Financial Performance - The company's operating revenue for 2013 was CNY 78.22 billion, representing a 14.90% increase compared to CNY 68.08 billion in 2012[27]. - The net profit attributable to shareholders for 2013 was CNY 2.24 billion, a 9.26% increase from CNY 2.05 billion in 2012[27]. - The basic earnings per share for 2013 was CNY 0.8341, a 9.26% increase from CNY 0.7635 in 2012[28]. - The weighted average return on equity rose to 8.87% in 2013, up from 8.62% in 2012[28]. - The company's total operating costs increased by 15.63% to 67.98 billion RMB, primarily due to the growth in sales revenue[60]. - The net cash flow from operating activities decreased by 15.41% to CNY 973.45 million in 2013 from CNY 1.15 billion in 2012[27]. - The company reported a total liability of CNY 27.31 billion in 2013, an increase from CNY 23.37 billion in 2012[31]. - The company's financial expenses rose by 17.23% to 233.13 million RMB, attributed to a decrease in deposit interest income[60]. Dividend Policy - The company plans to distribute a cash dividend of RMB 2.60 per 10 shares based on a total share capital of 2,688,910,538 shares as of the end of 2013[6]. - The cash dividend payout ratio for 2013 is 31.17% of the net profit attributable to shareholders[123]. - The company has a cash dividend policy that ensures at least 30% of the average distributable profit over the last three years is distributed as cash dividends[119]. - The profit distribution plan for 2013 proposes a cash dividend of RMB 2.60 per 10 shares, subject to shareholder approval[120]. - The company has not proposed a cash dividend distribution plan for the current year despite having positive undistributed profits[122]. - The company is subject to a withholding tax rate of 10% on dividends paid to non-resident shareholders[121]. Business Operations - The company’s main business remains unchanged, focusing on pharmaceutical manufacturing, distribution, and retail[21]. - The company is focused on expanding its market presence and enhancing its product offerings in response to industry trends[40]. - The company achieved operating revenue of 78.223 billion RMB, a year-on-year increase of 14.90%[41]. - The pharmaceutical manufacturing segment generated sales revenue of 10.709 billion RMB, a growth of 8.04% year-on-year, with a gross margin of 48.07%[46]. - The pharmaceutical distribution business achieved sales revenue of RMB 68.01 billion, a year-on-year increase of 15.42%, with a gross margin of 6.05%, down 0.34 percentage points from the previous year[49]. - The company launched 64 key products that generated sales of 6.392 billion RMB, a year-on-year increase of 15.71%[47]. - The company has a robust distribution and retail network covering major regions in China, enhancing its competitive advantage in the pharmaceutical industry[93]. Research and Development - R&D expenses totaled 454.71 million RMB, accounting for 4.25% of industrial sales revenue, with 26.30% directed towards innovative drug development[42]. - New product sales revenue reached 1.019 billion RMB, representing approximately 9.51% of industrial sales revenue[42]. - The company plans to invest 10 million RMB annually in collaboration with the Second Military Medical University for innovative drug projects[43]. Assets and Liabilities - Total assets increased by 10.27% to CNY 56.31 billion at the end of 2013, up from CNY 51.07 billion at the end of 2012[27]. - The company’s long-term borrowings increased by 207.06% to RMB 125.20 million, reflecting a significant rise in project financing needs[91]. - The company reported a significant increase in payable dividends, which rose by 54.99% to RMB 913.31 million, reflecting higher shareholder returns[1]. - The total amount of guarantees provided by the company during the reporting period, excluding guarantees to subsidiaries, was CNY 6,729 million[167]. Market Outlook - The company anticipates continued growth in the pharmaceutical industry driven by aging population and increasing government healthcare spending[40]. - The pharmaceutical industry is expected to maintain rapid growth driven by aging population and healthcare reforms, despite facing challenges such as price competition and cost fluctuations[110]. - The company aims for a business scale exceeding 100 billion RMB and continuous improvement in competitive capabilities over the next three years[112]. Corporate Governance - The company reported a standard unqualified audit opinion from PwC and RSM for its financial statements prepared under Chinese and Hong Kong accounting standards[6]. - The company’s board of directors and senior management have confirmed the accuracy and completeness of the annual report[5]. - The company emphasizes the importance of risk awareness regarding forward-looking statements in its annual report[11]. Shareholder Information - The total share capital of Shanghai Pharmaceuticals is 2,688,910,538 shares, with 1,923,016,618 shares in A-shares and 765,893,920 shares in H-shares[179]. - The company reported that 39.813% of its shares are held by the public, while foreign investors hold 28.483%[179]. - The total number of shareholders reached 88,572 (A shares) and 3,163 (H shares) during the reporting period[186].