously with the announcement.
The announcement and requirements aim to standardize the production of traditional Chinese medicine formula granules, guide the healthy development of the industry and better meet the clinical needs of traditional Chinese medicine. This is an important measure to promote the inheritance, innovation and development of traditional Chinese medicine, and is of great significance to enhance the people’s “sense of acquisition” of traditional Chinese medicine.
3. On April 20, 2021, the National Health Commission and the State Administration of traditional Chinese medicine jointly issued the implementation plan for promoting traditional Chinese medicine in the field of maternal and child health (20212025), which made it clear that by 2022, the traditional Chinese medicine service network in the field of maternal and child health will be basically established, forming and promoting a number of norms such as the diagnosis and treatment plan of traditional Chinese medicine for women and children and the intervention plan of traditional Chinese medicine for treating and preventing diseases.
4. On June 10, 2021, the National Health Commission, the State Administration of traditional Chinese medicine and the Health Bureau of the logistics support department of the Central Military Commission issued the opinions on Further Strengthening the work of traditional Chinese medicine in general hospitals and promoting the coordinated development of traditional Chinese and Western medicine. In order to strengthen the work of traditional Chinese medicine in secondary and above general hospitals, the opinions puts forward specific requirements from eight aspects based on the current characteristics and actual situation of traditional Chinese medicine in general hospitals. First, fully understand the importance of strengthening the work of traditional Chinese medicine in general hospitals, and require all localities to further improve the relevant system of coordination of traditional Chinese and Western medicine in general hospitals; Second, further strengthen the construction of clinical departments of traditional Chinese medicine in general hospitals, encourage qualified tertiary general hospitals to set up secondary disciplines or professional groups of traditional Chinese medicine, support the clinical departments of traditional Chinese medicine in tertiary general hospitals, promote the coordination of Chinese and Western medicine, and strengthen the information support of general hospitals for traditional Chinese medicine services; Third, innovate the collaborative medical model of traditional Chinese and Western medicine, integrate traditional Chinese medicine into the multidisciplinary consultation system, deepen the collaborative research of traditional Chinese and Western medicine in general hospitals and traditional Chinese medicine hospitals, and carry out the collaborative research of traditional Chinese and Western medicine among departments of general hospitals; Fourth, strengthen the management of medical quality, require the clinical departments of traditional Chinese medicine in general hospitals to strictly abide by the core system of medical quality and safety, strictly standardize the medical behavior of traditional Chinese medicine, and establish a medical quality management system and control system covering the whole process of clinical diagnosis and treatment services of traditional Chinese and Western medicine in accordance with relevant regulations; Fifth, strengthen the construction of TCM talent team in general hospitals, carry out “Western learning” talent training, and improve the TCM talent evaluation system in general hospitals; Sixth, give play to the leading role of demonstration, timely summarize and promote relevant experience and practices, and build a “flagship” hospital and “flagship” Department of Chinese and Western medicine coordination; Seventh, give full play to the role of trade associations and associations, require the associations and organizations of traditional Chinese medicine to vigorously develop the members of general hospitals and form a reasonable membership system of traditional Chinese and Western medicine; Eighth, strengthen the work of traditional Chinese medicine in specialized hospitals, infectious disease hospitals and maternal and child health care institutions.
The general hospital is an important platform for providing traditional Chinese medicine services and an important position for the inheritance and innovation of traditional Chinese medicine. Strengthening the work of traditional Chinese medicine in the general hospital is of great significance to adhere to the equal emphasis on traditional Chinese and Western medicine and promote the complementary and coordinated development of traditional Chinese medicine and Western medicine.
5. On September 23, 2021, the general office of the State Council issued the notice on the national medical security plan for the 14th five year plan, which clearly proposed to support the inheritance, innovation and development of traditional Chinese medicine, strengthen the role of traditional Chinese medicine in disease prevention and treatment, and promote the intervention scheme of traditional Chinese medicine in the treatment and prevention of diseases; Encourage the development of commercial health insurance; Support the inclusion of qualified TCM medical service items into the scope of medical insurance payment according to regulations.
6. On December 30, 2021, the State Medical Security Bureau and the State Administration of traditional Chinese Medicine issued the guiding opinions on medical insurance supporting the inheritance, innovation and development of traditional Chinese medicine, giving full play to the advantages of the medical security system and supporting the inheritance, innovation and development of traditional Chinese medicine. The guiding opinions put forward that we should deepen the reform of the medical security system, support and promote the inheritance, innovation and development of traditional Chinese medicine, include qualified traditional Chinese medicine institutions into the designated medical insurance, strengthen the price management of traditional Chinese medicine services, include appropriate traditional Chinese medicine and traditional Chinese medicine medical service items into the payment scope of medical insurance, and improve the payment policies suitable for the characteristics of traditional Chinese medicine. The release of the guiding opinions further shows the state’s highly recognized attitude towards traditional Chinese medicine and strengthens its support for the development of traditional Chinese medicine industry.
Traditional Chinese medicine is China’s important health resources, excellent cultural resources, potential economic resources and scientific and technological resources with original advantages. Policy assistance can further enhance the vitality of the development of traditional Chinese medicine industry. At the same time, with the rapid development of China’s social economy, the continuous improvement of urban and rural people’s living standards, people’s increasing awareness of medical and health care, and the aggravation of population aging, the future development prospect of traditional Chinese medicine industry is considerable.
(III) industry position of the company
