JZT(000989)2020-05-13 16:00Financial Performance - The company's operating revenue for 2018 was ¥3,162,109,003.02, a decrease of 16.73% compared to ¥3,797,212,593.87 in 2017[23]. - Net profit attributable to shareholders was ¥336,479,563.54, down 52.76% from ¥712,254,464.85 in the previous year[23]. - The net profit after deducting non-recurring gains and losses was ¥259,377,306.53, a decline of 60.55% from ¥657,536,899.41 in 2017[23]. - The basic and diluted earnings per share were both ¥0.39, down 52.44% from ¥0.82 in 2017[23]. - The weighted average return on equity decreased to 7.52% at the end of 2018 from 16.49% at the end of 2017, a drop of 8.97%[26]. - Total assets decreased by 10.65% to ¥5,247,929,616.49 from ¥5,873,723,167.38 in 2017[26]. - The net assets attributable to shareholders decreased by 4.52% to ¥4,297,879,781.66 from ¥4,501,439,851.05 in 2017[26]. - The company reported a government subsidy of ¥87,825,035.03 in 2018, compared to ¥51,923,353.60 in 2017, indicating an increase in non-recurring gains[30]. - The company reported a net profit of 1,481,444,433.10 RMB for 2018, with a cumulative undistributed profit of 1,123,169,654.08 RMB available for distribution[143]. Cash Dividend and Profit Distribution - The company plans to distribute a cash dividend of 4.00 CNY per 10 shares (including tax) to all shareholders based on the total share capital after deducting repurchased shares[6]. - The cash dividend for 2018 represents 103.35% of the net profit attributable to ordinary shareholders, which is 336,479,563.54 RMB[140]. - The total cash dividend, including other methods such as share buybacks, amounts to 540,039,632.93 RMB, accounting for 100% of the profit distribution[143]. - The cash dividend payout ratio for 2017 was 48.82%, with a total cash dividend of 347,741,694.40 RMB[140]. - The company has not proposed any stock bonus for the 2018 fiscal year, maintaining a focus on cash dividends[139]. - The cash dividend distribution is based on the total share capital of 869,354,236 shares, adjusted for any repurchased shares[139]. - The company is in a growth phase and aims to maintain a minimum cash dividend ratio of 20% in future distributions[143]. - The cash dividends for 2018 are expected to be distributed after the equity registration date, which will reflect the actual number of shares after buybacks[139]. Business Operations and Strategy - The company has not experienced any changes in its main business since its listing[21]. - The company has outlined potential risks and countermeasures in its business outlook section of the report[6]. - The company is a leading player in the traditional Chinese medicine sector, with over 300 product approvals across various therapeutic areas[49]. - The company has established a new research and development base project to enhance its innovation capabilities[48]. - The OTC product sales strategy includes the launch of upgraded oral liquid products, contributing to improved pricing power and profitability[55]. - The company has expanded its retail chain to 283 stores by the end of 2018, maintaining a strong position in the Chinese pharmacy market[57]. - E-commerce sales have improved profitability, with the company adopting an O2O model and launching products on platforms like JD.com and Meituan[60]. - The company is actively exploring modern sales channels, including e-commerce and micro-businesses, to enhance market reach[47]. - The company has implemented strategic adjustments in its prescription drug sales, focusing on terminal control and marketing model innovation[56]. - The company is focusing on expanding its prescription drug sales by enhancing its competitive capabilities and exploring new market opportunities[120]. Research and Development - The company invested in Stemedica, a U.S. company focused on stem cell research, which impacted the performance due to significant R&D expenditures leading to losses[29]. - The company completed 2,441 clinical observations and data collection for the study on the efficacy of Shuxuetong injection in preventing acute embolic stroke recurrence[62]. - The LFG project received over ¥10 million in project funding support and added 2 new authorized invention patents during the reporting period[61]. - The company applied for a total of 34 patents during the year, with 22 patents granted, including 14 invention patents[63]. - The company is actively conducting new drug research and development, with a focus on the LFG project, aiming for IND submissions in China and the U.S.[124]. - The company is advancing a stem cell project with a focus on technology transfer and clinical application, aiming for commercialization[127]. Corporate Governance and Compliance - The company has committed to maintaining financial independence, including having an independent financial department and accounting system, and ensuring no misuse of funds or assets[153]. - The company has made commitments to reduce and regulate related party transactions, ensuring fairness and compliance with market standards[152]. - There were no non-operating fund occupations by the controlling shareholder or related parties during the reporting period[157]. - The company has undergone changes in accounting policies in accordance with relevant standards, which are detailed in the report[158]. - The company has not experienced any significant accounting errors requiring retrospective restatement during the reporting period[159]. - The company is committed to ensuring that all assets are fully owned and independent, maintaining a complete governance structure[153]. - The company has pledged to avoid any competition with its controlling shareholder and related parties[152]. - The company’s financial personnel are independent and do not hold concurrent positions in related parties[153]. Market and Industry Outlook - The pharmaceutical industry is expected to maintain stable growth due to rising income levels and an aging population, with increased demand for traditional Chinese medicine[116]. - The company recognizes the challenges and opportunities presented by ongoing reforms in the pharmaceutical industry, positioning itself to leverage both traditional brand effects and innovative products[117]. - The pharmaceutical business segment continues to stabilize wholesale scale and develop a sales system centered on chain companies, with a focus on franchise development[123]. Subsidiaries and Investments - The company established a new subsidiary, Zhanjiang Jiuzhitang Traditional Chinese Medicine Clinic Co., Ltd., with a registered capital of 3 million yuan, in which the company holds a 51% stake[161]. - The company has established a joint venture, Huixian City Jiuzhitang Traditional Chinese Medicine Clinic Co., Ltd., with a registered capital of RMB 1.34 million, in which the company holds 51% equity[162]. - The company set up a wholly-owned subsidiary, Mudanjiang Jiuzhitang Youbo Health Technology Co., Ltd., with a registered capital of RMB 10 million, focusing on the production and sales of various pharmaceutical forms and health products[162]. - The company established another wholly-owned subsidiary, Beijing Jiuzhitang Health Management Center Co., Ltd., with a registered capital of RMB 10 million, providing health management and consulting services[162]. - The company co-founded Jiuzhitang (Shanghai) Life Science Co., Ltd. with a registered capital of RMB 10 million, focusing on technology development in the pharmaceutical and biotechnology sectors[162].