TAIJI GROUP(SH:600129)2017-04-28 16:00Financial Performance - The net profit attributable to shareholders for 2016 was CNY 853,318,457.42, a significant increase of 268.43% compared to CNY 231,606,900.03 in 2015[2]. - The total operating revenue for 2016 reached CNY 7,788,055,733.36, reflecting an 8.60% increase from CNY 7,171,457,199.22 in 2015[19]. - The basic earnings per share for 2016 was CNY 2.00, up 268.66% from CNY 0.5425 in 2015[21]. - The company reported a net profit of CNY -442,798,304.51 after deducting non-recurring gains and losses, an improvement of 17.46% from CNY -536,467,935.42 in 2015[19]. - The company achieved a sales revenue of 7.788 billion RMB in 2016, an increase of 8.60% compared to 7.171 billion RMB in the previous year[41]. - The net profit attributable to the parent company reached 853 million RMB, a significant increase of 268.43% from 232 million RMB in the same period last year[41]. - Industrial sales revenue hit a record high of 3.609 billion RMB, growing by 18.79% year-on-year[42]. - The company reported a significant increase in revenue, achieving a total of 4.2 billion yuan in 2016, marking a year-on-year growth of 15%[164]. Assets and Liabilities - The total assets decreased by 6.08% to CNY 9,420,217,211.21 at the end of 2016, down from CNY 10,030,379,827.58 at the end of 2015[20]. - The company's total liabilities decreased from CNY 8,727,468,425.67 in 2015 to CNY 8,144,214,077.87 in 2016, a decrease of about 6.7%[195]. - The company's cash and cash equivalents decreased from CNY 538,753,627.61 in 2015 to CNY 170,843,981.99 in 2016, a drop of approximately 68.3%[196]. - The total current assets decreased from CNY 5,739,519,896.35 in 2015 to CNY 4,917,915,535.68 in 2016, a decline of about 14.4%[194]. - Current liabilities decreased from CNY 8,065,650,790.26 in 2015 to CNY 6,763,248,990.00 in 2016, a reduction of about 16.2%[195]. Cash Flow - The cash flow from operating activities showed a net outflow of CNY -105,607,735.72, worsening by 63.21% from CNY -64,706,921.27 in 2015[19]. - The net cash flow from operating activities was negative in Q1 and Q2, with CNY -117.61 million and CNY -70.36 million respectively, but turned positive in Q3 at CNY 166.86 million before dropping to CNY -84.49 million in Q4[23]. - The cash flow from financing activities decreased by 47.94% to CNY 1,021,131,194, primarily due to a reduction in financing-related note receipts[60]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 3 per 10 shares, based on a total share capital of 426,894,000 shares[2]. - In 2016, the company distributed a cash dividend of 3.00 RMB per 10 shares, totaling 128,068,200 RMB, which represents 15.01% of the net profit attributable to ordinary shareholders[116]. - The company has implemented a cash dividend policy, distributing at least 10% of the annual profit available for distribution to shareholders, with a cumulative cash distribution of no less than 30% of the average annual distributable profit over the last three years[115]. Research and Development - The company has developed over 40 new drugs and received more than 30 national new drug certificates, showcasing its strong R&D capabilities[38]. - Research and development expenses increased by 54.95% to 53.12 million RMB compared to 34.28 million RMB in the previous year[47]. - The company has over 60 ongoing research projects, with recent approvals for new drugs including sustained-release aspirin and azilsartan tablets[82]. - The company is actively developing new products, including the Danqi Tongmai tablet for coronary heart disease, currently in phase II clinical trials[88]. Market Position and Strategy - The company has a strong market presence with over 10,000 retail pharmacies and a distribution network covering more than 4,000 hospitals[39]. - The company aims to become the largest plant medicine manufacturer globally and the largest pharmaceutical retailer by 2021, targeting a position among the top 5 in China's pharmaceutical industry[108]. - The company is focusing on expanding its retail pharmacy network and enhancing its competitive edge through data-driven category management[111]. - The company has established a nationwide marketing network, primarily selling prescription drugs through hospitals and OTC drugs through retail channels[95]. Risks and Compliance - The company has outlined potential risks and corresponding measures in its annual report, emphasizing the importance of risk awareness for investors[5]. - The company is facing significant risks due to policy changes in the pharmaceutical industry, including new GMP and GSP certifications, which require substantial financial investment and affect revenue and profit margins[113]. - The company has established a system to prevent the occupation of funds by controlling shareholders and affiliates, ensuring compliance with this system[120]. Governance and Shareholder Engagement - The company emphasizes the importance of investor relations management, ensuring fair, timely, and complete information disclosure[178]. - The board of directors convened 9 meetings, with independent directors providing valuable opinions on major issues[176]. - The company held 4 shareholder meetings during the reporting period, ensuring equal voting rights for all shareholders[175]. - The independent directors did not raise any objections to the company's matters during the reporting period[182].