Financial Performance - In 2020, Fusen Pharmaceutical Company reported revenue of RMB 486.854 million, a 19.5% increase from RMB 407.388 million in 2019[11] - The gross profit for 2020 was RMB 266.067 million, representing a gross margin of approximately 54.6%[11] - The net profit for the year was RMB 62.668 million, up 19.9% from RMB 52.259 million in 2019[11] - The company's revenue for the year ended December 31, 2020, was approximately RMB 486.9 million, representing a 19.5% increase from RMB 407.4 million for the year ended December 31, 2019[21] - The gross profit for the same period was approximately RMB 266.1 million, which is a 25.2% increase compared to the previous year's gross profit[21] - Revenue increased by approximately RMB 10.4 million or 19.9% to RMB 62.7 million for the year ended December 31, 2020, compared to RMB 52.3 million for the previous year[38] - Gross profit rose by approximately RMB 53.6 million to RMB 266.1 million, with gross margin improving from 52.2% in 2019 to 54.7% in 2020[29] Assets and Liabilities - Total assets increased to RMB 1,241.347 million in 2020, compared to RMB 1,176.229 million in 2019, reflecting a growth of 5.5%[12] - Total liabilities rose to RMB 583.098 million in 2020, up from RMB 494.689 million in 2019, indicating a 17.9% increase[12] - As of December 31, 2020, the company's total debt was approximately RMB 198.5 million, down from RMB 210.0 million in 2019, resulting in a debt-to-equity ratio of 30.2%[40] - The net current assets as of December 31, 2020, were approximately RMB 112.8 million, a decrease from RMB 213.6 million in 2019[39] - As of December 31, 2020, the company's total equity attributable to shareholders was approximately RMB 659.4 million, a decrease from RMB 673.4 million in 2019[65] - The total liabilities of the company as of December 31, 2020, were approximately RMB 583.1 million, up from RMB 494.7 million in 2019[65] Strategic Initiatives - The company acquired Jiangxi Ruiyuan Pharmaceutical Co., Ltd. in early 2021 to expand its sales team and target currently unexploited markets[14] - Fusen Pharmaceutical aims to enhance its development capabilities in primary healthcare institutions and chain pharmacies[14] - The company plans to seek opportunities for product agency sales in markets with potential[14] - The company plans to enhance production capacity and quality by upgrading existing facilities and equipment[18] - The company is focusing on R&D in traditional Chinese medicine, generic drugs, high-end generics, and improved new drugs[20] - The company has signed an investment framework agreement to acquire a stake in Weihai Renlife Pharmaceutical Group, which will provide nearly 20 exclusive approvals for traditional Chinese medicine products[24] - The company aims to expand its product portfolio into orthopedic and dermatological fields through strategic acquisitions[24] - The company will continue to invest in product development and market expansion to enhance existing product sales revenue[24] Sales and Marketing - Fusen Pharmaceutical's core product, Shuanghuanglian Oral Liquid, saw a significant increase in shipment volume due to the COVID-19 pandemic[14] - The company adjusted its sales policies and optimized its sales system in response to market fluctuations caused by the pandemic[14] - The sales of the core product, Shuanghuanglian Oral Liquid, increased significantly, contributing to the overall revenue growth[21] Expenses and Financial Management - Sales and distribution expenses decreased by approximately RMB 5.4 million or 4.8% to RMB 107.4 million, primarily due to a reduction in salaries and wages[31] - General and administrative expenses increased by approximately RMB 20.1 million or 34.3% to RMB 78.9 million, mainly due to the financial impact of stock options granted[32] - Other income decreased by approximately RMB 20.5 million to RMB 4.7 million, primarily due to the write-off of long-term receivables in 2019[30] - The company recognized impairment losses of approximately RMB 7.1 million for goodwill and RMB 15.5 million for intangible assets related to the subsidiary San Ye Ming Ming[35] Corporate Governance - The company has adopted the corporate governance code as per the listing rules, with full compliance since its listing on July 11, 2018, except for specific provisions[100] - The company confirmed that all directors complied with the standard code of conduct for securities trading throughout the year ending December 31, 2020[101] - The company has a strong focus on corporate governance elements to ensure effective accountability within its management structure and internal control procedures[100] - The board of directors is responsible for overseeing the company's overall strategy and business performance, including financial performance and risk management[105] - The company has obtained liability insurance for its directors and senior management to cover any legal liabilities incurred during the performance of their duties[106] - The board consists of a balanced mix of executive and independent non-executive directors, with independent directors making up at least one-third of the board[107] - The roles of the chairman and CEO are separated, with Mr. Cao Changcheng as chairman and Mr. Cao Zhiming as CEO, ensuring clear delineation of responsibilities[110] Environmental and Social Responsibility - The company emphasizes sustainable development by ensuring drug safety and maintaining effective relationships with stakeholders[162] - The company actively engages with stakeholders through various communication platforms to gather feedback on environmental, social, and governance issues[164] - The company emitted a total of 50.84 million cubic meters of waste gas in 2020, averaging 788.74 cubic meters of waste gas per ten thousand yuan of output[167] - The waste gas emissions included 1.17 tons of nitrogen oxides (NOx), 0.05 tons of sulfur oxides (SOx), and 0.18 tons of particulate matter (PM), totaling 1.40 tons[167] - The company reported zero greenhouse gas emissions for the year ending December 31, 2020[168] - The total wastewater discharge amounted to 137,900 tons, with no exceedances of discharge standards reported[169] - The company generated 0.03 tons of hazardous waste and 36.5 tons of non-hazardous waste during 2020[171] - The company has established an environmental protection management system to ensure compliance with national and local environmental regulations[165] - The company has implemented strict management measures to minimize environmental impact and improve energy efficiency, focusing on waste reduction and resource conservation[176] Employee Management and Welfare - The company employed 1,248 staff as of December 31, 2020, with a gender ratio of approximately 0.9:1 (602 male and 646 female employees)[182] - The company experienced a total of 62 employee departures during the reporting period, indicating a relatively high employee retention rate[182] - The company has not reported any incidents of child labor during the reporting period, adhering strictly to relevant regulations[179] - The company has established a collective contract with the labor union to protect the rights of female employees, including special labor protections during pregnancy and maternity leave[181] - The company has not experienced any major safety incidents or employee injuries during the reporting period, ensuring a safe working environment[185] - The company has introduced a wage reform in 2020, adjusting salaries based on position, skills, and experience, with additional allowances for key operational roles[182] - The company emphasizes employee health and safety, providing regular training on production safety and fire safety protocols[184] - The company has a workforce predominantly based in Henan Province, accounting for 98% of total employees[182] Supplier Management - The company adheres to strict supplier management protocols, ensuring compliance with health, safety, and environmental regulations[194] - A supplier evaluation system is in place, assessing factors such as product quality and delivery performance every two years[197] - The company maintains rigorous quality control throughout the production process, ensuring compliance with national pharmaceutical regulations[198] - All raw materials undergo strict auditing and acceptance procedures to prevent non-compliant materials from entering the production process[198] - The company has not encountered significant disputes with suppliers during the reporting period, indicating stable supplier relationships[197]
福森药业(01652) - 2020 - 年度财报