SHYNDEC(600420)2022-03-25 16:00Financial Performance - The company achieved a net profit attributable to shareholders of 568,280,771.91 yuan for the year 2021, with a distributable profit balance of 2,126,519,988.53 yuan as of the end of the reporting period[6]. - The company's operating revenue for 2021 was ¥13,944,948,270.25, representing an increase of 11.06% compared to ¥12,556,281,595.67 in 2020[23]. - Net profit attributable to shareholders for 2021 was ¥568,280,771.91, a decrease of 12.41% from ¥648,792,627.72 in 2020[25]. - The net cash flow from operating activities increased by 7.66% to ¥1,679,662,393.87 in 2021, compared to ¥1,560,179,011.64 in 2020[25]. - The total assets at the end of 2021 were ¥19,069,961,392.45, up 4.49% from ¥18,250,454,785.72 at the end of 2020[25]. - Basic earnings per share for 2021 were ¥0.5534, down 12.41% from ¥0.6318 in 2020[27]. - The weighted average return on net assets decreased to 6.80% in 2021, down from 8.25% in 2020, a reduction of 1.45 percentage points[27]. - The company reported a net profit of ¥220,707,073.48 in Q1 2021, with a decline in Q4 resulting in a negative net profit of -¥63,171,056.34[32]. - The total non-recurring gains and losses for 2021 amounted to ¥71,161,732.93, compared to ¥132,482,398.84 in 2020[33]. Dividend Distribution - The company plans to distribute a cash dividend of 1.00 yuan per ten shares (including tax) to all shareholders based on the total share capital on the equity registration date[6]. - The company has 1,026,964,555 shares as of December 31, 2021, which will be used as the basis for the cash dividend distribution[189]. Research and Development - The company invested 589 million RMB in R&D, an increase of 18.09% compared to the previous year, to enhance innovation capabilities[53]. - The company launched 64 research projects during the reporting period, with 56 projects undergoing consistency evaluation, resulting in 4 products passing the evaluation[39]. - The company applied for 44 new patents, including 17 invention patents, and received 54 new patent authorizations during the reporting period[39]. - The company is focusing on five key therapeutic areas: anti-infective drugs, anti-tumor drugs, anesthetic and psychotropic drugs, cardiovascular drugs, and metabolic and endocrine drugs[46]. - The company is actively exploring innovative drug development and has introduced 4 new products through licensing agreements[104]. - The company is focusing on high-end generic drugs and modified new drugs as primary R&D directions[104]. - The company has completed consistency evaluations for several products, including injection of cefotaxime sodium (1.0g) and others[111]. - The company plans to continue increasing R&D investment to enhance innovation capabilities for high-quality development[117]. Sales and Market Performance - In 2021, the company achieved a sales growth of 13.90% year-on-year, with international sales reaching 2.841 billion yuan, a year-on-year increase of 23.52%[39]. - The company achieved a total revenue of 13.94 billion RMB in 2021, representing a year-on-year growth of 11.06%[50]. - The sales revenue from the company's intermediates and APIs increased its revenue share by 1.89 percentage points year-on-year[46]. - The sales revenue of formulation products grew by 7.24%, with cardiovascular products like sustained-release nifedipine increasing by 19.35%[46]. - The company reported a 60% increase in sales volume for injectable ceftriaxone sodium due to successful bidding in centralized procurement[46]. - The company’s brand strategy has strengthened its market presence, with several products receiving international certifications, including FDA and CEP[50]. - The company is actively expanding its product line in the health sector and exploring various sales models, including online and offline channels[122]. Operational Efficiency - The company implemented measures to improve cash flow management, resulting in a notable increase in cash received from sales in Q3 2021[32]. - The company is implementing a strict procurement management system to enhance efficiency and reduce costs through centralized procurement[46]. - The company is advancing its production automation and quality control through the upgrade of information systems like MES, LIMS, and ERP[46]. - The company aims to enhance operational efficiency and promote strategic development through continuous technological innovation and structural optimization[46]. - The company has established a comprehensive industrial chain covering raw materials, intermediates, and finished products, enhancing cost advantages[50]. Governance and Compliance - The company has a standard unqualified audit report issued by Tianjian Accounting Firm[5]. - All directors attended the board meeting, ensuring the integrity of the annual report[5]. - The company emphasizes the importance of understanding the differences between plans, forecasts, and commitments in its forward-looking statements[7]. - The company has established a performance management system linking the results of annual assessments of senior management to their compensation[145]. - The company has implemented a comprehensive information disclosure management system to ensure timely and fair disclosure of information[145]. - The company has established specialized committees under the board, including strategy and investment, audit and risk management, nomination, and compensation committees[145]. - The company has maintained effective internal control over financial reporting, with no significant deficiencies identified in 2021[197]. Environmental and Social Responsibility - The company has actively engaged in environmental protection, with specific measures in place to monitor and manage pollutant emissions across its operations[200]. - The company has committed to fulfilling social responsibilities and balancing the interests of shareholders, employees, and society[145]. - Environmental protection is prioritized, with the company aiming to enhance its environmental management and compliance capabilities[142]. Market Challenges and Future Outlook - The company anticipates continued growth in sales due to an increase in the proportion of raw material drug sales, which may extend the collection period[78]. - The company is addressing supply chain risks by enhancing resource integration and improving procurement efficiency[142]. - The company recognizes potential risks from industry policies and market dynamics, and is actively researching and adapting to these changes[142]. - The company anticipates intensified market competition due to ongoing drug procurement policies and the acceleration of drug consistency evaluations[142].