GARDEN BIO-CHEM(300401)2023-03-27 16:00Financial Performance - The company's operating revenue for 2022 was ¥1,417,511,816.01, representing a 26.89% increase compared to ¥1,117,099,893.11 in 2021[20]. - The net profit attributable to shareholders decreased by 20.68% to ¥383,722,581.79 from ¥479,829,624.81 in the previous year[20]. - The net profit after deducting non-recurring gains and losses increased by 34.66% to ¥348,567,290.39, up from ¥254,918,385.95 in 2021[20]. - The net cash flow from operating activities was ¥377,039,761.35, a decrease of 26.40% from ¥504,029,922.29 in 2021[20]. - The total assets at the end of 2022 were ¥4,131,859,509.89, reflecting a 17.05% increase from ¥3,525,311,449.31 at the end of 2021[20]. - The net assets attributable to shareholders increased by 12.68% to ¥2,572,174,931.79 from ¥2,278,749,932.36 in 2021[20]. - The basic earnings per share decreased by 21.35% to ¥0.70 from ¥0.88 in the previous year[20]. - The company reported a significant decline in quarterly net profit, with the fourth quarter showing only ¥29,932,598.25 compared to ¥151,152,689.96 in the first quarter[22]. - The company reported a net cash flow from financing activities surged by 451.01% to ¥43,990,014.48, compared to a net outflow of ¥12,532,243.05 in 2021[74]. Dividend and Shareholder Information - The company reported a total of 551,007,557 shares, with a cash dividend of 1.40 CNY per 10 shares (including tax) for all shareholders[5]. - The company has not proposed any stock bonus distribution, indicating a focus on cash dividends instead[5]. - The cash dividend distribution was executed on May 18, 2022, following the approval at the annual general meeting[135]. - The total number of shares for the dividend distribution is based on 551,007,557 shares[134]. - The company confirmed a shareholding plan involving 119 core management and key employees, holding a total of 7,674,790 shares, which is 1.39% of the total share capital[136]. - The employee stock ownership plan recognized a share-based payment expense of RMB 6,840,858.78 during the reporting period[137]. Research and Development - The company is actively involved in the research and development of innovative drugs, particularly in the vitamin D3 category[12]. - The company has established three R&D centers in Dongyang, Jinhua, and Hangzhou, focusing on natural product biosynthesis, industrialization research, and cutting-edge drug trials[43]. - The number of R&D personnel increased by 16.06% to 159 in 2022, reflecting the company's commitment to enhancing its research capabilities[70]. - Research and development expenses increased by 18.66% to ¥70,343,069.11, compared to ¥59,280,575.57 in 2021[56]. - The company is actively pursuing multiple R&D projects aimed at enriching its product line and enhancing market competitiveness, with several projects already approved for market entry[69]. Market and Product Development - The company aims to expand its market presence and enhance product offerings, focusing on the development of new technologies and products in the vitamin D3 segment[12]. - The demand for food and pharmaceutical-grade vitamin D3 has significantly increased due to rising health awareness, with less price volatility compared to feed-grade products[33]. - The company plans to raise 1.2 billion yuan through convertible bonds to support the industrialization of the full-active VD3 project and expand its vitamin product portfolio[35]. - The pharmaceutical segment focuses on high-barrier formulations for chronic diseases, with a strategy aligned with national medical reform policies[34]. - The company has completed the layout of the entire vitamin D3 industry chain, becoming the only global producer with a full industry chain for vitamin D3[46]. Risk Factors - The company has outlined potential risks in its future development outlook, which investors should be aware of[5]. - The company faces significant risks related to Vitamin D3 price fluctuations, as its revenue from Vitamin D3 and similar products constitutes a high proportion of total revenue[95]. - Project investment risks are present due to uncertainties in construction progress, implementation, and effectiveness, despite the company's strong technical foundation[95]. - The ongoing medical reform in China may alter the market competition landscape, posing a risk to the company's operational performance if it fails to adapt[96]. - The government’s efforts to lower drug prices may lead to a continued downward trend in drug prices, negatively impacting the company's profitability[96]. Corporate Governance and Management - The company emphasizes the importance of quality management practices in its production processes, adhering to GMP standards[12]. - The company has established a robust governance structure with independent directors overseeing its strategic direction[120]. - The company maintains a complete and independent operational system, ensuring no interference from the controlling shareholder in its business activities[109]. - The company has a diverse board with members having extensive backgrounds in economics and management[113][114][115]. - The company experienced changes in its board and management, including the resignation of the deputy general manager on January 28, 2022, due to retirement[112]. Environmental Responsibility - The company has established a comprehensive wastewater treatment system, effectively managing various types of wastewater[147]. - The company has been recognized as one of the first four key industry environmental "leading" demonstration enterprises in Zhejiang Province[147]. - The company has implemented a green development philosophy focusing on source reduction, process control, and end treatment of waste[147]. - The company’s emissions for ammonia nitrogen in wastewater were reported at 0.611 mg/l, well below the standard limit of 35 mg/l[145]. - The company has implemented energy-saving machinery to reduce electricity consumption as part of its carbon emission reduction measures[152]. Employee and Social Responsibility - The company adheres to labor laws and pays full social insurance for employees, focusing on their health and satisfaction[155]. - The company is committed to social responsibility, contributing to local economic development and job creation[157]. - The company has established a comprehensive training system, including onboarding, general skills, management skills, and professional skills training programs[132]. - The company implemented a compensation system focused on responsibility, ability, and performance to encourage employees to contribute positively to the company's profitability and development[131]. Strategic Initiatives - The company has a strategic goal of "producing one generation, researching one generation, and reserving one generation" in its pharmaceutical manufacturing sector[44]. - The company emphasizes a strategy of vertical and horizontal development to enhance its innovation capabilities in the pharmaceutical and health sectors[93]. - The company plans to ensure stable production operations and meet customer order demands in 2023[93]. - The company aims to complete the construction of a 6,000 tons vitamin A project and a 200 tons biotin project in 2023 as part of its convertible bond fundraising projects[93].