Financial Performance - The total revenue for the year ended December 31, 2018, was RMB 647,672,000, representing an increase of 0.4% compared to RMB 645,303,000 in the previous year[19]. - Profit attributable to owners of the Company increased to RMB 161,216,000 from RMB 144,402,000 last year[19]. - Basic earnings per share rose to RMB 28.78 cents from RMB 25.77 cents in the previous year[19]. - The profit attributable to equity holders increased from RMB 144,402,000 to RMB 161,216,000, reflecting a growth of approximately 11.8%[22]. - Basic earnings per share rose from RMB 25.77 to RMB 28.78, marking an increase of about 7.8%[22]. - For the year ended 31 December 2018, the Group's revenue increased to approximately RMB 647,672,000, representing a growth of about 0.4% compared to RMB 645,303,000 in 2017[30]. - The profit attributable to owners of the Company for the year was approximately RMB 161,216,000, an increase of 11.6% from RMB 144,402,000 in the previous year[31]. - Basic earnings per share rose to RMB 28.78 cents, up from RMB 25.77 cents, reflecting an increase of RMB 3.01 cents[31]. - The gross profit margin for the year ended December 31, 2018, was approximately 82.2%, a decrease of 0.1% from 82.3% in 2017[33]. - Other income and gains for the year ended December 31, 2018, were approximately RMB 58,188,000, compared to RMB 24,008,000 in 2017[33]. - Distribution and selling costs increased to approximately RMB 375,480,000 in 2018, accounting for 57.97% of revenue, up from 51.93% in the previous year, representing a 6.04% increase[33]. - Administrative expenses decreased to approximately RMB 28,450,000 in 2018 from RMB 47,165,000 in 2017[33]. - The financial performance for 2018 indicates a stable growth trajectory, with detailed figures available in the annual report[57]. Product Development and Innovation - The company focused on the sales growth of its leading product, Hai Kun Shen Xi capsule, and expanded sales of its branded product, Compound Huonaoshu capsule[21]. - The company emphasized research and development of new drugs, collaborating with pharmaceutical universities and research institutes to enhance technological advancements[26]. - The R&D department successfully developed the Hai Kun Shen Xi capsule, which has become the largest contributor to revenue[31]. - The Group launched a new product, Changbai Mountain wild walnuts milk, through its wholly-owned subsidiary, enhancing its product offerings[31]. - The company has been involved in the research and development of new medicines, including Infantile spleen-strengthening oral solution and Ginseng Glycopeptide Injection[52]. - The company has achieved a leading international level in research studies related to ginseng polysaccharide[52]. - The company is committed to expanding its market presence and enhancing its product offerings through ongoing research and development efforts[52]. - Jilin Province Huinan Changlong Bio-pharmacy Company Limited reported significant advancements in drug development, with three new drugs successfully developed, including pediatric health tonic and ginseng peptide injection[54]. - The company has revised and improved nearly 100 drug standards, which have been successfully transformed in local enterprises[54]. - The company holds five invention patents, showcasing its commitment to innovation in the pharmaceutical sector[54]. - The company has a strong focus on innovation, as evidenced by the patents and awards received by its team members[44][52]. Corporate Governance and Management - The Board of Directors expressed satisfaction with the financial performance, attributing profitability to strong sales and distribution efforts[31]. - The Audit Committee was established on May 24, 2001, to oversee financial reporting and internal control systems[104]. - The Company has complied with the Corporate Governance Code as set out in Appendix 15 of the GEM Listing Rules throughout the year ended December 31, 2018[109]. - The Board comprises nine Directors, with six Executive Directors and three Independent Non-Executive Directors (INEDs) as of the report date[112]. - The Audit Committee is composed exclusively of Independent Non-Executive Directors, ensuring independent oversight[121]. - The Company has implemented adequate systems of internal controls and risk management procedures as part of its corporate governance practices[112]. - The Company has provided continuous professional development for Directors to keep them updated on statutory and regulatory changes[129]. - The Remuneration Committee is responsible for determining specific remuneration packages for all Executive Directors, considering factors like comparable salaries and performance-based remuneration[136]. - The Nomination Committee evaluates potential candidates based on professional expertise, relevant experience, and personal integrity[147]. - The Company ensures that all Directors receive tailored induction and ongoing updates to facilitate their responsibilities under GEM Listing Rules[128]. Environmental and Social Responsibility - The Company is committed to energy saving, consumption reduction, and minimizing environmental impact through various initiatives[180]. - The Group has complied with the "comply or explain" provisions of the Environmental, Social and Governance Reporting Guide[179]. - The Company has established a comprehensive management system for occupational health and safety, with no significant safety incidents reported as of December 31, 2018[187]. - The Group actively fulfills its social responsibilities while balancing development and environmental protection[180]. - The Company has implemented a recycling system to reduce water resource usage during production[181]. - The Group emphasizes the importance of product compliance and conducts self-inspections to manage quality and safety risks[193]. - The Group actively engages with local communities to contribute to their development and encourages staff to volunteer their time and skills[196]. Financial Position and Assets - As of December 31, 2018, the Group's total assets were RMB 1,554,841,000, an increase from RMB 1,238,072,000 in 2017[33]. - The ratio of total liabilities to total assets was 27% in 2018, up from 18% in 2017, with total liabilities amounting to RMB 421,816,000[36]. - The Group had a gearing ratio of 0.2% as of December 31, 2018, compared to 0.3% in 2017[36]. - The Group maintained cash and bank balances of RMB 158,340,000 as of December 31, 2018, compared to RMB 110,428,000 in 2017[36]. - Total assets as of December 31, 2018, amounted to RMB 1,554,841,000, a significant increase from RMB 1,238,072,000 in 2017, representing a growth of about 25.5%[63]. - Total liabilities increased to RMB 421,816,000 in 2018 from RMB 227,045,000 in 2017, marking an increase of approximately 85.7%[63]. - Net assets rose to RMB 1,133,025,000 in 2018, compared to RMB 1,011,027,000 in 2017, indicating a growth of about 12.0%[63]. Compliance and Risk Management - The Group's operations comply with local and national anti-corruption legislation, including the Prevention of Bribery Ordinance in Hong Kong[196]. - Employees are required to adhere to a code of business ethics, prohibiting any corrupt or bribery behavior as per employment contracts[196]. - The Group is committed to identifying, monitoring, and managing risks associated with its business activities through an effective control system[160]. - The internal control system of the Group is reviewed continuously by the Board, which is satisfied that the current internal controls are satisfactory[160].
吉林长龙药业(08049) - 2018 - 年度财报