GYBYS(600332)2024-03-15 16:00Financial Performance - Net profit attributable to shareholders reached RMB 4,055,678,691.49 in 2023[1] - The company's net profit for 2023 is RMB 1,684,022,544.74[1] - Revenue for 2023 reached RMB 75,515,404 thousand, a 6.68% increase compared to 2022[12] - Net profit attributable to shareholders in 2023 was RMB 4,055,679 thousand, a 2.25% increase from 2022[12] - Operating cash flow decreased by 41.37% to RMB 4,103,625 thousand in 2023[12] - Total assets grew by 5.25% to RMB 78,586,878 thousand at the end of 2023[12] - Basic earnings per share (EPS) for 2023 was RMB 2.495, a 2.25% increase from 2022[14] - Weighted average return on equity (ROE) decreased by 0.90 percentage points to 12.07% in 2023[14] - Revenue for 2023 reached RMB 75,515,404 thousand, a year-on-year increase of 6.68%[19] - Net profit attributable to shareholders was RMB 4,055,679 thousand, up 2.25% year-on-year[19] - The company's revenue for the reporting period reached RMB 75,515,404 thousand, a year-on-year increase of 6.68%[40] - Revenue for the reporting period reached RMB 75,515,404 thousand, a year-on-year increase of 6.68%[46] - Net profit attributable to shareholders was RMB 4,055,679 thousand, up 2.25% year-on-year[46] - Operating cash flow decreased by 41.37% to RMB 4,103,625 thousand due to increased procurement settlements by subsidiaries[46] - Investment cash flow improved by 57.06% to RMB -3,114,859 thousand, driven by reduced bank deposits and equity investments[46] - The company's net cash flow from operating activities for 2023 was RMB 4,103,625 thousand, a decrease of RMB 2,895,451 thousand compared to the previous year[66] - The company's overall gross margin for the reporting period was 18.61%, with the major pharmaceutical segment achieving a gross margin of 48.74%[88] - The company's R&D investment for the reporting period was RMB 852.193 million, accounting for 1.13% of operating revenue and 2.32% of net assets, with a capitalization ratio of 8.22%[98] - The company's R&D investment is lower than the industry average of RMB 1.862709 billion, but higher than some peers like Guoyao (RMB 98.86474 million) and Tongrentang (RMB 366.08308 million)[98] - Sales expenses totaled RMB 6,104,738 thousand, with employee compensation accounting for 49.76% of the total sales expenses[101] - Advertising and promotional expenses amounted to RMB 1,082,172 thousand, representing 17.73% of the total sales expenses[101] - The company's total sales expenses accounted for 8.08% of its revenue, higher than the industry average of 5,846,395 thousand[103] - The company's external equity investment increased by RMB 221,578 thousand to RMB 1,805,641 thousand at the end of the reporting period[104] - The fair value change loss of other non-current financial assets was RMB 79,088 thousand, resulting in a year-end balance of RMB 1,005,936 thousand[107] - The company's investment in Chongqing Pharmaceutical Holdings decreased by RMB 2,859 thousand, with a year-end balance of RMB 129,182 thousand[108] - Wanglaoji Health Company achieved a net profit of RMB 1,459,802 thousand, with a total revenue of RMB 10,012,829 thousand and a total profit of RMB 4,434,130 thousand[111] - The pharmaceutical company generated a net profit of RMB 637,189 thousand, with a total revenue of RMB 52,538,650 thousand and a total profit of RMB 3,269,537 thousand[111] - The company's cash and cash equivalents as of December 31, 2023, were RMB 19,823,544 thousand, a decrease of RMB 981,155 thousand from the beginning of the year[62] - The company's bank borrowings as of December 31, 2023, were RMB 11,159,204 thousand, an increase of RMB 483,354 thousand from the beginning of the year[63] - The company's long-term liabilities as of December 31, 2023, were RMB 5,673,763 thousand, an increase of 56.20% from the end of 2022[63] - The company's equity attributable to shareholders as of December 31, 2023, was RMB 34,919,281 thousand, an increase of 8.90% from the end of 2022[63] - The company's accounts receivable turnover ratio for 2023 was 5.45 times, a decrease of 1.59% compared to 2022[62] - The company's inventory turnover ratio for 2023 was 5.49 times, an increase of 1.49% compared to 2022[62] - The company's debt-to-asset ratio as of December 31, 2023, was 53.33%, a decrease from 54.95% at the end of 2022[67] - The company's overseas assets as of December 31, 2023, were RMB 396,029 thousand, accounting for 0.50% of total assets[68] - Available distributable reserves amounted to RMB 8,389,265 thousand as of December 31, 2023[125] Dividends and Retained Earnings - The company plans to distribute a cash dividend of RMB 0.749 per share, totaling RMB 1,217,717,420.80[2] - The company's retained earnings at the end of the period were RMB 8,389,265,344.67[1] - The company's retained earnings at the beginning of the year were RMB 8,063,724,029.08[1] - The company's cash dividend for 2022 was RMB 1,190,078,974.68[1] Share Capital and Reserves - The company's total share capital is 1,625,790,949 shares[2] - The company's statutory surplus reserve for 2023 is RMB 168,402,254.47[1] Financial Statements and Audits - The company's financial statements are prepared in accordance with Chinese Accounting Standards[1] - The company's audit report was issued by Da Xin Certified Public Accountants[1] - The company's auditor is Da Xin Certified Public Accountants (Special General Partnership), located at Room 1504, College International Building, No. 1 Zhichun Road, Haidian District, Beijing[11] - The company's board confirmed that the financial statements for 2023 reflect a true and fair view of the group's financial position and cash flows[198] - The company's audit committee was established in August 1999 and is responsible for reviewing financial reporting quality, internal controls, and risk management systems[199] - The 9th board's audit committee was formed on May 30, 2023, with 4 independent non-executive directors as members[199] Company Information and Governance - Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited (GYBYS) is the legal Chinese name of the company, with its headquarters located at No. 45 Shamian North Street, Liwan District, Guangzhou, China[10] - The company's A-share is listed on the Shanghai Stock Exchange with the stock code 600332, and its H-share is listed on the Hong Kong Stock Exchange with the stock code 0874[11] - The company's registered and office address is at No. 45 Shamian North Street, Liwan District, Guangzhou, China, with no historical changes in the registered address[10] - The company's website is http://www.gybys.com.cn, and its annual reports are disclosed on the Shanghai Stock Exchange and Hong Kong Stock Exchange websites[10] - The company's legal representative is Li Chuyuan, and the Board Secretary is Huang Xuezhen[10] - The company's unified social credit code is 9144010163320680X7, and its annual reports are prepared at the Board Secretary's office[11] - The company's designated information disclosure newspapers include "Shanghai Securities News," "Securities Times," "China Securities Journal," and "Securities Daily"[10] - The company's Hong Kong office is located at Room 2005, 20th Floor, Tower 2, Lippo Centre, 89 Queensway, Hong Kong[10] - The company's initial registration date was September 1, and the registration location was No. 45 Shamian North Street, Liwan District, Guangzhou, China[11] - The company fully complied with the Corporate Governance Code under Appendix C1 of the Hong Kong Stock Exchange Listing Rules during the reporting period[129] - The company's governance structure complies with the requirements of the Company Law, Securities Law, and relevant regulations of the China Securities Regulatory Commission[133] - The company's internal control and risk management systems were deemed adequate and effective by the Audit Committee and the Board of Directors[134] - The company conducts semi-annual and annual internal control self-assessments and risk management reviews[136] - The company revised the Independent Director System and formulated the Working Rules for Independent Director Special Meetings to further promote standardized operations[138] - The company focused on advancing special audits of key subsidiaries, evaluating internal control systems, and providing reasonable audit opinions[139] - The company expanded the scope of risk monitoring and initially established a "1+N" online risk control supervision platform[139] - The company has established and revised the "Insider Information Registration System" to ensure compliance and prevent insider trading, with no violations reported as of the end of the reporting period[140] - The company has implemented measures to ensure independence from its controlling shareholder, Guangzhou Pharmaceutical Holdings Limited, in terms of assets, personnel, finance, and operations[142] - The company has addressed the issue of business competition with Huacheng Pharmaceutical, a subsidiary of Guangzhou Pharmaceutical Holdings, by initiating a transfer of Huacheng Pharmaceutical's 100% equity to the company, although the transfer has been delayed due to land valuation and relocation issues[143][144] - The company has a comprehensive governance structure that ensures equal rights for all shareholders, including minority shareholders, and adheres to relevant laws and regulations in convening and conducting shareholder meetings[145][147] - The company's 2022 Annual General Meeting was held on May 30, 2023, with all proposals approved, and the resolutions were disclosed in major financial newspapers on May 31, 2023[148] - The company's 9th Board of Directors consists of 11 members, including executive directors and independent non-executive directors, with terms starting from May 30, 2023[187][188] - The Board of Directors is responsible for major decisions including financial budgets, profit distribution, capital adjustments, and significant acquisitions[188] - The company has implemented a cumulative voting system for director elections, and independent non-executive directors can serve for a maximum of six consecutive years[189] - The company has purchased and maintained Directors and Officers Liability Insurance to provide appropriate protection for its directors, supervisors, and senior officers[185] - The company held 11 Board of Directors meetings in 2023, discussing matters such as periodic reports, appointment of financial and internal control audit institutions, related party transactions, and external investments[192] - The company has a clear division of responsibilities between the Chairman and the General Manager, with the Chairman overseeing Board operations and the General Manager managing daily production and operations[189] - All directors participated in continuous professional development during the reporting period, with the company arranging regular professional training for each director[190] - The company has established a standard code of conduct for securities transactions by directors and supervisors, with no reported violations during the reporting period[186] - The Board of Directors is responsible for corporate governance functions, including policy review, compliance monitoring, and training oversight for directors and senior management[191] - The company's directors and supervisors have no significant interests in any transactions, arrangements, or contracts involving the group's business during the reporting period[186] - The company held a total of 11 board meetings during the year, with 2 being in-person, 7 via communication methods, and 2 combining both in-person and communication methods[194] - The company has 4 independent non-executive directors, accounting for more than one-third of the board members[195] - Independent non-executive directors attended all 11 audit committee meetings during the reporting period[200] - The audit committee reviewed the company's 2022 and 2023 semi-annual financial reports, internal audit risk control reports, and fundraising usage reports[200] - The company's independent non-executive directors submitted confirmation letters regarding their independence in accordance with HKEX Listing Rule 3.13[197] - The company's independent non-executive directors did not raise any objections to board proposals or non-board review matters during the reporting period[196] - The company did not provide any loans or loan guarantees to directors, supervisors, or senior management during the reporting period[197] R&D and Innovation - The company invested RMB 782 million in R&D in 2023, obtaining 11 drug production approvals and 2 clinical trial approvals[23][24] - The company's subsidiary, Baiyunshan Hanyang, was included in the State Council's "Science and Technology Reform Enterprise" list[24] - The company's subsidiary, Baiyunshan Hanyang, obtained CNAS certification, enabling international-standard testing capabilities[24] - The company's subsidiary, Baiyunshan Hanyang, was recognized as a "Guangdong Provincial Specialized and Sophisticated SME"[24] - The company has 154 R&D projects in progress, covering new drug development, generic drug consistency evaluation, and secondary development of products[90] - The company secured 2 international awards, 2 national-level scientific research awards, and 1 provincial-level award during the reporting period[91] - The company applied for 134 patents, including 110 invention patents, and obtained 89 patent authorizations, including 67 invention patents[91] - The company obtained 2 drug clinical trial approval notices, 8 drug registration certificates, 3 chemical API marketing approval notices, and 1 drug supplementary application approval notice during the reporting period, enriching product variety and expanding overseas market business[94] - Key R&D projects include HG030 tablets (TRK inhibitor) for NTRK and ROS1 fusion mutation-positive solid tumors in Phase I clinical trials[92] - BYS10 tablets (RET inhibitor) for non-small cell lung cancer and medullary thyroid carcinoma are in Phase I clinical trials[93] - The company is conducting secondary development research on Shujin Jianyao Pills for lumbar disc herniation and lumbar spinal stenosis[93] - New drug approvals include Dapoxetine Hydrochloride Tablets (30mg and 60mg) for premature ejaculation treatment[95] - Overseas market expansion includes Xinyi Biyan Pills registered in Australia and Jiawei Huoxiang Zhengqi Pills registered in Canada[96] - The company has 3 chemical API marketing approvals for Cefdinir, Refined Olive Oil, and Chlorpheniramine Maleate[96] - R&D expenditure is capitalized only after entering Phase III clinical trials, with earlier stage expenses recognized as current period costs[97] - R&D investment in the freeze-dried human rabies vaccine (Vero cell) research project increased by 85.47% year-on-year to RMB 68,290.30 thousand[100] - The anti-tumor Trk inhibitor Class 1 new drug Phase Ib clinical trial research project saw a 16.95% decrease in R&D investment to RMB 22,625.71 thousand[100] - The anti-tumor chemical drug Class 1 new drug RET inhibitor BYS10 tablet Phase I clinical research project experienced a 22.60% decrease in R&D investment to RMB 19,385.41 thousand[100] Product Portfolio and Sales - The company's pharmaceutical retail network expanded to 157 stores, with 51 designated as "dual-channel" retail outlets[22] - The company launched new products such as Camellia-flavored herbal tea and durian-flavored herbal tea, enriching its health product portfolio[21] - The company's subsidiary, Baiyunshan Hospital, added six new medical departments and launched an internet hospital[22] - The company operates 28 pharmaceutical manufacturing enterprises, including 3 branches, 23 subsidiaries, and 2 joint ventures[30] - The company has 324 products included in the National Medical Insurance Catalog and 331 products in the Provincial Medical Insurance Catalog[30] - The company's major traditional Chinese medicine products include Xiaochaihu Granules, Banlangen Granules, and Huatuo Zaizao Pills[30] - The company's chemical drug products include Jinge (Sildenafil Citrate) and Amoxicillin[31] - The company's health products include Wanglaoji Herbal Tea, Ciliji Series, and Lixiaoji Series[32] - The company's medical business is in the layout and investment expansion phase, focusing on medical services, traditional Chinese medicine health, modern elderly care, and medical devices[32] - The company has established a unified procurement platform to manage the procurement of raw materials, packaging materials, and equipment, improving bargaining power and risk resistance[33] - The company has integrated internal sales resources and established an e-commerce sales system, including flagship stores on Tmall and JD.com[35] - The company operates 157 retail pharmaceutical outlets, including 60 "Jianmin" pharmacy chain stores, 63 Guangzhou Pharmaceutical chain stores, 22 Hainan Guangyao Chenfei chain stores, and 12 retail stores under subsidiaries[37] - The company has over 2,000 product specifications and more than 90 exclusive production varieties, with 40 different dosage forms[41] - The company owns 10 China Famous Trademarks, 22 Guangdong Famous Trademarks, and 27 Guangzhou Famous Trademarks, including the well-known brands "Wanglaoji" and "Baiyunshan"[41] - The company has 12 member enterprises certified as China Time-honored Brands, with 6 national intangible cultural heritage items[42] - The company and its joint ventures operate over 80 GAP-certified medicinal material bases[43] - The company has established the largest pharmaceutical logistics distribution center in South China and serves over 30 provinces, municipalities, and autonomous regions[43] - The company possesses 5 national-level R&D institutions, 1 national-level enterprise technology center, and 2 postdoctoral workstations[44] - The company has a high-level talent pool including 3 Nobel laureates, 21 academicians