Jiuzhou Pharmaceutical(SH:603456)2022-04-19 16:00Financial Performance - The company's operating revenue for 2021 was ¥4,063,181,915.60, representing a 53.48% increase compared to ¥2,647,284,163.30 in 2020[18]. - The net profit attributable to shareholders for 2021 was ¥633,900,939.63, a 66.56% increase from ¥380,584,950.86 in 2020[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥573,287,858.62, up 77.86% from ¥322,327,811.34 in 2020[18]. - The net cash flow from operating activities increased by 69.21% to ¥677,519,236.31 in 2021 from ¥400,392,398.37 in 2020[18]. - The total assets of the company reached ¥7,040,423,684.10 in 2021, a 40.76% increase from ¥5,001,793,606.73 in 2020[18]. - The net assets attributable to shareholders were ¥4,577,129,753.17 in 2021, reflecting a 48.45% increase from ¥3,083,208,396.20 in 2020[18]. - The basic earnings per share for 2021 were ¥0.77, a 63.83% increase compared to ¥0.47 in 2020[19]. - The diluted earnings per share for 2021 were ¥0.76, up 61.70% from ¥0.47 in 2020[19]. - The weighted average return on equity for 2021 was 15.06%, an increase of 2.18 percentage points from 12.88% in 2020[19]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of 2.50 CNY per 10 shares to all shareholders for the 2021 fiscal year, with no stock increases or bonus shares issued[2]. - The company has not disclosed any significant changes in its share capital or shareholder situation during the reporting period[5]. - The total number of shares held by the chairman and general manager, Hua Lirong, remained unchanged at 31,904,260 shares[123]. - The total number of shares held by the independent directors remained unchanged, with each receiving a remuneration of 100,000 CNY[123]. - The company reported a total of 50,309,180 shares held at the beginning and end of the year, with a total remuneration of 17,121,000 CNY for all executives combined[124]. Governance and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm, ensuring the accuracy and completeness of the financial report[2]. - The board of directors and supervisory board members have all attended the board meeting, ensuring governance compliance[2]. - The company has not violated decision-making procedures for external guarantees[3]. - The financial report has been confirmed by the responsible persons, ensuring its authenticity and completeness[2]. - The company has not faced any situations where more than half of the directors cannot guarantee the accuracy of the annual report[3]. - The company has established a comprehensive governance structure in place, including a supervisory board that monitors compliance and financial health[116]. - The company has implemented a robust investor relations management system, ensuring timely and accurate responses to investor inquiries through various communication channels[116]. - The company adheres to strict information disclosure requirements, ensuring transparency and protecting shareholder rights[116]. Risk Management - The company has detailed potential risks in the report, which can be found in the "Management Discussion and Analysis" section[4]. - The report includes a forward-looking statement risk declaration, advising investors to be aware of investment risks[3]. - The company faces risks related to the potential delisting or large-scale recall of major innovative drugs it services, which could reduce demand for its APIs and intermediates[106]. - The company is exposed to market competition risks due to new entrants in the domestic market and increased investment from foreign pharmaceutical companies[109]. - The company has established a flexible pricing mechanism to mitigate significant exchange rate fluctuation risks, as a large portion of its business is overseas[112]. Research and Development - In 2021, the company achieved a research and development investment of 188 million yuan, a year-on-year increase of 65.01%[28]. - The company has established multiple leading technology platforms, including chiral catalysis and continuous reaction technology, enhancing its drug development capabilities[27]. - The company is focused on expanding its product portfolio through continuous R&D and innovation efforts[79]. - The company has multiple ongoing projects, including treatments for cardiovascular diseases, HIV, and various cancers, with GMP batch production and process validation in progress[83]. - The company has not canceled any major R&D projects during the reporting period, demonstrating a commitment to ongoing development efforts[83]. Acquisitions and Investments - The company acquired 100% of Hangzhou Zhuliang Pharmaceutical Technology Co., Ltd. and 51% of Nanjing Kangchuanji Pharmaceutical Co., Ltd. to enhance its small molecule innovative drug R&D capabilities[28]. - The company completed the acquisition of 51% equity in Nanjing Kangchuanji Pharmaceutical Technology Co., Ltd. for RMB 40 million, along with an additional capital increase of RMB 80 million[94]. - The company approved the acquisition of 100% equity in Taihua Pharmaceutical Chemical (Hangzhou) Co., Ltd. on November 22, 2021[134]. - The company has signed an agreement to acquire 100% equity of Teva Pharmaceutical Chemical (Hangzhou) Co., Ltd. for an estimated transaction price of approximately 34 million USD[152]. Environmental Responsibility - The company aims for carbon neutrality by 2030, focusing on green pharmaceutical technologies and reducing carbon emissions through process optimization[169]. - The company has implemented a comprehensive environmental monitoring plan, ensuring that all monitored pollutants meet discharge standards[165]. - The company has built RTO (Regenerative Thermal Oxidizer) facilities with treatment capacities of 25000m³/h and 20000m³/h at its two subsidiaries[162]. - The company has developed green catalytic and synthesis technologies, significantly reducing waste emissions and energy consumption[168]. Employee and Management - The company has a total of 4,083 employees, with 1,313 in the parent company and 2,770 in major subsidiaries[142]. - The company has a total of 184 employees with a master's degree or higher, reflecting a commitment to a qualified workforce[142]. - The company plans to enhance internal training programs and leadership training as part of its five-year human resources strategy[145]. - The company has implemented a stock incentive plan to retain and motivate key employees, which includes a total of 108,000 restricted shares[200]. Market Outlook - The global pharmaceutical market is projected to reach $1.8 trillion by 2026, with a compound annual growth rate (CAGR) of approximately 3-6% from 2022 to 2026[38]. - The global CDMO market is expected to grow by $165.57 billion from 2020 to 2027, with a CAGR of about 7.5%[39]. - The company aims to enhance its one-stop service capability in the CDMO field through independent R&D, deep cooperation, and mergers and acquisitions[102].