HANSOH PHARMA(03692)2021-04-27 09:34R&D and Innovation - The company launched 10 new drugs in domestic and international markets during the year, including the innovative drug Amivantamab (Ameile) and three first generic drugs[4]. - The company submitted 23 new drug applications, including the innovative drug Aemitriptyline and the biologic drug Inebilizumab[4]. - The company has been recognized for its R&D efforts, receiving awards such as the National Science and Technology Award (Second Class) from the State Council in 2013 and 2014[6]. - The company’s innovative drug Amivantamab was approved for the treatment of locally advanced or metastatic non-small cell lung cancer (NSCLC) in March 2020[8]. - The company has increased its R&D investment year by year, establishing a comprehensive R&D platform and proprietary technologies[4]. - The company was awarded the title of "Best Industrial Enterprise for R&D Product Line" by the China Pharmaceutical Industry Information Center in 2020[8]. - The company has received drug registration approvals for multiple new products, including "SGLT2 Inhibitor" and "DPP-4 Inhibitor" for type 2 diabetes treatment, enhancing its product line[18]. - The company has obtained clinical trial notifications for several innovative drugs, indicating a strong pipeline for future product development[18]. - The innovative drug "Paliperidone Orally Disintegrating Film" received drug registration approval, expanding the central nervous system product line[18]. - The company aims to enhance its market presence through the introduction of new products and strategic partnerships[19]. - The company plans to continue focusing on innovation and expanding its product pipeline to drive future growth[14]. - The company has over 1,600 researchers across three development centers, focusing on new product development in oncology, anti-infection, CNS diseases, and diabetes[25]. Financial Performance - In 2020, the company recorded revenue of approximately RMB 8.69 billion, a slight increase of 0.1% compared to the previous year[16]. - The net profit for 2020 was approximately RMB 2.57 billion, reflecting a growth of 0.5% year-on-year[16]. - The earnings per share (EPS) was approximately RMB 0.44, a decrease of 6.3% compared to the previous year[16]. - The total assets increased to RMB 20.79 billion in 2020, up from RMB 19.58 billion in 2019[12]. - The total liabilities decreased significantly to RMB 2.92 billion in 2020, compared to RMB 6.53 billion in 2019[12]. - The company reported a total comprehensive income of RMB 1,590,713 thousand for 2020, down from RMB 2,742,028 thousand in 2019, a decline of 42.1%[142]. - The company reported a pre-tax profit of RMB 3,098,299,000, compared to RMB 3,000,925,000 in the previous year[152]. - The net cash flow from operating activities was RMB 2,390,479,000, down from RMB 3,329,689,000 in 2019[152]. - The company reported a loss on the sale of property, plant, and equipment of RMB 39,000, compared to RMB 1,291,000 in the previous year[152]. - The company’s retained earnings as of December 31, 2020, were RMB 17,875,598,000, an increase from RMB 13,044,322,000 in 2019[150]. Corporate Governance - The board of directors consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced governance structure[36]. - The audit committee, consisting of three independent non-executive directors, reviewed the consolidated financial statements for the year ending December 31, 2020, ensuring compliance with applicable accounting standards and listing rules[52]. - The company has established professional committees, including the audit committee, remuneration committee, and strategy and development committee, to operate under defined terms of reference[51]. - The company has a governance policy that is regularly reviewed to ensure compliance with corporate governance codes[42]. - The board structure includes a separation of roles between the chairman and the CEO, although currently, the same person holds both positions[42]. - The company encourages ongoing professional development for directors to keep their knowledge and skills updated[47]. - The board confirmed its responsibility for preparing the financial statements, ensuring they reflect the true and fair financial position of the company[65]. - The company has a robust governance structure with independent directors actively overseeing compliance and operational integrity[98]. Social Responsibility and Community Engagement - The company actively engaged in charity efforts during the COVID-19 pandemic, donating resources and funds to affected areas[16]. - The company has received various accolades for its commitment to social responsibility and green supply chain management[8]. - The company made charitable donations totaling approximately RMB 48.84 million during the review year[95]. Market and Product Strategy - Revenue from the oncology product portfolio reached approximately RMB 4 billion, accounting for about 46.0% of the total revenue[20]. - Revenue from the anti-infection product portfolio reached approximately RMB 1.794 billion, accounting for about 20.7% of total revenue[22]. - Revenue from the central nervous system disease product portfolio reached approximately RMB 1.333 billion, accounting for about 15.3% of total revenue[23]. - Revenue from the metabolic and other fields product portfolio reached approximately RMB 1.563 billion, accounting for about 18.0% of total revenue[24]. - The company is focusing on high-incidence solid tumors and hematological malignancies in its oncology strategy[20]. Shareholder and Financial Structure - The company reported a proposed final dividend of RMB 0.0651 per share for the year ended December 31, 2020, compared to no dividend in 2019[78]. - The total remuneration paid to the external auditor, Ernst & Young, was RMB 3,760,000, which includes RMB 3,079,000 for audit services and RMB 681,000 for non-audit services[69]. - The company has a significant ownership structure, with Ms. Zhong Huijuan and Ms. Sun Yuan each holding 3,900,000,000 shares, representing 65.89% of the total shares issued as of December 31, 2020[105]. - The company maintained a lower public float of 16.21% as permitted by the Stock Exchange[115]. - The company has not purchased, sold, or redeemed any of its listed securities during the review year[91]. Financial Reporting and Compliance - The financial statements are prepared based on historical cost principles, with certain financial assets measured at fair value[159]. - The consolidated financial statements include the company and its subsidiaries for the year ended December 31, 2020, with consistent accounting policies applied[160]. - The group has established policies regarding related parties, which include individuals with control or significant influence over the group and entities that are members of the same group[172]. - The audit report was issued on March 30, 2021, by Ernst & Young, indicating compliance with relevant ethical requirements[138]. - The company has confirmed compliance with relevant laws and regulations in China regarding drug research, production, and distribution, with no significant violations reported for the year ending December 31, 2020[97].