Well Pharmaceutical(603351)2022-04-18 16:00Financial Performance - In 2021, the company achieved a revenue of CNY 1,042,305,915.97, representing a 41.61% increase compared to CNY 736,063,748.91 in 2020[20]. - The net profit attributable to shareholders of the listed company for 2021 was CNY 101,370,204.55, a slight increase of 0.92% from CNY 100,446,704.13 in 2020[20]. - The net profit after deducting non-recurring gains and losses was CNY 98,518,949.74, which is a 12.52% increase from CNY 87,553,103.43 in 2020[20]. - The company's total assets as of the end of 2021 were CNY 1,841,426,562.78, reflecting a 12.53% increase from CNY 1,636,416,118.84 at the end of 2020[21]. - The net assets attributable to shareholders of the listed company increased by 6.39% to CNY 1,382,705,623.96 at the end of 2021, compared to CNY 1,299,661,888.92 at the end of 2020[21]. - The company achieved operating revenue of 1,042.31 million RMB in 2021, representing a year-on-year increase of 41.61%[29]. - The net profit attributable to shareholders, after deducting non-recurring gains and losses, was 98.52 million RMB, up 12.52% compared to the previous year[29]. - The company reported a negative cash flow from operating activities of CNY -11,536,768.28 in 2021, a significant decrease from CNY 93,304,352.91 in 2020, indicating a 112.36% decline[20]. - The weighted average return on equity decreased by 0.30 percentage points to 7.63% in 2021[22]. - The basic earnings per share for 2021 was 0.76 RMB, unchanged from the previous year[22]. Research and Development - Research and development expenses amounted to CNY 41,459,191.08, up 13.32% compared to the previous year, accounting for 3.98% of total revenue[33][44]. - The company has 38 ongoing projects, with 18 newly initiated projects and 9 projects successfully completed during the reporting period[32]. - The company has established a new research center of 8,000 square meters, enhancing its technical development capabilities[32]. - The company is focusing on innovation in synthetic lubricating base oils to meet the growing demand in the automotive and refrigeration industries[40][41]. - The company emphasizes R&D innovation, maintaining a high level of investment to ensure competitive advantage[68]. - The company has established a provincial-level technology center and a provincial-level engineering research center for water-soluble pharmaceutical excipients[83]. - The company has collaborated with well-known domestic universities and research institutions to enhance its R&D capabilities[83]. - The company has initiated several new R&D projects, including the development of a new generation of polyol ester series products with an investment of 1,934,204.48 RMB[87]. Market and Sales Performance - Sales volume of synthetic lubricating base oil increased by 26.72% year-on-year, with sales revenue growing by 55.59%[30]. - The sales volume of pharmaceutical excipients grew by 7.24% year-on-year, with sales revenue increasing by 17.88%[31]. - The company expanded its overseas market presence, particularly in synthetic lubricating base oils, amid rising domestic demand[30]. - The company’s revenue from synthetic lubricating base oil reached CNY 73,707.75 million, with a year-on-year increase of 55.59%[78]. - Domestic sales accounted for CNY 69,551.76 million, reflecting a growth of 35.84% year-on-year[79]. - The company is investing heavily in R&D, allocating 10% of its revenue to develop new products and technologies, focusing on innovative drug formulations[118]. Financial Management and Risks - The company has outlined potential risks in its management discussion and analysis section, emphasizing the importance of investor awareness regarding these risks[7]. - The company faces challenges from global supply chain issues and extreme weather, impacting production and operations[29]. - The company faces risks from external factors such as rising raw material prices and inflationary pressures, which may impact profit margins[106]. - The company relies heavily on ethylene oxide and propylene oxide as key raw materials, and any supply disruptions or price volatility could directly impact production and financial performance[109]. - Environmental regulations are becoming stricter, and increased compliance costs could affect the company's operational performance if higher environmental standards are imposed[110]. Corporate Governance and Management - The company has received a standard unqualified audit report from its accounting firm, ensuring the accuracy and completeness of its financial statements[8]. - The company has a structured salary management system that includes fixed and performance-based compensation, aimed at motivating employees and ensuring sustainable development[135]. - The company emphasizes talent development through annual training plans, combining internal and external training to enhance employee skills and management capabilities[136]. - The company has a comprehensive remuneration structure for senior management, including a base salary and performance-based incentives[122]. - The company has established a joint venture, Nanjing Xingwei Biotechnology Co., Ltd., with a registered capital of RMB 50 million, where the company contributed RMB 25.5 million, accounting for 51%[193]. Shareholder and Equity Management - The company plans to distribute a cash dividend of CNY 3.00 per 10 shares, totaling CNY 40,643,529.60, subject to approval at the annual general meeting[5]. - The total number of shares held by the company's directors and senior management at the end of the reporting period was 64,087,939, a decrease of 1,029,000 shares compared to the beginning of the year[116]. - The company has committed to a 36-month lock-up period for major shareholders following the IPO, with automatic extensions under certain conditions[158]. - The company will use at least 20% of the previous year's audited net profit for share repurchase actions aimed at stabilizing the stock price[172]. - The company will ensure compliance with relevant laws and regulations regarding share repurchase and stock price stabilization measures[172]. Environmental and Social Responsibility - The environmental protection subsidiary, Weir Bio-Tech, did not exceed pollutant discharge limits during the reporting period[148]. - The company has established an emergency response plan for environmental incidents, which was revised in September 2021 and filed with the local emergency management bureau[152]. - The company has passed the ISO14001 environmental management system certification, ensuring compliance with local environmental standards[154]. - There were no administrative penalties due to environmental issues during the reporting period[155].