云南白药：2023年年度报告（英文版）

YunnanBaiyaoGroupCo.,Ltd. AnnualReport2023 March2024 SectionIImportantNotes,Contents,andDefinitions TheBoardofDirectors(the“Board”),theSupervisoryCommitteeandthedirectors,supervisorsandseniormanagementoftheCompanyconfirmthetruthfulness,accuracyandcompletenessofthecontentsofthisAnnualReportandtherearenomisrepresentations,misleadingstatementsormaterialomissionsfromthisAnnualReport,andtheyacceptjointandseveralresponsibilitiesforthetruthfulness,accuracyandcompletenessofthecontentsherein. Mr.DongMing,thepersoninchargeoftheCompany,Mr.MaJia,theaccountingofficer,andMs.XuJing,theheadofaccountingcenter(accountingsupervisor),herebydeclarethattheywarrantthetruthfulness,accuracy,andcompletenessofthefinancialstatementsinthisAnnualReport. AlldirectorsoftheCompanyattendedtheBoardmeetinginrespectofconsideringandapprovingthisAnnualReport. TheCompanykindlyrequestsinvestorstoreadthroughthisAnnualReportandpayspecialattentionto“XI.OutlookoftheCompany”inthe“SectionIIIManagementDiscussionandAnalysis.”Thispartdoesnotconstituteoursubstantialcommitmentstoinvestors.Investorsareadvisedtopayattentiontoinvestmentrisks. TheprofitdistributionplanconsideredandapprovedbytheBoardofDirectorsisasfollows:BasedonthetotalsharecapitaloftheCompanyof1,796,862,549sharesasattheendof2023less12,599,946sharesrepurchasedbythespecialsecuritiesaccountforsharerepurchase,i.e.,onthebasisof1,784,262,603shares,acashdividendofRMB20.77(taxinclusive)forevery10shareswillbepaidtoallshareholders,0bonusshares(taxinclusive)willbedistributed,and0shareswillbeissuedtoallshareholdersforevery10sharesbywayofconversionofcapitalreserve. ThisreporthasbeenpreparedinChineseandtranslatedintoEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionshallprevail. Contents SectionIImportantNotes,Contents,andDefinitions1 SectionIICompanyProfileandKeyFinancialIndicators6 SectionIIIManagementDiscussionandAnalysis11 SectionIVCorporateGovernance59 SectionVEnvironmentalandSocialResponsibilities92 SectionVISignificantEvents101 SectionVIIChangesinShareholdingsandParticularsaboutShareholders128 SectionVIIIPreferenceShares138 SectionIXBonds139 SectionXFinancialStatements140 DocumentsAvailableforInspection (I)FinancialstatementsaffixedwiththesignaturesandstampsofthepersoninchargeoftheCompany,theaccountingofficer,andthegeneralmanagerofaccountingcenter; (II)Originalsoftheauditreportcontainingthestampsoftheexternalaccountingfirmandthesignaturesandstampsoftheregisteredaccountants; (III)OriginalsofalltheCompany’sdocumentsandannouncementspubliclydisclosedontheSecuritiesTimes,ShanghaiSecuritiesNews,ChinaSecuritiesJournal,andhttp://www.cninfo.com.cnduringthereportingperiod; (IV)Otherrelatedmaterials. Definitions Term Definitions CSRC ChinaSecuritiesRegulatoryCommission SZSE ShenzhenStockExchange HongKongStockExchange TheStockExchangeofHongKongLimited SASACofYunnanProvince State-ownedAssetsSupervisionandAdministrationCommissionofYunnanProvincialPeople’sGovernment CSRCYunnanBureau YunnanBureauofChinaSecuritiesRegulatoryCommission TheCompany/YunnanBaiyao YunnanBaiyaoGroupCo.,Ltd. NewHuadu NewHuaduIndustrialGroupCo.,Ltd. YunnanInvestmentGroup YunnanProvincialInvestmentHoldingsGroupCo.,Ltd. YunnanState-ownedEquityOperationManagementCompany YunnanState-ownedEquityOperationManagementCo.,Ltd. YunnanHehe YunnanHehe(Group)Co.,Ltd. JiangsuYuyue JiangsuYuyueScience&TechnologyDevelopmentCo.,Ltd. BaiyaoHoldings YunnanBaiyaoHoldingsCo.,Ltd. YNBYInternational/BanLoongHoldings YNBYInternationalLimited(FormerlyBanLoongHoldingsLimited) ShanghaiPharma ShanghaiPharmaceuticalsHoldingCo.,Ltd. Mixedownershipreform BaiyaoHoldings,formercontrollingshareholderofYunnanBaiyao,introducedstrategicinvestorsNewHuaduandJiangsuYuyuebycapitalincrease Mergerandoveralllisting AtransactionthatYunanBaiyaomergedwithBaiyaoHoldingsbyissuingsharestoallshareholdersofBaiyaoHoldings,includingSASACofYunnanProvince,NewHuaduandJiangsuYuyue IncentivePlan 2020StockOptionIncentivePlan Generaltenderoffer AmandatorygeneralcashofferwasmadeforallissuedsharesheldbyallshareholdersofBanLoongHoldings,excepttheofferoranditsacting-in-concertparties YunnanPharma YunnanPharmaceuticalCo.,Ltd. Teayield YunnanBaiyaoTeayieldCo.,Ltd. CEO ChiefExecutiveOfficer IP IntellectualProperty,ievaluecontentization DtoC DirecttoCustomer,iethemarketingmodelthatdirectlyfacesconsumers ESG Environmental,SocialandGovernance Term Definitions AI ArtificialIntelligence VBP Volume-basedprocurement OTC Over-the-counterdrug DTPpharmacies Thepharmaciesthatprovidemorevaluableprofessionalservicesdirectlytopatients Reportingperiod TheperiodfromJanuary1,2023toDecember31,2023 RMB,RMB’0,000,RMB’00,000,000 ExpressedintheChinesecurrencyofRenminbi,expressedintensofthousandsofRenminbi,expressedinhundredsofmillionsofRenminbi SectionIICompanyProfileandKeyFinancialIndicators I.CompanyProfile Stockabbreviation YunnanBaiyao StockCode 000538 Stockabbreviationbeforechange(ifany) None StockExchange ShenzhenStockExchange CompanynameinChinese 云南白药集团股份有限公司 Companyabbrevi