Well Pharmaceutical(603351)2021-04-12 16:00Financial Performance - In 2020, the company's operating revenue was CNY 736,063,748.91, a decrease of 16.43% compared to CNY 880,756,050.50 in 2019[21] - The net profit attributable to shareholders was CNY 100,446,704.13, down 21.59% from CNY 128,107,850.57 in the previous year[21] - The net cash flow from operating activities was CNY 93,304,352.91, a decline of 28.06% from CNY 129,694,099.65 in 2019[22] - Basic earnings per share decreased to CNY 0.77, down 23.00% from CNY 1.00 in 2019[23] - The weighted average return on equity was 7.93%, a decrease of 3.22 percentage points from 11.15% in 2019[23] - The company achieved total operating revenue of 736,063,748.91 yuan in 2020, a decrease of 16.43% compared to the previous year[43] - The net profit attributable to shareholders was 10,044.67 million yuan, down 21.59% year-on-year[43] - Total operating revenue decreased by 16.84% to CNY 729,592,107.30, with a gross profit margin of 34.33%[49] - The revenue from base oil was CNY 473,737,564.80, down 23.11% year-on-year, with a gross margin of 19.45%[48] - The revenue from pharmaceutical excipients was CNY 225,351,513.06, with a gross margin of 65.33%, showing a slight decrease of 2.70%[48] Sales and Market Impact - The company faced a decline in sales volume and revenue due to the impact of the pandemic[23] - Sales volume of synthetic lubricating base oil decreased by 13.15%, and sales revenue dropped by 23.11% due to the impact of the pandemic on key manufacturers[36] - The sales volume of pharmaceutical excipients decreased by 1.70%, with sales revenue declining by 2.70% during the reporting period[37] - Domestic sales revenue was CNY 44,621.55 million, down 23.63% year-on-year, while international sales revenue was CNY 2,752.22 million, down 13.55%[98] Research and Development - The company invested 36,586,783.85 yuan in R&D, accounting for 4.97% of operating revenue, reflecting a commitment to innovation[40] - The company established a research institute with over 100 professionals to enhance its R&D capabilities[40] - The company emphasizes independent research and development, with a focus on injectable pharmaceutical excipients, and has established partnerships with universities and research institutions[66] - The company has created provincial-level technology centers to enhance its R&D capabilities and foster collaboration with domestic pharmaceutical enterprises[66] - The company's R&D investment accounted for 4.97% of operating revenue during the reporting period[71] - The company reported a significant increase in R&D investment for the "Fatty Acid Polyether Ester Series Product" by 267.87% compared to the previous year[73] Operational Adjustments - The company has adjusted its organizational structure to enhance its marketing capabilities, establishing a dedicated marketing company for product sales and customer development[31] - The company has established a complete procurement management system to ensure quality and compliance in its purchasing processes[31] - The company has developed a complete procurement management system, including qualified supplier management and procurement process management[82] - The company has established a sales system that primarily focuses on direct sales to pharmaceutical and large lubricating oil manufacturers[82] Future Outlook and Strategy - The company aims to enhance its competitive edge in the pharmaceutical excipients industry through increased R&D investment and the development of new product categories[34] - The company aims to become a leading enterprise in the pharmaceutical excipients and synthetic lubricating base oil industry through technological innovation and excellent operations over the next 3-5 years[105] - The company plans to invest CNY 100 million in a venture capital partnership, holding a 10% stake, with an initial contribution of CNY 40 million[99] - The company intends to improve its capital operation capabilities, focusing on investment and mergers to accelerate business expansion and promote research innovation[111] Environmental Compliance - The company has implemented online monitoring equipment for pollutant discharge, ensuring compliance with environmental regulations[169] - During the reporting period, the company did not exceed the approved pollutant discharge limits, maintaining all emissions within regulatory standards[164] - The company has established emergency response plans for environmental incidents, which have been filed with local environmental authorities[168] - The company has completed environmental impact assessments for all construction projects, receiving approval from local environmental departments[167] - The company’s wastewater treatment capacity is 250 tons per day, with all systems reported to be operating normally[166] Shareholder and Management Information - The company has a commitment to maintain a safety production system during the expansion of its production scale to mitigate risks associated with hazardous materials[115] - The company’s board of directors was re-elected on April 8, 2020, for a term of three years[192] - The company’s total pre-tax remuneration for directors and senior management amounted to 500.31 million yuan for the reporting period[191] - The company does not have a controlling shareholder or actual controller, ensuring independent management[188] Financial Management and Investments - The company has engaged in various financial products, including a RMB 10 million investment with a floating return of 3.40%, yielding RMB 56.82 thousand[161] - The company has also invested RMB 7.2 million in a financial product with a return of 3.35%, generating RMB 20.10 thousand in income[161] - The company has a significant investment of RMB 15.4 million with a return of 2.95%, resulting in an income of RMB 119.4 thousand[162] - The company is actively managing its idle funds to ensure liquidity and safety while seeking returns through various financial products[160] Risks and Challenges - The company faces risks related to product and technology development, including potential failures in R&D and challenges in achieving market acceptance[113] - The company is exposed to risks from fluctuations in the supply and prices of key raw materials, such as ethylene oxide and propylene oxide, which are closely tied to oil prices[114] - Environmental regulations are tightening, and the company may face increased operational costs to comply with higher environmental protection standards[114]