BUCHANG PHARMA(SH:603858)2023-06-13 16:00Financial Performance - The company's operating revenue for 2022 was approximately ¥14.95 billion, a decrease of 5.15% compared to ¥15.76 billion in 2021[17]. - The net profit attributable to shareholders for 2022 was approximately -¥1.53 billion, representing a decline of 231.63% from a profit of ¥1.16 billion in 2021[17]. - The basic earnings per share for 2022 was -¥1.3831, a decrease of 231.64% compared to ¥1.0507 in 2021[18]. - The company reported a net cash flow from operating activities of approximately ¥2.76 billion, an increase of 108.68% from ¥1.32 billion in 2021[17]. - The total assets at the end of 2022 were approximately ¥21.95 billion, down 7.99% from ¥23.86 billion at the end of 2021[17]. - The company reported a total revenue of CNY 10,107,277,375.36 in the cardiovascular sector, reflecting a year-over-year decrease of 9.43%[76]. - The gross margin for the cardiovascular sector was 78.73%, which decreased by 3.55% compared to the previous year[76]. - The company reported a total revenue of 2.5 billion RMB for the year 2022, representing a year-on-year growth of 15%[111]. - The net profit attributable to shareholders was 500 million RMB, an increase of 10% compared to the previous year[111]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of 9.60 RMB per 10 shares, totaling 1,061,800,939.20 RMB (including tax) based on a total share capital of 1,106,042,645 shares as of December 31, 2022[4]. - The company has not proposed any capital reserve conversion into share capital or bonus shares in the profit distribution plan[4]. - The total pre-tax remuneration for the board members during the reporting period amounted to CNY 1,517.65 million[109]. Audit and Compliance - The company has received a standard unqualified audit report from the accounting firm Xin Yong Zhong He[3]. - The board of directors has confirmed that all members attended the board meeting, ensuring the integrity of the annual report[3]. - The company has confirmed that there are no instances of more than half of the directors being unable to guarantee the authenticity, accuracy, and completeness of the annual report[5]. - The company has established a governance structure compliant with relevant laws, ensuring independent operation of the board and management without major violations[104]. Research and Development - The company applied for 51 new patents and successfully obtained 56 patents, including 20 invention patents, in 2022, enhancing its innovation capabilities[25]. - The company is developing 12 biological products targeting major diseases, with some already in clinical phases I or III, and has 4 vaccine products on the market, with 5 more in development[25]. - The company has 215 products under research as of December 2022, including 11 traditional Chinese medicines, 182 chemical drugs, 17 biological drugs, and 5 medical devices[98]. - The company invested CNY 512 million in R&D in 2022, a decrease of 19.25% year-over-year, representing 3.43% of total revenue[77]. Market and Product Strategy - The company is focusing on expanding its product line in traditional Chinese medicine and biopharmaceuticals, aiming to become one of China's leading pharmaceutical companies[24]. - The company plans to leverage modern scientific methods to develop new traditional Chinese medicines and enhance the internationalization of its products[31]. - The company is actively pursuing new drug registrations, with 18 products currently under review, including treatments for diabetes and epilepsy[80]. - The company aims to strengthen its marketing capabilities by building its own academic promotion team to improve market access and clinical application[70]. Environmental Responsibility - The company invested CNY 1,053.80 million in environmental protection during the reporting period[148]. - The company has established a comprehensive internal control system, with no significant deficiencies reported during the period[144]. - The total annual emissions of nitrogen oxides were 0.51 tons, with a concentration of 64 mg/m³[151]. - The company reported no exceedances of pollutant discharge standards during the year[152]. Corporate Governance - The company has conducted its annual shareholder meetings in accordance with legal requirements, with all proposed resolutions being approved[107]. - The company has maintained a robust governance structure, ensuring the protection of minority shareholders' rights[139]. - The company has established a salary management system based on fairness, market principles, strategic orientation, and economic principles[135]. Strategic Acquisitions and Investments - The company plans to invest in establishing multiple subsidiaries, including Bichang Health Industry in Xi'an and Changsha Zhongce Biotechnology, to enhance its market competitiveness[25]. - The company has made significant equity investments, including ¥80 million in Shandong Buchang Health Industry and ¥499.80 million in Changsha Zhongce Biotechnology[90]. - The company plans to invest in Aobushandian Technology Co., Ltd., focusing on internet drug trading services[90]. Challenges and Risks - The company has outlined various risks in its operations, including industry and management risks, in the management discussion and analysis section[5]. - The company faces risks related to drug price reductions due to national policies, which may significantly impact bidding and pricing, compressing profit margins[101]. - The company recognizes the competitive pressure from international pharmaceutical giants and aims to enhance its capabilities in R&D, production, and marketing[100].