Company Performance - The company ranked 38th among the top 100 wholesale enterprises in China by main business revenue in 2017[2]. - The sales scale ranked 7th among pharmaceutical distribution companies in Guangdong Province and 2nd among private enterprises[2]. - The company's operating revenue decreased from RMB 3,935.25 million in 2018 to RMB 3,492.78 million in 2019, a decline of 11.24%[18]. - Gross profit fell from RMB 237.76 million in 2018 to RMB 223.67 million in 2019, a decrease of 5.93%[18]. - Net profit attributable to shareholders decreased by 11.62% from RMB 45.43 million in 2018 to RMB 40.15 million in 2019[18]. - The company's total revenue for 2019 was RMB 3,492.78 million, a decrease of 11.24% compared to the previous year, while the gross profit margin increased by 0.36 percentage points to 6.40%[35]. - The net profit for 2019 was RMB 40.15 million, a decrease of 10.30% year-on-year, with a net profit margin of 1.15%, up 0.01 percentage points[35]. - The company's gross profit decreased to RMB 223.67 million in 2019 from RMB 237.76 million in 2018, with a gross margin improvement from 6.04% to 6.40% due to a reduction in VAT rate from 16% to 13%[45]. Distribution and Logistics - The company has established a highly efficient distribution mechanism with deliveries three times a day within a 10 km radius and once a day within a 250 km radius[2]. - The company has logistics centers in Shantou, Foshan, Zhuhai, and Guangzhou to support its distribution strategy[2]. - The company has a professional transportation service team to ensure efficient delivery of pharmaceutical products[2]. - The distribution network covered 8,301 customers, with an increase of 525 customers compared to the previous year, including 387 more retail pharmacies[31]. - The number of products distributed reached 11,640, an increase of 147 products from the previous year[31]. - The logistics center is expected to be operational by June 2020, integrating advanced logistics solutions to enhance supply chain efficiency[36]. E-commerce and Market Presence - The company operates a self-built B2B e-commerce platform, "Chuangmei e-Pharmacy," for online ordering, inquiries, and payments[2]. - The number of active trading customers on the B2B e-commerce platform reached 6,249, an increase of 611 from the previous year, generating approximately RMB 239.48 million in revenue, up RMB 21.68 million year-on-year[34]. - The company is committed to expanding its market presence in Southern China, focusing on Guangdong Province[2]. - The company is positioned to benefit from policies promoting the development of "Internet + healthcare" and the expansion of primary healthcare markets[14]. Financial Management and Strategy - The company aims to strengthen risk management and improve operational quality while expanding its retail network in Guangdong and surrounding areas[15]. - The company has maintained a prudent financial management strategy to ensure a healthy liquidity position throughout the review period[56]. - The financial management team is committed to maintaining a strong balance sheet, targeting a debt-to-equity ratio of below 0.5 by the end of the fiscal year[76]. - The company has collateralized assets worth approximately RMB 749.45 million to secure bank financing[170]. Governance and Compliance - The company has maintained compliance with the corporate governance code as per the Stock Exchange Listing Rules for the year ending December 31, 2019[96]. - The board consists of seven members, including three executive directors, one non-executive director, and three independent non-executive directors[100]. - The company has a comprehensive governance framework ensuring adherence to applicable rules and regulations[105]. - The company has adopted the standard code for securities transactions by directors and supervisors, confirming compliance by all members[96]. - The company has complied with the listing rules regarding the independence of its non-executive directors[111]. Risk Management - The company has established a risk management mechanism that includes a framework for risk management, business objectives, and regular assessment processes[138]. - The company conducts regular risk assessments, categorizing risks into strategic environmental risks, operational risks, financial risks, and information technology risks[139]. - The risk management committee reviewed the company's risk management strategies and internal control systems on March 25, 2019[129]. Employee and Training - The total employee cost for the year was RMB 66.96 million, down 2.01% from RMB 68.34 million in 2018, with a total of 796 employees as of December 31, 2019[62]. - The company emphasizes employee training and development to enhance market competitiveness[165]. - The company’s secretary, Lin Zhixiong, has participated in no less than 15 hours of relevant professional training as of December 31, 2019[134]. Shareholder Engagement - Shareholders holding more than 3% of shares can propose temporary motions at shareholder meetings, enhancing shareholder engagement[144]. - The company proposed a final dividend of RMB 0.20 per share for the year ended December 31, 2019, subject to shareholder approval[153]. - The company maintains a dividend policy that allows for distribution in cash or stock, contingent on various factors including operational performance and cash flow[154].
创美药业(02289) - 2019 - 年度财报