Starry(SH:603520)2018-04-27 16:00Financial Performance - The company's operating revenue for 2017 was CNY 710,939,018.55, representing a year-on-year increase of 5.65% compared to CNY 672,945,253.58 in 2016[21]. - The net profit attributable to shareholders for 2017 was CNY 83,116,974.36, an increase of 9.19% from CNY 76,121,539.73 in 2016[21]. - The net profit after deducting non-recurring gains and losses decreased by 17.83% to CNY 59,630,452.03 in 2017 from CNY 72,565,578.48 in 2016[21]. - The cash flow from operating activities increased significantly by 135.74% to CNY 18,104,512.00 in 2017, compared to CNY 7,679,734.60 in 2016[21]. - The total assets at the end of 2017 were CNY 2,013,370,502.43, reflecting a growth of 6.33% from CNY 1,893,518,937.53 at the end of 2016[21]. - The basic earnings per share for 2017 was CNY 0.69, a slight increase of 1.47% from CNY 0.68 in 2016[23]. - The weighted average return on equity for 2017 was 10.01%, down from 10.80% in 2016, a decrease of 0.79 percentage points[23]. - The company reported a 23.08% decrease in basic earnings per share after deducting non-recurring gains and losses, falling to CNY 0.50 in 2017 from CNY 0.65 in 2016[23]. - The company achieved total revenue of 711 million RMB, a year-on-year increase of 5.65%[58]. - The net profit attributable to the parent company was 83.12 million RMB, reflecting a year-on-year growth of 9.19%[58]. Cash Dividends - The company plans to distribute cash dividends of 5 CNY per 10 shares to all shareholders based on the share capital as of December 31, 2017[4]. - For 2017, the proposed cash dividend is 5 million RMB per 10 shares, totaling 60 million RMB, representing 72.19% of the net profit attributable to the parent company[145]. - The cash dividend distribution plan for 2017 is subject to approval at the annual shareholders' meeting[145]. - In 2016, the company distributed a cash dividend of 3 million RMB per 10 shares, totaling 36 million RMB, which accounted for 47.29% of the net profit attributable to the parent company[145]. Research and Development - Research and development investment reached 61.51 million yuan, an increase of 22.95% compared to the previous year, with 21 patents granted and 12 patents pending[48]. - The company invested 61.5068 million RMB in R&D, accounting for 8.65% of its annual revenue, focusing on the development of non-ionic X-CT contrast agents and fourth-generation quinolone antibiotics[100]. - The R&D investment for formulation products was RMB 3,106.83 million, with a year-on-year increase of 104.01%[107]. - The company has several ongoing R&D projects, including the synthesis of iodinated contrast agents, with various stages of progress reported[110]. - The company aims to transition from raw materials to formulations and from generic drugs to innovative drugs, emphasizing the importance of a rich product pipeline for sustainable growth[111]. Market Position and Strategy - The company operates in the chemical raw materials pharmaceutical sector, classified under the pharmaceutical manufacturing industry[40]. - The company is the only one in China to have obtained production approval for iodipamide and ranks first in domestic production capacity and output of iohexol as of December 31, 2017[42]. - The company has established long-term business relationships with major pharmaceutical companies such as Yangtze River Pharmaceutical Group and Hengrui Medicine, enhancing its market presence[50]. - The company is focusing on sustainable development strategies and enhancing its R&D capabilities through collaborations with renowned domestic universities and research institutions[42]. - The company is expanding its product line in X-ray contrast agents and is actively pursuing the development of MRI contrast agents to become a leader in the full industry chain[42]. Sales and Marketing - Sales strategy includes direct sales for domestic markets and a combination of direct and distributor sales for international markets, with a focus on contract-based agreements[37]. - The company tracks international market dynamics and adjusts pricing based on feedback from overseas distributors and market conditions[38]. - The sales performance is evaluated based on annual economic indicators, with specific processes for overseas sales planning and customer engagement[39]. - The domestic market revenue was 432 million RMB, with a gross margin of 42.71%, while international revenue was 266 million RMB with a margin of 28.23%[64]. Environmental and Social Responsibility - The company has established a comprehensive EHS management system to enhance safety, health, and environmental management[11]. - The company is committed to environmental sustainability by innovating in iodine recovery processes to reduce costs and wastewater discharge[132]. - The company has implemented strict measures for solid waste management, including classification and centralized disposal by qualified environmental companies[182]. - The company has a comprehensive environmental management system, including regular monitoring and third-party assessments of emissions[183]. - The company has set up a charity fund of 20 million RMB to support employees with serious illnesses and participate in various public welfare activities[177]. Corporate Governance - The company emphasizes the importance of accurate and complete financial reporting, with key personnel responsible for its integrity[8]. - The company has a continuous commitment to transparency and accountability in its operations and shareholder relations[150]. - The company will adhere to the approval procedures for related party transactions as stipulated in its articles of association and relevant laws[150]. - The company has established a framework to handle potential conflicts of interest arising from its shareholders' positions[150]. - The company has no major litigation or arbitration matters during the reporting period[161]. Asset Management and Financial Strategy - The total amount of guarantees provided by the company, including those to subsidiaries, is RMB 557.4 million, which accounts for 63.70% of the company's net assets[165]. - The company engaged in wealth management by purchasing financial products totaling RMB 80 million from idle raised funds[168]. - The company has invested RMB 15 million in a principal-protected wealth management product with an annualized return of 2.8%, which has been fully recovered[169]. - The company has also invested RMB 30 million in a principal-protected product with an annualized return of 2.65%, which has been fully recovered[169]. - The company has a total of RMB 40 million invested in a high liquidity wealth management product with an annualized return of 3.5%, which has been fully recovered[172]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 15,055, a slight decrease from 15,057 in the previous month[190]. - The top ten shareholders hold a total of 92,000,000 shares, representing 76.67% of the total shares[192]. - The largest shareholder, Hu Jingsheng, holds 25,650,000 shares, accounting for 21.38% of the total shares, and has pledged these shares[192]. - The second-largest shareholder, Hu Jian, holds 22,500,000 shares, which is 18.75% of the total shares, also pledged[192]. - The company has no changes in the total number of ordinary shares and share capital structure during the reporting period[186].