BUCHANG PHARMA(SH:603858)2024-04-25 10:51Financial Performance - The company's operating revenue for 2023 was CNY 13,245,133,303.78, a decrease of 11.41% compared to CNY 14,951,252,694.46 in 2022[14]. - The net profit attributable to shareholders for 2023 was CNY 318,973,324.80, a significant recovery from a loss of CNY 1,529,744,214.58 in 2022[14]. - The net cash flow from operating activities for 2023 was negative CNY 195,605,226.23, a decline of 107.10% compared to CNY 2,755,627,692.94 in 2022[14]. - The company's total assets at the end of 2023 were CNY 20,892,297,542.28, down 4.83% from CNY 21,951,881,623.86 at the end of 2022[14]. - The basic earnings per share for 2023 was CNY 0.2884, a recovery from a loss of CNY 1.3831 in 2022[15]. - The weighted average return on equity for 2023 was 2.66%, an increase of 14.13 percentage points from -11.47% in 2022[15]. - The company achieved operating revenue of 1,324,513.33 thousand RMB in 2023, a decrease of 11.41% compared to the same period last year, with a net profit attributable to shareholders of 31,897.33 thousand RMB[22]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the fiscal year, representing a 15% year-over-year growth[128]. - The company reported a revenue increase of 15% year-over-year, reaching CNY 5.2 billion in 2023[130]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of 1.26 RMB per 10 shares, totaling approximately 138.03 million RMB (including tax) based on a total share capital of 1,095,496,345 shares after accounting for repurchased shares[4]. - The company does not plan to increase capital reserves or issue bonus shares in the current profit distribution proposal[4]. - The total cash dividend amount, including share repurchase, is CNY 139,880,635.47, accounting for 43.85% of the net profit attributable to ordinary shareholders[157]. - The company plans to distribute a cash dividend of CNY 138,032,539.47, which represents 43.27% of the net profit attributable to ordinary shareholders in the consolidated financial statements[156]. Audit and Compliance - The company has received a standard unqualified audit report from the accounting firm Xin Yong Zhong He[3]. - The company has stated that there are no significant omissions or misleading statements in the annual report[2]. - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[6]. - The company has not violated decision-making procedures in providing guarantees to external parties[6]. - The company has not reported any major violations of laws or regulations during the reporting period, ensuring compliance with relevant laws and corporate governance standards[120]. - The company has mechanisms in place to disclose unfulfilled commitments and propose supplementary commitments to protect shareholder interests[198]. - The company has not encountered any violations regarding guarantees during the reporting period[198]. - The company appointed ShineWing Certified Public Accountants as the auditor for the 2023 fiscal year, with an audit fee of HKD 220,000[200]. Research and Development - The company is focusing on the research and development of drugs for major diseases, particularly in the fields of cardiovascular and gynecological treatments[24]. - The company has developed and reserved multiple new products, including Xuanfei Baidu Granules and Ginkgo Honey Ring Oral Solution, which have received positive feedback due to their efficacy[23]. - The company applied for 35 new patents and successfully obtained 48 patents, including 28 invention patents[24]. - The company is actively developing 12 biopharmaceutical products, with some in clinical phases I to III, targeting major diseases like cancer and osteoporosis[50]. - The company has established a strong technical reserve and a dual approach to innovation and external cooperation in its R&D model[83]. - The company is focusing on the development of traditional Chinese medicine, small molecule drugs, and biological drugs as its primary research areas[83]. - The company has a total of 216 products under research, including 12 traditional Chinese medicines, 182 chemical drugs, and 17 biological drugs as of December 2023[83]. - The company is actively investing in R&D, with a budget allocation of 500 million yuan for the development of new drugs and technologies, aiming to launch at least three new products in the next year[132]. Market and Industry Trends - The overall revenue of China's pharmaceutical manufacturing industry in 2022 was 3,250.38 billion RMB, with a year-on-year growth of only 0.22%[26]. - The total profit of China's pharmaceutical manufacturing industry in 2022 was 503.84 billion RMB, a decrease of 26.73% compared to the previous year[29]. - The company is focusing on innovation and R&D in response to regulatory changes that encourage the development of new drugs, particularly for children and rare diseases[76]. - The company anticipates that the pharmaceutical industry will experience steady growth driven by consumption upgrades and technological innovation[106]. - The company acknowledges challenges in the pharmaceutical industry, including low original innovation capability and product homogeneity[106]. - The company expects favorable policies to benefit high-quality enterprises in the pharmaceutical sector, enhancing their market competitiveness[106]. - The company is pursuing international market expansion by obtaining EU COS and US FDA certifications for its main products[111]. Environmental and Social Responsibility - The company has established a comprehensive environmental management system, ensuring all emissions comply with relevant standards[184]. - The company has committed to avoiding competition with its controlling shareholder and related parties, ensuring long-term business integrity[192]. - The company has established emergency response plans for environmental incidents, which have been reviewed and filed with local environmental authorities[178]. - The company has implemented a risk prevention-oriented management control system for its subsidiaries[159]. - The company invested 11.6887 million yuan in environmental protection during the reporting period[160]. - The total annual discharge of chemical oxygen demand (COD) was 45.581 tons, with a concentration of 93.1 mg/L[162]. - The company has received approval for the environmental impact report for a 3 million doses/year hemorrhagic fever vaccine project[176]. - The company reduced carbon emissions by 299.73 tons through the use of clean energy generation[186]. Governance and Management - The company has a structured salary management system that considers fairness, market conditions, strategic orientation, and economic principles[152]. - The company has implemented a performance evaluation system for senior management since July 2018, focusing on performance-based compensation[157]. - The company has maintained full attendance by its board members at shareholder meetings, indicating strong governance practices[140]. - The company’s chairman, Zhao Tao, has been in position since 2001 and holds multiple directorships in related companies[124]. - The company’s president, Zhao Chao, has been with the company since 2001 and has held various leadership roles[124]. - The company’s vice chairman, Wang Yimin, has been with the company since 2010 and has extensive experience in the pharmaceutical industry[125]. - The company has not engaged in any significant related party transactions that would affect its independence[120]. - The company has a significant product concentration risk, with major contributions from three key products in the cardiovascular medication sector[116].