GINWA(SH:600080)2024-12-25 11:02Financial Performance - Net profit attributable to shareholders in 2023 was -42.89 million yuan, a significant decrease compared to the previous year[16] - Operating income for 2023 was 565.40 million yuan, with Q4 contributing the highest at 162.60 million yuan[33] - Basic earnings per share in 2023 was -0.1149 yuan, a decrease of 228.24% compared to 2022[30] - Weighted average return on equity (ROE) in 2023 was -2.58%, a decrease of 4.58 percentage points from 2022[30] - Revenue for 2023 was 565,403,410.11 yuan, a decrease of 2.41% compared to 2022[48] - Net profit attributable to shareholders in 2023 was -42,890,580.25 yuan, a significant decrease of 228.19% compared to 2022[48] - Net cash flow from operating activities in 2023 increased by 15.16% to 60,548,425.38 yuan compared to 2022[48] - Total assets at the end of 2023 increased by 6.79% to 2,108,551,141.95 yuan compared to the end of 2022[48] - Revenue for 2023 was 559,993,170.71 RMB, a slight decrease from 565,071,937.12 RMB in 2022[172] - Operating costs for 2023 were 129,653,842.76 RMB, compared to 128,000,047.29 RMB in 2022[172] - Net profit for 2023 was -20,290,434.95 RMB, a significant decline from 34,373,694.03 RMB in 2022[173] - Cash flow from operating activities in 2023 was 60,548,425.38 RMB, up from 52,578,993.55 RMB in 2022[178] - Cash flow from investing activities in 2023 was 137,760,856.38 RMB, down from 229,868,264.17 RMB in 2022[178] - Sales expenses for 2023 were 338,641,292.73 RMB, slightly lower than 344,947,895.90 RMB in 2022[172] - R&D expenses for 2023 were 15,089,765.04 RMB, a slight decrease from 15,493,151.13 RMB in 2022[172] - Total comprehensive income for 2023 was -22,738,712.81 RMB, compared to 28,461,853.74 RMB in 2022[173] - Cash received from sales of goods and services in 2023 was 576,518,148.48 RMB, down from 598,629,497.07 RMB in 2022[175] - Cash paid for goods and services in 2023 was 65,138,534.78 RMB, slightly higher than 64,191,860.63 RMB in 2022[178] Non-Recurring Items and Impairments - Non-recurring profit and loss items amounted to -45.90 million yuan in 2023, significantly impacting net profit[33] - The company faced significant credit impairment losses of 8.36 million yuan in 2023[33] - Non-recurring losses in 2023 amounted to -45,895,299.40 yuan, primarily due to changes in fair value of financial assets and litigation-related losses[58] - The company's trading financial assets decreased by 88,313,324.28 yuan in 2023, impacting profits by -46,093,976.24 yuan[54] - The company's other equity instrument investments decreased by 17,069,600.00 yuan in 2023[54] - The company's accounts receivable financing decreased by 7,821,038.13 yuan in 2023[54] Business Segments and Market Share - Orthopedics segment revenue: 434.62 million RMB with a gross margin of 85.90%, a slight decrease of 0.28% YoY[83] - Immunology segment revenue: 73.97 million RMB with a gross margin of 53.03%, decreased by 2.02% YoY[83] - Pediatrics segment revenue: 8.16 million RMB, increased by 16.12% YoY with a gross margin of 52.03%[83] - General medicine segment revenue: 43.24 million RMB, decreased by 7.41% YoY with a gross margin of 31.25%[83] - Jintiange Capsule maintained a leading market share of 37.81% in the osteoporosis category of traditional Chinese medicine in key city public hospitals in the first half of 2023[80] - Jintiange Capsule has been included in clinical guidelines and consensus by authoritative institutions such as the National Health Commission and the National Administration of Traditional Chinese Medicine[80] - Osteoporosis drug market share: Jintiange Capsules dominate with 37.81% market share, followed by Gukang Capsules at 10.79% and Gusongbao Capsules at 11.17%[81] - The company's leading product, Jintiange Capsule, has maintained a leading market share in the osteoporosis drug category in key city public hospitals from 2018 to the first half of 2023[103] R&D and Innovation - R&D and product marketing were key focus areas in 2023, though specific details were not provided[37][38] - R&D investment accounted for 3.39% of the parent company's operating income[70] - R&D personnel accounted for 16.00% of the parent company's total workforce[70] - R&D investment: 18.99 million RMB, accounting for 3.36% of total revenue, in line with industry average[87] - The company's R&D investment in 2023 was 47,988.15 million RMB, accounting for 4.97% of its operating revenue[110] - The average R&D investment in the industry was 31,222.82 million RMB, with the company's R&D investment accounting for 3.36% of its operating revenue[110] - The company's R&D investment capitalisation ratio was 20.58%, higher than the industry average of 19.62%[110] - The company invested 1,540.10 million RMB in research and development for marketed drug expansion, with a capitalisation amount of 368.08 million RMB[111] - The company's investment in artificial tiger bone powder research was 171.79 million RMB, with a capitalisation amount of 22.85 million RMB[111] Investments and Subsidiaries - The company's trading financial assets had an initial balance of 145,140,498.91 yuan, with a fair value change loss of -20,035,459.74 yuan during the period[135] - The company sold 100% equity of Jin Hua International Hotel Co., Ltd. for a total consideration of RMB 344.5263 million, with RMB 175.71 million (51%) received by the end of the reporting period[138] - The company transferred 8.39% equity of Chongqing Pharmaceutical Group Shaanxi Co., Ltd. for RMB 14.18 million, completing the transaction in October 2023[138] - The company's investment in Ganfeng Lithium (002460) resulted in a gain of RMB 9.11998552 million, with a final book value of RMB 1.1910384 million[136] - The company's investment in BYD (002594) incurred a loss of RMB 5.65124493 million, with a final book value of RMB 24.453 million[136] - The company's investment in Hengsheng Electronics (600570) resulted in a loss of RMB 3.08133788 million, with a final book value of RMB 11.5792074 million[136] - The company's investment in Shede Liquor (600702) incurred a loss of RMB 9.6517786 million, with a final book value of RMB 2.97836 million[136] - The company's investment in Dongfang Cable (603606) resulted in a gain of RMB 46,070.71[136] - The company's investment in Dongfang Securities (600958) resulted in a gain of RMB 39,294.87[136] - The company's investment in Enjie Co., Ltd. (002812) resulted in a gain of RMB 65,658.08[136] - The company's investment in GAC Group (601238) resulted in a gain of RMB 2,902.18[136] - The company's total investment in real estate and pharmaceutical subsidiaries amounted to 336,000,000 RMB, with a total loss impact of -117,320.24 RMB[115] - The company's securities investment at the end of the period was 56,827,174.63 RMB, with a purchase amount of 1,505,666,597.57 RMB and a sale/redemption amount of 1,573,944,462.11 RMB[115] - Jin Hua International Hotel Co., Ltd. reported a net loss of -1,819.34 million yuan, with total assets of 33,390.71 million yuan and net assets of 30,268.21 million yuan[120] - Xi'an Jishitang Pharmaceutical Co., Ltd. reported a net loss of -37.61 million yuan, with total assets of 73.03 million yuan and net assets of -46.11 million yuan[120] - Xi'an Jin Hua Tiange Pharmaceutical Co., Ltd. reported a net loss of -339.08 million yuan, with total assets of 348.76 million yuan and net assets of -338.24 million yuan[120] - Shaanxi Yizhen Trading Co., Ltd. reported a net loss of -57.24 million yuan, with total assets of 1.16 million yuan and net assets of -57.34 million yuan[120] - Shaanxi Cuibin Management Consulting Co., Ltd. reported a net loss of -1.94 million yuan, with total assets of 0.96 million yuan and net assets of -2.04 million yuan[120] Cash Flow and Financial Position - Net cash flow from operating activities in 2023 increased by 15.16% to 60,548,425.38 yuan compared to 2022[48] - Total assets at the end of 2023 increased by 6.79% to 2,108,551,141.95 yuan compared to the end of 2022[48] - Monetary funds increased by 42.80% to 620,449,552.12 yuan, accounting for 29.43% of total assets[73] - Long-term equity investments increased by 54.85% to 495,208,685.38 yuan, accounting for 23.49% of total assets[73] - The company's cash and cash equivalents increased by 187,094,086.50 RMB in 2023, reaching a total of 619,732,781.67 RMB at the end of the year[148] - Operating cash flow for 2023 was 60,205,257.58 RMB, a slight increase from 52,368,270.85 RMB in 2022[148] - Investment cash flow for 2023 was 137,917,142.96 RMB, a decrease from 229,832,473.17 RMB in 2022[151] - Financing cash flow for 2023 was -10,518,846.02 RMB, compared to -7,112,015.05 RMB in 2022[151] - The company received 175,405,390.44 RMB from borrowing in 2023[148] - Sales revenue from goods and services in 2023 was 572,414,629.62 RMB, slightly lower than 585,760,255.79 RMB in 2022[148] - The company paid 82,771,090.93 RMB to employees in 2023, up from 70,871,981.27 RMB in 2022[148] - Total cash inflow from investment activities in 2023 was 2,317,554,738.41 RMB, compared to 1,586,147,165.85 RMB in 2022[151] - The company's total assets at the end of 2023 were 1,638,426,525.45 RMB[155] - Net profit attributable to parent company owners in 2023 was 444,384,127.77 RMB[155] Equity and Comprehensive Income - Total owner's equity: 1.65 billion RMB, decreased by 22.74 million RMB compared to the beginning of the year[88][90] - Comprehensive income: -22.74 million RMB, mainly due to a decrease in other comprehensive income and undistributed profits[88] - Capital reserve: 779.94 million RMB, unchanged from the beginning of the year[88] - Surplus reserve: 124.97 million RMB, increased by 704,323.50 RMB compared to the beginning of the year[90] - The company's total owner's equity at the beginning of the year was RMB 1,648,339,243.16, with a capital reserve of RMB 779,935,778.81 and undistributed profits of RMB 484,445,082.74[92] - During the reporting period, the company's comprehensive income decreased by RMB 5,911,840.29, while undistributed profits increased by RMB 30,936,324.63, resulting in a net increase in owner's equity of RMB 28,461,853.74[92] - The company's total owner's equity at the end of the period was RMB 1,676,801,096.90, with a capital reserve of RMB 779,935,778.81 and undistributed profits of RMB 515,381,407.37[95] - The company's equity at the end of the period was RMB 1.68 billion, with a decrease of RMB 116.05 million in retained earnings[160] - The company's equity at the beginning of the period was RMB 1.66 billion, with a decrease of RMB 110.14 million in retained earnings[159] - The company's total owner's equity at the beginning of the year was 1,683,765,383.56, with a decrease of 45,338,858.11 during the period[188] - The comprehensive income for the period showed a loss of 45,338,858.11, primarily due to a decrease in other comprehensive income of 9,491,512.86 and a reduction in undistributed profits of 36,551,668.75[188] - The company's capital reserve (capital surplus) stood at 821,345,676.32 at the beginning of the year[188] - The company's undistributed profits at the beginning of the year were 480,935,796.52, which decreased by 42,890,580.25 during the period[188] - The company's other comprehensive income showed a negative balance of 116,054,721.41 at the beginning of the year, which further decreased by 2,448,277.86 during the period[188] Corporate Governance and Regulatory Issues - The company did not implement any profit distribution or capital reserve to share capital conversion plan for 2023 due to negative net profit[16] - The company resolved a historical illegal guarantee risk in 2023, with full deposit received and risk eliminated[18] - The company adjusted its marketing structure to stabilize market share and deepen core channels, focusing on academic and value-driven marketing[57] - In 2023, the company faced challenges from industry policies and competition, but focused on innovation and compliance transformation[61] - The company plans to focus on core business, deepen marketing management, and strengthen communication mechanisms in 2024, aiming for comprehensive development and market expansion[123] - The company transferred 36% of its equity in Shaanxi Herunyi Industrial Co., Ltd. for 1 yuan and 40% for 1 yuan, reducing its stake to 24% and investing a total of 166 million yuan in 2023[134] - Board of Directors and senior management changes, including the election of new Chairman Xing Yajiang and Vice Chairman Xing Boyue[199] - The company received a public reprimand from the Shanghai Stock Exchange for its current actual controller and Vice President Xing Boyue[199] - The company was issued a warning letter by the Shaanxi Regulatory Bureau of the China Securities Regulatory Commission[199] - The company and its Board Secretary Sun Ming were criticized by the Shanghai Stock Exchange[199] Industry and Market Trends - The osteoporosis drug market in China has shown a steady growth trend, with the market size increasing from RMB 9.82 billion in 2017 to RMB 11.36 billion in 2022[101] - In 2022, the prevalence of osteoporosis in the population aged 50 and above was 19.2%, with a higher prevalence in females (32.1%) compared to males (6.9%)[101] - The Chinese government has introduced multiple policies to promote the development of the pharmaceutical industry, including the "High-Quality Development Action Plan for the Pharmaceutical Industry (2023-2025)"[98] - The aging population in China is increasing, with 280.04 million people aged 60 and above, accounting for 19.8% of the total population in 2022[101] - The company operates in the pharmaceutical manufacturing industry, specifically in the production of traditional Chinese medicine for orthopedic treatment[100] - The company's main product, Jintiange Capsules, achieved a total actual procurement volume of 846,000 boxes (24 capsules/box) with a bid price range of 40.31-43.38 RMB per box[105] - Jintiange Capsules (36 capsules/box) had a total actual procurement volume of 311,000 boxes with a bid price range of 60.46-65.08 RMB per box[105] - Transfer Factor Capsules (24 capsules/box) recorded a total actual procurement volume of 540,000 boxes with a bid price range of 18.3-19.02 RMB per box[105] Board and Committee Activities - The company's audit committee held 6 meetings during the reporting period, focusing on annual reports, financial statements, and internal control evaluations[191] - The company's board of directors approved the 2022 annual report, financial statements, and profit distribution plan during the 27th meeting of the 9th board on April 26, 2023[184] - The company's board of directors approved the application for comprehensive credit from banks and the establishment of new fundraising accounts during the 26th meeting of the 9th board on January 13, 2023[184] - The company's audit committee reviewed and approved the 2023 semi-annual report and the