Shandong Weigao Group Medical Polymer Company Limited* 山東威高集團醫用高分子製品股份有限公司 | --- | --- | --- | --- | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|-------|-------| | | | | | | (a joint stock limited company incorporated in the People's Republic of China with limited liability)(在中華人民共和國接爵成立的服務有限公司)(Stock Code 股票站碼 : 10 ...

Financial Performance - The company's unaudited revenue for the six months ended June 30, 2021, was approximately RMB 6,229,604,000, an increase of about 19.4% compared to RMB 5,215,509,000 for the same period last year[2]. - The unaudited net profit attributable to shareholders for the same period was approximately RMB 1,209,394,000, representing a growth of about 21.4% from RMB 995,841,000 in the previous year[2]. - Gross profit for the six months was RMB 3,662,863,000, compared to RMB 3,019,850,000 in the previous year, indicating a significant increase[4]. - The company's total comprehensive income for the period was RMB 1,265,766,000, compared to RMB 1,096,236,000 in the previous year[5]. - The company reported a net cash inflow from operating activities of RMB 1,367,394,000 for the period, compared to RMB 1,067,230,000 in the previous year[8]. - The basic earnings per share for the six months ended June 30, 2021, was RMB 0.27, compared to RMB 0.22 for the same period in 2020, reflecting a growth of approximately 22.7%[23]. - The net profit attributable to the owners of the company for the six months ended June 30, 2021, was approximately RMB 1,209,394,000, compared to RMB 995,841,000 for the same period in 2020, representing an increase of approximately 21.4%[22]. - The total equity as of June 30, 2021, increased to RMB 18,716,978,000 from RMB 17,719,287,000 as of June 30, 2020, reflecting a year-on-year increase of about 5.6%[9]. Dividends and Shareholder Returns - The board proposed an interim dividend of RMB 0.077 per share, up from RMB 0.062 per share in the same period last year, pending shareholder approval[2]. - The proposed interim dividend for the six months ended June 30, 2021, is RMB 0.077 per share, up from RMB 0.062 per share for the same period in 2020, indicating a 24.2% increase[23]. - The retained earnings available for distribution to shareholders as of June 30, 2021, amounted to approximately RMB 8,634,597,000[36]. Assets and Liabilities - The company's total assets as of June 30, 2021, were RMB 24,328,501,000, compared to RMB 23,359,671,000 at the end of the previous year[7]. - The total liabilities as of June 30, 2021, were RMB 4,171,650,000, an increase from RMB 3,849,579,000 as of December 31, 2020, indicating a growth of approximately 8.4%[31]. - The company's total equity attributable to owners was RMB 18,716,978,000, an increase from RMB 18,033,580,000 at the end of the previous year[7]. - The company's cash and cash equivalents at the end of the period were RMB 6,580,571,000, an increase from RMB 4,926,227,000 at the end of the previous year[8]. Research and Development - Research and development expenses for the period were RMB 205,923,000, compared to RMB 146,816,000 in the previous year, reflecting an increase in investment in innovation[4]. - The company obtained 66 new patents and has 142 patents pending in China during the six months ended June 30, 2021[38]. - The company aims to enhance its innovation capabilities and actively develop a high-value, specialized medical device product portfolio, increasing R&D resource investment[54]. Market and Product Performance - The company reported a significant increase in revenue from medical device products, with sales reaching RMB 2,567,845,000 for the first half of 2021[18]. - The clinical care business recorded revenue of approximately RMB 2,104,557,000, a year-on-year increase of 13.1%, driven by the recovery of hospital services[37]. - The orthopedic business generated revenue of approximately RMB 1,084,445,000, reflecting a 30.6% year-on-year growth through enhanced market promotion and logistics[37]. - The interventional business reported revenue of approximately RMB 865,388,000, a 10.5% increase year-on-year, supported by the recovery of clinical treatments[37]. Employee and Operational Costs - The total employee costs, including salaries and other allowances, amounted to RMB 1,055,297,000 for the first half of 2021, compared to RMB 920,153,000 in the same period of 2020, marking an increase of approximately 14.6%[20]. - The company employed a total of 10,792 employees as of June 30, 2021, compared to 10,433 employees at the end of the previous year[44]. Corporate Governance - The board consists of eight directors, including two executive directors and three independent non-executive directors, ensuring compliance with listing rules[147]. - The company has adopted the corporate governance code and has complied with all relevant provisions, except for the specific term appointment of non-executive directors[69]. - The audit committee, chaired by independent non-executive director Mr. Lu Weihong, oversees the financial reporting process and internal control systems[74]. Strategic Initiatives - The company plans to continue its market expansion efforts, particularly in the orthopedic and interventional product segments, to capture a larger market share[10]. - The company has engaged in mergers and acquisitions to enhance its product portfolio and strengthen its market position[10]. - The company plans to invest approximately RMB 600,000,000 in the acquisition of new production lines, with production expected to start in 2024[50].

Financial Performance - Total revenue for 2020 reached RMB 11,345,252,000, representing a 9.3% increase from RMB 10,383,885,000 in 2019[11] - The company reported a total of 6,249,048,000 in revenue for the six months ended December 31, 2020, marking a 15.1% increase from RMB 5,430,551,000 in the same period of 2019[11] - For the year ended 31 December 2020, the Group recorded a turnover of approximately RMB 11,345,252,000, representing an increase of 9.3% over the previous financial year[14] - Net profit attributable to the owners of the Company was approximately RMB 2,030,137,000, reflecting an increase of approximately 9.7% compared to the previous year[14] - The gross profit for the year was approximately RMB 6,457,290,000, which represents a slight decrease of 0.9% from RMB 6,513,860,000 in 2019[15] - The Group's gross profit margin decreased from 62.8% last year to 56.9% due to changes in product structure[25] Revenue Breakdown - Clinical care products generated RMB 4,267,450,000 in revenue, a slight increase of 0.3% compared to RMB 4,255,669,000 in 2019[11] - Pharma packaging revenue surged by 32.2% to RMB 1,693,798,000 from RMB 1,281,038,000 in the previous year[11] - Medical testing products saw a significant growth of 44.0%, with revenue rising to RMB 275,780,000 from RMB 191,477,000[11] - Orthopedic products revenue increased by 12.4% to RMB 1,747,774,000 from RMB 1,555,556,000 in 2019[11] - Anesthesia and surgical related products revenue grew by 29.1% to RMB 193,051,000 from RMB 149,551,000[11] - Interventional products revenue decreased by 2.7% to RMB 1,611,583,000 from RMB 1,655,586,000 in 2019[11] Customer Base Expansion - The company added 44 hospitals, 275 other medical institutions, and 717 distributors to its PRC customer base, totaling 6,674 customers[9] - The overseas customer base expanded to 6,032, including 3,591 hospitals and 1,644 other medical units[9] - The Group's domestic revenue sub-total was RMB 9,131,870,000, reflecting a 7.3% increase from the previous year[34] - The overseas revenue sub-total was RMB 2,213,382,000, marking an 18.0% increase compared to RMB 1,875,868,000 in the previous year[34] Financial Stability - Total assets as of 31 December 2020 were RMB 27,344,669,000, compared to RMB 26,352,871,000 in 2019, indicating growth in asset base[16] - Total liabilities decreased to RMB 8,954,215,000 in 2020 from RMB 9,360,935,000 in 2019, indicating improved financial stability[16] - The equity attributable to owners of the Company increased to RMB 17,545,346,000 from RMB 16,180,500,000 in 2019[16] - The gearing ratio of the Group declined to 24.5% as at the end of 2020, down from 33.9% in 2019[49] - The Group's cash and bank balance amounted to approximately RMB 5,514,331,000 as of 31 December 2020, indicating a sound cash flow position[47] Research and Development - The Group obtained 95 new patents and has 111 new patents under application in the PRC for the year ended December 31, 2020[28] - Total research and development expenses amounted to approximately RMB 411,404,000, representing 3.63% of the Group's revenue[29] - The Group maintained over 531 product registration certificates and 538 patents in the PRC, with 89 being invention patents[29] - The strategy of emphasizing research and development has enhanced the Group's competitiveness and provided new profit growth drivers[28] Dividend and Reserves - The Board proposed a final dividend of RMB 0.068 per share, totaling RMB 307,519,000, which is an increase from RMB 0.061 per share and RMB 275,862,000 in 2019[20] - The Company's distributable reserves increased to approximately RMB 7,168,030,000 as of December 31, 2020, compared to RMB 4,836,523,000 in 2019[67] - Total reserves of the Group as of December 31, 2020, were RMB 17,093,113,000, up from RMB 15,728,267,000 in 2019[65] Management and Governance - There were significant changes in the Board composition and senior management, including the resignation of Mr. Zhang Huawei as chairman and executive director, effective March 30, 2021[167] - Mr. Long Jing has been appointed as Chairman of the Company effective March 30, 2021, after resigning as CEO on the same date[167] - The Company has adopted the Model Code for Directors' Securities Transactions and all directors confirmed compliance with the required standards[169] - The Board is responsible for reviewing the internal control and risk management system periodically to ensure effectiveness and efficiency[170] Strategic Initiatives - The COVID-19 outbreak posed significant challenges, but the Company's product and market diversification strategy demonstrated resilience[66] - The Company aims to build a diversified product ecosystem and enhance global business integration and resource sharing[70] - The Company actively participates in domestic medical industry reform initiatives to meet clinical needs and increase product penetration[70] Shareholder Information - The total issued share capital of the Company as of December 31, 2020, was 4,522,332,324 shares[83] - The Company’s five largest customers accounted for 3.6% of total sales for the year, with the largest customer contributing 0.9%[106] - Purchases from the Company’s five largest suppliers represented 18.3% of total purchases, with the largest supplier accounting for 4.8%[106]

Financial Performance - The company's unaudited revenue for the six months ended June 30, 2020, was approximately RMB 5,091,205,000, an increase of about 3.0% compared to RMB 4,943,334,000 in the same period last year [2]. - The unaudited net profit attributable to shareholders for the same period was approximately RMB 969,996,000, reflecting a growth of about 3.5% from RMB 937,095,000 year-on-year [2]. - The gross profit for the six months was RMB 2,941,757,000, down from RMB 3,136,155,000, indicating a decrease in gross margin [4]. - The total comprehensive income for the period was RMB 1,063,923,000, compared to RMB 974,232,000 in the previous year [5]. - Cash inflow from operating activities was RMB 1,035,468,000, down from RMB 1,111,981,000 in the same period last year [8]. - The company achieved a profit before tax of RMB 1,148,075,000 for the six months ended June 30, 2020, compared to RMB 1,218,603,000 for the same period in 2019, reflecting a decrease of approximately 5.76% [19]. - The total employee costs for the six months ended June 30, 2020, amounted to RMB 889,023,000, slightly down from RMB 914,714,000 in the same period of 2019, showing a decrease of about 2.8% [22]. - The financing costs for the six months ended June 30, 2020, were approximately RMB 106,072,000, a decrease from RMB 145,917,000 in the same period of 2019, indicating a reduction of about 27.3% [21]. - The company's net profit attributable to owners for the six months ended June 30, 2020, was approximately RMB 969,996,000, compared to RMB 937,095,000 for the same period in 2019, representing an increase of about 3.4% [24]. Dividends and Shareholder Returns - The board proposed an interim dividend of RMB 0.062 per share, up from RMB 0.059 per share in the previous year [2]. - Basic earnings per share for the six months ended June 30, 2020, were RMB 0.22, based on a weighted average of 4,476,372,324 shares [25]. - The board of directors proposed an interim dividend of RMB 0.062 per share for the six months ended June 30, 2020, up from RMB 0.059 per share in the same period of 2019 [25]. - The interim dividend payment will be sent to eligible shareholders by November 20, 2020, with the applicable exchange rate based on the average rate published by the People's Bank of China prior to the dividend declaration date [71]. Assets and Liabilities - The company's total assets as of June 30, 2020, were RMB 22,326,412,000, compared to RMB 21,774,711,000 at the end of the previous year [7]. - Trade receivables as of June 30, 2020, amounted to RMB 4,247,436,000, an increase from RMB 3,884,250,000 as of December 31, 2019, reflecting a growth of approximately 9.4% [30]. - The total trade payables as of June 30, 2020, were RMB 3,198,961,000, slightly down from RMB 3,235,552,000 as of December 31, 2019 [33]. - The company's inventory as of June 30, 2020, was RMB 1,343,756,000, compared to RMB 1,242,441,000 as of December 31, 2019, indicating an increase of approximately 8.2% [29]. - The company's cash and bank balances, including cash and short-term bank deposits, had an interest rate ranging from 1.35% to 3.5% as of June 30, 2020, compared to 1.1% to 3.75% in the same period of 2019 [32]. Research and Development - Research and development expenses for the period were RMB 143,044,000, down from RMB 171,368,000 in the previous year [4]. - The total R&D expenditure for the six months ended June 30, 2020, was approximately RMB 143,044,000, accounting for 2.8% of the group's revenue, down from 3.5% in the same period last year [40]. - The group obtained 57 new patents and had 112 patents under application domestically, enhancing its core competitiveness [40]. Market Presence and Segments - The company continues to focus on expanding its market presence in China, particularly in the medical device sector, which includes clinical care and trauma management products [14]. - The company operates in six main segments: medical devices, orthopedic products, interventional products, pharmaceutical packaging, blood management, and others, with a focus on R&D and production [101]. - Clinical care business revenue was approximately RMB 1,860,569,000, a decrease of 10.4% year-on-year, while the pharmaceutical packaging business grew by 22.1% to RMB 764,515,000 [126]. - The orthopedic business recorded revenue of approximately RMB 830,604,000, an increase of 21.8% year-on-year, driven by strengthened market position and promotional efforts [126]. Corporate Governance and Compliance - The board of directors consists of eight members, including four executive directors and three independent non-executive directors [79]. - The audit committee, composed of independent non-executive directors, reviewed the financial statements for the six months ending June 30, 2020 [84]. - The company has adopted corporate governance practices in compliance with the Stock Exchange Listing Rules [78]. - The internal control and risk management systems are regularly reviewed to ensure effectiveness and efficiency [83]. Future Plans and Investments - The company plans to invest approximately RMB 488,511,000 in production equipment and factory construction during the period to enhance its medical consumables industrial park [52]. - A new production line project with an investment of approximately RMB 200,000,000 has been initiated, expected to commence production by the end of 2021 [52]. - The company plans to invest approximately RMB 600,000,000 in new production lines, with production expected to start in 2022 [52]. - The company is actively involved in the research and development of new medical technologies and products to enhance its competitive edge in the market [14]. Spin-off and Acquisitions - Weigao Group has proposed a spin-off of Weigao Orthopedics for independent listing on the Shanghai Stock Exchange's Sci-Tech Innovation Board, with approximately 80.5% ownership retained by the company [63]. - The company plans to acquire a 28.57% stake in a limited partnership for approximately RMB 84.7 million, which corresponds to a 6.51% stake in Weigao Orthopedics [62]. - The company is awaiting approvals from regulatory bodies, including the China Securities Regulatory Commission, for the proposed spin-off listing [63].

Revenue and Financial Performance - Total revenue for 2019 reached RMB 10,364,081, an increase of 17.7% compared to RMB 8,808,861 in 2018[13]. - Gross profit for the year was RMB 6,505,197, up from RMB 5,389,154 in 2018, reflecting strong operational performance[13]. - Net profit attributable to the owners of the Company, excluding extraordinary items, was RMB 1,844,883, compared to RMB 1,472,935 in 2018, marking a significant increase[13]. - Clinical care segment revenue grew by 9.4% to RMB 4,255,669 from RMB 3,891,672 in 2018[11]. - Pharma packaging products saw a substantial increase of 34.1%, reaching RMB 1,281,038 compared to RMB 955,609 in the previous year[11]. - The overall revenue from Clinical Care decreased from 44.2% in 2018 to 41.1% in 2019[8]. - The total revenue from the Interventional Products segment was 16.0% in 2019, compared to 16.4% in 2018[8]. - The gross profit margin increased from 62.2% in the previous year to 62.8%, primarily due to changes in product structure[28]. - Net profit attributable to the owners of the Company was approximately RMB 1,844,883,000, an increase of approximately 25.3% compared to the previous year[50]. - Net profit attributable to the owners of the Company, excluding extraordinary items, was approximately RMB 1,923,392,000, representing an increase of approximately 21.2% over the previous year[50]. Customer Base and Market Presence - The Group's total domestic customer base reached 5,638, including 2,610 hospitals and 414 blood stations, while the overseas customer base totaled 4,873, including 3,209 hospitals[9]. - The Group added 44 hospitals, 66 other medical institutions, and 150 distributors to its PRC customer base during the reporting period[9]. - The overseas customer base consists of 4,873 entities, including 3,209 hospitals and 1,401 other medical units[78]. - The integration of sales channels strengthened market penetration and increased sales contribution per customer[42]. Assets and Liabilities - Total assets as of December 31, 2019, amounted to RMB 26,325,738, up from RMB 23,986,873 in 2018[15]. - Total liabilities increased to RMB 9,328,928 from RMB 8,795,973 in 2018, indicating a rise in financial obligations[15]. - Equity attributable to owners of the Company increased to RMB 16,185,174 from RMB 14,514,573 in 2018, reflecting improved financial health[15]. - The Group's cash and bank balance amounted to approximately RMB 4,239,441,000 as of December 31, 2019[55]. - Total net debt of the Group was approximately RMB 1,253,772,000 as of December 31, 2019, compared to RMB 1,525,602,000 in 2018[55]. Research and Development - The Group obtained 97 new patents and has 110 patents under application in the PRC, with 78 new product registration certificates obtained[32]. - For the year ended December 31, 2019, total research and development expenses amounted to approximately RMB 441,409,000, representing 4.3% of the Group's revenue, an increase from 3.5% in 2018[34]. - The strategy of emphasizing research and development has enhanced competitiveness and provided new profit growth drivers for the Group[33]. Corporate Governance - The Company has adopted good corporate governance practices since its listing on February 28, 2004[142]. - The Board of Directors currently comprises eight members, including four executive directors, one non-executive director, and three independent non-executive directors[147]. - The Company has established a nomination committee to review the structure, size, and composition of the Board at least annually[172]. - The audit committee is responsible for overseeing the independence and objectivity of external auditors and the effectiveness of the audit process[188]. - The Company provides sufficient resources to the Corporate Governance Committee to perform its duties effectively[179]. Future Plans and Investments - Planned investments for 2020 include approximately RMB200,000,000 for new production lines expected to be operational by the end of 2022[61]. - The Company will focus on product innovation and quality improvement while expanding overseas markets and accelerating global business integration[67]. - The Company is considering a spin-off and separate listing of Shandong Weigao Orthopedic Device Company Limited on a stock exchange in the PRC[113]. Impact of COVID-19 - The COVID-19 pandemic has impacted the group's operations across Mainland China, the United States, Europe, and other countries, affecting the consolidated results for the first half of 2020[116][119].

Revenue and Growth - Total revenue for 2018 reached RMB 8,809 million, a 40.0% increase from RMB 6,293 million in 2017[14] - Clinical Care segment generated RMB 3,892 million, accounting for 44.2% of total revenue, with an 8.7% year-over-year growth[14] - Interventional Products saw a significant revenue increase of 868.6%, reaching RMB 1,444 million, contributing 16.4% to total revenue[14] - Anesthesia and Surgery products experienced a remarkable growth of 192.4%, generating RMB 106 million in revenue[14] - Pharma Packaging revenue increased by 32.9% to RMB 956 million, representing 10.8% of total revenue[14] - Other Consumables revenue grew by 54.9% to RMB 377 million, contributing 4.3% to total revenue[14] - Revenue from the US market surged by 3,707.7%, reaching RMB 814,588,000 compared to RMB 21,393,000 last year[41] - The Group's overseas revenue grew significantly, with Europe, Middle East, and Africa revenue increasing by 159.6% to RMB 410,967,000[41] - High value-added products contributed significantly to revenue growth, with clinical care revenue increasing by 8.7% to RMB 3,891,672,000[43] Customer Base and Market Expansion - The Group's domestic customer base expanded to 5,378, including 2,566 hospitals and 414 blood stations[8] - The overseas customer base consists of 4,418, with 2,873 hospitals and 1,377 other medical units[8] - The Group added 136 hospitals, 57 other medical institutions, and 68 distributors to its PRC customer base during the year[8] - The integration of sales channels enhanced market penetration and increased revenue contribution per customer[42] - The adjustment in product mix led to increased sales across all product lines, enhancing overall performance for the year[42] Financial Performance - Turnover from continuing operations increased by 40.0% to RMB 8,808,861,000 in 2018 from RMB 6,292,641,000 in 2017[16] - Gross profit from continuing operations rose by 35.0% to RMB 5,389,154,000 in 2018 compared to RMB 3,992,823,000 in 2017[16] - Net profit attributable to owners of the Company, excluding extraordinary items, was RMB 1,472,935,000, a decrease of 14.8% from RMB 1,728,660,000 in 2017[16] - The Group's gross profit margin from continuing operations slightly decreased to 62.2% from 63.5% last year, primarily due to changes in product structure[28] - Net profit attributable to the owners of the Company was approximately RMB 1,472,935,000, representing a decrease of approximately 14.8% compared to the previous year[51] - Net profit attributable to the owners of the Company (excluding extraordinary items) was approximately RMB 1,586,834,000, representing an increase of approximately 18.6% over the previous year[51] Assets and Liabilities - Total assets increased to RMB 23,986,873,000 in 2018 from RMB 16,781,017,000 in 2017[17] - Total liabilities rose to RMB 8,795,973,000 in 2018 from RMB 3,142,567,000 in 2017[17] - Equity attributable to owners of the Company increased to RMB 14,514,573,000 in 2018 from RMB 13,334,505,000 in 2017[17] - Non-controlling interests increased to RMB 676,327,000 in 2018 from RMB 303,945,000 in 2017[17] - The gearing ratio increased to 36.8% as at the end of 2018, up from 7.5% in 2017, due to the acquisition of Argon[54] Dividends and Reserves - Proposed final dividend for the year ended 31 December 2018 is RMB 0.052 per share, totaling RMB 235,161,000, up from RMB 0.046 per share totaling RMB 208,027,000 in 2017[25] - The final dividend will be paid on or before 15 August 2019, subject to shareholder approval[22] - As of December 31, 2018, the Group's total reserves amounted to RMB 14,062,340,000, an increase of 9.15% from RMB 12,882,272,000 in 2017[62] - The Company's distributable reserves were approximately RMB 3,824,559,000 as of December 31, 2018, up from RMB 3,391,686,000 in 2017, reflecting a growth of 12.77%[62] Research and Development - Total research and development expenses amounted to approximately RMB 311,163,000, representing 3.5% of revenue from continuing operations[34] - The Group obtained 34 new patents and has 136 patents under application in the PRC, with 65 new product registration certificates obtained[33] - The Group's strategy for 2019 includes increasing investment in research and development to enhance product safety and patient application safety[67] Acquisitions and Investments - The Group completed the acquisition of Argon for a consideration of US$ 850,888,000, with US$ 405,443,000 financed through debt[55] - The acquisition of Argon for USD850,888,000 (approximately RMB5,446,449,000) is expected to support the Group's overseas expansion and technological upgrades[70] - The company completed the acquisition of 100% of Ailang Medical Equipment Holdings Limited for USD 850,888,000 (approximately RMB 5,446,449,000) on January 23, 2018, enhancing its overseas expansion and interventional product operations[113] Corporate Governance - The Company has implemented good corporate governance practices since its listing on February 28, 2004[145] - The Board is responsible for reviewing the internal control and risk management system periodically to ensure effectiveness and efficiency[177] - The Company has not experienced any casual vacancy for members of the Board, ensuring continuity in governance[171] - The Board is collectively responsible for promoting the success of the Company and has clearly defined responsibilities in the Articles of Association[189] Shareholder Communication - The Company maintains an open communication policy with shareholders, providing interim and annual results and reports[193] - The Company actively communicates with various parties following the announcement of interim and annual results[198] - The Board regularly reviews its communication policy to ensure effectiveness in engaging with shareholders and investors[196]