HISUN(SH:600267)2014-04-21 16:00Financial Performance - The net profit for the parent company in 2013 was CNY 98,219,730.63, with a statutory surplus reserve of CNY 9,821,973.06 being allocated [4]. - The total distributable profit for shareholders in 2013 amounted to CNY 1,386,094,971.15 after deducting cash dividends of CNY 92,367,996.38 [4]. - A cash dividend of CNY 1.1 per 10 shares (including tax) is proposed, totaling CNY 92,367,996.38 for distribution [4]. - In 2013, the company achieved operating revenue of CNY 8.60 billion, a year-on-year increase of 48.31% compared to CNY 5.80 billion in 2012 [28]. - The net profit attributable to shareholders was CNY 301.86 million, a slight increase of 0.19% from CNY 301.29 million in 2012 [28]. - The total profit for the year was CNY 662 million, a significant increase of 100.44% compared to the previous year [35]. - The company reported a basic earnings per share of CNY 0.36, unchanged from 2012 [29]. - The weighted average return on equity was 6.31%, a decrease of 0.27 percentage points from 2012 [29]. - The company reported a net loss from investment activities of CNY 1,928,640,174.36, which is a 15.83% increase in losses compared to the previous year [59]. - The company’s financial expenses increased by 137.71% to CNY 139,202,344.23, primarily due to increased bank borrowings to expand production [60]. Operational Highlights - The company operates in the pharmaceutical sector, focusing on chemical raw materials, intermediates, and various forms of drug production and sales [20]. - The company has expanded its business scope to include veterinary medicine since January 2007 [20]. - The audit report for 2013 was issued by Tianjian Accounting Firm with a standard unqualified opinion [4]. - The company achieved a revenue of CNY 8.60 billion, a 48.31% increase compared to the previous year, primarily driven by the contribution from its subsidiary, Haizheng Pfizer Pharmaceutical [45]. - Sales revenue reached CNY 4.32 billion, with Haizheng's formulation products growing by 38% and net profit at CNY 445 million [40]. - The company reported a significant increase in sales expenses, which rose by 232.55% to CNY 1.25 billion, reflecting the growing scale of its formulation business [43]. - The company has a dedicated R&D team of 669 personnel, with 34% holding advanced degrees [76]. - The company has focused on new product development and technological innovation, enhancing its competitive edge in the pharmaceutical market [72]. Research and Development - The company aims to enhance its R&D capabilities to transition from raw materials to formulations and from generic drugs to innovative drugs [35]. - The company increased R&D investment to CNY 397 million, accounting for 4.61% of total revenue, ensuring sustainable long-term growth through a rich product pipeline [36]. - The company submitted 28 domestic registration applications and approved 5 for production, along with 2 for clinical trials, demonstrating strong regulatory progress [36]. - The company applied for 39 patents, including 17 PCT applications, highlighting its commitment to innovation and intellectual property development [36]. - The company is developing 8 new innovative drugs, with HS-25 approved in Singapore and entering Phase II clinical trials in the US [74]. Market and Sales - The gross profit margin for the company's products improved by nearly 9 percentage points compared to the previous year [35]. - The sales revenue from the company's formulations increased by 10 percentage points compared to the same period last year [35]. - Revenue from the oncology drugs segment was CNY 966,677,751.84, with a year-on-year growth of 31.97% [64]. - The sales revenue from anti-infection drugs increased by 5.87%, totaling CNY 511,054,184.55 [63]. - Domestic market revenue accounted for CNY 7,704,337,655.39, reflecting a growth of 55.14% [66]. Corporate Governance - The company emphasizes the importance of risk awareness regarding forward-looking statements in its reports [5]. - The company has established a sustainable product reserve system in the biopharmaceutical sector [73]. - The company is actively seeking international cooperation to enhance its formulation export strategy, moving away from traditional processing models [74]. - The company has a diverse board with members having extensive experience in various sectors, including pharmaceuticals and finance [170]. - The company emphasizes the importance of independent directors in its governance structure, enhancing oversight and strategic direction [172]. Environmental and Compliance - The company’s environmental management system has been certified with ISO14001 since 2001, and it has established an EHS management system since 2005 [114]. - The company adheres to the GB8978-1996 wastewater discharge standards, ensuring all wastewater is treated to meet standards before discharge [115]. - The company’s waste gas emissions comply with GB16297-1996 standards, utilizing advanced treatment processes to control odor emissions [115]. - The company has implemented strict measures for hazardous waste management, ensuring proper disposal and treatment [116]. Shareholder Information - The total number of shareholders at the end of the reporting period was 27,724, with the top shareholder, Zhejiang Haizheng Group Co., Ltd., holding 38.20% of shares [154]. - Zhejiang Haizheng Group Co., Ltd. holds 320,783,590 shares, representing a significant portion of the company's equity [155]. - The company revised its profit distribution policy to protect minority shareholders' interests, ensuring clarity in cash dividend standards and procedures [111]. - The company reported a net profit for the reporting period, with undistributed profits being positive, but no cash dividend distribution plan was proposed [112]. Employee and Management - The total number of employees in the parent company is 3,988, while the main subsidiaries have 4,440 employees, resulting in a total of 8,428 employees [183]. - The professional composition includes 2,984 production personnel, 2,109 sales personnel, 2,568 technical personnel, 132 financial personnel, and 635 administrative personnel [183]. - The company implements an incentive-based comprehensive compensation system, focusing on position, ability, and performance [184]. - The total remuneration for all directors, supervisors, and senior management in the reporting period amounted to 14.89795 million yuan [180].