TALOPH(600222)2021-04-27 16:00Financial Performance - In 2020, the company achieved a net profit attributable to shareholders of 29,240,862.39 CNY, a decrease of 34.16% compared to the previous year[5]. - The total operating revenue for 2020 was 1,417,097,311.59 CNY, representing an increase of 8.03% from 2019[25]. - The company reported a significant decline in net profit compared to 2019, which was 44,414,622.07 CNY[25]. - The company's net profit attributable to shareholders decreased by 34.16% year-on-year, primarily due to increased raw material costs and fixed expenses during the pandemic[28]. - Basic earnings per share decreased by 33.04% to RMB 0.0535, reflecting the overall decline in profitability[27]. - The weighted average return on equity fell to 2.10%, a decrease of 1.08 percentage points compared to the previous year[27]. - The company reported a total revenue of 15,278,169.32, with a year-on-year increase of 5,772,488.18[35]. - The company achieved operating revenue of 1,417.10 million yuan in 2020, representing a year-on-year growth of 8.03%[62]. - The net profit attributable to shareholders was 29,240,900 CNY, with a net profit of 13,962,700 CNY after deducting non-recurring gains and losses[62]. Cash Flow and Dividends - The cash dividend proposed is 0.16 CNY per share, totaling 9,008,642.82 CNY, which accounts for 30.81% of the net profit attributable to shareholders[5]. - As of December 31, 2020, the profit available for distribution to shareholders was 184,253,477.46 CNY[5]. - Operating cash flow increased by 76.82% year-on-year, attributed to a higher proportion of cash collections during the reporting period[29]. - The company reported a significant increase in net cash flow from operating activities, amounting to 73,427,546.30 CNY, a 76.82% increase compared to the previous year[64]. - Net cash inflow from financing activities was 209.57 million yuan, a significant increase of 211.48% year-on-year, driven by increased bank financing and capital contributions[83]. Investments and Acquisitions - The company acquired a 33.95% stake in Tailong Health, increasing its ownership to 80.40%, allowing for control over the entity[27]. - The company increased its investment in the healthcare sector, acquiring control of Tailong Health Industry Investment Co., Ltd., and established two funds with a fair value increase of 24.6 million CNY during the reporting period[60]. - The company completed a capital increase of RMB 130 million from Jinggang Fund, acquiring a 20% stake in Shenlanhai[157]. - The company acquired 33.95% equity of Tailong Health from its controlling shareholder for RMB 127.9 million during the reporting period[157]. Revenue by Segment - Revenue from traditional Chinese medicine oral liquid products increased by 35.88% year-on-year, driven by market demand during the pandemic[28]. - The pharmaceutical formulation business generated revenue of 478.93 million yuan, with a year-on-year increase of 32.76%[56]. - The revenue from the clinical CRO services segment was 238.79 million yuan, reflecting a year-on-year growth of 6.45%[59]. - Revenue from traditional Chinese medicine pieces decreased by 4.00% year-on-year, with a gross margin decline of 18.69 percentage points[70]. - Pharmaceutical distribution revenue fell by 31.29% year-on-year, primarily due to the company's strategic adjustment to reduce drug distribution operations[70]. - Revenue from herbal medicine trading increased by 31.50% year-on-year, driven by growth in orders for high-quality ecological medicinal materials[70]. Research and Development - The company aims to enhance its drug research and development services, focusing on reducing risks and shortening development cycles for clients[37]. - The company’s R&D services cover the entire pharmaceutical development chain, including preclinical research and clinical CRO services, aimed at maximizing client returns by reducing time and cost[41]. - R&D expenses rose by 7.21% to 63,664,588.06 CNY, reflecting the company's commitment to innovation[64]. - The company has over 80 ongoing R&D projects, primarily in cardiovascular, anti-tumor, and digestive system areas, including clinical trials for new drugs[107]. - R&D investment for the reporting period accounted for 4.50% of total revenue, with a year-on-year increase of 7.13% in R&D spending[112]. Corporate Governance and Compliance - The company has committed to reducing and regulating related party transactions with its controlling shareholders to avoid conflicts of interest[144]. - The controlling shareholder promised not to engage in any competitive business activities within China that could harm the company's interests[144]. - The company is focused on ensuring compliance with legal and regulatory requirements in all related party transactions[144]. - The company aims to maintain transparency and fairness in its dealings with related parties to protect shareholder interests[144]. - The company has implemented the new revenue recognition standards since January 1, 2020, which did not have a significant impact on its financial position and operating results[147]. Environmental Responsibility - The company reported that the concentrations and total emissions of SO2 and nitrogen oxides from both production sites were below the approved discharge limits[179]. - The company has not experienced any environmental pollution incidents or received administrative penalties during the reporting period[173]. - The wastewater treatment facility has a daily processing capacity of 1,000 tons, and the treatment process includes multiple stages to ensure compliance with discharge standards[177]. - The company has implemented a self-monitoring scheme for environmental compliance, with third-party monitoring showing all pollutants meet discharge standards[182]. Shareholder Information - The total number of ordinary shares after the recent changes is 573,886,283, with 99.39% being freely tradable[187]. - The company completed a non-public issuance of A-shares totaling 77,277,371 shares, increasing the total share capital from 496,608,912 shares to 573,886,283 shares[188]. - The total number of ordinary shareholders increased from 45,174 to 50,196, representing a growth of approximately 11.3%[191]. - The largest shareholder, Zhengzhou Zhongsheng Industrial Group Co., Ltd., holds 132,441,168 shares, accounting for 23.08% of the total shares[194]. Social Responsibility - The company donated 6 million RMB worth of medicines to medical and public welfare institutions in response to the COVID-19 pandemic[171]. - The company has established long-term stable Chinese medicinal material supply bases to support local farmers, contributing to poverty alleviation efforts[167]. - The company reported a total of 37.14 million RMB invested in poverty alleviation initiatives during the reporting period[168].